NPC marina in Fort Erie. (Niagara Parks photo)
JOHN ROBBINS/Bullet News
FORT ERIE – A six-year-old, $120-million-plus public-private partnership to redevelop the Niagara Parks marina into a premier waterfront destination has been scuttled.
Bullet News has learned the NPC is refusing to renew an agreement – known as a memorandum of understanding – with the company spearheading the marina development.
Reached for comment Monday, NPC chairwoman Janice Thomson confirmed the information Bullet News obtained through confidential sources, but would not give a reason for the decision.
“The Parks Commission is choosing not to extend the memorandum of understanding,” said Thomson.
When asked why, Thomson said the matter is a “legal issue” and she cannot speak about it publicly. A spokesman for Warren DAC Investment Ltd. was not available for comment Monday.
Plans for a multi-million makeover to redevelop the NPC marina – the only public marina facility on the Canadian side of the Niagara River – began in 2006.
At the time, the cash-strapped Parks Commission was considering closing the aging facility because it was in serious need of upgrades and was losing money. That’s when the Town of Fort Erie stepped in, asking the NPC to consider alternatives to closure.
Eventually, the Fort Erie Economic Development and Tourism Corp. was asked to solicit proposals from the private sector for redeveloping the marina.
Strict criteria were established for a potential public-private agreement, including a provision that the waterfront property where the marina is located would have to be leased rather than purchased.
A committee was established to assist with the request-for-proposals process, which was nationally advertised.
Eventually, a the proposal by Warren DAC/Sentex Developments Inc. was selected over two other proposals that had been short-listed for consideration.
As part of the arrangement with the NPC, the company agreed to takeover day-today operation of the 136-slip marina, which the company did in 2007, while plans for a redevelopment were being crafted.
At the time the agreement was announced, the proposed improvements included tripling the number of berths, as well as the construction of a luxury hotel, a 500-seat restaurant, tourism-themed shopping outlets and a 150-unit condominium development.
While the proposed redevelopment had its critics – including former Welland NDP MPP Peter Kormos who once described the plan as the “Disneyfication” of public parkland – the proposal enjoyed support from the town and Niagara Falls Liberal MPP Kim Craitor.
Craitor and town politicians touted the proposal as an innovative way to save the marina from closure while at the same time create jobs and attract new investment to Fort Erie.
Support for the project was contingent upon successfully navigating the environmental assessment process – something far from a sure thing when the project began because the NPC marina, when built in the 1960s, was constructed on reclaimed land that used to be a commercial shipyard.
Even after an environmental assessment, the project would require an Order-in-Council from the provincial government before construction was begun.
The original memorandum of understanding between the NPC and the proponents expired in Aug. 2008. The agreement was extended by the parties for a further 18 months.
The MOE expired again in Feb. 2010.
By this time, the NPC was undergoing major changes to its governance and administrative practices in the wake of controversies surrounding its contracting and procurement practices.
Under new management and with government appointed auditors scrutinizing the books, the NPC decided to review all of its outstanding projects and agreements.
Throughout the process, the company, which has reportedly spent hundreds of thousands on the environmental assessment and studies to date, was told to be patient while the NPC got its house in order, according to Craitor.
Craitor said he only learned of the latest twist during discussions with NPC officials on Monday.
“I was shocked,” Craitor told Bullet News.
“I have to admit I was caught by surprise. I thought things were moving along OK. I’m still trying to understand what happened,” added Craitor, who said he’s trying to obtain more information.
Craitor called the proponents “credible people” who, to the best of his knowledge, have been proceding in “good faith” for years to see the development move forward.
Mayor Doug Martin, who sits on the NPC board as a representative for Fort Erie, said his position with the NPC makes it difficult for him to comment.
“From a town perspective though, this is a project we really embraced,” said Martin. “I hope we can find a way to get this back on track.”
In the meantime, Thomson said a separate agreement with the company allows for the continued operation of the existing marina facility.
One Comment on "EXCLUSIVE: Niagara Parks puts the brakes on $120-million marina development in Fort Erie"
I think the original plans were a bit too grand for the area. A restaurant, larger marina , and perhaps a hotel would have been nice but nothing more. Oh well perhaps another rich group might come forward.