Alderman defends higher dock fees

4-Dec-13 – 42nd Ward Alderman Brendan Reilly says the higher dock fees paid by operators of tour boats on the Chicago River is “the best thing we did on the river.” (Left) Lila, a custom-built tour boat that cost Wendella Sightseeing Company about $3 million. (Click on image to view larger version.)

On March 13, the Chicago City Council approved ten-year license agreements with Mercury Skyline Yacht Charters and Wendella Sightseeing Company. Mercury will be paying more than seven times what it paid last year – from an estimated $169,000 to $1.2 million. Wendella got off easy with just a 167 percent increase, from about $300,000 per year to $800,000.

The money will help pay back a $99 million loan from the U.S. Department of Transportation to finish the Riverwalk, eventually connecting the lakefront to Lake Street on the south branch.

“The best thing that we did on the river was re-bidding all the dock contracts,” said Reilly at a panel discussion on Tuesday organized by the Chicago Loop Alliance. “The dock contracts on the river had been at the same rate for a couple of decades. Many people agreed it was an under-valued asset, and by re-bidding those docks – although my friends who operate the boats, who do great work in Chicago, weren’t thrilled with that – I think they got a fair price.”

Currently, Mercury and Wendella are the only companies that pay the city for use of its docks but in May, Wendella president Michael Borgstrom told Loop North News he found it “disconcerting” that dock use could potentially go to someone new on the river with “deeper pockets.”

Said Borgstrom, “My argument is always, ‘why would you want someone from the outside here? If you want more money, just ask me. I’ll give you more money.’ And we did. But they still [requested proposals].”

At one time, according to Borgstrom, Wendella paid $10,000 per year to the City of Chicago.

 Related story: City’s steep dock fees will benefit Riverwalk