EFTA01119824.pdf

I SLAND eLOBAL YACHTING ATTAC NT J ATM Reports: Executive Summaries Island Global Yachtin Ltd. • • Fort Lauderdale, FL 33301 Tel: • Fax: • www.islecap.com EFTA01119824  Marina Due Diligence Assessment Simpson Bay Yacht Club Marina St. Maarten, N.A. DRAFT EXECUTIVE SUMMARY Prepared For Island Global Yachting Ft. Lauderdale, Florida NOVEMBER 15, 2006 EFTA01119825  EXECUTIVE SUMMARY A marina assessment was conducted by Applied Technology & Management, Inc. for Island Global Yachting to assist with the review of the facilities at Simpson Bay Yacht Harbor, St. Maarten, NA The review concentrated specifically on the items of condition of the existing physical facilities and environmental issues. The major features on this site include the marina, a two-story condominium office building, separate gate houses, a restaurant and outdoor eating area, a fuel dock building and a maintenance shed. Marina Engineering Summary Overall, the property is in fair condition. It appears that regular maintenance has been conducted on the upland elements, but the docks/piers and utilities are showing some significant deterioration and deferred maintenance, particularly for a facility that was initially constructed in 1989 (17 years ago). ATM conducted an engineering evaluation of the marina structures and utilities. The following highlights the findings of this effort. > Site Exposure - The marina docks and amenities are generally well-protected from prevailing environmental forces. Simpson Bay is sheltered from the effects of offshore wave conditions: therefore, only wind-generated waves within the bay can affect the site. Snoopy Island and the Bay geometry limit exposure to the NNE through SE directions. The slips are largely oriented ENE-WSW direction, which is generally bow into the prevailing winds. Tides in Simpson Bay average 1 ft Storm surge during hurricanes can increase water levels on the order of 1 m, according to regional reports by Alicyon. The most exposed slips (megayacht med-moors) would be anticipated to be unoccupied during hurricane season, although reports from previous storms (Lenny, Luis, etc.) indicate that smaller vessels remained in the marina. ➢ Navigable Depths and Sedimentation Potential — Sedimentation in the marina basin has historically only been a localized problem and is believed to be primarily due to stonnwater runoff carrying sediments into the marina basin from the surrounding areas and effects of significant tropical storms. According to the marina operators, the basin has only been dredged twice in the past 8 years. Records received from the owners were limited; however, they indicated dredging of -6,000 cy in 2003 to deepen the entrance approach behind Snoopy Island and 31,000 cy in 1999. Over the effective plan area of the marina and immediately surrounding channels (- 10 acres), this equates to less than 0.25 ft/yr accumulation. Three depth surveys provided by SBYC dated December 21, 2001 and July 25, 2003 were compared with a spot sounding check by ATM on September 26, 2006. The SBYC surveys are in feet assumed relative to low water datum. ATM corrected our lead line soundings to approximate low water based on predicted tides at St. Barthelemy. Comparison of ATM to the SBYC surveys reveals slight changes in the recorded mean low water depths, notably some shallovving in A Dock and NB fairway areas. Docks B and C appear more stable. Marina management reports the need for some maintenance dredging in 2006. ATM's survey check indicated some areas of 7.5-10 ft under A Dock, with depths in the med-moor area of 12-16 ft. This should be included in the present owner's operating budgets and should be confirmed. An issue for future maintenance dredging is disposal of the materials. Previous events had included material disposal on Snoopy Island, which resulted in lower unit costs of $5-7/cy. The requkement to dispose of material offshore could easily increase unit dredging costs to $20+/cy. 1 EFTA01119826 • Shoreline Stabilization — The shoreline within the property limits extend approximately 300 ft. The shoreline is stabilized with a mix of cast-In•place and precast concrete panels. Specifics of the construction were not determined, but it appears to be in average/fair condition. Low water depths are generally less then 3 ft along the west portions of the shoreline. Dredged depths approach 9-10 ft along the east portion of the shoreline, where larger vessels berth adjacent to the high-speed fuel dispenser. There was no apparent loss of soil observed along this deeper portion of the shoreline. The shoreline structures should be monitored frequently for any potential failures and/or safety concems to pedestrians and repairs made promptly. > Manna Structures Overview - The marina consists of fixed concrete docks supported by reinforced concrete pile caps (painted blue) and driven concrete piles. Dock main walkways and fingers have a precast and poured in place concrete decking surface with integral utility raceways. The raceways are accessed via cast concrete panels in the