The Vero Beach City Council has agreed to move forward with design and permitting for Phase 2 of the city marina expansion, and keep the marina a municipal operation at least for now despite Mayor John Cotugno’s push to explore privatizing it.
The decision came during a special call meeting that stopped short of making a final decision on whether to pursue a third-party operator for the marina. While Cotugno proposed issuing a request for proposals from private firms, most council members expressed support for continuing the city-run model.
The municipal marina currently operates as an enterprise fund, meaning it is intended to generate enough revenue to cover its own expenses and contribute to the city’s general fund.
The Phase 2 expansion project – which now is estimated to cost $15 million – includes expanding the marina’s mooring field from 57 to 87 spaces, replacing aging timber docks with more durable floating docks, and nearly doubling the amount of leasable dock space.
The funding would come from $13 million in commercial loans and at least $2.26 million in grants, City Manager Monte Falls said.
Falls and marina director Sean Collins said the proposed improvements would allow the marina to pay off its debt and generate at least $22 million in net revenue for the city over 50 years, with potential earnings reaching as high as $37 million.
Cotugno acknowledged the thoroughness of the financial projections but questioned whether the city should take on additional debt while also financing the Three Corners development and a new wastewater treatment plant.
“We’ve got a lot of projects going on,” Cotugno said. “Are we protecting ourselves by doing this? Or are we better off laying off the risk with a third party?”
Councilmember Aaron Vos countered that the marina has long been a reliable source of city revenue and should remain under municipal control.
“I would prefer the project and property stay in city hands,” Vos said.
Collins added that the marina has had full occupancy during peak seasons for the past four years, underscoring the need for additional dock space.
While no formal vote was taken, the council agreed by consensus to allow planning and permitting to continue.
The city has already allocated funding for design and permitting, which is nearly 90 percent complete, officials said. Bidding could begin once permits are secured, likely within 12 to 18 months.
Falls said the completed design and permits will be valuable assets regardless of whether the city or a private firm ultimately operates the facility.
“The city is not bound to anything until we go out to bid and bring a bid back to council to execute,” Falls added.
Photos by Joshua Kodis
