Troy’s Community Improvement Corp. (CIC) gave conceptual support to a city proposal for handling sublease of the restaurant/retail operations at the Treasure Island Marina.
The three-party agreement (CIC, city, sublease holder) would allow for more flexibility in the process of finding and overseeing a long-term tenant for the building recently renovated as part of the city riverfront development project.
“It is a legal way to do it. It would provide for us to find a suitable long-term tenant without having to go through sealed bidding and that clunky way that we do these things otherwise,” Patrick Titterington, city service and safety director, said during the March 11 meeting.
“It is vital that we find the right fit for that facility and this lease, we feel, provides the best way to do that,” he said.
Grant Kerber, city law director, said using the lease arrangement could attract “a better mix” of subtenants because of requirements for sharing of confidential information.
CIC members said they wanted more details on issues such as protection against liability for the CIC, a nonprofit economic development corporation. They also asked whether the city could act as the CIC agent as far as administering the nuts and bolts of a lease agreement.
The CIC does not have a staff and a small treasury of around $2,000, Mark Douglas, CIC treasurer, said. He also asked if the city would consider paying the CIC in the future a small amount from the sublease, possibly 1 percent, for its involvement.
The proposed lease would be for five years with two potential five-year renewals with each year costing the CIC $1 for the lease.
Titterington said a more detailed agreement would be prepared. Douglas and other board members said they would like to review and OK the more detailed document.
The board approved a motion approving the agreement concept with future elaboration on several details.
The agreement also would have to be approved by Troy City Council. Council’s finance committee was scheduled to meet to discuss a recommendation to council on the agreement on March 16, at 4:30 p.m. at City Hall.
Although a restaurant/retail establishment was discussed, Titterington said the primary use of the Marina Building space is intended for a restaurant/bar with some space for recreational retail functions. Canoe or similar rentals have been mentioned during planning.
“We don’t want to scare any restaurants away because we say we want you to handle all of this. We want to be as flexible as possible,” he said.
City staff continues to talk to possible restaurant operators, primarily non-franchises, Titterington said.