Lease extension moves forward for new concrete at boatyard

At a rescheduled meeting of the Port Commission last Friday, members approved a request for an extension by a lease holder at the boatyard.

Contractor Don Sorric requested the addition of three years to his current lease, which at the moment is due to expire July 31, 2019. He requires the extension for a bank loan, which would finance the addition of new concrete pads at his Superior Marine Services.

"The bank has asked for more time on his loan than he has on his lease," commission chair Clay Hammer explained to his fellow members. Three commissioners were present for the afternoon meeting, including Walter Moorhead and John Martin. The meeting originally scheduled for September 7 had been postponed due to lack of quorum.

If approved, this extension to the lease would be Sorric's third on the property. It would expire in 2022, when he could seek a fourth modification. As the contractor has no outstanding complaints or payments and is in good standing on his lease, commissioners had no qualms with agreeing to the extension, approving it unanimously in a 3-0 vote. Its ultimate approval would be in the hands of the Borough Assembly, however, which was scheduled to consider the proposal at its meeting on Tuesday (see Assembly article).

Superior Marine Services is the largest of the contractors leasing property at The Marine Service Center. Located near the boatyard's main haulout, Superior Marine Services encompasses two large bays, one erected seven years ago and the other in 2015. Prior to the bays' addition, the firm was limited in how many projects it could undertake, and had to construct temporary coverage for the vessels being worked on.

Construction of the first permanent bay was an improvement to efficiency and safety, and at the time it was situated on higher ground than the surrounding yard. The addition of new concrete to the yard in subsequent years reversed this situation, and the bay began having water runoff issues.

"Everything drained into here. Because the rest of the yard was raised up," Sorric explained. "The water had to be pumped out. We were working in water, it was a hazard."

He finally decided to put in new concrete to address the issue, complete with sumps built into the center of the floor and a network of drains along the sides.

"I was going to do this floor with just cash out of my pocket," he said. But since the drainage issue was similar in the second bay, Sorric reconsidered, approaching his bank for a loan that would cover both. An amount of $140,000 was arrived at to do the work, which would involve 280 cubic yards of concrete, rebar and other materials.

The bank agreed to provide the loan, he said, but Superior Marine Services would be unable to use its equipment as collateral. Instead, the lease itself would be involved, but the two years left on his lease agreement would make repayment unfeasible. At the request of both parties, the lease extension was put forward to the city as a way of facilitating the loan.

Among its list of things to do this coming winter, the Port Commission will be looking at offering longer periods for lease lots at the yard, in part to encourage capital improvements such as this. Sorric has advocated for longer leases since at least last January, when he approached the commission with a proposal for 50-year leases instead of the current five. Commissioners would be likely looking at a duration shorter than that, in the 10- or 15-year range.

While Sorric's loan is still being processed, the concrete work has been recently finished in both bays.

"We started on the new floors August 1," he said. RJ Construction took on the job, first finishing the newer bay by the end of the month. "They just got done pouring the last floor last week," said Sorric. In addition to better drainage, the floors also have had their sides and centers reinforced for the heft travel lift treads and boats that use them.

"The floor is a foot thick, and it's got rebar reinforcement, screen reinforcement," Sorric continued. "Compared to what it was before, it's the Taj Mahal."

With the new floors, Superior Marine has over the past year made other improvements, from the installation of brighter, more efficient LED lighting, to upgrades to its electrical hookups. A new fabrication area and paint mixing station have also been added to the buildings.

Improving safety has also been a priority, and the extension of water main access to his and adjoining lots last year have allowed the firm to increase its fire suppression capabilities.

"Since we've had our fire, now each building, this building has three fire hoses," Sorric explained, referring to a welding-related fire on a boat being worked on in March. Outlets and hoses for five stations have been installed in each of the two bays.

"We're basically surrounded by fire hoses," he said. The firm's problem during the previous fire had not been a lack of water, but an inability to produce enough water quickly enough. While the blaze was eventually contained by the fire department, the contractor's work on the vessel had been undone. "The lessons are expensive, but if you learn from them, hopefully they don't happen again."

In the nine years he has had the lease, Sorric estimated he has invested $2.5 million, including Superior Marine LLC, an office and welding shop at the east side of the boatyard. That facility is also awaiting access to water, though extension of the main on nearby Front Street will be an expensive process for the city, around $110,000. Sorric has since lobbied the Borough Assembly for extending the connection, testifying during budget talks in June.