South Portland Marina

SOUTHERN PORTLAND — Port Harbor Marine Inc. can pay far more later on to rent the city-owned Spring aim Marina under a fresh 30-year agreement approved Wednesday evening because of the City Council.

The city acquired the previous Navy shipbuilding web site from General Electrical Co. in 1978 under a government project contract that requires the land to remain in public places ownership and employ forever. In 1980, the town joined into a 40-year lease with Port Harbor aquatic, which is had because of the Soucy family.

Annual lease increases from about $65, 000 to more than $250, 000 on five acres of land off Breakwater Drive and six acres of docking area on Casco Bay.

Councilor Claude Morgan, a member associated with city’s negotiating team, explained the reason why the rent has been reduced for a long time, why the city can’t sell the property to Port Harbor and exactly why rent is certainly going up significantly in the years ahead.

“Kudos towards the Soucy household, the clan, along with your workers to take these types of a massive gamble on a blighted property and changing it into a world-class marina, ” Morgan said. “As a fiduciary duty to your residents of Southern Portland, we have to be asking market price additionally the Soucys recognize this.”

Rob Soucy, president of Port Harbor aquatic, openly thanked the council as a result of its 6-0 vote.

Soucy said Thursday the brand-new rent gives their business the stability it needs to make business decisions and remain healthy consistently to come. The seawall that rims the 250-slip marina requires major repairs therefore the preparing Board a week ago authorized Port Harbor’s plan to develop a new restaurant in which Joe’s Boathouse was situated.

“We felt the latest rent had been fair or we couldn’t have decided to it, ” Soucy stated. “It’s going to be different to write that very first (larger) check once the new lease starts. But understanding that we’re going to be truth be told there for some time is perfect for all of us, including our staff members and our clients.”

The marina operator and vessel dealership features about 70 full time employees, including 50 in Southern Portland, with satellite stores in Kittery, Rockport, Holden and Raymond, where the company operates a marina on Sebago Lake. In 2015, it was thought to be one of 75 Best Places working in Maine because of the Maine State Council for the community for Human site Management.

The newest rent, negotiated over the last two years and four many years ahead of the present rent works out, considerably modifies the structure of future rent payments, said Assistant City Manager Josh Reny, which led the town’s negotiating group. Existing lease is determined as a portion of gross sales in addition to a base lease of $20, 000. In recent years, the lease was about $65, 000 per year.

The 2 functions consented that in the remaining four years of the current lease, the rent are going to be set slightly more than rent received within the newest year, Reny said. For the lease year starting might 1, 2016, rent would be $70, 000, and will increase by $5, 000 each subsequent 12 months through 2020.

Under the new rent, lease will be based on a good marketplace lease assessment that appreciated the property at $2.87 million and attained an annual leasing price of $250, 000 in 2014. The city’s negotiating team consented to a base rent calculation of $256, 500 at the time of might 1, 2016. That figure is going to be susceptible to an annual rising prices escalator, in line with the Consumer Price Index, with an annual escalator of at least 1 percent but a maximum of 3 percent.

At that rate, by May 1, 2020, the beds base lease are about $267, 000 to $289, 000, with respect to the price of rising prices within the after that couple of years, and certainly will continue to boost annually after through the end associated with the lease, which expires might 1, 2050.

The city additionally consented to reconstruct the entry roadway from Breakwater Drive at a cost of $20, 000 to $25, 000 and provide a $100, 000 lease credit in 2020 to offset the price of specific money improvements to be done-by Port Harbor aquatic, including dredging of this docking location.