deck. Portions of the decks are dressed with ceramic tile inlays and different concrete finishes. The site visit consisted of observation from the fixed docks as well as by inflatable tender, which was provided by the marina. ATM also reviewed previous structural assessment reports by CCS who conducted a personal inspection of the property in August 2005. The facilities were reported to be generally in average condition with minor instances of deferred maintenance noted during the inspection. Based on our observations, the docks appear to be in poor condition. Several concrete piles and pile caps are missing and/or are deteriorating, leaving the steel rebar exposed and vulnerable to corrosion and loss of structural strength. The concrete surfaces of the docks are cracking and in some areas leaving holes and potential tripping hazards, particularly where the utility chase covers are cracked or broken. > Marina Utilities Overview— The marina offers three phase and single phase shore power in a variety of configurations. Power is provided to the dock systems from two different Government transformer vaults. One vault provides 480 volt, three phase power to Dock A, while the other provides 208/120 volt three phase power to Docks B, C, and the upland development. Power distribution and condition for the upland elements appears generally adequate, with the exception of some potential safety issues related to exposed/loose tree wiring at Jimbo's. This wiring should be further inspected for safety compliance. During the site visit, approximately 19 different types, styles or configurations of power pedestals were observed as being used on Docks A, B and C. Dock A has been renovated several times during the last 5 years in order to provide power that will accommodate the larger yachts. All wiring as well as the power pedestals are relatively new and therefore are in good condition. The only discrepancy noted was the fact that the total amount of power available to dock A via the power company's 600 kva transformer is far less than the total connected load of approximately 1100 ova. Wiring and pedestals on Dirks B and C are more varied and in fair to poor condition. Significant dock electrical system issues are as follows: • The most dangerous situation identified during our site visit was the cable taps and splices that have occurred in the cable trenches. The leakage of electrical current through these deteriorated splices not only causes damage to the boats through electrolysis, It also poses a life threatening situation to people that might be in the water working on their boats or walking barefoot on a wet dock. The repair of electrical taps and splices in the cable trenches is of paramount importance to life safety. There are an estimated 150 cable splices and taps located primarily on Dirks C and B that should be replaced. 2 EFTA01119827  • Many of the boats that had plugged into the pedestals with their power cabling have created unsafe conditions. The extensive use of plug adapters and undersized cabling pose a fire hazard by potentially overloading the cables to the boats. In more than one case, a 16 gauge extension cord (rated at 13 amps) was plugged into a 50 amp receptacle. • Replacement and repair of the broken power pedestal equipment would prevent further damage to the pedestal and perhaps avdd an electrical accident Approximately 17 pedestals were identified as needing minor repairs that would include replacing mounting bolts, replacement of circuit breakers, and replacement of broken receptacles. • As pedestals are being replaced, the newer ones are usually provided with multiple power and voltage configurations that would have the potential to overload the existing circuits. A load survey of all existing circuits should be made during peak season to determine the existing capacity of electrical system to the docks. This load survey should be accompanied by an accurate single line diagram showing the locations and sizes of cabling, supply transformers, fuses and protective circuit breakers. The results of this survey along with projections of future boat types and ac-cociated power requirements would dictate the extent of renovations that can be made to the existing dock system. • Design of a new distribution system with added capacity for the larger boats (mega yachts) would be very difficult due to the limited space within each dock system where cables can be routed. Most of the cable trenches are completely filled and so additional means would be required in order to provide a new or increased capacity to Drinks B and C. There is no marina pump out available and as such this promotes dumping in the marina basin. However, when evaluated against the stormwater/sewer outfalls present in Simpson Bay, this does not present a significant water quality issue Potable water is provided at the pedestals and metered. Diesel and gasoline are provided at the fuel dock and diesel is also provided at a dispenser east of the main dock arrpcs. Water and fuel utilities are discussed further in the environmental section