Northpoint: A Tale of Two Marinas
September 2016
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GLB Admin
By Jerome A. Koncel
When North Point Marina, Winthrop Harbor, Illinois, was completed in 1989, it was the largest marina on the Great Lakes with 1,477 slips. It’s still the largest marina on the Great Lakes, but its slip numbers are dwarfed by occupancy rates that have fallen below 40 percent.
At one time, more than 1,300 boats called North Point home. In addition, there was a yearlong waiting list for its 30- to 35-foot slips. Today, the Illinois Department of Natural Resources (DNR), which manages the facility, is examining proposals to privatize the facility.
Although North Point Marina is nearly 30 years old, the only state-run marina in Illinois looks older. When the state of Illinois decided to build North Point Marina, the prevailing mantra of the marina industry was, “Build it and they will come!” Today, marinas are begging for customers.
The mission of marinas has undergone a major transformation since North Point was completed. They are no longer considered boat parking lots, but rather outdoor recreation destinations. “Times have changed and so too has the marina business,” said Dave Suthard, general manager of North Point Marina. Today’s marinas are destinations with amenities such as swimming pools, water fountains, and even musical entertainment venues.
Current status
Between 1991 and 2006, North Point Marina had occupancy rates of 80 to 90 percent annually, but the first 35 percent of its revenues went to pay off $31 million for building the marina. Despite this onerous requirement, North Point was still able to support a maintenance staff of 11 or 12 people, a business/administration staff of six, and put leftover funds into a capital improvement fund.
The halcyon days of the 20th century quickly disappeared with the great financial recession of 2008-2010. “The down economy took a big toll on us,” Suthard said. Long-term boat owners said they couldn’t afford to boat. They were struggling to survive, and boating wasn’t in the equation. “We’ve never recovered from that downturn,” Suthard said.
But perhaps the most troubling reason for the decline in boating occupancy at North Point was time. Suthard explained that numerous customers have told him they enjoyed their days at North Point, but they wanted to spend time with their kids or grandkids that were traveling with sports teams or had other weekend activities. Time constraints meant that it was either boating or the kids.
At the same time these economic and social changes were occurring, the state was sweeping the capital improvements fund. “We had set aside money for major capital projects, but the state took those funds (c. $700,000) for use in other cash-strapped departments,” Suthard said.
As boaters left the marina and capital funds were unavailable, North Point was becoming an orphan. “We can’t do all that we’d like to do with limited funds and limited staff, so what are the priorities?”Suthard asked. Making repairs on the docks and keeping the bathhouses clean and safe meant no landscaping, no painting, and no new signs to replace the old fading ones.
Suthard said the DNR has earmarked money for repairs, upgrades, and capital improvements at the marina, but the state has never funded the requests. “This was another reason for people to say that maintenance was being deferred, and the state wasn’t going to do anything, so let’s go to a newer one with more amenities,” Suthard pointed out.
The expectations
To those critics who contend that North Point Marina is in a state of disrepair, Suthard points out that customers view North Point Marina as a quiet, safe, secure marina that is close to nature. That’s why people paid good money to dock their boats there.
While operating costs went up, occupancy rates went down. The money needed to maintain the facility and make needed capital improvements vanished. As the old saying goes, “You can’t create something out of nothing.”
Even today, though, North Point has many positive attributes. “We have one of the best security systems in the country,” Suthard boasted. Colleges have noticed this and sent students to work as security guards and officers, while also receiving college credit. He added that North Point prides itself in vetting all of its security personnel because there are so many kids playing around the marina and neighboring beach. The security program is an intergovernmental agreement between the DNR and Winthrop Harbor Police Department.
North Point Marina is a full service marina and leases the marina service center to SkipperBud’s for fuel dock services, boat repairs, winter storage, and even buying a new or used boat. It has a yacht club on premises for those individuals who love boating and social events. It has one of the most inviting restaurants on Lake Michigan. “How many restaurants offer an all encompassing view of Lake Michigan while you’re enjoying dining al fresco?” Suthard asked.
North Point Marina was designed for a lifespan of 20 years, and already is past that term limit. “We can’t get to all the dock repairs as quickly as we would like because of a cutback in our maintenance staff from 11 to four [persons],” Suthard pointed out. Unfortunately, boaters see deferred maintenance and think, “Let’s move to a better facility.”
A wish list
Over the last five years, the state has provided supplemental funds for operations at North Point. At the same time, the DNR started looking at various options for operating the marina, including privatizing. By the time you’re reading this article, the state has solicited RFPs (Requests for Proposals) to privatize the marina that are due Aug. 31.
Unlike some observers, who believe that major capital improvements in the range of $20 million are needed at the facility, Suthard believes that incremental upgrades, such as new signs, a new water fountain park for kids, and new landscaping and maintenance could make the marina more appealing to boaters. “This could be done for between $150,000 to $200,000,” Suthard said.
On the positive side, the marina has installed four new pump outs that are free for the boaters. “This is good for the environment, the lake, and boaters,” Suthard said.
The future
Some past and current slipholders at North Point Marina are asking the question: Where does North Point Marina go from here? The answer depends on some decisions that will be made in the next few months by the Department of Natural Resources.
