For the Bay Marina Management Inc. (BMMI) to assess the Pier 39 Marina financial condition, with the primary purpose of recommending a policy and plan for assessing future fees to slip sub-lessees/“owners” that would adequately:
- cover the Marina’s future operating and capital expenses,
- retire outstanding loans that the Marina has assumed to cover past deficits,
- repair and replace the Marina’s infrastructure (fingers, walkways, piles and utilities), and
- perform necessary dredging to enable the Marina to adequately sustain its operations for the remaining duration of its lease with the PIER 39 Partnership.
Cash flow models were prepared for alternative capital improvement programs and fee/debt scenarios. The analysis demonstrated that BMMI would be able to assess future slip fees at rates that would enable BMMI to cover its operating expenses as well as repay its outstanding loans, and accumulate adequate reserve funds to pay for the capital needs necessary to sustain the marina’s operations for the duration of the terms of it sub-leases.