below. ➢ Layout and Potential Expansion - The marina reports 120 slips. ATM's review indicates a total of 6,820 If of leasable space (including 2 unavailableJowned slips C22 and C24). This includes berthing for approximately 16 megayachts (> 80 ft) and 98 small craft. The marina layout and fairways are generally adequate for current marina operations. By current minimum fairway standards, the interior double loaded slips are limited to 50-55 ft WA, although the widths of these slips are narrower than current standards. The slip widths at 30-32 ft were likely sized by 1980s standards for 35-40 ft sailboats. The majority of vessels are sailboats under 50 ft. Some catamarans require wider berths and currently occupy two slips, and it is assumed that marina management needs to selectively berth vessels exceeding 35-40 ft to allow adequate berthing width in the double loaded slips. It is noted that with future pier reconstruction comes the opportunity for reconfiguration of the marina basin. Though the facility may be adequate for current usage, accommodation for additional large slips is possible to provide berthing for larger yachts and wider sailboats (catamarans). The megayacht med-moor arrangement could be improved with alongside berthing in future expansions. ➢ Recommendations and Deferred Maintenance Cost Estimate — The marina's oldest components are 17 years old. Though some maintenance and improvements have occurred, the marina piers and electrical system have some significant problems that need attention. General cost estimates for immediate repair (life-safety), 0-5 year repair/replacement, and complete replacement (more than 5 years into the future) of the marina is attached. This 3 EFTA01119828  represents in-kind replacement (with appropriate updates, inclusion of pumpout, etc.) and does not include reconfiguration or expansion. In addition, the following items are generally minor in nature and most can be handled with in- house staff or local contractors, as part of normal facility maintenance: C• Add safety ladders at miscellaneous locations around the marina basin. • Monitor condition of power and water pedestals annually. Reattach loose pedestals to the decking with proper bolts. Replace any inoperable elements or replace pedestals as necessary. ▪ Replace cracked and broken concrete trench/utility access covers. These create potential tripping hazards for pedestrians. Continue general monitoring and replacement program of loose or damaged cleats and bollards, focusing on the large vessel docks (A Dock). 4. Consider addition of more fire suppression equipment (i.e., portable foam and water cart, similar to those found at wivw.marinafires.com or similar. One cart should be maintained at the foot of the docks. Add extinguishers per NFPA 10 requirements at nominally 150 ft intervals along the docks. It should be noted that deficiencies highlighted above were identified during this site investigation and interviews with the marina staff. Immediate expenditures indicate repairs or deficiencies, which pose a danger to public safety or are in violation of good practice. Also, if year 1-5 maintenance items are left uncorrected, these can lead to further deterioration of the facilities and increase corrective repair costs. This may also lead to a decrease in occupancy and impact marketability. Items noted should be handled on a priority basis, with life safety issues taking precedence over routine preventative maintenance. Upland Structural Engineering Summary The Simpson Bay Yacht Club site includes a two-story condominium office building, two gate houses at the entrance into the dock area, a maintenance/storage facility, a bar/restaurant with outdoor pool area, and a building at the end of C Dock that houses the fuel dispensing operation. The buildings have sloped metal roofs which are covered with red barrel tiles or corrugated FRP and shingles that are supported by concrete or wood framing. The ceiling of the bottom floor of the two-story condominium office building is constructed of suspended metal grids supporting acoustic ceiling tiles. The exterior of the buildings consists of concrete walls and concrete masonry block covered with painted stucco. The floors are concrete or wood decking and some are finished with ceramic tiles. The restaurant building stricture consists of timber framing and corrugated FRP and shingle roofing. The wooden floor deck has several elevated wooden seating areas. 