The Newport Yachting Center -- An Alternative Waterfront Development

The Newport Yachting Center (NYC) was established in 1979 on one of the few remaining open waterfronts on Newport Harbor. Rather than follow the well-established pattern of boutiques, restaurants, condominiums, and other non-dependent uses of the harbor, the owners of the property elected to try something new: an "In the Water Exposition Center for the Marine Trades." During the first 3 years of its operation the NYC has generated considerable income for other local merchants from the estimated additional 25,000 annual visitors to Newport. The Center has preserved and modernized the waterfront and enhanced the city's reputation as a yachting capital. However, the NYC is showing a positive cash flow only this year, for the first time. Thus, the NYC has survived only because its owners were willing to sacrifice potentially large short term profits in order to obtain long term benefits for the community as well as themselves. From a short term economic perspective the NYC does not appear to provide a viable alternative for waterfront developments elsewhere. From a longer term socio-economic perspective the NYC formula is unproven but with great potential.