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.