2-Story Condominium Office Building - The -1,560 sq ft marina main office is located within the condominium office building, which is adjacent to the main pier. There is exposed rebar apparent along the ceiling on the second floor of the West side of the building. Evidence of water stains is apparent along the first and second floor ceilings on the East side of the building. ➢ Gate Houses - Located near the marina entrance there are two separate 480 square foot gate house buildings, separated by a covered walkway. The East gate house building is occupied by the Dociunasters Office and the West gate house is rented by a yacht charter service. The roof of the East gate house appears to have had some repairs attempted due to a leaky air conditioning unit. There are also some water stains evident on the ceiling. The floor was constructed too low (same level as exterior) and reported to develop puddles during storms, as 4 EFTA01119829  several cracks were also noted. The concrete floor in the West gate house has some cracks and holes that need to be sealed and the window exterior needs to be refurbished. > Jimbo's Bar (4 Restaurant — The restaurant was constructed in 2002 which includes both enclosed and outdoor areas with a pool and swim up bar. The roof has some pin hole leaks and there are some water strains evident along the ceiling. > Fuel Dock Building — An approximately 650 sq ft fuel dock building is located at the T- head of C Dock which houses the fuel dispensing operation. The concrete floor appears to have been raised approximately 4-6 in above the dock. There is some corrosion apparent along eave end of the metal roof. There are several rusting nails along the exterior walls. Environmental & Upland Infrastructure Summary In addition to the engineering evaluation of the marina structures at Simpson Bay Yacht Club, the marina was inspected for operations and conditions which present the most common environmental concerns. The components of these inspections are listed below with a brief summary of out findings, followed by several recommendations for additional investigation: > Potable Water — Water is supplied to the marina via the public water system. No significant deficiencies were noted with the water supply to the marina. NI potable water uses at SBYC are metered to make sure there are no unaccounted leaks or usage. Water is charged at the marina at $0.12/gallon. > Sanitary Wastewater — No vessel pump out is provided at SBYC. Despite limited potential usage, provision of a waste pump out is always recommended as well as enforcement of a "no discharge" policy within the marina basin. Sanitary wastewater from the offices and upland facilities is reportedly discharged to septic systems on the upland. No known problems exist with the septic systems. The condominium regime at Plaza del Lago maintains the septic systems. JImbo's Bar/Restaurant has individual septic systems for the facility. > Stormwater Runoff— Stormwater runoff does not appear to be a significant problem within the limits of the property. However, it is believed that stormwater runoff from adjacent areas to the project site contribute sediment and contaminants to the local waters, and thus may impact water quality and sedimentation in the marina. > Fueling System — Sol is responsible for providing fuel and owns and maintains the storage tanks, fuel supply piping, and dispensers. The supply piping and dispensers were replaced in 2003-2004. The dispensers are in good condition and include 2 for diesel (high speed capability, one on land and one on the fuel dock) and 1 dual-product unit on the fuel dock. The UST construction material and tank capacity was not verified. Varied sources of documentation revealed that the diesel tank holds 10,000 gal and the gasoline tank holds 4,360 gal These should be verified prior to purchase. There appear to be adequate electric and manual shutoff valves to stop the flow of fuel in an emergency. There are apparently no local regulations that would require remediation and/or replacement of the USTs; however, the UST release described above should be further investigated. No soil contamination in the vicinity of the waste oil storage areas was observed. > Waste Management — Solid waste receptacles are provided at the foot of the piers. These receptacles are emptied daily by marina staff. The collected solid wastes are stored in a dedicated storage area at the east end of the premises and removed periodically by a local waste hauler. Waste oil storage and general facility maintenance equipment is also located in this area. > Sediment, Water, and Soil Quality - During the period September 26.27, 2006 sediment, water, and soil samples were collected from 4 locations each within the Simpson Bay Marina. The 5 EFTA01119830  analytical results of the sediment, surface water, and soil sampling effort undertaken suggest the following: • Sediment Quality - Antimony, arsenic, copper, mercury, silver, and zinc concentrations were elevated In marina sediments. Silver concentrations are included because of elevated MDL values. No PAH compounds or PCB arochlors were detected in any of the sediment samples. TOC concentrations in all of the sediment samples were elevated. Tri-n-butyltin concentrations exceeded the USEPA lower screening value by two orders of magnitude in each of the samples. • Water Quality - Copper and selenium concentrations in surface water samples were elevated. Copper concentrations in each surface water sample exceeded both the acute and chronic U.S. EPA water quality aiteria. Selenium concentrations exceeded the chronic water quality aiteria value but not the acute exposure value. No PAH compounds were