Marina Joint Ventures Lease
Posted below is a copy of the lease Marina Joint Ventures has with the city. I have read through it, but I am not a lawyer and I could have missed a thing or two.
One thing that jumps out at me is there is NO requirement to rent a slip to an IOP resident (you know, the people who bought and own the property.) In fact, it does not appear there is any requirement to rent a slip to a private boat owner at all. Presumably the tenant could rent every slip to a subleased business if he could find enough of them to fill all the slips.
The contract defines gross profit as sales of goods and services minus the cost of the goods. In the original contract the tenant was to pay the city 15% of any gross profit over $450,000. The tenant is to provide an annual financial statement provided by his financial officer. In addition, the tenant is to provide the city with annual audited financial statement.
If you look at the first amendment on page 23, you will see the lease was changed to permit the rental of Low Speed Vehicles (LSV). This has not been done to date, but certainly could be. They would have to be parked somewhere.
The lease was amended a 2nd time to change the the profit structure. Page 25 shows the city is to get 2% of any gross profit over $500,000. Think about this for a minute. If the gross profit were to come 1 million dollars, the city would get a whopping $10,000 extra. It is not clear why this change was made.
Another part of this 2nd amendment says the tenant no longer has to provide an audited financial statement, but must still provide a statement from his own financial officer. (See page 26.) I wonder why this change was made.
Finally, the lease was amended a 4th time and now the city is to receive 15% of gross profit over 1 million dollars. So if the gross profit were $2 million, the city would get an extra $150,000.
I do not know if the city has ever received any of these profit toggles. Perhaps someone reading this knows and would like to comment.
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