PORT OF FRIDAY HARBOR

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Hearing on Assigning Business Moorage Licenses

posted 05/00
Port Commissioners set a May 10 date for a public hearing on a policy about Assigning Business Moorage Licenses.

The purpose of the policy is to keep business moorage berths in active use. When a business moorage is not kept in active use, people cannot use the space to begin a new business or expand an existing one.

The draft version of the policy is printed at the bottom of this page.

Draft of Business Moorage Slip Assignment / Transfer Policy:

Slips are assigned for marine business uses only by the Port Commission. The purpose of commercial berthage is to stimulate the growth of small businesses which can provide jobs which permit employees island living wage jobs. Because there are a limited number of berths which can be used by businesses the Port Commission want to be sure each is used by businesses which actively contribute jobs and income to our community

The Port Commission needs the following information prior to their considering an application for a business moorage license:

1. Description of the business (provide a pro-forma if one is available).
   Type/size of vessel.
   Expected number of customers per day and per season.
   Support facilities and services expected from the Port.
   Parking, garbage and hazardous waste handling plan.
   Water needed.
   
   
2. Evidence of adequate capitalization of the business.
   
   
3. Statement from the harbormaster of previous compliance with the Lessor's marina policies (if a previous customer of the marina - or if a customer of another marina then a statement from the harbormaster in other location).
   
   
4. Description of the experience in the type of business described in the application.
   
   
5. Personal or business references which indicate the ability to successfully manage the business and / or meet the obligations of the business.

A written agreement containing the following:

1. A statement that the applicant agrees to be bound by all of the terms, rules and conditions of this license and business agreement including Best Management Practices.
   
   
2. The full name, physical or residential address, mail address and telephone number of the applicant for the purpose of the Port being able to give legal notices under terms of the contract; and
   
   
3. A statement describing whether the business is to be operated and owned by an individual, a corporation, a general or limited partnership or a limited liability company, and if the applicant is a corporation, the names of such corporation's registered agent, principal officers and of its directors and state of incorporation; or if such applicant is a partnership, the names and addresses of all of the partners of such partnership of the registered agent, or if such applicant is a limited liability company, the names and addresses of all members and the managers of such limited liability company; and
   
   
4. In the case of a corporation, state the amount of capital stock assigned and the total amount of capital stock outstanding at the time of the assignment; and in the case of a partnership, state the total capitalization of the partnership and the percentage of ownership of each partner; and in the case of a limited liability company, state the total capitalization of the limited liability company and the percentage interest of each member.
   
   
5. If the agreement requested is an assignment of moorage of an existing business then provide a business plan from the proposed assignee showing any change in the type, scale or method of business operation.

Timing

Application information may be provided to the Harborbormaster's office anytime after you place your name on the business moorage waiting list. The information will need to be updated when your name comes to the top of the waiting list and prior to the time the Port Commission considers your request.

The business moorage assignments will be considered at regular meetings of the Port Commission which are usually held on the second and fourth Wednesdays of each month. Application information must be received no later than Friday prior to the Port Commission meeting at which the assignment will be considered.

Transfer of Moorage Agreements

The Port Commission has the option of assigning business moorage contracts when a business is sold. The Commission only assigns moorage agreements when a business has remained in operation for the previous two years prior (seasonally if a seasonal business) and is considered a viable business.

Viability is defined as providing a reasonable income for the owner, making payroll of all employees, complying with Port rules, moorage agreements and BMPs (best management practices) and remaining current on its moorage payments. The Port Commission may ask for financial records, tax statements, manifests and other written information to demonstrate the viability of a business.

The sales price of a marine business cannot value the moorage or its location in the marina. All moorage agreements are month to month contracts. The Port Commission reserves the right to change the terms of moorage agreements, move boats from one slip to another or make additional demands upon moorage customers in order to meet current Best Management Practices or meet the requirements of local, state or federal agencies or achieve other Port District objectives..

Security and Insurance

Security is required for all Port leases according to RCW 53.08.085. The security arrangements differ from one agreement to the next are not necessarily transferrable when a business is sold. Insurance requirements vary depending upon the type or intensity of business or the type of equipment used by the assignee.

Duration

Business moorage licenses must be renewed / updated each year. Best Management Practices are updated as requirements and technology changes.

All moorage agreements are month to month agreements however there is the assumption that they will continue month to month unless there is cause to terminate the agreement.

Insurance

All businesses which operate in the marina must have proof of liability insurance on file with the Port. The amount of insurance required depends upon the type of activity in which the business is engaged. Insurance binders or statements of insurance must include a list of inclusions or a statement from the insurance agent stating the activities that are covered and excluded from the policy.