2016 MBIA Annual Report

2016 Annual Report The Voice of Boating in Michigan Advancing, Promoting & Protecting the Marine Industry in Michigan

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From the Chairman Fellow Michigan Boating Industries Association members: The MBIA Board of Directors and Staff are pleased to present to you the 2015/2016 MBIA Annual Report. Much has been accomplished this past year and these achievements add to the legacy of achievements during MBIA’s 59 years of existence. Our accomplishments are thanks to many, including the MBIA Board, our Members, the MBIA staff, our lobbyists in Lansing and many other people and partners who have come together under the MBIA umbrella.

MBIA’s boat shows, conferences, membership, and overall value have grown again in 2016 due to another strong year for the economy and the industry. Michigan continues to rank 3rd nationally in boat and accessory spending and 3rd in boat registrations, and we are proud to promote the fact that recreational boating has a $7.4 billion annual economic impact to our great state!

We worked hard this past year to build value for our members, knowing that for some of you the value lies in our portfolio of services and benefits, but for many other members the value lies in the fact that you know MBIA is working daily to help your business grow.

With your support and input we were able to achieve many things in 2016. They are documented within this report. A few of which I am most proud would be: •

Reviewing over 3000 new bill introductions

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Leading the Michigan Boating Caucus

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Maintaining a high-level focus on our water resources and invasive threats

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Creating new and maintaining current relationships with legislative and elected officials in Michigan and Washington, DC

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Providing quality education programs to build knowledge and skills related to the core competencies required of a successful marine business owner/operator in Michigan

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Delivering new Abandoned Boat Legislation

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Providing $10,000 in scholarships through our education foundation to our members

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And starting the process to build a state-wide marine education program

Moving into 2017, I want to ensure you that as your Chairman I am passionately committed to your success and the success of your Association. As always, I thank you for your continued support as we work together to advance, promote and protect boating here in Michigan, and encourage you to contact me at any time with ideas on how MBIA can bring more value to you and your business.

Sincerely,

Tom Haag MBIA Chairman 2

2016 Board of Directors Chairman: Tom Haag Colony Marine St. Clair Shores, MI Vice Chairman: Mike Apling Devil’s Lake Watersports Manitou Beach, MI Secretary/Treasurer: Tom Den Herder Yacht Basin Marina Holland, MI Directors: Jim Adams Freeway Sports Center Fenton, MI Amy Crouchman Toledo Beach Marina LaSalle, MI Andy MacLachlan South River Marine Harrison Twp., MI Torre Miller - Associate Diesel Fuel Doctor Grand Ledge, MI Patti Smith Silver Spray Sports Fenton, MI Tim Tadsen MBIA’s BAM Director Carleton, MI Regional Directors: Tom Haag - Southeast David Lyle - Northern Walstrom Marine Harbor Springs, MI Warren Wolf - Southwest Wolf’s Marine Benton Harbor, MI

Executive Director’s Letter Dear MBIA Members, It is hard to believe another year has passed and we have launched into 2017. The past year has been a busy one, balancing our usual packed schedule of events and meetings with attention to tactical and strategic goal implementation for our Association and our two foundations. But I am happy to report 2016 was a good year by all measures for MBIA, and for the industry overall, with boat shows, membership, boat sales, slip occupancy, and other important indicators growing again. We have had seven consecutive growth years and predictions at the national level are for at least two more, which gives us some important insight into our future efforts.

With the direction of your MBIA Board, over these past seven years, we have worked hard to place MBIA in a financial position to ride out potential downturns. This is important as they want to assure that even during down times you will have representation in Lansing and Washington D.C., as well as access to other important products and services your Association provides for you.

Our Association’s efforts are heavily directed by your Board, and we are grateful for their passion for our industry which inspires them to take on this role. These dedicated individuals volunteer their time and energy to attend a minimum of six board meetings held at various locations around the state. They are our steering committee setting policies and objectives for the Michigan Boating Industries Association, and the association’s efforts to advance, protect and promote the boating industry in Michigan on your behalf.

