San Leandro Marina Alts Study_Final

Home

4. Alternatives Table 4-9 above presents a range of costs (30 percent variance) that could be anticipated by the City for capital improvements and operational expenses for each alternative. Reasonable assumptions about the phasing of capital improvements for each alternative are included. Attachments A - E provide greater detail for each alternative for how these amounts were generated. Revenue Unless there are very specific entertainment or recreational features, public parks and open space areas that are "open" do not have the advantage of a singular entry gate for access control and fee collections, and thus do not generate sufficient revenues to match or exceed operational costs. For all alternatives, the true revenue potential of the Harbor Basin is as a value-added amenity for surrounding development. This value is not easily quantifiable but generally buttresses occupancy rates of hotels, attendance at restaurants, and real estate values of businesses and residences. Excluding dredging costs, the Marina Park Alternative would essentially pay for its operational costs. However, when including dredging costs, the proposed Marina would remain a subsidized facility. None of the other alternatives, when weighted against the operational costs, would generate a positive cash flow. No Action Alternative: No direct revenues to the City would be anticipated. Marina Park: Current revenues for the Harbor are presented in Table 4-10. These revenues represent an occupancy rate of approximately 38 percent or 173 berths. Table 4-11 presents revenues that could be expected under this Alternative. The existing occupancy rate and revenue is assumed to be maintained under this alternative with relatively minor additional revenue expected through the rental of the beach stage for special events. Aquatic Park: As in the Marina Park Alternative, potential rentals of the beach event area could be anticipated to generate a modest amount ($7,500) annually. The degree to which marketing and programming of the space occurs would affect that value. The non -motorized craft rental facility is assumed to be concession -operated. Revenues would be generated through day -use boat rentals for school trips, boating classes, or general public day -use outings that explore the Harbor Basin water trail (potentially including the South Basin should it be developed as a wetland area). Over time as the greater Bay Water Trail becomes a reality, some kayakers and other non -powered watercraft could be expected to pay for docking overnight at the rental area and stay at one of the nearby hotels within walking distance. Such a concession could generate approximately $10,000 to $30,000 through a lease, through a percentage of gross revenues, or both. However, the revenues generated would not offset overall operational costs of the Harbor Basin area by the City. Nature Park: The Nature Park would have no features that in and of themselves would generate income. San Leandro Marina Harbor Basin 4-22 ESA / 210461 Alternatives Study March 2011