Jon Finstorm, president and CEO of the Florida Marina Clubs, had his business vision challenged when the national economy went into tailspin especially in Florida. Like the housing market, Florida marinas that offered slips for sale – dockominiums – have suffered in the current market crisis. Despite the existing economic conditions, Finstorm still strongly believes in his vision, has adjusted his short-term goals and continues to plan for expansion.

Yacht Clubs of America’s latest project, Key West Harbour Yacht Club, on Stock Island where Peninsula Marina used to be, did not escape the economic downturn. With more than $50 million invested in the upscale marina, the prospects for achieving its intended goal of dockominiums went the way of the economy.

“Yacht Clubs of America is a marketing company,” Finstorm said over coffee at the Key West Harbour Yacht Club’s restaurant. “Florida Marina Clubs is involved with development and has taken over the YCOA marinas. This whole project was the dream of Steven Knight and he deserves the credit for getting the marinas built.”

Finstorm lives in Ft. Myers and retired from a 20-year career with a national securities firm in 2005.

“After a couple of year’s retirement and too many misspent afternoons at the Sanibel Harbour Yacht Club I accepted an offer of a consulting position with the developer of the marina in Key West,” Finstorm said. “Shortly after I accepted the role of president and COO of Yacht Clubs of America.”

Today, Finstorm is the CEO and president of FMC and its sole owner. On Dec. 4, 2009, FMC became the owner of YCOA marinas, he said.

“The contract for my taking over the marinas has a confidentiality clause, so I can’t discuss the price and certain other details,” Finstorm said. “I can say that iStar Financial holds our mortgage as it did for YCOA. The owners wanted to pursue other business interests and I saw my chance and took it.”

A Wall Street private bank to high-end commercial real estate owners in the U.S., iStar Financial has more than $28 billion invested in commercial real estate, according to its website.

Finstorm’s FMC took over YCOA’s marinas in Ft. Myers, Naples, Tampa, and Sarasota.
Monroe County Court records show that in July 2006, YCOA’s investors had a mortgage with iStar Financial for almost $200 million dollars. The loan was for the development of YCOA’s marinas and was made before Finstorm came aboard.
Finstorm believes the economy will turn around and his business decisions are sound.

“I only wish I knew when it (the economy) would begin to turn around,” Finstorm said.

The Key West Harbour Yacht Club marina has 479 slips, but similar to the current housing crunch the slips are not selling. There are 100 wet slips and 379 dry slips.

“We’ve only sold 32,” Finstorm said. “Right now I have turned our attention to leasing the slips and it will probably stay that way until the economy improves. I don’t want to create values that I will live to regret.”

Wet slips at the marina have an unobstructed view of the Atlantic Ocean and on any given day the view includes pleasure boats and commercial fishing and shrimp boats moving across the blue water. A late afternoon view might include a cruise ship leaving Key West Harbor.

A walkway circles the marina’s basin and slips and ends at a large Tiki hut at the ocean entrance to the marina. Weddings have been held at the Tiki hut because of its picturesque view of the mangrove island on one side and the open Atlantic on the other, Finstorm said.

YCOA’s dry slips sold for about $120,000 and wet slips sold for as high as $10,000 per foot, when they were for sale.

The cost to lease one of the marinas 50-to-140-foot wet slips is $20 per foot, and one of its 25-to-45-foot dry slips goes for $13 per foot. According to the company’s website, the marina’s large dry storage barns are built to withstand 150-mile-an-hour winds.

“The slip fee includes membership in the marina’s club,” he said. “We also offer boaters a full line of services.”

The marina crew will have a boat supplied with whatever the owner calls in ahead of time to order. They also fuel the boat, clean it after it is returned and check batteries if the boat hasn’t gone out in 30-days. The restaurant cleans and cooks a member anglers’ catch.

“Our computer system will tell the dock master when a boat has not been in the water in the past 30-days and then we automatically check the battery,” he said. “Nothing is worse than a dead battery to ruin a day on the water.”