I want to personally thank our 2016 and 2017 Board Chair Tom Haag whose focus coming into the presidency was on being “passionate” about our industry and our work. His message hit a home run with our staff, and should resonate with all members as we plan for the coming year.

Our efforts are also heavily directed by your input, so I want to encourage you to actively communicate with your Board and MBIA staff to help us identify opportunities to further help your marine business prosper.

As we start 2017, we will continue to look for opportunities to bring you more value through your membership, grow and keep participation in boating, advocate for positive changes for your business, and protect our industry from over regulation and negative legislation, on both the state and national level. We will also continue to advocate for the protection and access to Michigan’s greatest asset - our waterways on which we live, work and play.

I personally want to thank you, our Board, and our MBIA staff for your support through the year. It has helped us to achieve many positive outcomes for our industry. It is an honor to serve as your Executive Director and I look forward to our continued work through our “United Voice” to grow and protect our industry and your business in 2017 and beyond.

Sincerely,

Nicki Polan Executive Director

MBIA Staff Executive Director Nicki Polan npolan@mbia.org Director of Exhibitor Sales Bethany Sly bsly@mbia.org Director of Marketing Amanda Wendecker awendecker@mbia.org Administrative Support Specialist Liz Szlaga lszlaga@mbia.org MBIA 32398 Five Mile Rd. Livonia, MI 48154 Phone: 734.261.0123 Email: boatmichigan@mbia.org Web sites: mbia.org boatmichigan.org detroitboatshow.net springboatingexpo.net boatingandoutdoorfest.com

MBIA MISSION STATEMENT

The purpose of the Michigan Boating Industries Association is the general ethical, educational, communicative and promotional advancement of the boating industry in the State of Michigan. The Association shall be the voice of the industry in dealing with government agencies, affiliated national and local organizations, and national or local issues affecting the boating industry. MBIA, founded in 1958.

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AWARDS ǀ ACHIEVEMENTS ǀ ACCOLADES

The MBIA honored Congresswoman Candice Miller for her advocacy of Michigan’s waterways and marine industry during her career in public service with the Ray L. Underwood Lifetime Achievement Award. Miller is the second recipient of this high honor from the MBIA. Some of her legislative highlights include efforts to stop aquatic invasive species, advocating for funding for dredging, protecting our great lakes, calling for pipeline safety, and coordinating maritime border procedures, to name just a few! “The Board is honored to recognize Candice for her efforts.

MBIA’s mission is to promote, protect and advance the Michigan boating industry, and this is what Candice has worked for her entire career,” said MBIA Chairman Tom Haag of Colony Marine, St. Clair Shores.

Lifetime Achievement Award

Hall of Fame

Mayor’s Cup

Honorary Members

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RJ Peterson, a pillar in the boating industry, Saugatuck and Douglas communities, and owner of Tower Marine for 48 years was inducted into the MBIA Hall of Fame for the year 2016. Peterson built Tower Marine with his father in 1968 after coming from building all-steel river houseboats in Gary, IN. Earlier in his life, he worked in electrical engineering in the Navy and later went to Purdue to study engineering.

He was appointed by the Governor as a special advisor to the Michigan Waterways Commission and has been an MBIA member for 20 years.

Tower Marine is also a Certified Clean Marina. “RJ is known in our industry for his passion for boating and for challenging the norm to make improvements,” said MBIA Executive Director Nicki Polan. “He cares about our industry and his community, and strives to make them both better through partnerships.”

For 2016, the MBIA Board chose Bill Boik for the coveted Mayor’s Cup Award. Boik was chosen because of his leadership and dedication to maintaining access to Michigan’s waterways for more than 4 million active boaters in this state. Michigan’s boating industry is greatly dependent on the boating infrastructure of this state, and proudly we have more than 1200 state-run boating access sites and 80 harbors of refuge, many of which have been created, upgraded, and promoted under Bill’s leadership over more than 20 years with the MDNR. “Bill has always been a loyal friend to MBIA, and his work and dedication to the waterways program has been widely recognized,” said MBIA’s Nicki Polan. “We are proud to further honor Bill, with our MBIA Mayor’s Cup award as we thank him for his leadership, and for the legacy he has created for our state.”

