Council accepts 10-year lease with The Boat restaurant

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Disagreement between advisors on sharing gross sales

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North Bay Council has agreed to enter into a 10-year lease with The Boat for a waterfront property.

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The deal, which council voted in favor of a closed or closed session last week, covers two plots of land adjacent to The Boat, which operates out of the Chief Commanda – one of 956 square meters and the other 754 square meters.

The long-term agreement with the lakeside bar and grill will run from 2020 to 2029.

Speaking to The Nugget, Mayor Al McDonald said he believes the 10-year lease is fair for both parties and very positive for the community, in that there will be a first-class restaurant on the waterfront and that the business owner will have the stability and comfort to reinvest in the property.

“It was negotiated between the staff and the owner of the company. I’m sure the city would say they would like to have more and I’m sure the owner of the business would have liked to have had less, ”he said.

“But at the end of the day, from a city perspective, we have a great operator running a restaurant that is one of our attractions in our community and hopefully will be successful over the next 10 years. “

Although backed by a majority of the council, councilors Mark King and Marcus Tignanelli voted against the agreement on a stipulation that the company should share a portion of its sales with the city.

Under the deal, details of which have been provided by the city, The Boat would share 1% of its gross sales in 2024 and 2% from 2025 to 2029.

This is in addition to The Boat’s annual rent, which for the first property would be $ 5,776.20 this year and equal to its municipal property taxes from 2021.

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For the second property, the amount would be $ 3,000 in 2020 and 2021, $ 3,250 from 2022 to 2025 and $ 3,500 from 2026 to 2029.

“We seem to have taken a new path here when it comes to income generation, and I certainly can’t support the lease in its current form,” King said at Tuesday’s board meeting.

Tignanelli thanked the company for securing the long-term lease, adding that he believed it showed a commitment to downtown and the waterfront.

However, Tignanelli said he could not back the deal either because of the precedent it would set.

Deputy Mayor Tanya Vrebosch, however, said deals like the one proposed are not without precedent.

“It’s a good company, they are doing well. We want to support them and they would like to enter into a 10 year lease with us, which shows their investment in the community, ”she said.

When it comes to sharing sales, McDonald’s told The Nugget that the deal is similar to the one with the upcoming Pinewood Park Drive casino and the North Bay Battalion.

And in the private sector, he said, many landlords also get a percentage of sales from those they rent to.

“It’s not out of the ordinary by any stretch of the imagination,” he said.

McDonald said he was happy to know that The Boat will be operating on the waterfront for the next 10 years.


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