Downtown Ferry To Be Operational by Mar. 31/15

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Island Ferries & City Conclude Lease Negotiations

The City of Nanaimo and Island Ferry Services Ltd (Island Ferries) are pleased to announce that they have reached an agreement on a long term lease that will support the construction of a terminal facility for a foot passenger ferry service between downtown Nanaimo and downtown Vancouver.

The City has worked with Island Ferries to create a framework of agreements that meet both Island Ferries needs and the City's objectives of supporting a fast foot passenger ferry service to Vancouver, while ensuring the long term redevelopment potential of the City's recently acquired lands at 1 Port Drive are not compromised.

On June 23, 2014, a staff report will be brought forward to Council requesting direction to publish a Notice of Disposition in the local newspaper. After the Notice has run, Council will be in a position at the July 14, 2014 Council meeting to provide final approval of the agreements.  With the lease agreements in place, Island Ferries will be in a stronger position to close on their financing and to prepare for commencement of operations, anticipated to be in the spring of 2015.

The lease is to commence on October 1, 2014 with Island Ferries to to operational by March 31, 2015. The lease is for a 20 year term at $52,000/annum and is renewable twice at Council's discretion.

A separate licence has been prepared preserving a road right of way for the Front Street connection, this agreement having a one year term and automatically renews for $15,100 per annum. Island Ferries will be leasing parking on land owned by CP Rail and the City is leasing a portion of the existing road abutting that CP Land.