A 72-berth floating marina at Mulwala Water Ski Club has been approved by Federation Council.
A 72-berth floating marina within the existing harbour at the Mulwala Water Ski Club has been given the go-ahead by Federation Council.
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The floating structure will rise and fall with lake levels and includes floating pontoons, finger berths, a jetty and gangway, and piles to anchor the structure.
Along with the marina, the foreshore will be landscaped, and pedestrian connections will be improved.
There was very little discussion at last week’s December meeting before councillors unanimously approved the application.
The issue of the Ski Club’s lease for its Holiday Park site proved to be far more problematic for councillors who acknowledged the complexities in the debate.
The existing lease agreement had rent set at $30,000, which is $65,000 less than market value.
Council sought to increase the rent to full market value plus GST with a 20-year term.
Mulwala Water Ski Club formally rejected the proposed increase based on the necessity for substantial capital investment in infrastructure and their provision of public amenities.
The club counteroffered $45,000 with a 30-year lease.
Mulwala-based councillor, Andrew Kennedy opposed the full increase saying that millions of dollars needed to be spent to maintain the foreshore and upgrade retaining walls, which are council assets.
“I don’t think we should expect them to pay that, it’s a lot of money to ask them to pay and then have to do all the work,” Cr Kennedy said.
A vote to increase lease the club’s lease fee to $95,000pa, phased in over five years, will be advertised for public submissions.
Deputy mayor Rowena Black supported a phased-in approach over five years.
“Mulwala Ski Club does do a lot for the community, and we need to balance those things,” she said.
However, councillors Derek Schoen and David Bott supported the motion.
Cr Schoen said based his view on the notion that the club didn’t operate as a charity and was planning a very large development in the marina.
“This is ratepayer’s money that would be foregone, and I believe we should charge full market rate,” he said.
“The ski club has had a discount for a number of years; market rate is fair and should be applied.
“Money forgone is money lost.”
Cr Bott said $45,000 was too low.
“I don’t think $95,000 is a lot of money given the location; I think we should put the ratepayers first,” he said.
“We’ve just given them a large rate increase, and I think it’s expected that we will use their assets to ensure they receive market value for them.”
The original motion to raise the rental to $95,000 was lost.
A second motion to adopt a phased-in approach to reach full market value over five years, with 10-year market reviews and adjusting lease terms to 30 years was carried 5-4.
The proposal will now be advertised seeking public submissions.
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