Wanted: Visitors to Dana Point Harbor Orange County Business Journal Monday, June 23, 2008 Pacific Contours

Corp. of Anaheim is exactly the kind of business Dana Point Harbor wants. The maker of parts for Boeing Co. and other aerospace companies lets down its hair once a year and takes its workers and their families on a fishing trip out of the harbor. "Some people have company picnics. We have fishing trips," said Martha Hartman, Pacific Contours' office manager. Dana Point Harbor wants more businesses to forgo company barbecues in favor of a day at the harbor. The harbor, which also is looking to woo more local and regional tourists, could have a tough sell. "South County people don't realize there's a harbor down here," said Cindee Colombo, a Dana Point resident who helps to promote the harbor and encourage people to shop and dine at its several restaurants. Dana Point Harbor, owned by the county, is the smallest of Orange County's three harbors. Newport Harbor is the largest with about 9,000 boats. There are 6,000 in Sunset-Huntington and 2,400 in Dana Point. Where Newport Harbor is showy and home to fancy, jumbo yachts, Dana Point is more of a working class harbor with smaller boats. Vintage Marina Partners LP oversees the dozens of shops,

restaurants and businesses in Marina Village, the dry boat storage and launch ramp, and Dana Wharf, where fishing and chartered boats go out. Vintage Marina, headed by Brian Dunn, employs 25 people at the harbor. Dana Point Marina Co. and Dana West Marina handle the boat slip leasing. The companies helped develop the marina nearly four decades ago and have long running contracts with the county. It's Vintage Marina's 36th year at the harbor. La Habra's Great Western Hotels Corp. has operated the harbor's only hotel, the Dana Point Marina Inn, since 1972. Efforts to improve the harbor are part of a sweeping $140 million project, in the works for a decade. The plan includes dredging up and replacing docks. Already completed is a renovated $2.5 million boat launch ramp that opened in spring 2007. The plan also calls for new shop buildings and additional parking. The Marina Village buildings are 35 years old, which makes the makeover a practicality, Vintage Marina's Dunn said. "We're woefully behind the times," he said. The project is in the environmental study phase and is contingent on California Coastal Commission approval, which Dunn hopes to get by next year. The new Marina Village would be built out in the parking lot first.

That way, the shops and restaurants could continue to operate in the old buildings with little disruption. "Most businesses would not be excited about having their business torn down and relocated," said Jim Miller, owner of The Coffee Importers & Deli in the Marina Village and head of the merchant's association. "But we realize that's what we need." Reluctant Boaters Some of the boaters are wary. The Dana Point Boaters Association is concerned about fee hikes for boaters, fewer boat slips and the harbor becoming over commercialized. They are a vocal group who would rather see fewer tourists, Dunn said. "But you need the tourists to support the harbor," he said. A renewed harbor would match plans for Dana Point's proposed downtown Town Center, a mile-long retail and housing project, recently approved by the Coastal Commission. In the meantime, merchants have a harbor to promote and they're not waiting around. The economy has squeezed spending by people, so merchants are getting creative and playing up the harbor's cozy, family appeal. "At John's Fish Market, John's really there," Dunn said. "He really goes out and catches the fish. Now his son catches the fish." Miller's coffee shop is the Starbucks of Dana Point Harbor. Dunn said he wouldn't think of leasing to Starbucks Corp.

"As much as I like going to Starbucks, (mom and pops are) what make our place different," he said. Other stores include Bella Sea, which sells seashells and other nautical, touristy gifts, Super Stop Liquor, Sea Styles clothing and Raj Perfumery. The Ocean Institute, a marine science learning center, also is there. Capt. Dave's Dolphin Safari runs a dolphin watching charter. Folks from the local newspaper regularly meet at Miller's coffeehouse. High school students take advantage of the shop's wireless Internet to do their homework. Turks Restaurant & Bar, which serves the 2 a.m. crowd, is a local institution. When Dana Point Harbor's Proud Mary's, next to Turks, burned down late last year, residents clamored for it to get rebuilt, and fast. This time of year is busy at the harbor. About 10,000 people showed up for the recent annual boat show, which showcases smaller boats. About 2.5 million people arrive in the summertime for whale watching tours, fishing excursions, dining, shopping or a day of fun. But overall, business has been slow. Donna Kalez, operator of Dana Wharf Sportfishing & Whale Watching, said sales the past two years have been flat. Kalez owns the boat charter business with her brother, Mike Hansen. The siblings are second-generation operators.

Her father, Donald Hansen, chair of the Pacific Fishery Management Council, founded the business, which was the first business at the harbor. The Wind & Sea restaurant, owned by Robert Mardian, was second. Mardian, who started working at the harbor in his 20s, also owns Harpoon Henry's Seafood Restaurant. Years ago, fishing kept Dana Wharf Sportfishing prosperous. Today, it's less popular and Dana Wharf has to rely more on packages, such as whale watching, Catalina trips and business charters,sales meetings with bagels and coffee aboard a boat. Hotel Referrals Kalez and other merchants try to stay on the radar of local hotels and resorts, such as the St. Regis Monarch Beach Resort in Dana Point and the Montage Resort & Spa in Laguna Beach. That can be challenging, she said. Sometimes the resorts will send their guests to the more glamorous Newport Harbor. Dana Wharf advertises on hotel TVs and in the tourist magazine Where. It also hosts concierge events. Sometimes resort guests want to fish, Kalez said, like a recent customer from Yugoslavia who was staying at the St. Regis. He called Dana Wharf on his own, she said. About six years ago, the harbor began advertising more aggressively. Colombo Advertising creates brochures for events at the harbor. It

even helps court event planners. Colombo's developed some Dana Point Harbor logo products, such as blankets, to sell this year, and a visitor center will open at the harbor. Coffee house owner Miller expects that once the harbor makeover is complete it will generate excitement and draw more business. "We've got to get this thing done if for any other reason so Jim Miller can retire," he said.