The municipality has reached an operating agreement with Casa Dea Financial Limited, the new owners of 67 slips in Picton Harbour built by Tenacity Marina. 

For a one-year term, the County will manage all the boat slips in the harbour, adding Casa Dea’s slips to the 14 at the Picton Marina. 

Revenue generated from docking fees will be split 70/30, with the majority going to Casa Dea. The company plans to install electricity and water at its docks in advance of the summer. The County still has no plans to install hydro and water at the slips it currently manages along the boardwalk.

Discussion at the Committee of the Whole on March 26th concerned whether the proposed revenue division was fair. 

“I don’t think it’s worth our effort at 70/30,” said Councillor Phil Prinzen. 

But no motion to renegotiate came forward, with Council conceding that Casa Dea’s plan to install both electricity and water servicing would be costly in the short term. 

“There is a significant cost on their part that we’re going to reap the benefits of and the community is going to reap the benefits of,” said Troy Gilmour, Director of Operations. “I don’t mean just for the Marina, but also for the downtown core.” 

There were also concerns that Casa Dea’s 67 slips will be more attractive to boaters, both easier to access, and with enhanced services. Still, under a joint agreement, Supervisor of Environmental Services and Sustainability, Albert Paschkowiak, noted, “if occupancy is higher than currently, you are looking at significant additional revenue, even at a 70/30 split. 

“We expect a significant number of additional boaters with electric power and water available.”

The County must remit 10 percent of the Picton Marina’s gross revenues to the Ministry of Natural Resources. Councillor Nieman suggested that remittance should be split, with half payable by Casa Dea. But Mr. Paschkowiak, noted that the 10 percent applied only to the County’s revenues, not those accrued by Casa Dea. 

Mr. Paschkowiak also noted that without a negotiated agreement in place, the slips on Water Lot 1 could not be leased, and might even have to be removed.

“I think we know what the alternative is and that’s not very good,” Councillor Phil St-Jean agreed. 

It was also noted that the municipality earned only $31,000 from docking revenue last summer, so the agreement poses little financial risk.

New rates for seasonal and transient docking will come to the April 7th Council meeting, along with rates for the power and water services available at the Casa Dea docks.

“There’s significant possibility to have a very large amount of revenue there, given that there’s 67 slips,” Mr. Paschkowiak said, estimating that if they were occupied 100 percent of the time, revenues could reach the $700,000 range. Even at a 70/30 split, the figure represents significant gains for the municipality.

“Will that happen in reality? Probably not,” he added. Nonetheless, discussion turned to ways to draw more boaters in to Picton Harbour.

Councillor David Harrison noted that sailors on the Great Lakes waterways between Canada and the United States, or “loopers,” are an untapped base. 

“They’re the ones that will come uptown and think nothing of dropping a thousand dollars,” Councillor Harrison said. “They’re the top one percent of the American population. We’re totally missing them.”

Mr. Gilmour said his department has scheduled a meeting with Visit the County and the Picton BIA to discuss a marketing strategy. On top of that, Mr. Paschkowiak said a new VHF radio will have a longer range, enabling Marina staff to offer berths to boaters far out in Lake Ontario.

Limiting the new agreement to one year allows each party to tread cautiously into a partnership. The previous five-year contract with Tenacity Marina has resulted in a lawsuit over the docks.

“The initial contract we signed in 2020 was very flawed,” Councillor Kate MacNaughton said. “I appreciate the caution and walk-before-you-run principles that are in this.”

Councillor John Hirsch wondered if the agreement would have any impact on the civil litigation between the County and Tenacity.

Director of Corporate and Legislative Services Sarah Viau noted that while she could not share details, “staff consulted with the lawyer representing the County in the litigation.”

“What’s being put forward to Council today is not a risk in that respect,” she said.