Council will be asked to enter into a Management Operating Agreement with the Penticton Yacht Club (PYC) at a special meeting planned for April 12 at 1 p.m.
The long-term agreement to operate the Skaha Marina was endorsed by the Parks and Recreation Committee last week in advance of being considered by council.
The agreement sets expectations for PYC in their management and operation of the marina, operating and capital contributions as well as the city’s rights and obligations, inspections and monitoring, and financial and other reporting requirements.
If council votes in favour of the agreement, the PYC will assume operations by mid-April to support an organized transition for slip holders and marina users.
Some of the key features of the 25-year agreement include: an annual operating fee of $45,000 and an initial capital commitment of $565,000 for marina updates. They also plan to make a $2.5 million investment to make a licensed restaurant; the requirement of a Letter of Credit in the amount of 25 per cent of the construction value for the restaurant investment.
Nautical Dog Cafe announced shortly after PYC won the bid that it would be closing at the marina.
“The transfer of food and beverage assets of the retiring marina lease holder to the new lease holder, the Penticton Yacht Club, has proven to be financially prohibitive to operate the current café,” said Nautical Dog Cafe owner Kirsten Ferguson.
She then announced she will be opening a new bakery and cafe called Honey Toast in May at #66 Front Street.
READ MORE: Nautical Dog Cafe closes doors at Skaha Marina
There will be a business plan and performance review every three to five years, said the city. The agreement also includes provisions for termination for non-payment, failure to deliver the services expected and breach of the agreement with the city.
“The agreement is in place to protect the community and also the operators of the marina to ensure the delivery of a high quality marina and associated facilities,” said the city’s GM of community services Anthony Haddad. “The negotiation of this agreement has been completed in partnership with the PYC, under the understanding that the proposal upon which they were awarded the long-term agreement will be completed to the satisfaction of the city.”
The current operators of the marina are the Gallaghers who also own the floating bouncy park Wibit in Penticton. The city awarded a contract to run the Sudbury Beach concession to the Nauti Dog Café, which will be operated by Randy and Karen Gallagher, May through September and offering cold beverages, baked goods, lunch options and ice cream.
READ MORE: Feeling the squeeze: Penticton tries to explain choosing lemonade stand over The Peach
A copy of the marina agreement can be reviewed as part of the agenda package for the upcoming special council meeting available at www.penticton.ca.