River Cities Business Journal: Cover Story

LAKE HAVASU CITY - Down by the lake there is lots of blue water, towering brown mountains and, according to some, diminishing open shoreline because of a growing number of floating vendors.

There, businesses sell hats, watercraft rentals and more. Some in the community have voiced concerns about the vendors receiving “free rent” on public land. Bureau of Land Management controls large portions of shoreline.

In March, City Council decided against annexing a 60.32-acre portion of Thompson Bay and 5.22 acres of Site Six. Thompson borders Rotary Park outside the Bridgewater Channel, while Site Six is a popular boat-launching area on the Island.

Mayor Mark Nexsen said in March that he could not understand the benefit of bringing the bay into the city's jurisdiction, given the additional liability the action would bring. Councilwoman Cindy Aldridge said nothing has changed since the March vote.

“You can't have the beaches covered with vendors,” she said recently.

BLM is including floating shops in its yet-to-be-published Regional Management Plan, said Development Services Director Larry Didion.

David La Plante rents ATVs, boats and personal watercraft off Rotary beach. He and his wife, Crystal, have been running All Seasons Water Sports for six years and possess a local business license.

Contrary to what some think, La Plante pays all applicable federal, state and local taxes, including sales tax. Rent is basically free, but La Plante is willing to do more.

“We would be happy to pay BLM or Havasu for a permit,” he said Tuesday.

The main problem, as he sees it, is too many vendors are competing on Lake Havasu beaches. A permitting system would allow the city or BLM to place a cap on how many businesses of a particular type would be allowed in the area.

“I really feel for the public and how they feel,” La Plante said of the crowding, but adds there is nothing he can do about it.

But it is his sole livelihood and sales are starting to pick up again after past slippage.

One U.S. Army Corps regulation requires floating vendors to move to another beach every 30 days.

“Some do and some don't,” he said.

Shoreline oversight can be tricky. The Corps of Engineers, Coast Guard, BLM and Bureau of Reclamation all play a role.

La Plante speaks regularly with BLM officials and council members. Local lawmakers have not spoken of any imminent action.

“Their hands are kind of tied,” he said.

Dusan Kurta is one of Rotary's newer vendors. He carries a business license and liability insurance for Knight Rider Rentals, which Kurta opened about a year ago after moving from San Diego.

Contributing to public-safety funding and other city services by paying taxes is an obligation he does not take lightly, Kurta said.

Without annexation, most regulation is left up to entities other than Lake Havasu City.

“The city really has no control and the city knows that and doesn't do much,” La Plante said.