The McCall City Council and Mile High Marina have come to terms on a 10-year lease renewal that will pay the city 4 percent of the boat slip rental income of the business.
The new lease begins in 2008. Mile High Marina will pay the city four percent of its boat slip rental revenue in December of each year of the lease.
The city would receive $10,000 a year if Mile High Marina has $250,000 in gross receipts from slip rentals.
The company leases a small strip of land above the high water mark of Payette Lake from the city that provides access to the marina, located north of Legacy Park in McCall.
The lease has a provision that the city council must approve any future expansions and improvements of the marina and related structures. Mile High Marina can replace the existing breakwater with a similar sized breakwater without council approval during the lease.
Council Member Michael Kraemer asked why the lease was not tied to inflation for successive years.
The city's fee would be tied to the economy since the agreement is based on a percentage of revenue from boat slip rentals, City Manager Lindley Kirkpatrick said.
It is reasonable to assume that the price of boat slip rentals will increase over time since there is currently a waiting list for boat slips, Kirkpatrick said.
The marina lease was also a point of controversy, as local McCall attorney Jonathan Hallin wrote the city a letter objecting to the 10-year lease claiming impropriety.
Hallin's letter regarding the Mile High Marina lease renewal claimed the city's proposal was "fiscally irresponsible and begs the appearance of impropriety."
He also wrote that his clients had "credible information" that the lease was a parting gift by outgoing city council members Bonnie Bertram and Bill Robertson.
Hallin would not reveal the names of the people behind the letter or give any detail as to the "credible information" his clients claim to possess.
The lease agreement was passed unanimously by the council at its regular meeting last Thursday at McCall City Hall.
