Monday, October 21, 2013

Nanaimo Downtown Passenger Ferry Service

Interim & Permanent Terminal Locations 
Company Proposes $63,500,000 Downtown Ferry Project
3 daily sailings - 376 Passengers - 68 Minute Crossing Time 

Mr. David Marshall addressed city council outlining a proposed partnering agreement between the city of Nanaimo and Island Ferry Services Ltd. who wish to establish a downtown to downtown passenger ferry service between Nanaimo and Vancouver.

IFSL has been working on this service for about four years now and are at the point where they need a commitment from the city in order to complete the final financial component of their enterprise.

The business plan requires entering into a partnering agreement with the city which would be allowed under the community charter enabling the city to enter into a business arrangement for the provision of a service on behalf of the municipality.

Proposed Partnering Agreement

Under the agreement IFSL will commit to providing at least three round trip sailings per day, or 2190 sailings per year.

The City will receive three new revenue sources from the agreement:
  • $60,000/yr. lease revenue
  • $0.25/passenger tax
  • 50% of net parking revenue on City lands

The City is to help incubate the business for the first five years by forgiving $125,000 per quarter ($500,000/yr) of the revenue owed the City by IFSL. After five years the subsidy would terminate.

Terminal Location

Because Seaspan currently holds a right of use on the Wellcox property the desired 'Permanent Location' on the above map will not be available until Seaspan vacates the property. In the meantime the location marked 'Interim Location' on the above map would be the location of the ferry terminal.

Access to this terminal would be via the wooden trestle, which will require increased maintenance and major upgrades by 2016. Parking for the ferry terminal, which will require 370 parking spaces will be on the CP Rail land located south of the trestle. This parking would not accrue any revenue to the city.

IFSL is looking for a 20 year lease with the city, with option to renew for additional 20 year periods. They would also be looking to the city to provide a water and sewer connection to the interim location which has a value of about $115,000.





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