Dan's Papers - June 13, 2008 - On the Waterfront

Worried about rising fuel prices? Thinking about getting rid of your gas guzzler and going hybrid? What about your boat? How would you like to own a cigarette powerboat with two 750-horsepower Hawk Engines that devour marine fuel at around $5 per gallon? Yes, you can go broke on land, or on the water driving 85 miles per hour.

With many people complaining about the costs of putting their boats back in the water, it was an awakening to take a stroll down the private docks of Sag Harbor, home to mega-yachts that never leave the water (they just move to warmer ports). Walking the dock is like being in another world. Multi-million-dollar, Italian-built, high-tech, carbon-fiber sailboats are docked next to sleek, 100-foot-plus ocean cruising yachts. Rumor has it that on the drawing board are new mega-yachts that will use large sails as well. Mega-yachts going green, what a concept, but it's happening.

One gentleman at the Sag Harbor dock had just come from Fort Lauderdale on his 93-foot yacht (small, compared to some of the others docked there). He said the one-week journey used up about $43,000 in fuel. Claiming his boat was too large for the Intracoastal Waterway, he traveled right up the Atlantic Ocean. A 2008, 100-foot Hatteras comes with a 5,000-gallon fuel tank - those fill-ups must be fun to put on the credit card.

Operating estimates for 100-foot yachts start at about $36,000 per week, when fully staffed and in use. Many notables keep their yachts in Sag Harbor in lieu of buying mega-homes (and some do both). In his final years, Johnny Carson docked his 103-foot West Bay yacht, "Serengeti," in Sag Harbor for the high season. His wife Alexis often shopped around town while Johnny stayed on board. Last summer, Prudential Douglas Elliman chairman Howard Lorber often entertained on his yacht, the 100-foot "Useless."

Another famous visitor every year is the Moet & Chandon yacht, a sleek, world-class, round-the-world racing sailboat. Also present at the moment is a new state-of-the-art power boat that Billy Joel designed, called the "Vendetta." The sleek stern and black and gold colors are breathtaking. The piano man uses this yacht perhaps to cruise to Montauk and points beyond, whereas he may use his other boat, the "Alexa Ray," for fishing. Years back I watched Robert De Niro, then wife Christy Brinkley and Joel dock the "Alexa Ray" out at the Montauk Marine Basin after a fishing excursion. Today, however, Joel keeps his boats close to his Bay Street condo and his private dock.

It must be mentioned that most mega-yachts are businesses for charter. Diddy and other stars often rent mega-yachts for a season. But for those who'd rather buy than rent, prices of used, 100-foot yachts start around $2.3 million and dance upwards from there. Custom-built, bare-boned new ones start around $7 million, but usually run in the $20-30 million range. Microsoft co-founder Paul Allen's yacht, "Octopus," is estimated to cost just over $200 million - but that toy is 416 feet long and carries a Range Rover. Larry Ellison, Oracle's head honcho, also has a $200 million, 452-foot yacht named "Rising Sun," complete with an on-board Cadillac.

So while at the pump, scraping your boat bottom, think of the yacht owner budgeting about $36,000 per week and up for his hobby. Many dock their toys in Sag Harbor during the season - it's what the very rich have been doing since The Gilded Age. In fact, it was one of the Vanderbilts who said, "If you have to ask how much, it's not for you."