The MBIA Board of Directors approved seven individuals in 2016 to award Honorary Lifetime Memberships in MBIA. The Honorary members are: Ray Underwood, Van Snider, David Lyle, Ted Everingham, Phillis Howard, Bob Liggett and Pat Harrington. “Each new Honorary Member was chosen in recognition of their longevity and impactful contributions to the MBIA and the boating industry in Michigan,” said MBIA Executive Director Nicki Polan. “We’re proud to have each of these individuals continue to be a part of our organization.”

PROMOTING

michigancleanmarina.org

Michigan Clean Marina Program

The Michigan Clean Marina Program saw another successful year, with 3 new certified marinas: Rogers City Marina, Rogers City, Northport Harbor- G. Marsten Dame Marina, Northport and Suttons Bay Marina, Suttons Bay.

Eight marinas were recertified for another five-year period through 2021: City of Boyne City- F. Grant Moore Marina, Boyne City; Charlevoix City Marina, Charlevoix; DeTour State Harbor, DeTour Village; Mackinac Island State Harbor, Mackinac Island; Northwest Marine Yacht Basin Association, Charlevoix; Presque Isle State Harbor, Presque Isle; Walstrom Marine,Cheboygan; and Manistee Municipal Marina, Manistee.

The MICMP received grants through the Michigan Sea Grant and the DEQ / NOAA Coastal Zone Management, to help fund the program in 2016, and encourage marinas in the state to become certified as an ambassador for clean waters.

2016 CMP Directors: President Elizabeth LaPorte U of M Sea Grant Ann Arbor, MI Secretary Eric Foster Belle Maer Harbor Marina Harrison Twp., MI

Boat Shows

Social Media & Websites

All three MBIA produced boat shows, the Detroit Boat Show, Novi Boat Show and Metro Boat Show had a successful run in 2016, with exhibitors telling MBIA staff that sales leads were up and new prospects were strong, both great signs for the industry. Throughtout the year, more than 80,000 consumers visited the shows and were introduced to new model introductions and hundreds of exhibiting boating companies. Attendance at both the Detroit and Metro shows was up, while the mild, springlike weather was a factor in a slight decrease in attendance at Novi. At the Detroit and Novi shows, a popular boaters safety course is held to increase awareness of boating rules and regulations. Media and PR efforts highly publicized the events to bring boating to TV and radio news outlets all year long.

Treasurer Nicki Polan, MBIA Livonia, MI Mark Breederland MSU Sea Grant Traverse City, MI Devon Dodge, MI DEQ Lansing, MI Wade Eldean Eldean’s Shipyard Macatawa, MI Gerry Santoro Macomb County, MI Kathleen Torresen Torresen Marine Muskegon, MI

A summer-long social media campaign on MBIA’s consumer and industry social media pages garnered hundreds of new followers, captured by the promotion of boating in Michigan. The MBIA also maintains consumer, industry and boat show websites with hundreds of thousands of visitors annually. These sites heavily promote MBIA members, exhibitors, industry partners and the boating lifestyle.

Creating Positive Boating Press

MBIA works year-round to promote boating, our members, boat shows and the lifestyle to Michiganders. In 2016, Paul W. Smith from WJR Radio hosted an inaugural Harbor Tour, highlighting MBIA member locations and boating communities over two days in July. The goal for 2017 is to make the Harbor Tour a week-long tour around the entire state. Other 2016 headlines read:

New boat sales hit eight year high

Watch your wake, share the lake

Educational Foundation grants $12k to students interested in marine industry careers

MBIA passes legislation to help rid marinas of abandonded boats

Gov. Snyder proclaims June 4-12 Michigan Boating Week - campaign promotes Michigan boating

