Month: March 2023

The General Services Public Works Committee met and discussed the Brooke’s Seaplane lease. Parks director, Bill Greenwood referenced several other leases.

Brooke’s lease increased by $1,000 and the term increased by two years, from three to five. This means the dock space can’t be bid on by anyone else for at least five years.

Historically, lease rates are evaluated and increased at time of renewal, said Greenwood. 

Bill Greenwood defended the leases he negotiated with Brooke’s Seaplane and [the Hagadone Corporation] for dock space on Lake Coeur d’Alene. While we originally questioned the lease rate for Brooke’s, it was revealed the Hagadone Corporation takes home the cake with a sweetheart deal. Brooke’s Seaplane leases 28 linear feet and pays “double” the rate of the Hagadone conglomerate which pays “$15 per linear foot,” and leases 408 feet. Greenwood indicated that [Hagadone] pays $40,000 per year to lease the dock space and fixes damages that occur related to usage.

The city, challenged to determine appropriate lease rates, may want to evaluate it’s neighbor the Hagadone Corporation. Hagadone is the largest landlord (read: “water-lord” or “dock-lord”) on the lake, but also happens to be the city’s largest dock-tenant by leasing over 400 feet of dock space. Hagadone charges $115 per night for boats up to 40 feet in total length for moorage. Annual leases can be acquired–join the waitlist–for several thousand dollars per year for a small boat. In contrast, the magnanimous city receives just over $18 per night for each of six cruise boats, ranging from 65-105 feet in length, moored in a prime spot abutting the resort.

As a minimum, since Brooke’s Seaplane pays double the rate of the Hagadone, the city may consider doubling Hagadone’s rate, if not increasing it to fair market value. This could increase city revenue by $40,000 per year and fund some beautiful art for the city. How do you determine fair market value? Put it on the market. How much would the Hagadone Corporation pay to keep their spot? How much would another boat rental company pay to use the spot?

Does the economic impact of the cruise boats justify the highly discounted rate? When was the last time the moorage space went out to bid?

City Council meets tonight at City Library to discuss the issue.

During a mid-year budget update, city of Coeur d’Alene comptroller, Vonnie Jensen, reported the city will likely come up short by over one million dollars during the next fiscal year. Cost of living adjustments (COLA) for police and fire personnel contributed the most to the unbalance. The city council and mayor approved the COLA after negotiations led by city administrator Troy Tymeson. The process took several executive sessions earlier this year.

Ironically, crime in the city decreased dramatically over the last several years as reported by the CdA Press, here. Several city positions remain unfilled and are keeping the budget inline for the current year. Ms. Jensen recommended leaving vacant these positions in an attempt to salvage the budget.

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Prime real estate in Coeur d’Alene leased out for the next five to ten years at $7,000 per year, pending approval by General Service Committee on March 13th and city council approval. The rate will adjust for inflation. The city of Coeur d’Alene Parks Department director Bill Greenwood negotiated the lease with the tenant DBA Brooke’s Seaplane. The tourist flight attraction is already receiving seven to ten calls each day but will not open until the weather improves. Generally six months of the year allow for flights which attract locals and tourists.

The owner reports offering ten to twelve flights per day, seven days a week. The capacity of the Beech 18 plane is six passengers. 420 passengers per week at a minimum of $150 per person per flight. At 100% occupancy, monthly revenue would reach near $300,000.

Concerned parties question whether the city has appropriately leased the dock space. We will update as we hear back from the mayor and council members.

Contact Brooke’s Seaplane to make your reservation for a flight over beautiful Coeur d’Alene.