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City calls it quits, terminating Trio Marine agreement

The City of Penticton has terminated it's long term agreement with Trio Marine Group to develop and operate Skaha Lake Marina. Trio wil continue to operate the facility through the end of 2018.
September 20, 2017 - 4:48 PM

PENTICTON - A controversial agreement between the City of Penticton and Trio Marine Group is no more.

Penticton Mayor Andrew Jakubeit announced the termination of the agreement in a press release issued today, Sept. 20.

The termination marks the end of a proposed 29 year lease to upgrade and operate the Skaha Lake Marina and restaurant beyond the 2018 season, and the end of a controversial agreement involving commercial development of Skaha Lake Park that attracted several rallies from those for and against the proposal, and two lawsuits.

The mayor says the city, after much deliberation, acted to end the contract completely, although Trio Marine will continue to operate the facility through the end of 2018.

Jakubeit says last fall the controversial waterslide development was removed from Trio’s development proposal, resulting in a substantial change in the amount of investment from $4 million to $1.5 million. He says the resulting reduction in value to the community meant a lessening need for a long term agreement with Trio.

The city will pay a termination fee of $200,000, capping the settlement and limiting potential liability. The city has incurred two years worth of administrative, legal and other costs at $168,700, while collecting $112,900 in revenue over the term of a four year license to use agreement with Trio, who is covering all other costs for the proposal.

The city also paid Trio $20,000 last November to terminate the original deal for the marina development.

“In the future, a comprehensive community engagement process, developed through a council approved procedure as part of the park use policy, will guide decision around parkland use,” the mayor said, adding the community will have a stronger voice in how parklands are managed in the future.


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News from © InfoTel News Ltd, 2017
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