3 new marinas and 8 recertifications for Michigan’s Clean Marinas Program

Boating is big business in MI

Michigan trade group donates $10,000 to boating foundation

Pure Michigan to Promote Lake Affect & Boating

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ADVANCING

Recreational Boating Educational Conference

MBIA’s Board increased the speaker budget for the 2016 conference and it paid off. Setting a new record, 167 marine businessmen and women convened in Lansing for 2 days of highly targeted, quality education, networking, and a whole lot of fun. “We strive to make this conference affordable so all members can attend and we were very pleased to see this year’s attendance growth,” said MBIA Executive Director Nicki Polan. “The number of exhibiting companies doubled which is also a good sign of engagement and business growth.”

Mark your calendar for the 2017 Recreational Boating Educational Conference, December 6 & 7, 2017 at the Lansing Radisson.

Recreational Boating Industries Educational Foundation

The Recreational Boating Industries Educational Foundation (RBIEF) awarded $12,000 in scholarship funds to 13 students for the 2016/2017 school year. With this granting, the fund will have distributed $355,896 to deserving students.

“Marking the Foundation’s 30th year, we are very pleased to award 13 different individuals who possess connections and a deep interest toward working within or managing the recreational boating industry in the future,” said RBIEF President Jim Coburn of Coburn & Associates. “This year also marked our first Gregory P. Krueger Scholarship to this year’s top awardee. Our Foundation is an outstanding economic benefit to the great state of Michigan and the recreational boating industry.”

Cedes Powers, Greg P. “Greg spent his entire life showcasing and sharing his love for the water Krueger Scholarship recipient and recreational boating, and was a huge proponent of higher education.

As co-founder of RBIEF, my father would be deeply touched and honored by this named scholarship awarded to the top applicant in his memory,” said Amy Krueger.

2016 RBIEF scholarship recipients:

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Erin Coburn, Macomb Adam Dombrowski , Casco Tia Esposito, Harbor Springs Chase Gruver, Wayland Kash Gruver, Wayland Matthew Hevron, Taylor Bailey Kehrig, Clinton Township

Tyler Lozen, East China Shelby Macuga, Saint Clair Cedes Powers, Fenton (Gregory P. Krueger Scholarship) Robert Robson, Grosse Pointe Park Reis Wiedemann, Clarkston Cody Yearn, Milford

RBIEF Directors:

President James A. Coburn Coburn & Associates, LLC. Macomb, MI Vice President Robert G. Liggett Jr. Grosse Pointe Shores, MI

Treasurer Rob McCarthy Skipper Bud’s Harrison Township, MI Secretary Nicki Polan, MBIA Livonia, MI

Matt Anderson Global Marine Ins. Agency Traverse City, MI Amy Krueger-Malow Jefferson Beach Yacht Sales St. Clair Shores, MI Horst Sherriff PNC Bank Troy, MI

Ray L. Underwood MHSA, Lansing, MI

REPRESENTATION & PARTNERSHIPS MBIA Works Closely With National and State Organizations

In our commitment to offer continued education, industry statistics and timely industry news, MBIA maintains membership and partnerships with many related associations, and maintains working relationships with many industry experts in order to provide information to our members that will help them manage their businesses more effectively. MBIA works closely with these local and national groups: • Michigan Society of Association Executives • Great Lakes Small Harbors Coalition • US Army Corps of Engineers • Michigan Secretary of State’s Office • Lake St. Clair Tourism Initiative • Michigan Waterways Commission • Michigan Natural Resources Commission • Michigan Economic Development Corp.

