TOWN OF BELL
BOARD MEETING
Thursday, March 4, 2021
5:00 p.m. at the
COMMUNITY CENTER
The meeting was called to order at 5:04 p.m. Board members present were Roger Lindgren, James Kaseno, Andrew Sauter Sargent, Allen Hahn and Jackie Eid. MaryBeth Tillmans and Janice Olson were absent.
Purpose: Discuss guidance the Town Board will give to the Harbor Commission to consider re Halvorson and like leases.
This may be the first of a series.
Board members brought their concerns / ideas about the elements of such leases that they thought should be considered essential.
Discussion was held. Some of the concerns/ ideas were:
Leases
- Needs to provide clarity to the business – 10 to 20 years
- Price indexed to CPI or?
- Base price based on property square feet and feet of Dock space at 2020 prices. Lump together and apply 10-20% discount
- Leave Large Quantity Boat Slip Lease Discount in place.
- Amount of rate increase to 38% for Halvorsons.
- Have a recreational slip rate and a commercial slip rate.
- Town required to give 5 year notice of non renewal.
- If an extended lease, there should be penalty for breaking the lease. Pay year in advance and forfeit.
- Limited liability – flood, washout ……
- Well defined boundaries
- Same terms available to all businesses in town marina – extended lease – option on adjacent bulkhead dock for commercial purpose (no sublease).
- There are no enforcement clauses.
- As far as adding a Penalty Clause, what are we trying to accomplish? There is no security deposit for any of the leases nor has there ever been. There is a Default Clause in the current agreements.
- Points in contract need to be clear.
- A lease that is good for the town and Halvorsons
- The Halvorsons need security.
Storage Yard Lease with Halvorson Fisheries
- The rate of $0.10 per square foot seems very low. Either raise it to what other shop owners pay or establish verbiage for discount.
- For comparison: the other side of the harbor brings in $4050.00 in rent ($810.00 x 5). Halvorson side as proposed would bring in $1770.00. Very similar space used.
- Consider shrinking the lot size to 50’x160’ to allow for handicap parking spot and access to break wall pier.
- Public right away needs to be defined to use break wall.
- Possibly reduce yard space.
Subleasing
- Figure out how the Hipsher boat fits into the lease. At this point the lease states “This use applies only to boats owned by the Halvorson Fisheries.”
- Halvorsons don’t own the Hipsher boat and they do not charge them.
- Remove from Premise description in both the Boat Slip Lease Agreement and Storage Yard Agreement: “This applies only to boats owned by Halvorson Fisheries.”
- No subleases – 5 year grace period on current sublease.
General
- What is benefit to harbor – commercial fishing is a definite benefit
- What is value to Lessee – where else and for what price could they get the same facilities .
- Find models from other entities that accomplish the desired goal.
- This is not personal.
- What is purpose of incentive – employment – what are Town of Bell FTEs
- Continue with Clarity and Transparency.
- Maintain property rights for Town of Bell.
- Protect the town’s interest
- Create a lease good for the town and Halvorsons. The board wants the Halvorsons to stay and be successful.
The board will continue to review and prepare a document for the Harbor Commission for them to use to proceed with the creation of leases.
At 6:03 a.m. A. Sauter Sargent made to a motion to adjourn the meeting and J. Eid 2nd the motion. Unanimous decision. Passed.
Respectfully submitted,
MaryBeth Tillmans – Clerk