detected in any of the surface water samples. No dissolved phase BTEX compounds were detected above their respective MDLs in any of the water samples. Nutrients do not appear to be a significant concern in the marina waters. The copper source is likely leaching from bottom paints. The selenium source is unknown but likely from a natural source. • Soil Quality - Five PAH and one BTEX compound were detected in elevated concentrations in soil sample SBM-06SS. The reported analytical concentrations and weathered petroleum hydrocarbon odors noted during collection of soil samples in the vicinity of the diesel fuel UST indicated that a relPase of unknown quantity has occurred. Groundwater in the vicinity of the UST has likely been impacted as well. The extent and geometry of any groundwater contaminant plume that may be present is unknown. > Site Electrical System — The main electrical substations are operated by the Government and were not accessible for observation during our visit. Since these substations are not within the control of the marina it is assumed that any power upgrades required for the docks or buildings could be accommodated by the Government. > Parking — Only 10 parking spaces are located within the SBYC property, adjacent to Jimbo's restaurant Staff and guest parking is generally first-come, first-sewed and within the available surface parking lots in the Simpson Bay/Plaza del Lago development. > Areas of Environmental Concern— During the inspection, a few areas of environmental concern were identified. ATM recommends the following for environmental compliance: • Coordinate with Sol regarding additional sampling and remediation, if necessary, of the fuel product found during ATM's sampling effort. • A maintenance dredging fund should be established for potential post-tropical storm dredging in the basin and in particular, the entrance channel area that may occur. A regional dredged materials management approach should be considered for all facilities within Simpson Bay. • Additional fire suppression pump/foam carts should be considered to supplement the extinguishers that are placed around the docks. 6 EFTA01119831  PRELIMINARY PROBABLE REPLACEMENT COST ESTIMATE SIMPSON BAY YACHTCLUB L, z.r.r , ISub-Total: Item _ I Ouipaiy Unit FA IAA* SSC° :X5 Ss Cost A 1/4,5;00 —1 IWO 000 Depewlent uponrmittewr factors Nis I Orgy Unit MAt Mons Solt 6191•60assirsan Fmk) Docks 7 529 SF $150 $,SION main we r Aap and /r2ers Llama PoveirVilater • PHNSZIIS IS EA $35 COD $56C 000 3- 6 1-ensse sappy to 480v at ;p.c.< sips Fire Sumas: on • Carers 3 FA OW ' 52550 I Spaced al -15, per WPA 'Subtotal: 51,691 BOO --anillt WI W alt Nes Cod '-S Ott NollatANIstsra* Fae0 Coca, 142S6 SF $120 $171Q,90 man awirorap_and nngirs Manna Power/Waler • Pedestals 96 EA $7,600 B59§22)._ TwicaN 1201206V Fro SwP/144/05 -COMM 6 EA $850 $6,600 Spaced M-150 per "PA Manna Sower Purnpoul - Fuel Oot* I EA $70,000 $70000 dedW9010I0Pal WOG Intleort Fuel Deanna • Dearmacan• I EA $400,000 $400000 Susd css land and fool dock (SO WePowailei) Sub•Totel. $2.173,710 - agile ;.1 - CYNOS. •-410—: r.lthetr-n. IMmieriale ?Slow/Manna 0614 / * &Wino 1,506 SF $100 IMI gm if from pins Gs* Hosts 960 SF $100 $96000 if Mr. On FM Dock ESION9 145 SF $/5 $10875 fair** sans ssuneruno $066 900 SF $65 $19 500 datumptsila 3mbar Su and Pool VC* SF $n $12 7.5% MIMS Sint frdp-Tatit SOWS $6.490,115 Orria0PICY 15% 3870.621 TOTAL ESTIMATED REPLACEMENT COSTS: $6,290,656 1. Tin suns* h ccricscual in napes and not mune* ocwstn/c5cr, Odd 2. Ripsnot casts Clo ec'4e coats d straeline staNisma' tt barn emcawital & Main taii.ind SutalaineS titaded. NJa We under/ Gowerweet treat 7 EFTA01119832  DRAFT ESTIMATE OF PROBABLE REPAIR COSTS SIMPSON BAY YACHT CLUB Item I chouillitY I Unit ',unit I Item CoM I NoinfAsisurnptIons Fa00 Docks Man Walkways 9110 SF $20 $182,200 Finger Docks 1,220 SF $20 224,400 Concrete Surface 10.300 SF $5 $51,500 Utilities - Rep* 1 LUMP 215.000 $18000 Provided by Erik Engineerlivo TOW Immediate Costs $213.100 Item I Quanitfty Unit Mink I Item Ccfl I Nounasinemokins Fan Docks Utltes • Repair/Maintenance I I LUMP $350,0001 $350,000 I Plovided by Eon Engineering UplandPaean Condlmlnum Office Building: Lex Repairs 1.508 SF $5 $7,530 Gate House Buildings: Repot Roof 980 SF $8 27,880 Repair Floor 480 SF $2 2980 Repair Concrete Weas 960 SF $5 $4,800 Repay Window ExterlOr Trice 10 LF $3 $30 Jirribo's Bar 8 Restaurant Repair Roof 1.700 SF $0 210,200 Fuel Dock Building: Repair Root 145 SF $5 21,160 Replace Hardware 145 SF $5 $725 Total Year 1-5 Costs 3383.00 TOTAL: $854,185 1. Estimated coals are based upon limited informal:ca. fiefinernimts end eildelens should be ant:crated as additional Infeanabon becomes avaliabie. 