Aug 1, 2006 - Floating Condos in Port Isabel

St. Paul developer David Nelson is working on a riverboat condominium project that would involve a pair of 200-unit ships each consisting of four barges going up four levels high. One of the boats would spend summers in St. Paul and winters in Port Isabel, Texas. The other would cruise the nation's waterways year-round. David Nelson impressed his biggest sceptics after rescuing a sunken recreational boat from the bottom of the St. Croix River. With equal parts vision and elbow grease, he transformed the 59-foot hull into a charming three-story houseboat that he now moors at St. Paul’s Harriet Island.

While working on his house, though, Nelson came up with a grander idea: Why not build a larger vessel, like a floating retirement community, that could treat its residents to nautical adventures similar to his own?

More than a decade later, the St. Paul native has finally translated that dream into the most unusual condominium proposal the city has ever seen. His River Cities concept is a cross between a river barge and a four-level, 200-unit cruise ship.

Condo buyers would tour Nelson’s favorite haunts — from the sand bars of Destin, Fla., to the riverfront parks in Memphis — without ever leaving home.

One of his two planned riverboats would spend the summer here and migrate for the winter to Port Isabel on the southernmost tip of Texas. The other would cruise year-round on the nation’s waterways.

City planners and river enthusiasts who have been meeting with Nelson say they’re intrigued by his concept. But plenty of attempts to revitalize St. Paul’s riverbanks, including systems of sky gondolas and water taxis, have come to naught.

His concept has also raised questions about property taxes, docking rights and the size and scale of each boat — Nelson envisions them the length of five football fields — making them the largest passenger vessels on the Mississippi River.

“I talk to a lot of people, and they say, ‘Wow, what a cool idea,’ ” said Nelson, 53. “But whether it actually grabs people enough that they’ll say, ‘Yeah, I want to buy,’ that’s always the key.”

Obstacles loom

Nelson, a residential and marine contractor, has yet to secure such essentials as financing and a mooring site in St. Paul. His top choice, a spot on Harriet Island near the High Bridge, already has raised the hackles of parks advocates who say that the land should remain for public recreational uses.

The idea of a “floating city” has blossomed throughout the country with varying results. In March 2002, a Miami-based ResidenSea launched its luxury residential ship, The World. The company announced last week that all of its 165 units — priced at $825,000 to $6.3 million — recently sold out.

At least three other companies targeting the seriously well-to-do have lined up to capture the niche market, but haven’t focused on the Mississippi River.

By contrast, Nelson’s prices range from $275,000 to $474,000 for units that go from 528 to 924 square feet. He said he designed his model, comprising four adjoining barges, to appeal to buyers who lack the means to own a private yacht.

“I’ve got prices on this thing where middle-class people can participate in a millionaire’s dream,” he said.

But will it float?

Nelson has reacted to a host of challenges while developing his plans over the past two years. After conversations with the U.S. Coast Guard, he and his architects redesigned the ships with all-steel construction and special attention to fire safety. Each boat, powered by motors in back, would be designed to split in half to pass through tight channels.

The Coast Guard appears to have no laws that would prohibit this kind of boat from traveling the inland and intra-coastal waterways, said Lt. Cmdr. Patrick Clark, chief of the prevention department for the Sector Upper Mississippi River in St. Louis. Technical experts would review Nelson’s application in light of strict standards for passenger vessels, Clark said.

But it hasn’t stopped Clark from scratching his head.

“I’ve been in the marine safety field for 14 years, and I’ve never encountered a vessel like this,” Clark said. “It’s basically a floating homeowners’ association. The concept he has — each person has their own galley and can do their own cooking — it’s not something we normally see.”

Nelson’s plan could make waves with city parks officials. His preferred docking site near the High Bridge would give residents the option of parking their cars on shore during the summer. The St. Paul Yacht Club allows its members to store their boats there in winter, and the city occasionally uses the space for overflow parking and equipment storage for festivals.

But Harriet Island isn’t intended to serve residents of a private residential development, said Bob Bierscheid, director of the city’s parks and recreation department.

“Frankly, it’s so huge, it would block that section of the river,” said parks advocate Peggy Lynch, a member of a citizens committee proposing stricter rules for the Mississippi River.

Unlike with controversial riverfront proposals such as the Bridges of St. Paul, Nelson is not asking for city subsidy. As riverboat residents, however, Nelson’s condo buyers would not pay property taxes — an arrangement that raises questions about how St. Paul would provide city services, said Cecile Bedor, director of planning and economic development.

“Our initial observation is it’s interesting and intriguing,” Bedor said. “I’m not sure that having a large barge of housing on the river necessarily promotes further development of the riverfront, but it may.”

‘I’m selling a lifestyle’

Perhaps the biggest challenge will come from the market itself. Nelson is readying to launch his idea at a time when gas prices have skyrocketed and condo sales have sagged. He estimates it would take at least $80 million to build each boat over roughly 2½ years.

Given the novelty of his dreams, Nelson has struggled to find financing for construction and individual mortgages. Residents would share annual maintenance and cruising costs, ranging from $8,200 to $21,700 per unit.

Nelson says he’s selling greying boomers a lifestyle of ever-changing scenery without the hassles of boat maintenance. Whirlpools and putting greens can entertain them on board. At each port, residents would explore downtowns and beaches as well as take advantage of rental cars arranged by the crew.

“What’s unique about this is that these people will have a sense of ownership of the entire Mississippi River that few other people would,” said Patrick Seeb, head of the St. Paul Riverfront Corp.

“These projects are never easy,” he said, referring to ambitious riverfront proposals that include the Bridges, which Seeb has criticized. “You have to hand it to people for being creative and trying to find ideas unique in the marketplace. … I know some day there will be a water taxi in St. Paul.”

Nelson admits he’s never faced such a test, even when at age 30 he put together a small Lake Elmo subdivision. His biggest marine contracting job was a head-turning, $1 million remodel of a Victorian-style paddlewheeler into a posh living space.

“I really am just a small guy that’s trying to do a really big thing,” he said. “I want to let people know that if they’re as excited about this project as I am, then join me. I will give them one of the neatest lifestyles as any retired person in this country, but I do need their support.”