• Michigan Inland Lakes Partnership • DNRE Land & Water Management Division • DNRE Law Enforcement Division • Grow Boating Initiative/Discover Boating • Michigan Port Collaborative • Tourism Industry Coalition of Michigan • National Marine Manufacturers Association • Advisory Council of Marine Associations • National Marine Trades Council • Marine Retailers Association of America • Michigan Clean Marina Foundation • Michigan Sea Grant (MSU & UofM) • Metro Detroit Convention and Visitor’s Bureau • Pure Michigan/Travel Michigan • Marine Bankers Association • Association for Marina Industries • American Boat and Yacht Council • Boat U.S. • Recreational Boating & Fishing Foundation • Michigan Charter Boat Association Advisory Council of Marine Associations (ACMA) ACMA is an informal group of Marine Trade Associations (MTAs), which have been meeting for more than 50 years. ACMA provides an opportunity for MTAs to help each other with state and federal legislative initiatives. ACMA also serves to create annual resolutions which are given to the Marine Retailers Association of the Americas for their Board of Directors to consider for the upcoming legislative year.

Michigan Waterways Commission The Michigan State Waterways Commission was established by the Michigan legislature in 1947. The Commission is responsible for the acquisition, construction, and maintenance of recreational harbors, channels, docking and launching facilities, and administration of commercial docks in the Straits of Mackinac.

The Commission members are appointed by the Governor, with the advice and consent of the Senate, to serve three-year terms.

MBIA Executive Director Nicki Polan, and MBIA members Al Declerq, Doyle’s Sails, and Ward Walstrom, Walstrom Marine are all currently Michigan Waterways Commissioners.

National Marine Trades Council (NMTC) NMTC is an informal group comprised of Marine Trade Associations (MTAs) from across the country. This group meets twice annually to talk about Boat Show Production, Membership Development, and Association Management. In 2016, MBIA Executive Director Nicki Polan finished a 2-year term as Chair for this national group.

Recreational Boating Leadership Council (RBLC) Marine industry representatives from across the country, and from all aspects of our industry including dealers, associations, marinas, manufacturers, etc., are working together to facilitate the long-term growth of our industry. MBIA Board Member Jim Coburn of Coburn & Associates remains a strong representative for the Michigan Boating Industries Association on this important Council, and leads the Affordability Committee for the RBLC. RBLC Committees: Marketing, Youth Initiative, Boating Education Initiative, Recreational Boating Affordability, Diversity Initiative, Recreational Boating Advocacy and Accessibility.

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PROTECTING - LEGISLATIVE OVERVIEW Contributed by: Bret Marr, Muchmore Harrington Smalley & Associates The 98th Michigan Legislature adjourned Sine Die (without day) on December 30, 2016 and will return January 11, 2017 for the beginning of the 99th State Legislature. This is a ceremonial day where members are sworn in and Speaker Tom Leonard is officially voted on by his peers. Governor Snyder has set his State of the State for Tuesday, January 17, 2017 at 7p, which is the unofficial kick off of the new legislative session. His budget message will be delivered on Thursday, February 2, 2017. Below is a wrap up of 2016 and a set of priorities for 2017.

Election Results – Obviously, major changes on the horizon in D.C., especially for business. Tax reform, regulatory reforms (much needed) and infrastructure will dominate the agenda.

Undoubtedly, any change in D.C. will have an impact on Michigan. One thing that didn’t change was the Michigan House of Representatives. The GOP had a 63 seat majority in 201516 and will continue to have 63 seats in the next session. The Michigan Supreme Court also stayed at a 5-2 GOP majority. The State Senate is not up until 2018, which will be a huge election year.

Of the more than 3000 bill introductions offered by the Senate and House of Representatives, we at Muchmore Harrington Smalley & Associates (MHSA) have identified 70 of those introductions that in some way are of interest to the MBIA membership and recreational boating in the State of Michigan. Some of those bills have an indirect impact on business owners but are not specific to the boating industry. As is the general rule in the Legislative system, many of these introductions being tracked have not received action to process them into law.

MBIA focused all of its efforts in 2016 on HB 5429 (R-LaFontaine), which is now Public Act 286 of 2016. This bill provided a much needed update on the process for marinas and boat dealers to handle abandoned vessels. MBIA worked with the Michigan Secretary of State’s (SOS) office to streamline the process for declaring a vessel abandoned and clarified the ability of a dealer/ owner to clear title on out of state vessels left in storage. James Stewart, MBIA’s legal counsel, and MBIA Executive Director Nicki Polan testified in both the House and Senate on the bills and spent numerous hours in meetings preparing the bill for action.

