A Shuswap boat rental company will continue to hold the lease for the marina at the end of the Salmon Arm Marine Peace Park wharf for another two years.
In place since 2015, Sea-Dog Rentals Inc.'s agreement with the city to lease, sublease and operate the marina, was renewed for another two years at the April 14 council meeting.
"Historically, they’ve been paying an annual rental of $40,000, payment of property taxes and a small amount for sewage pumpouts per pleasure craft and houseboat," staff told council, adding the city has had a positive working relationship with Sea Dog whose lease has expired.
In a report to council, staff explain the city's foreshore licence with the B.C. government expired in 2021, and it's anticipated it will be two years before the city receives an update.
"Meanwhile, the Ministry has advised that the City can continue to operate and use the foreshore as usual," reads the report.
With that, staff recommended extending its current arrangement with Sea Dog until September 2026. The extended agreement comes with the following provisions:Sea Dog is to obtain a waiver from each of its boat slip/moorage tenants indemnifying and saving the city harmless from any loss resulting in fire, theft, vandalism, etc.; and that the city be notified of any potential sale of Sea Dog, with the city retaining the right to request financial and business information on any potential operator, and the right to terminate the lease agreement if the operator does not demonstrate suitability.
Staff also proposed setting the renewal rate at $40,000 plus the BC Consumer Price Index (CPI) of 2.6 per cent, resulting in a $1,040.00 increase for 2025. Sea Dog requested the 2025 rate with CPI also be used for 2026. This was supported by staff, but not council.
"I find it kind of interesting that CPI is agreed to one year and then all of a sudden CPI ends," said Coun. Kevin Flynn."I’m pretty sure about 90 per cent of all the things we do now have a CPI escalator. I don’t support not charging it both years."
Flynn tabled an amendment to the motion to charge the CPI rate for 2025 and for 2026. Council unanimously supported the amended motion giving Sea Dog the lease for another two years.
When the new lease/agreement expires, staff said they would go out to a request for proposals.
