TROY — Members of the Community Improvement Corporation (CIC) voted to continue to draft a lease document to potentially become the primary lease-holder of the Treasure Island Park Marina building during a special meeting held at City Hall on Friday.
Eleven out of the 13 members were present at the meeting, Marty Baker and Pete Jenkins were absent.
The motion was made pending further elaboration of the draft lease’s proposed changes, which were discussed by the CIC members during the 40-minute meeting.
Members were presented a draft lease agreement prepared by the city law director Grant Kerber between the city of Troy and the CIC of Treasure Island Park’s marina. Once a tenant is secure, a third party lease would be presented to the CIC and the city of Troy for approval.
“This lease would be between the city and the CIC and would provide a mechanism by which we could streamline the process of getting a sub-lease — (for a) three-party agreement with a restaurant/retail establishment, the CIC and the city,” city of Troy Director of Public Service and Safety Patrick Titterington said. “It is a legal way to do it, it also is set up with the state code to allow it. What it would do is provide us to find a suitable long-term tenant without having to go through formal sealed bidding. …”
Titterington said it is vital to find the right fit to occupy the marina building and feels the CIC’s input would give more freedom to pursue tenants.
“We are still actively talking to folks. We had two meetings yesterday. We have several over the last couple of weeks. We continue to vet people. Those we think have prospectus, we encouraged them to start working on their business plans,” Titterington said. “The ones we have talked to, with one exception, have been non-franchise — independents, a few start-ups, have talked to us and others with experience and wanting to look at expansion opportunities.”
Titterington said the lease with the CIC includes a five-year agreement with two additional five-year renewals with no obligations for the CIC until a tenant is secured. Titterington said the CIC would lease the marina from the city for $1 per year.
Kerber said the lease agreement set-up would allow the potential tenant the ability to submit bids without disclosure to the public, which may attract a better mix of potential tenants.
CIC member Mark Douglas said he approved of the concept of the CIC acting as the city’s lease holder, but had a few proposed changes to “tighten up” the lease to protect the organization against liability and management responsibility.
“I know the intention of this is great and I want to go forward with it, I just don’t want a bad name for the CIC or bankrupt the CIC in the process,” Douglas said.
Member Arthur “Ozzie” Haddad noted the draft lease as it was presented had the CIC responsible for a number of items, including collecting rent and oversight.
“We do not have the capability of managing that. Somewhere in the agreement between the city and the CIC it would be appropriate for the city to provide some type of oversight or management almost day-to-day — we don’t have that — would that be an issue or a problem regarding our arm’s length?” Haddad asked.
Kerber said although the lease is not a joint venture with the city and the CIC, he would provide language within the third party’s sublease to include delegating responsibility in a manner that would take the burden off the CIC, but have the organization still serve as the primary lease holder.
Douglas also asked for the CIC’s role as the primary lease-holder of the marina, would the city consider compensating the CIC for as little as 1 percent for their future projects.
Titterington said while it made sense as a tie-back to the CIC for future projects, the city has debt service for the riverfront development project, but compensation could be considered in the future if the lease structure was designed to do so.
The CIC will meet for its regular meeting in April. A date has not yet been set.