Settlement deal with waterslides developer will cost Penticton taxpayers $20,000

PENTICTON – The cost to taxpayers of scuttling an agreement between a developer and the City of Penticton to build a marina project, which included waterslides in Skaha Lake Park, is pegged at $20,000.

The settlement agreement will require that payment for Trio Marine Group’s rights and claims under the cancelled deal for the Skaha Marina development.

At the city council meeting yesterday, Nov. 2, two new proposals — a settlement agreement and an enhanced marina agreement — were tabled.

The new proposals would see waterslides disappear from the conversation and a more transparent process involving increased public input with respect to any further commercial development of the park.

The city will also pay Trio another $20,000 for safety-related repairs it made to the docks at the marina, something Mayor Andrew Jakubeit says would have had to be done regardless of who was operating the marina — the city or Trio.

“We know the marina is old, we know there are issues with the docks that have to be repaired,” acting chief administrative officer Mitch Moroziuk says.

Jakubeit says the city is also foregoing this year’s taxes in the amount of $38,601, while Trio waived $8,200 worth of dock repairs.

“They did incur costs — creating designs and architectural renderings — to take the waterpark proposal to where it was, so there was that cost to them… so I think’s it’s fair to compensate for some of those costs,” he says.

Moroziuk says with the waterslides off the table, any future proposals for removal of green space will be subject to a full public process.

The new agreement does allow Trio to maintain some of their interests contained in the previous agreement as well as giving Trio the option of proceeding with marina and concession enhancements in 2018. Trio will also have the option of pursuing an in-lake play structure in 2018, as well as first rights to propose other possible park amenities in 2019. The agreement would also see the city sign a seasonal license with Trio to operate the Skaha Lake East concession for a period of 29 years.

In the enhanced marina agreement, Trio agrees to spend $1.5 million to upgrade the marina to include a restaurant and retail space by May 2019. In return the city will grant Trio a 29-year lease and receive annual lease fees in addition to a revenue sharing agreement.

Moroziuk says there will be opportunities for the public to learn more and provide feedback on both agreements before council makes a decision.

A public meeting planned for next week has been postponed to give the public more time to review the new proposals and they won't be back before council at its next meeting as originally planned.

To contact a reporter for this story, email Steve Arstad or call 250-488-3065 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above.