(Above) Guests at a “launch party” at Marina City’s marina on April 18, 2012, are treated to rides on the Chicago River aboard two electric-powered boats, including the Miss Chloe seen here, owned by Chicago Electric Boat Company, a new venture by two Jefferson Beach Yacht Sales executives.

In early 2012, the company that sold million-dollar yachts out of Marina City and five other locations introduced small electric boats to the Chicago River, hoping to bring in more traffic to the marina.

Jefferson Beach Yacht Sales, based in St. Clair Shores, Michigan, started Chicago Electric Boat Company to rent boats to tourists and natives alike, up to ten at a time. For $150 an hour, a nine percent “Chicago Amusement Tax,” a $500 security deposit, and a signed liability waiver, amateur admirals could navigate the Chicago River, this side of any lock, any day of the week as long as the boat was back by closing time – which three days out of the week was as late as 11:30 p.m.

“We were trying to figure out how to draw more people down to Marina City,” explained Greg Krueger, president of Jefferson Beach Yacht Sales, at the April 18 launch party. “So we said maybe we could do some kind of a rental program with the little boats. I made some phone calls, we bought two, and here we are.” (Left) A rented electric boat on the Chicago River east of Clark Street on May 27, 2018. (Click on images to view larger versions.)

Krueger said it was Ron Silvia, president of the start-up, who suggested the electric boats made in California by Duffy Electric Boat Company. Silvia, a Coast Guard licensed captain, worked at the Marina City location for Krueger’s son, Erik Krueger. When Erik returned to Michigan, Ron took over.

The Duffy boats, which cost between $18,000 and $35,000, were according to the Chicago company’s web site, “as easy as driving a golf cart” with a top speed of about seven miles per hour. USCG licensed captains and tour guides were available for additional hourly rates, as well as catering provided by Marina City restaurants Bar Louie, Dick’s Last Resort, and House of Blues.

(Right) On the Chicago River near Wolf Point on October 22, 2016, an electric boat, Lady Kathy, approaches the Chicago Fire Department fireboat Christopher Wheatley as it sprays water from one of four water cannons on board.

Not giving up the big boats

Jefferson Beach Yacht Sales had been at Marina City for about five years. Krueger says the marina level was “a rat’s nest” when they took over from Skipper Bud’s, which was leasing the space year-to-year.

“I have over a hundred grand pumped into this joint,” he said. “We were able to slide in and put a deal together with a ten-year lease and two five-year renewals. I came in here and we gutted everything. Spent a lot of money. Cleanup is a constant, constant, constant chore.”

Boat owners, who paid JBYS as much as $14,200 to store their boats year-round, were required to have their boats cleaned at least once a week.

“The economy tanked on us right when we took over,” recalled Krueger. “We were struggling like everybody, trying to figure out how we’re even going to survive. But we were not going to give up Chicago. I almost gave up my main store. But we made it through and survived. And we have a whole new business model structured right now.”

Despite some initial struggles, breaking through Chicago’s “little clique,” the company, said Krueger, “is coming along real good.”

“Over the last 18-20 months we’ve seen a nice little up-tick in business. [Silvia has] already had eight-and-a-half million dollars booked out of this facility in business. We think it’s going to be $10-15 million bare minimum out of here. We’re very excited.”

(Left to right) Greg Krueger (1948-2015), president of Jefferson Beach Yacht Sales, his wife, Judy Krueger, who managed the company’s office in Charlevoix, Michigan, and Ron Silvia, in charge of the Chicago office and president of Chicago Electric Boat Company.