Oswego, Port Eye Extension of Marina Lease Deal

OSWEGO, NY – At its meeting Monday night, the Common Council voted 4-2-1 to extend its lease agreement with the Port of Oswego Authority regarding the International Marina.

Voting in favor of the move were councilors Connie Cosemento, Mike Myers, Cathy Santos and Ron Kaplewicz.

The nay votes were by councilors Shawn Walker and Bill Sharkey, who added an emphatic “Absolutely no.”

Prior to the meeting, Harry Hare Jr., expressed his opposition to the purchase. Speaking at the public session, he said he didn’t see how the city would make any money off the property.

On May 24, Mayor Randy Bateman notified Jonathan Daniels, port director, of the city’s intention to exercise its option to purchase the International Marina.

The city’s current lease expires June 30. The new deal runs from July 1 to Dec. 31.

The new resolution also authorizes the city chamberlain to seek funding for the purchase of the marina pursuant to the terms of the lease.

“Ninety-five percent of the city residents do not use the International Marina,” Walker pointed out. “I don’t think the residents of the city should pay for a marina that five percent use.”

The waterfront is Oswego’s heritage, Cosemento noted.

“If this were to be sold to a private vendor, we loose access to the water; not good,” she added.

The mayor urged the council to support the resolution.

While he agreed with Councilor Walker, he pointed out that the majority of the city’s residents don’t use the swimming pool or ice rinks, either.

Late last October, the Common Council voted 5 to 2 to move forward with plans to acquire the International Marina from the Port of Oswego Authority. The vote was the same as Monday night’s (with Councilor Dan Donovan, who was excused Monday, voting yes).

According to the 2010 vote, the agreement contains the following terms:

The lease rate shall be $7,462.50 per month.

The premises to be leased shall include the docks, all utilities, wave attenuator, marina building and parking lot.

The lease agreement between the Port of Oswego Authority and the Oswego Yacht Club shall remain in full force and effect and shall be assigned to the city, such that the yacht club shall become a sub-leasee of the city for the term of the city’s lease.

The city shall be entitled to collect rents from the yacht club and fees for slip rentals, dry dock services, transient boaters and regatta fees for the term of the lease.

That in the event that the lease is terminated without a sale of the International Marina to the city, the city shall reimburse the port authority 67 percent of all fees collected during the term of the lease.

That in the event that the city cannot secure financing for the purchase of the International Marina, during the term of the lease, the city shall have the right to renew the lease for an additional period of one year by giving the port authority 60 days prior written notice of the city’s intent to renew the lease.

The lease contains an option to purchase the marina under the following terms:

The sale price shall be $2.1 million.

The purchase of the marina shall take place on or before June 30, 2011, unless a later date for such purchase is agreed to by both the city and the port authority.

The premises to be sold shall include approximately six acres of land to be surveyed by the port authority and all real and personal property covered by the lease agreement.

Other terms of the pact include:

The port shall release the city from its obligation to pay half the sale price of the former Flexo Wire property.

The city shall release the port from any claim it might have against the port for monies owed to the city with respect to the East First Street Project.

The port shall release the city from any claims the port might have against the city with respect to the additional cost of construction of a new wall for the East Side Marina.