There are two kinds of waterspouts - tornadic and those that occur doing fair weather. Tornadic waterspouts (like the one at CP in 98) occur less frequently than fair weather waterspouts. Both kinds pose threat to boaters, but
usually not to those on land. I suspect that if it had come onshore, damage would have been limited to broken glass, side mirrors missing from cars, etc. Tornadic waterspouts look nasty, but don't carry the same punch as tornados. But that doesn't mean you want to mess with them (especially if glass is flying!).
The waterspout that occurred at CP is similar to the type described at
http://www.srh.noaa.gov/mlb/spout.html . If you're really interested in this stuff, the page is a pretty good read.
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