They steamed in and berthed their luxurious mega-yachts at the Port of St. Petersburg, spending thousands of dollars during their visits.
The city now wants to capitalize on that revenue source by offering opportunities for qualified private businesses to develop and operate the port as a mega-yacht and research vessel marina.
But as St. Petersburg seeks proposals from businesses to transform the port, a marina development consultant warns that companies should not expect a "Field of Dreams" situation.
"If you build it, that does not mean mega-yachts will come," said Dick Graves, founder of Richard Graves & Associates in Fort Lauderdale. "It doesn't work that way."
The city's location is a drawback for wealthy mega-yacht owners who like to berth at "jumping off" marinas - especially in the Fort Lauderdale area - where they can lay over, provision the yacht and then leave for cruising the Mediterranean, he said.
Special events such as the St. Petersburg Grand Prix and the Super Bowl have drawn big yachts to the port, but that is not enough to support a mega-yacht marina, Graves said. The port's 1,800 feet of wharf would have to be occupied about 60 percent of the year to make it a viable facility, he said.
Seven Kings Holdings Inc., a Jupiter-based development corporation and owner of the Loggerhead Club & Marina chain, picked up a copy of the city's request for proposals but also is leery of such a project for different reasons.
The company, which owns the Loggerhead facility in St. Petersburg and 11 others on Florida's East Coast from Daytona Beach south to Miami, has encountered challenges in the past in dealing with government entities and taxpayer subsidized marinas, said Ray Graziotto, chief operating officer and president.
When privately run marina businesses need to raise rates to cover overhead cost increases, they compete against similar public facilities run by governments that decline to raise rates.
There is also the cost involved in preparing a proper proposal in response to an RFP.
"The problem for guys like us is that if you're qualified, it costs a lot of money to do it right," Graziotto said. "You're talking $50,000 to $100,000 to do it right. We're not going to throw our hat in the ring. It doesn't make sense to spec that much money."
Seven Kings would consider responding to a request for qualifications of businesses, which allows them to provide information about expertise and experience. The city could then select and use an expert to guide the choice of a qualified marina developer, Graziotto said.
While Graziotto's company plans to pass on the port opportunity, Brandy Marine International is contemplating teaming up with an engineering firm to submit a proposal to the city.
Brandy Marine, based in Sarasota, is a marina development and management company with ties to mega-yacht facilities around the world.
"I think the marina is a viable idea as long as it's done logically and correctly," said Bruce Blomgren, Brandy's chief executive officer and president. "There is a modest market for St. Petersburg. We haven't run the numbers yet, but you're only looking at a few boats to make this work from a market standpoint."
The marina would need to draw what he calls "bread and butter vessels," ones 70 to 90 feet long, and have good infrastructure for yacht crews to make it profitable. The shipping channels in Tampa Bay accommodate deep-draft yachts better than other locations on the West Coast, he said.
"I would say of all the places on the West Coast, St. Petersburg is a go - provided the numbers work, like return on investment," Blomgren said.
REVENUE
Port of St. Petersburg mega-yacht revenue
2007: $8,000 of total revenue $129,000
2008: $49,000 of total revenue $162,000
2009: $107,000 of total revenue $191,000
Source: City of St. Petersburg
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