Picton Marina sub lease to be terminated
Administrator | Feb 13, 2025 | Comments 3
The Picton Marina sub-lease is to be terminated due to non-compliance by the current tenant and the search for a new operator for the 2025 season will be under way once council ratifies the motion at its Feb. 25 meeting.
In his report to Committee of the Whole Thursday, Director of Operational Services Troy Gilmour stated the five-year agreement with Tenacity Marina Corporation was to be in place until the end of this year.
Gilmour noted several items in the terms of agreement have not been met, stating “the public-facing services and advertised amenities have been subject to many complaints and have not met the expectations of the sub-lease” including complaints from the public, and staff, about communication.
He states the tenant has also failed to fulfil reporting and annual remittance requirements, and reporting required by the Ministry of Natural Resources (MNR) regarding gross revenue, detailed receipts for revenue and expenses, statement of net revenue and remittance of 10 per cent of net revenue.
“On Aug. 19, 2024, the municipality was notified by the MNR that remittance for the Picton Marina has not been received for 2021, 2022 or 2023,” stated Gilmour in his report. “Remittances are due annually by March 31st per the municipality’s head lease with the MNR.”
An expression of interest in providing services in time for the 2025 operating season was recommended. If a suitable third-party operator is not found, Gilmour notes there would be time to return to council to consider alternative options.
In the meantime, costs for the municipality to run the facility, and options, are to be examined in a report back to council. Several councillors noted having the marina operational is critical. It was pointed out the current tenant may make application to be the new tenant, which will be agreeing to a stronger agreement, said Gilmour.
In 2020, the awarding of the sub-lease was thought to be win-win as the marina had not been profitable under municipal operation and would save the County $30-70,000 annually. It was also noted the County is bound by the MNR lease for the Picton Marina and harbour until 2033.
Filed Under: Local News
If there have been problems with the present operator it seems unlikely the county would consider going into another agreement with them
And maybe they should look at charging for pump-out by time or volume. It is ridiculous that I pay the same with a small holding tank on my 25′ sailboat as a 40′ powerboat.
About time. Its nice that the municipality is listening to the users and taxpayers. But I would hope that they wouldn’t terminate a contract just to hire the same company again. And most importantly make sure that if someone purchases a County boat launch seasons pass it includes the Picton launch!