City Council on Thursday will vote to borrow $2.6 million to finance a private project: the reconstruction of a working marina and café on the 900 block of Palen Avenue at the site of the former Dan’s Dockside Marina.
The marina has been abandoned for several years, and Mayor Jay Gillian's administration suggests in a resolution that the "unknown condition of underground storage tanks, dilapidated bulkheads, environmental risks, flooding risks, risks to navigation and a consistent pattern of late payment on taxes" are all reasons why completion of the redevelopment project is in the public interest.
Council will consider two measures: 1) a resolution to approve a redevelopment agreement with Bayfront Preservation Foundation LLC (see PDF below for the full text of the agreement), and 2) a bond ordinance authorizing the borrowing of $2.6 million to pay for purchase and development of the property, and environmental remediation.
The bond ordinance would require a second reading after a public hearing at a later date.
The Gill family — neighbors of the property and owners of a successful fishing tackle supply business — is the contract purchaser for the bank-owned property. They hope to build a marina that could include at least 18 boat slips; a marine fueling station; a building with a restaurant/cafe on the first floor, retail space on the second floor and a residence on the third; and 44 parking spaces in a surface lot.
Gillian said that the agreement guarantees that all taxpayer funds, including interest, will be repaid within seven years (read letter from Gillian).
Thomas and Beverley Gill are listed as "guarantors" in the agreement, and they would be personally responsible for repaying the debt, if the redevelopment project fails, according the agreement. They must prove their net worth is 1.5 times greater than the debt.
The agreement indicates that the city does not know the condition of the underground fuel tanks or the extent of any potential contamination — it requires the redeveloper to provide copies of test results within 15 days after they're complete.
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