2. AbOve OMIMIllett we kr Informational purposes rely and should net be teed for Metingor consbuclion ourpeass. I. SF estimates Include covered and open (deck) melons of sauctures EFTA01119833  APPLIED TECHNOLOGY & MA AGEMEN, INC. Marina Due Diligence Assessment Virgin Gorda Yacht Harbor Virgin Gorda, British Virgin Islands DUE DILIGENCE SUMMARY Prepared For Island Global Yachting Ft Lauderdale, Florida NOVEMBER 14, 2006 EFTA01119834  DUE DILIGENCE SUMMARY A marina assessment was conducted by Applied Technology & Management, Inc. for Island Global Yachting to assist with the review of the facilities at Virgin Gorda Yacht Harbor, Virgin Gorda, British Virgin Islands. The review concentrated specifically on the items of Condition Assessment of existing physical facilities and environmental issues. The major features on this site include the leased shops, restaurant, and grocery store, boat storage and repair facility, marina office and chandlery, fixed docks, basin perimeter (bulkhead), restrooms, and fuel storage facility. Marina Engineering Summary This marina was constructed in the 1970's and is in generally good condition, save for the concrete bulkhead that surrounds the basin. The bulkhead remains from the original marina development and is In very poor, failing condition. The marina piers were replaced In the mid 1990's and are in good condition. These piers utilize precast concrete elements from PresTCon out of Trinidad, the same component supplier as on the new Yacht Haven Grande marina. The marina includes three main dock trees, a single marina pier for larger vessels, and side-tie mooring along the perimeter. It is noted that the side-tie slips along the perimeter are used mainly by local fisherman and supply boat operators. No utilities exist for these slips. Main dock trees and the large vessel pier provide standard marina power and water service via utility pedestals which are in fair condition. Fuel is available at the marina. A grocery, restaurant, and conglomeration of small retail stores exists on the property and nicely compliments marina activity and operations. In addition to the marina wetslips, a large vessel service yard is located on an upland portion of the site adjacent to the marina. This yard has capacity to store some -300 vessels and is widely recognized in the region for high quality service offerings. On the opposite side of the marina basin from the service yard is a large field which is used by locals for outdoor recreation. The upland facility at the manna is noted as the center of activity for the entire community. Expansion and redevelopment opportunities at this site are many due to the large upland space available. This may include the development of additional upland structures and/or an expansion of the marina basin to augment slip offerings. Specific areas of required maintenance include: ➢ Immediate replacement of -2,220 linear feet of concrete bulkhead. ➢ In order to maximize the number of useful slips in the marina, construction of marina utilities along the perimeter of the basin should be considered. ➢ Repair/replacement of marina dropwell which has significant rust on steel bulkhead and significant concrete spalling and cracking of travel pad/cap ➢ Consider addition of marine sewage pumpout Costs for this improvement are estimated to be approximately $1,500/linear foot of bulkhead and approximately $7,000/slip for construction of perimeter marina utilities (-17 slips). This yields a total cost of $3.33MM for bulkhead repair (assuming a coated steel sheet pile bulkhead driven in front of existing wall & new concrete cap) which is required immediately and $119,000 for utility improvements to increase the number of useful slips in the basin (utility improvements suggested, but not required). Costs to improve the dropwell structure may range from $10,000 for concrete repair and monitoring to $500,000 for replacement of bulkhead and piers. These costs may be absorbed into redevelopment plans that shift the marina yard to the opposite side of the basin and call for the existing dropwelVyard to 1 EFTA01119835 be convened to an alternate upland use. A summary of these probable costs are listed on the attached spreadsheet. Installation of a marine sewage pumpout may cost on the order of $20,000. Maintenance dredging does not appear to be an immediate need. Environmental & Upland Infrastructure Summary In addition to the engineering evaluation of the marina structures, ATM also analyzed the environmental condition of the marina and surrounding property, associated infrastructure, and structures on the property. Each of these components is listed below with a brief summary of our findings, followed by several reuxnmendations for additional investigation: ➢ Potable Water — Currently, potable water is provided to VGYH via a 3' line from Little Dix Bay Resort. Due to ongoing expansion plans at Little Dix Bay, VGYH will be forced to conned directly to the municipal water system by March 2007. The piping and water meter are in place to make this conrivUkni with the 2' diameter water main. Given the size of this water main and the reported unpredictable pressure and flow of the municipal water, we concur with Sun Resorts plan to install high service pumps, 20,0000 gallon storage tank, and chlorination system. Given peak potable water flows of about 12,000 gallons per day in June and July, the proposed improvements should provide an