Joseph Cranney , joey.cranney@naplesnews.com; 239-213-6035Published 4:31 p.m. ET March 15, 2017 | Updated 5:15 p.m. ET March 15, 2017
Naples taxpayers could cover some costs of rebuilding the city dock after the Naples City Council agreed Wednesday to loan $6.5 million from the city’s investment pool to pay for the project.
The council unanimously approved the 20-year internal loan, with annual $325,000 payments from the dock’s cash reserves, plus a low-rate interest that could be covered by taxpayers if the dock can’t afford it.
The council had been hoping to avoid using taxpayer money to subsidize the dock, which operates its $1.4 million budget separately from the city’s $43 million general fund.
City Manager Bill Moss told the council the subsidy is fair because the dock is widely used by the public. A 2015 city survey found 56 percent of residents use the dock, Moss said.
“We thought that recognizes the importance of the city dock,” he said. “It’s a public facility, even though the space is leased to vessel owners.”
Unlike most other city funds, the dock covers its expenses with its own revenues from fuel money and boat rent. City Harbormaster Roger Jacobsen said the dock had about $900,000 in cash at the end of the last fiscal year.
Related Story: One vision of new Naples dock could cost $8.3M, more than the city’s planned $5M estimate
The Naples City Council approved plans for a multimillion-dollar rebuilding project that will shut down the dock from May to mid-December. (Photo: Luke Franke/Naples Daily News)
The dock will close May 8, and the city hopes to have the new facility open by mid-December, Jacobsen said. Fort Myers-based marine construction firm Kelly Brothers Inc. will build the new dock with 84 leasable slips, two new bathrooms, a new gazebo and a floating concrete fuel dock.
The $6.5 million loan for the rebuild will come out of the city’s $95 million pool of investments and other cash.
The dock will pay interest on the loan only if the council decides the facility can afford it each year. Otherwise, the council will pay interest using taxpayer money, including a $32,500 payment next year.
Related Photos: Naples City Council to consider City Dock renovation
The council voted to cap the interest rate at 2.5 percent, meaning annual interest payments that could be covered by taxpayers won’t exceed $146,000, said Gary Young, the city’s deputy finance director.
The city can’t borrow the money for a rebuild from a bank because the dock might not have the cash to afford interest payments, Moss said.
The Naples City Council approved plans for a multimillion-dollar rebuilding project that will shut down the dock from May to mid-December. (Photo: Luke Franke/Naples Daily News)
The council last year budgeted $5 million to replace the city dock, which hasn’t been rebuilt since 1983 and requires daily repairs to its aging wooden beams.
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The council approved Jacobsen’s request Wednesday to increase the project budget to $6.5 million after the lowest of four bids came back around $5.9 million.
The Naples City Council approved plans Wednesday, March 15, 2017, for a multimillion-dollar rebuilding project that will shut down the dock from May to mid-December. (Photo: Luke Franke/Naples Daily News)
Jacobsen told the council he was disappointed the project would cost more than $5 million.
“But you have to go by the bid,” he said.
Councilman Doug Finlay said the dock should raise its rental rates from $13.50 per boat foot to be more competitive with other local marinas.
Jacobsen said he hasn’t decided on new rates.
“I anticipate each vessel paying a fair share,” he said.