“You in the boat business?” asked Bud Martin of Martin Yacht Sales in Newport Beach.
Nope. “You?”
“I’m the No. 1 boat salesman in the business,” said Martin, while on his way in to the Lido Yacht Expo this past week in Newport Beach.
He was showing a 48-foot Navigator.
Martin said the Lido show isn’t for looky-loos like me.
It’s one where people buy, and buy upscale.
It also is more Orange County-centric, with a mix of used and new boats shown by local dealers such as California Coast Yachts in Newport Beach, Boats of America in Huntington Beach, Holiday Marine Sales in Newport Beach and Hannibal Offshore in Laguna Beach.
Southern California is second in the boat market to Florida, which hosts the biggest boat show.
What’s floating the boating industry these days are big yachts,36 feet, $400,000 and up, said Steve Hansler, business manager for Newport Boats of Newport Beach.
The Southern California Marine Association defines a yacht as being at least 30 feet long and requiring a slip instead of a trailer for storage, said Bob Brown, spokesman for the association based in Orange. Keeping a boat in a slip costs $8 to $10 per square foot per month in Southern California and $20 to $25 per square foot per month in Newport Beach.
The smaller boat business has taken a hit recently, Brown said.
More exclusive yachts still are being bought by the wealthy, who haven’t been affected by the blips in the economy or the slowdown in the housing market.
“There are more mega yachts under construction than there have ever been,” Brown said.
Those in the yacht business had another reason to be giddy during the show.
Southern California’s boating industry’s newspaper The Log noted on the front page: “Yacht Sales Tax Exemption Makes a Comeback.”
Chris Lyons, who finances recreational vehicles with Newcoast Financial Services in Newport Beach, said yacht buyers now can avoid paying sales taxes if they park their boat (plane or other recreational vehicle) out of the country for 90 days, or in states such as Oregon that have no sales tax.
The original exemption, passed in 2004, required out-of-state use for a longer time frame,one year, he said.
While it seems like an awful lot of trouble to relocate a boat for three months a year, saving 8.25% sales tax on a $1 million-plus boat is worth it to many owners, he said.
News of the tax exemption, spearheaded by Sen. Dick Ackerman, R-Irvine, helped Lyons close three deals in two weeks, he said.
Ackerman, a yacht owner himself, argued that the yearlong exemption requirement hurt California’s boating businesses.
Brown cautioned buyers still should check with their tax lawyer on the qualifications for sales tax exemption.
Max & Erma’s Scouting Locations
Another restaurant chain is headed to OC,Max & Erma’s, a Columbus, Ohio-based casual eatery that serves standard American food but emphasizes freshness.
It will start off with 10 restaurants in Southern California, including a few in OC. It’s met with The Irvine Company and still is scouting locations, said Eric Steinhoff, director of franchise development. Though Max & Erma’s is not well known in these parts, it’s a hit in places like Pittsburgh and Ohio, Steinhoff said.
Namesakes Max and Erma founded the first restaurant in 1972. Max & Erma’s Restaurants Inc., a publicly traded company, has expanded through company-owned and franchised restuarants. It has 101 altogether, including 77 that are company owned.
Michael Nahkunst recently signed on as chief operating officer. Previously, Nahkunst held the same position with BJ’s Restaurants Inc. based in Huntington Beach.
GardenWalk Adding Bowling
When did bowling make a comeback?
Apparently, now. New OC shopping centers are adding bowling alleys to the mix of retail and movie theaters. The District in Tustin added lanes. The Block at Orange has Lucky Strike Lanes.
Now, Anaheim GardenWalk, a 400,000-square-foot shopping center under way near Disneyland, is getting Anaheim 300.
“Bowling is very hot again,” said Paul Barkley, senior vice president of new development for AMF Bowling Centers Inc., based in Richmond, Va.
The company is targeting a May opening.
The GardenWalk in Anaheim marks AMF’s first new construction of 300, its upscale bowling brand. AMF is looking for a few other locations in Southern California.
It isn’t your dad’s bowling alley with tattered shoes and burgers, fries and beer. AMF wants to do for bowling what Hilton did for hotels,creating brands to match different demographics, Barkley said.
While there is an executive chef in the kitchen, people still want a burger and fries, Barkley said. But the burgers are barbecue onion burgers.
“Our current customer is asking for more upscale food,” he said.
Beyond the menu, service has had a makeover, too. A host greets bowlers at the front and escorts them to the equipment room where they are fitted for balls and shoes.
“Shoes and balls will always be in great shape,” he said.
Its sister company QubicaAMF Worldwide, based in Mechanicsville, Va., supplies the equipment. There’s also an area for private parties, which has a club-like atmosphere with couches.
GardenWalk is a promising location because it’s close to Disney and the convention center, Barkley said.