adequate supply of potable water. The current water rate is $25/1,0000 gallons and all uses at VGYH are metered. ➢ Sanitary Wastewater — All wastewater generated at Village Cay Marina is routed to the Little Dix Bay Resort sewer system via central lift station. Similar to the potable water supply, VGYH must remove this connection by March 2007. There is no municipal sewer system, so an on- site wastewater treatment plant must be installed. Sun Resorts has a preliminary wastewater plan in place, but must make a decision soon regarding treatment and disposal options. The on-site collection system and pump stations appear to be functioning adequately at the time of the inspection. According to long-term meter readings, about 42% of the potable water enters the sewer system. ➢ Stormwater Runoff — There are eight stormwater outfalls into the marina basin. However, only the outfall originating beNnd Buck's Grocery Store appears to contain offsite strimiwater runoff and is the only one that is problematic. Buck's Grocery Store and the adjacent businesses have been flooded in the past due overflows from this system. The onsite drainage area has been regarded to help prevent this problem, but enlarging replacing the existing 10- line with a larger pipe will be necessary. There is no sewer system in the surrounding area, so it is likely that offsite stormwater runoff discharging to the manna basin is contaminated to some extent. Routing the offsite stormwater runoff out of the basin should be explored. ➢ Fueling System — The fueling fadkty consists of two above ground storage tanks - 8,000 gallon diesel and 2,000 gallon gasoline. There are no ground water monitoring wells at the tank farm. The Sol Group (formerly Shell) provides the fuel and is responsible for maintenance of the fueling system and two gas dispenser and two diesel dispensers. Currently, the tanks are fed from Little Dix Bay, but when the fuel tanks are moved to the other side of the marina to make way for the Investment Club development, they will be fed directly from Sol's fuel depot. The existing fuel lines will be replaced during this move. The existing lines are not that old but reportedly replaced older lines that were leaking. No evidence of above ground leaks were observed during the inspection, but additional investigation into the formerly leaking lines may be warranted. ➢ Waste Management — Two roll off dumpsters are provided for solid waste disposal. There is no used oil collection facility or other waste collection points, so it is assumed that all wastes 2 EFTA01119836  end up in these two dumpsters. The dumpsters are emptied at a municipal dump on Virgin Gorda. ➢ Water and Sediment Quality — The configuration of the marina basin and average tide range in the area precludes very good flushing. Rain events can result in turbid water from offsite stormwater runoff entering the basin. However, the water quality in the marina basin should be acceptable from an aesthetic standpoint at most times. Water quality and sediment samples were collected during a period of fairly dry weather during this due diligence effort. Results quantifying the water and sediment quality in the basin will be reported under separate cover when received. ➢ Structural Assessment — The upland facilities consist of the following: • A single story grocery store • A single story retail space • A two story fuel dock, marina reception building • A dive shop • The single story Chandlery (ship's store) • A maintenance shop • Two retail buildings (under construction) The grocery store is a pre-engineered metal building. The exposed perimeter of the roof is in very poor condition and must be repaired. The electrical system within the building is in poor condition and should be replaced. The facility is "dated" and based on its overall condition should be replaced within 5 years. The retail eparp consists of five apparent load bearing masonry, buildings which enclose an open courtyard. The interior canopy and roof overhangs of the buildings are in poor condition and need to be repaired and replaced. The storm drainage system including the above ground and above ground piping is severely undersized and the site drainage is poor. The facility is "dated" and based on its overall condition should be replaced in approximately 5 years. The fuel docW marina reception building, is a wood framed structure and in good condition with the exception of the wood deck and stairway which is in poor condition and should be replaced. The Chandlery appears to be in good condition and the Maintenance Shop is in fair condition. ➢ Site Electrical System — During the inspection, ATM conducted a cursory review of the electrical system at this site. Currently, all electrical power is routed through the Little Dix Bay Resort transmissions system. VGYH will have to be off of this system by March 2007 and connected directly with BVI Electric. The new transformer for this feed has been purchased by Sun Resorts and is now in place. The transfer over to BVI Electric should occur within the next several months. Much