RedactedNarrative: Vessel taking on water eventually sinks. It was determined the reason for the vessel sinking was a towel that became wrapped in the propeller shaft. As a consequence the it tore the shaft seal along with other hoses allowing water to come into the engine compartment. 
  Once on scene, we realized the vessel had taken so much water it had actually sunk. The owner, and only occupant of the vessel, was safe and unharmed and on the USCG vessel. After speaking to the owner, later identified as OP1, he advised he was having engine problems, and that he thought it might be the raw water cooling system that ultimately led to the vessel taking on water. He advised he had gone to fuel up but that soon after the vessel began taking on water. He said he immediately put his life jacket on and called for help. Given the USCG was just across the bay, they arrived within minutes, however, their water pump failed. Having been unsuccessful at removing the water from the vessel, the vessel continued to take on water until it ultimately sunk. OP1 advised that the vessel went down at a surprising speed and that at that point there was nothing that could be done.
  OP1 advised the vessel had been getting work done at Panhandle Marina and it was getting an engine replaced. But to his surprise, it was the other engine compartment that was taking on water. OP1 called Sea Tow so that they could float the vessel and tow it back to Panhandle Marina.
  
NameOfBodyOfWater: bay
NearestCityTown: PANAMA CITY BEACH             