All this comes with the slip lease and makes Finstorm believe the lease prices are reasonable.

“We are in line with other non-downtown marinas, especially if you factor in our location and services,” he said. “Members of the club have reciprocal privileges at the other FMC clubs and we also have reciprocal agreements with various yacht clubs in Florida.”

The economic slow down has not stopped Finstorm from looking ahead on another project too.

“I want to see an 80 - 90 suite hotel here,” he said pointing to one of the large boat storage barns. “Probably right there because the view would be spectacular. It would be a destination resort like Little Palm Island.”

Finstorm said the marina’s footprints are as big as anything he’s seen in the county. Anyone familiar with the old Peninsula Marina would have to agree. There are no signs left of the old marina, its rickety slips and muddy boatyard. Instead, the marina now boasts of large new wind resistant boat barns, paved parking, manicured landscaping and 100 well built wet slips.

“Our pool is beautiful,” he said as he bent over to touch the heated water. “It holds 56,000 gallons of water, so it’s big.”

Key West Harbor Yacht Club offers a complementary membership to anyone that is seriously interested in joining.

“The best way to get people to join is to let them see the club at work and that is better than advertising what we have,” Finstorm said. “They can see the great location anytime, but experiencing the friendship first hand is often enough to sell a membership.”

Annual membership in the Key West Harbor club for someone without a boat to slip is $1,500 and includes restaurant privileges, fitness center and pool.

“This marina is a great venue for weddings and other parties,” Finstorm said and pointed at the wide-open view of the yachts and blue Atlantic from the restaurant’s balcony. “We also have theme dinners and cruising events to other marinas on regular occasions.”

A cruising event may come to the Key West Harbour Yacht Club or local members may sail to one of the reciprocal marinas to the north.

“What it is,” Finstorm said, “ is four or five boats get together, maybe for a long weekend in Naples, and head out to a marina where they stay for a night or two and then return. It’s a group activity and a lot of fun.”

Another club event Finstorm is excited about is June’s Florida Gator’s Fishing Tournament that will be held at the marina and the club just finished hosting the King Mackerel Tournament.

“A lot of boaters were here for that and were impressed with the marina,” he said.

The marina’s slips are not only home to private boaters, but some commercial boats as well.

“We have dive boats, fishing charters and yachts for weekly charters,” Finstorm said. “That large yacht there,” he points to a 100-foot yacht slipped across the basin from the second-story restaurant, “gets rented by the week and may never leave the slip. People come to relax, party and enjoy the Keys.” Finstorm laughs. “We’re glad they’re here to spend time and money whether the stay at the slip or go out on the water.”

Finstorm wouldn’t mention a name, but he said he has begun talks with one of the country’s largest boat builders for Key West Harbour Yacht Club to become a destination marina with the builder’s cruising club.

“It’s a big thing,” Finstorm said. “If it works out, we could see 40 – 50 large boats cruise into the marina a few times a year. That would be good for us and for the community.”

The Key West Harbor Yacht Club property also has three two-bedroom, two-bath condominiums that can be rented weekly.

Key West Realtor Bob Cardenas of Trade Winds is the club’s sales/rental representative and Karen Rezendes is the club’s director of events. The Key West marina employs 22 people and that includes its restaurant and marina staff. FMC has 125 employees.

Finstorm laughed softly when asked about the YCOA’s no tipping policy at the club.

“Yeah, that’s something else we are rethinking,” he said. “Our members are the ones breaking that policy. Right now members do not have to tip for services and that includes the restaurant and bar, but more often than not they do and we can’t fault our employees for giving services our members appreciate, are happy with, and want to show their thanks with a tip.”

Finstorm admits the economy has made things tight for everyone, including him, but he looks forward to showing his Key West marina to locals and believes those that take the time to come in and look around will be impressed. A gym membership on the island costs a few dollars less than a marina membership, he said, but for that few extra dollars, Key West Harbor Yacht Club offers a lot more and a well-equipped fitness room for your money.

“And there’s no parking problem here,” he laughed.