of the wiring and switch gear have been replaced, but there are several areas needing improvement and abandoned equipment that must be removed that are described in more detail in this repal. A thorough detailed inspection of the electrical system is warranted. Backing up this system is a 500 kW 3-phase diesel generator in new condition that can handle the current electrical loads at VGYH. This generator is fed by a new dual- walled 1,000 gallon steel storage tank. ➢ Boat Storage Yard — This 13 acre area has a reported capacity of 280 boats and is served by a 70 tone Travel Lift. The boat storage yard is scheduled to be moved to the empty field on the east side of the property to accommodate construction of a village center by the Investment Club. The new 11 acre site is reported to be able to handle the same number of boats. This move will require a facility for the Travel Lift. Sun Resorts also indicated that they are considering a 150 ton Travel Lift to serve larger boats at the new storage yard area. Metered water and electricity are provided to the existing yard and all work, other than hull scraping, is accomplished by independent contractors under the direction of the boat yard manager. The contractors are responsible properly disposing of their wastes. At the time of 3 EFTA01119837  the inspection, the boat storage area was very dean with no evidence of significant spills of oil or other materials. ➢ Village Center Construction - The Investment Club has begun construction of a village center at the existing boat yard area. Sun Resorts indicated that utilities serving this development will be independent of the marina. Little additional information on this development was made available at the time of the inspection. ➢ Areas of Environmental Concern — During the inspection, several areas of environmental concern were noted. There is a potentially PCB containing transformer located adjacent to the restaurant that is slated to be abandoned in place when the new electrical connection is made. This transformer should either be drained of oil or removed from the site. At the Travel Lift, there is an area where boat hulls are pressure washed and scraped. This area drains to a sump that is pumped into the ocean. The results of soil sampling in this area will provided under separate cover. Best management practices to contain paint chips and other contaminants from hull maintenance activities should be considered. In addition, the potential for contaminated soils from leaking fuel Ines (that have been replaced) should be investigated as discussed above. This inspection did not include a lead-based paint or asbestos survey. While no obvious areas of lead-based paint or asbestos were observed, the age of the facility warrants additional investigation to verify their presence or absence. ATM recommends the following tasks be undertaken. Probable costs for implementation are attached. ➢ Verify transfer of water, electric, and wastewater utilities from Little Dix Bay Resort. Prior to dosing. Projected costs are attached should these tasks be undertaken by IGY. ➢ Conduct a detailed inspection of the electrical system to further delineate required improvements. ➢ Verify that the Investment Club development will have separate utilities. ➢ Conduct lead-based paint and asbestos survey. ➢ Institute marina best management practices in the area where boat hull maintenance occurs. ➢ Further investigate soils along the area where the old fuel lines were located to assure that contamination has not occurred. ➢ Remove or drain oil from potentially PCB containing abandoned electrical transformer. ➢ Repair exposed perimeter of the roof in grocery store and replace electrical system within the building. The facility is "dated" and based on its overall condition should be replaced within 5 years. ➢ The interior canopy and roof overhangs of the retail buildings need to be repaired and replaced along with repairing the storm drainage system. The facility is 'dated" and based on its overall condition should be replaced in approximately 5 years. ➢ Replace the wood deck and stairway at the fuel dock/ marina reception building. 4 EFTA01119838  FINAL ESTIMATE OF PROBABLE COSTS - VIRGIN GORDA YACHT HARBOR UPLAND COMPONENTS Convanent lir_ pledFalflIfes _Ed Gummy . Unlit SAMILCI. Iva Cost IL -e Rates Bucks Orocory Replace damaged roof trarraig 7,000 SF $26 $182.000 Replace Sent panels 8 Wes 4 EA 16.600 326.000 Releace Roof Otatnage and 500 LF $35 117.500 Emergency 5F09901 Retail Space: Repair Cancoy(Cols and Roof I 1.003 SF 115 $48.003 Replace rod (Back right came 2.000 SF $1 $11.030 Elnwtateledctleuklew al Ward 1 LS 516.000 116.000 SDme Fuel ock: Replace stars:dee 500 SF 138 117,000 Overall: bums Sammy Sower Sweat I LS 1110.000 $180,000 Nodded only II nmommisM0W Sul Intel Potable Water Trail Sy& I LS $40.000 $40,000 Needed Calf if nc4canpielecl by Sun Mac Env Inveabgsbona I LS 145,000 145.000 Electical Insoacica 8 Mac I LS $35,000 $35.000 Total Iffenadiate Costa $423.01/4 _ , 10 5COSTS STS TIARA IIIIIIW-'"="11011111111 Efl1:21fl Buck