This is a compilation of questions received about slip sales at Hub’s Landing and the creation of an Association for Hub’s Yacht Club and Marina.
Would we own the slip? -You would own the rights to the slip through a proprietary lease. You would also have ownership in Hub’s Yacht Club and Marina. This is your slip to do with it as you wish, within the Association By-laws guidelines.
What do the exclusive rights include? -You own the slip as a tangible asset; you have a vote in what happens at the marina and influence how the marina is run. You can sell or gift the slip to someone.
Do we pay as we would if renting? - You have an Association fee payable once each year, which will be set off the previous year’s budget and can only be changed via Membership approval.
What is the advantage of buying a slip versus renting? -
Buying a slip does a few things:
Have you established a pricing structure? What is the cost?- The cost varies per slip based on the square footage of the slip and if there is in-slip pump out. Pricing can be provided.
Can we review a purchase agreement or other documentation you have created to document the sale?- Yes –We will ask you to sign a confidentiality agreement before we share an informational bulletin.
What is the process for buying a slip?-
Is storage included over the winter months like previous years if a slip is purchased?- Association members are not charged a fee for storing their primary boat over the winter.
Is haul out/launch included yearly with a slip purchase, or will it be handled as an add-on like previous years?
Haul out/launch is currently not included it in the annual fee. We have ordered a hydraulic trailer that is scheduled for delivery in October or November 2018. It will be up Association members to decide if haul outs will be included in the annual fee or not. This is open for discussion your input is greatly appreciated.
What happens if I own a slip and we sell our boat?- You still own the slip, and you have the right to sub-lease to another boater or have the Association sub-lease the slip for you (for a fee). The money collected through leasing your slip goes to you, and you are still responsible to pay the annual Association fee.
Can we switch slips if we get a bigger boat?- You’d own only the slip you purchased. If you want to move to a bigger slip, you can either rent or purchase a larger slip if one is available. You could sublet or sell the smaller slip (that you own). If Hub’s Landing owns a bigger slip that you want to buy, we can arrange a swap that will allow purchase of the bigger slip with credit for the smaller slip.
Are you still going to rent slips after next season?- Yes, we will rent any slips that are not sold, so we expect to be renting slips for years. The Association could potentially own slips and rent those for additional income to help offset the Association fees, but that would be a decision made by the Board of Directors and Association members.
What if we rented a slip and it sells to someone?
If someone wishes to buy the slip you occupy:
-If you choose not to purchase your slip and someone else wants it, we will honor existing lease agreements if the boat has launched and is in the slip. To accommodate a buyer, we will first try to find another slip that will fit your boat.
-If we can’t find another slip that fits your boat, the buyer will be informed that they have to wait until the end of the season or until the slip comes open to occupy the slip. If they purchase the slip, they will be given a pro-rated portion of proceeds from the slip, and they will need to pay a pro-rated portion of the annual assessment fee.
Who decides what improvements are made and how to do them? Who will be in charge of maintenance/improvements? - Until Close of Escrow, Hub’s management will run the marina as it has for the last 16 years. After Close of Escrow, an elected Board of Directors will run the Association and make the business decisions that run and operate the marina. The budget contains a line item for annual maintenance that is funded through the Association fee. The marina manager will be responsible for maintaining Hub’s facilities, docks, etc.Improvements will occur if approved by Association Members and will be overseen by the Board of Directors.
How will improvements be paid for?- Improvements that are not in the budget would be funded through an assessment. If Membership wants to conduct an upgrade, members would vote to decide whether the project would occur. A majority vote is required.
I’m concerned that people who buy slips early will end up having to pay for running the marina. Is that how it works? - No, each slip will have an annual fee that is comprised of two parts:
Hub’s Landing & Marina will own unsold slips and Hub’s will pay the annual fee for each slip in their possession. People who purchase slips will not bear more than their share of costs as annual fees are spread among 80 slips (those that exist and those yet to be built) no matter how many slips sell or when they sell.
Where will you put the additional 11 slips?- Eleven slips will be built along the south shore, in the area just west of the bridge.
How would operations change if at all? - The Association will hire a Marina Manager to oversee the marina, and the Board of Directors will set goals for the Marina Manager. We don’t expect to see much change day to day, other than decisions will be shared by a group of people who own slips. As slips sell, Hub’s Landing & Marina LLC’s role in managing the marina will decrease.
Does this mean you have sold the marina? - Hub’s Landing & Marina LLC has opted not to sell the marina out right, but rather, offer ownership to the boaters that use the marina. The plan is that we will transition to be members of the Association, just like other people who purchase a slip.
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Hub's Marina and Yacht Club
Mississippi River Mile Marker 814.2