NEWS

Legislation helps rid marinas of abandoned boats

Beth LeBlanc
Lansing State Journal
A line of abandoned boats pictured Wednesday, June 8, 2016 at Algonac Harbour Club.  House Bill 5429, which was approved by the House June 1, would amend the Marina and Boatyard Storage Lien Act to help streamline the process of selling or disposing of abandoned boats.

Six boats in varying states of wear and tear moldered at the back of the Algonac Harbour Club Wednesday.

Some appeared to need just a good wash, while others sported faded and peeling paint, ripped and torn canvas covers, and plants growing along fiber glass.

On average, each of the boats had been sitting at the facility for six to seven years, said Pete Beauregard, owner of the Algonac Harbour Club.

“It’s a very complicated process now to gain titles for the boats,” Beauregard said. “Your marina starts to look like a junkyard.”

Some of the several abandoned boats at the harbor club will be auctioned off June 18 — that’s after several years of failed payments to the marina and nearly a year of certified mail and notices to the boat owners.

Legislation approved by the House June 1 hopes to streamline that process, if only marginally, for boatyards with delinquent boaters.

House Bill 5429 would amend the Marina and Boatyard Storage Lien Act. The bill largely outlines steps that need to be taken before abandoned boats can be auctioned off if an owner can’t be clearly identified for the boat.

James Stewart, a lawyer for the Michigan Boating Industry Association, said the process to place a lien on an abandoned boat can hit snags when the vessel isn’t registered in Michigan, when no identification numbers can be found on the boat, or when the Secretary of State disposes of outdated vessel identification information after several years.

A spider web is seen on an abandoned Chris-Craft boat Wednesday, June 8, 2016 at Algonac Harbour Club. House Bill 5429, which was approved by the House June 1, would amend the Marina and Boatyard Storage Lien Act to help streamline the process of selling or disposing of abandoned boats.

In those cases, the bill outlines the type of requirements and notifications that a boatyard must follow before holding a public auction.

Rep. Andrea LaFontaine, R-Columbus Township, and Rep. Anthony Forlini, R-Harrison Township, sponsored the bill. Forlini said the legislation was prompted by complaints from marinas and boatyards on Lake St. Clair.

"I have lived in this community for 30 years and I’ve seen some boats that have been sitting there the entire time I've been in Harrison Township," Forlini said.

"This legislation is going to allow for them to have a proper gateway to get rid of these boats.”

Nicki Polan, executive director for the Michigan Boating Industry Association, said the association heard the same complaints from its members.

“A lot of times these people aren’t coming forward because these boats aren’t worth salvaging,” she said.

In the meantime, the boats sit abandoned at a marina while the facility undertakes the cumbersome process of gaining title to the vessel, said Michael H. Loomis, a lawyer for Algonac Harbour Club.

“You have to serve them by certified mail and there are timelines that have to be honored,” Loomis said. “Best case scenario, it’s a 90-day process to get rid of these boats from beginning to end.”

Loomis said the process can begin after six months of missed payments. The boatyard would look up the current owners through the Secretary of State office and place a notice of lien on the boat. The boat owners, if they can be located, and any other lien holders are notified of the action.

If the boat owners don’t respond to the notice of lien, they’re served with a notice of default and notice of auction.

A deteriorating ships wheel is seen in the cabin of an abandoned boat Wednesday, June 8, 2016 at Algonac Harbour Club.

The notice of default and notice of auction must be published and mailed twice within two weeks of the auction.

“The intent is to give the property owner every chance to satisfy the debt,” Loomis said.

At the auction, the bid must go above what is owed on the boat, otherwise the boatyard takes possession of the title.

While the process leading up to the auction is cumbersome, it does result in some boats being taken off the auction block.

Beauregard started the process a few months ago with 12 boats, but it’s likely fewer than five vessels will go to auction. Owners of the other delinquent boats have since settled up with the marina.

Beauregard said the bill changes should help with locating and notifying the boat owners.

“I think it will speed it up,” he said.

While the bill passed out of the House last week, it likely will not be addressed by the Senate until after summer break, LaFontaine said.

Contact Beth LeBlanc at (810) 989-6259 or eleblanc@gannett.com. Follow her on Twitter @THBethLeBlanc.

Brush is seen growing off the side of an abandoned boat Wednesday, June 8, 2016 at Algonac Harbour Club.

Algonac Harbour Club Public Boat Auction

The public boat auction at Algonac Harbour Club will take place at 10 a.m. June 18 at the Algonac Harbour Club, 1999 Pointe Tremble Road. Prospective buyers can view the vessels up for auction from 10 a.m. to 4 p.m. June 17 or at 8 a.m. June 18.

Vessels require a minimum deposit of 10 percent cash or certified funds at the time of sale. The balance is due no later than 5 p.m. June 20.

As of June 9, the following vessels are listed for public auction:

  • 49-foot 1962 Chris Craft
  • 27-foot 1988 Sea Ray
  • 37-foot 1987 Trojan
  • 27-foot 1982 Sea Ray Sundancer
  • 36-foot 1993 Sea Ray