City leaders brainstorm about the future

When the Rogers City marina was renovated in 1995 it was done so in hopes of bringing new tourism to town and keeping Rogers City in business. What could not be calculated though, was the drop in fisheries in recent years and the slow, but steady decline of economy and commerce. These factors, among others, have helped to cause a big monetary problem for the harbor and the city. Members of the Rogers City council and city works departments met on Tuesday to discuss, among other topics, the pending issue of how the marina will be able to repay the bonds that funded the 11 year old project now that marina profits can no longer cover the yearly payments. The bonds were to be paid off by marina profits and added funds from the DDA, now the CDA. As the bond was set up, the yearly payments would increase until full payment was made. For several years, the marina made more than enough in profit to make the payment, and was able to start setting aside additional monies into a restricted fund.

Eventually, the DDA pulled its funding and the marina continued on successfully making profit and securing the payments. However, in recent years, the marina profits have gone down while the payment amounts have continued to rise. The harbor was forced to use the money in the restricted fund to pay toward the bond and the DDA (CDA) brought back its? funding. Although the marina is continuously making a yearly profit, it is no longer enough to cover the bond payment. According to Mayor Beach Hall, the marina bond payment will be ?a dilemma for this city for at least the next five years.? He commented that there are two other restricted funds that can be borrowed from in order to alleviate the burden. Further, he stated that he wanted to bring the issue to surface in order to generate ?wise thinking.?

Harbor master, Ken Rasche, commented that the marina has built a good reputation over the years for providing good service and good prices, however it has become apparent that those two things cannot solely be relied on to keep boaters and tourists returning to the Rogers City area. ?When you run across a fishery that has almost collapsed and combine that with low slips?what can we do?? he asked. ?We used to have an average turnover of about seven boats, but this past year it was 27.? Rasche stated that there were many fixed expenses at the harbor that cannot be touched in order to increase profit levels. He reminded the council that all of the equipment at the marina is at least 11 years old and is continuously being maintained. Rather reluctantly, Rasche felt that the only possibility for saving any amount of money would be in hiring three less people, giving the marina a $9,200 wage save. However, he did not necessarily feel it was a good idea. ?If we are going to be a good tourist town, we have to be able to give good service,? Rasche said. ?Cutting three people would make that service slip ? I can promise you that.?

Another problem for the harbor is being able

to compete with new marinas in Mackinaw City and St. Ignace. ?Slips are more available now so competition is down,? Rasche said. ?People can go where ever they want.? Unlike the new marinas north of Rogers City, this small town is finding it harder and harder to accommodate boaters and tourists. For example, with the closing of the IGA in the Mariner?s Mall outlet, the boaters who docked in the harbor were not left with a convenient shopping center. When the next harbor over can offer convenience and the same service and prices as Rogers City, it is hard to keep returning boaters from returning somewhere else.

?If you have two Holiday Inns next to each other and they are both charging $80 a night, but one is brand new and one is 40 years old ? where would you go?? Rasche asked. ?That is what we are dealing with.?