MILLION-DOLLAR MARINA TOUTED BY CITY OFFICIALS (TDN; 10/5/2014) TROY — Troy City Council will once again consider the $1 million marina renovation its second reading at the regular council meeting at 7 p.m. Monday. The resolution requests funding for $1 million in renovations for the marina. The marina architect estimated $922,000 in projects the marina’s architect presented in July. The $1 million figure was to allow for project contingencies, according to city officials. The $1 million in marina renovations include: $162,000 for the balcony, $63,400 for tower remodel, $72,300 for new entrance, $113,600 for restroom remodel, $83,500 fireplace room renovation, $92,000 for snack bar, $114,800 for roofing, $135,700 utility upgrades and $84,500 for exterior renovations. On Sept. 15, council member Bobby Phillips said he did not support the $1 million marina renovation due to the type of businesses (rec- retinal canoe rental and other water craft) which he believes do not warrant the funding of the project. “I think our expenditure of $2.8 million (including the $1.8 million Treasure Island project) for the type of businesses that may or may not come to Treasure Island do not warrant that expenditure,” Phil- lips said after the meeting on Sept. 15. Phillips said the $2.8 million project is based only on quality of life and no firm economic study. Council members Robin Oda, Alan Clark, Bobby Phillips and Bill Twiss have voted down the motion to suspend the rules for the issue to move forward at the last council meeting on Sept. 15. RETURN ON INVESTMENT In a public information request, the city of Troy reported the Tin Roof on the Miami Restaurant began its 10-year lease of the marina building on Nov. 16, 2008, with a 4.5 percent per month gross revenue from operations. The restaurant owners are Craig and Merikay Hughes. The lease will expire on Nov. 15, 2018. As of Sept. 20, 2014, the restaurant has paid the city of Troy $36,156 total from their lease agreement revenue since its lease began in November 2008. The revenue is approximately $6,000 per year or around $500 a month. The owners of the restaurant also pay the util- ity costs, according to city staff. In comparison, the city of Piqua manager Gary Huff said the city has a complicated owner/lease agreement due to a private investor group as well as city managed investments from state and federal funding the recently renovated Fort Piqua Hotel. According to Huff, the city receives $750 in monthly rent plus utilities from Winan’s and $1,200 per month in rent plus utilities from Mulligans restaurant. Council members Phillips and Al Clark have called for a comprehen-sive plan as well as return on investment figures for the marina before renovations begin. City service and safety director Patrick Titterington said, “In terms of our plans for the reuse of the Marina building, we have no firm plans yet because the reno-vations haven’t been bid, awarded, or finished. State law requires (the city of Troy) to bid out the use of the building whether we are turn-ng management over to a third party or we are going to manage it ourselves. Because we can’t know for certain until we bid, any forecasts of additional revenue would be speculative and “putting the cart before the horse.” “Furthermore, anyone who focuses only on the short term revenue impact and the “return on investment” that I understand is the angle of discussion among the Council opponents, completely ignores the larger reason we are committed to this project. That is, we look at riverfront development (as does all of the regional, state, and federal thinking) as a long-term economic development and quality of life enhancement that will appeal to young families and millennial employees. Bringing them into Troy will supply businesses with needed workers and Troy with healthy, working and tax-paying residents and tourism.” In regards to the comparison of the Fort Piqua Hotel lease agree-ments and its recent public and private investment compared to the marina building, Titterington said, “The Piqua Hotel project is an excellent comparison example if you want to look at return on investment. To calculate the ROI, you have to look at the building’s net earnings divided by the investment. So, for the Hotel, which (trusting numbers) generates $1,950 per month or $23,400 per year against the investment that Piqua made of $21,219,927, it nets an ROI of .11%. By contrast, just using the Tin Roof revenues (and totally ignoring even one dollar additional of future use revenue) against an investment of $1 million nets an ROI of .6 or roughly six times that of the Piqua Hotel. Of course, comparing the two buildings would be rather futile as the footprints, size, location, usage objectives, etc. are completely different.” Titterington stated that the city of Troy only has two options in regards to the marina building which is the proposed $1 million investment or demolition. “We have only two options for the Marina: invest $1 million over 25 years, renovate the building and provide a revenue-generating recreational amenity OR spending $650,000 straight out of next year’s budget to demolish the building, study the environmental impact, remediate any of those impacts, and return the land to grade,” he said. On Sept. 26, Mayor Michael Beamish said the marina project is vital to the quality of life the city can offer its residents, the regional community and to attract new residents with more options for recreation and entertainment. “The riverfront development project as a whole is all about the quality of life amenities in the community,” Beamish said. “I think the marina offers a lot for a whole lot of people who are interested in all the activities like canoeing, kayaking and water front activities. Beamish addressed the flood plain area which the Treasure Island project and marina are located. “It is a marina. A marina is next to water so the fact that people talk about the river flooding just need to know that the floor of the marina has never flooded. Not once. It’s a marina so it is built to be by the water.” Beamish said the marina is currently being underused and once it is remodeled, it will enhance the numerous possibilities to add to the quality of life in Troy. “If we don’t do anything and it sits idle, there will be a miss opportunity,” Beamish said. “I believe we should take care of the building, give it a new purpose and enhance the quality of life in our area.” Beamish said the riverfront project will be funded by a bond issue and not increase taxes for the city of Troy. “First of all, it’s a wonderful building and it protects the integrity of the Hobart family,” Beamish said. “Second, the architecture is unique to the whole area and region and I feel we need to protect it.” Beamish said the city needs to continue to add amenities to bring more profes-sionals to Troy’s workforce as well as to the region. “I certainly don’t want Troy to fall behind,” Beamish said. “I am so passionate about this because I know the region, I know the community and I know what we need to do to stay up to pace with every one else.” To read what members of city council think of the marina project and its proposed $1 million investment, see Monday’s edition of the Troy Daily News. Melanie Yingst can be reached at myingst@civitasmedia or follow her on Twitter @ Troydailynews
Posted on: Sun, 05 Oct 2014 10:43:39 +0000
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