City council has officially approved a 25-year lease for the Penticton Yacht Club to operate the Skaha Lake Marina, following lengthy public consultation.
At a special meeting Tuesday, council praised the plan, which was the result of a Request for Proposal process this winter that saw the yacht club and two others submit bids.
The yacht club will make a $45,000 annual payment to the municipality, subject to re-evaluation as larger investments are made, and will make initial capital upgrades valued at approximately $565,000 to the marina docks and slips, fuelling system and fire suppression equipment.
They also plan to make a $2.5 million investment into the current building, turning it into a licensed restaurant run by the owners of the Hooded Merganser and Barking Parrot, as well as accommodating the existing cafe.
Coun. Judy Sentes called the operating agreement "long overdue" to get the most out of the marina.
"We have sort of limped along with a little gem that I think is now going to get a chance to shine," Sentes said.
"It went through an appropriate process and I think we've got a good operator identified so I can't wait to see it start to happen."
Coun. Julius Bloomfield praised the agreement as well, especially the four-page section of the agreement outlining protections for the City should the new operator not hold up its end of the deal.
"I think that there's some very clear and direct language in there as to what happens if it doesn't go to plan. So I think it's a very well thought out, very well presented and prepared management agreement," he said.
Council voted unanimously in favour of the operating agreement.