Lastly, MBIA must thank former State Rep. Andrea LaFontaine for her commitment to the boating industry and sponsorship of this legislation. Rep. LaFontaine was also one of the sponsors of the Sales Tax on the Difference changes and has been a huge boating advocate for MBIA. Thanks Andrea for a great six years of service to the State of Michigan!

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MBIA also spent some time fighting issues that would have a detrimental impact on the boating industry. One of those was House Bill 4534, which would require all boats to have a skier in tow flag raised when towing skiers, tubers or others behind their vessel. MBIA members testified in front of the House Regulatory Reform committee and Nicki Polan came in a second time to speak against the bill. The bill did not have support on committee and was never addressed again.

MBIA also participated in a coalition of other tourism groups to fight back legislation intended to repeal Michigan’s Post Labor Day School Start. Legislation was started in the House but never passed the chamber. We expect this issue to receive attention again this spring as schools continue to press for the change, regardless of the public support for ensuring family time in the month of August.

MBIA and MHSA have tracked a number of bills pertaining to the following subjects: Aquaculture in the Great Lakes, wind farms, bills to exempt small HP boats from registration, aquatic nuisance species funding and other natural resources issues.

It goes without saying that MBIA is as strong as it is legislatively because of the involvement of its members. Thank you for taking the time to reach out to your local elected officials. With 43 new state reps, it is critical to again begin the education process with them. Invite them out during the down months and show them all the great things that you do!

MBIA-PAC

c/o Michigan Boating Industries Association

Donate today to support your industry!

Your Association has worked hard to establish itself as “the voice” of both the marine industry and its consumers here in Michigan. Through this voice, and the MBIA Political Action Committee (PAC), the MBIA has taken a leadership role in making the leaders of our state and local government more responsive to the recreational boating community.

Every individual who works in the marine industry and/or enjoys boating in Michigan should make an annual contribution to the MBIA PAC. It is the single most effective method by which we can make our voice more powerful, and through our united voice and our PAC, your association works to make the leaders of our state and local government more responsive to the recreational boating community.

Statement of Revenues & Expenses 4/30/2016

4/30/2015

$66,885 $1,991,781 $346,417 $14,849 $44,129 $64,464 $6,325 $2,534,850

$ 123,013 $1,901,359 $307,610 $44,900 $16,009 $50,861 $6,550 $2,450,302

Expenses: Outside Services & Contractors $126,908 $466,171 Public Relations & Advertising $348,403 Rental $112,172 Set-Up Costs $435,100 Wages & Fringes $265,568 Other $1,754,322 Total Expenses:

$125,355 $459,450 $348,469 $164,607 $404,214 $252,218 $1,754,313

$780,528

$695,989

Revenues: Membership Dues Space Sales/Boat Shows Admissions/Boat Shows Sponsor Fees Interest Income Other Grow Boating Income Total Income:

Excess (Deficiency) of Revenues over Expenses

Detroit Boat Show

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Statement of Financial Position Total Cash & Investments Property & Equipment Total Assets

4/30/2016 $3,776,374 $334,859 $4,111,233

4/30/2015 $3,002,673 $328,032 $3,330,705

Liabilities & Net Assets: Total Current Liabilities Unrestricted Net Assets

$0 $4,111,233

$0 $3,330,705

$4,111,233

$3,330,705

Total Liabilities & Net Assets

Novi Boat Show

Note: 2015/2016 audit conducted by Maner, Costerisan PC, Lansing, MI. Complete financial information is available upon request to all MBIA members at the MBIA office in Livonia during normal operation hours.

Please note: In 2015/2016 the MBIA moved from an Accrual Based accounting method to a Cash Based accounting method. Because of this, there are variances in the reporting numbers between the current and prior year based on timing.

Metro Boat Show

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