Photo: Penticton Yacht Club

Modern docks installed at the club last year

The Penticton Yacht Club will have to compete with the market to keep its home on Okanagan Lake, after city council voted to issue a request for proposals on the marina's sublease in 2018.

Council approved a one year extension of the club’s existing lease Tuesday, but balked at directing staff to negotiate the long-term lease requested by the club to acquire financing for needed upgrades.

Although the Penticton Yacht Club has operated the Okanagan Lake marina for decades, Coun. Helena Konanz pointed to the Skaha Marina fiasco as proof they need to take the offer to the public.

“From what I’ve heard, there is a very large part of this community that do not want a 20 year lease for anything,” Konanz said.

Coun. Judy Sentes disagreed, stating the yacht club’s stewardship of the marina warrants an extension.

“Our community needs to understand that if we are going to have what we all desire — which in this case is an upgraded, safe marina which actually anchors the Okanagan Lake — time has to be part of that factor,” she said.

“Lending institutions don’t look at anything that has less than a 20-year lease,” Sentes added.

The current agreement sees the club pay the city 10 per cent of gross revenue from all docks or $60,000, whichever is greater. The province owns the land and leases to the City of Penticton, who sublets it to the yacht club. The city’s lease with the province will expire in nine years, but will be renewed early in advance of the sublet being put out to market.

“Maybe we can package two marinas up in one, and have a proposal come forward at that point,” Coun. Andre Martin said, referring to the Skaha Marina lease set to expire in 2019.

The Skaha Marina is in need of $1.85M in taxpayer-funded repairs in the absence of a long-term lease there.