Details of a proposal for a fast ferry foot passenger service between downtown Nanaimo and downtown Vancouver will come before Nanaimo's committee of the whole meeting Monday.
David Marshall will address council on behalf of Island Ferry Services Ltd., a group of investors behind the proposal. Details of the ferry service proposal have been scant so far, but proponents of the project have been working behind the scenes to secure investors and capital.
But according to council documents on the city website, IFSL are seeking a long-term lease for a waterfront terminal at 1 Port Dr. A lease is currently held by GADD Marine, which is ending its lease on the land by the end of this month.
According to the report, that would free up the land for an interim terminal building that could service two, "recently constructed" Damen 4212 catamarans, capable of carrying 376 passengers each. In the long term, IFSL would seek to locate a permanent facility to the Seaspan ferry terminal.
The city would in turn be expected to cough up $115,000 to connect the temporary terminal building to water and sewer, and the proponent would also ask the city to forgo $500,000 in revenue from the project each year for the first five years of operation to allow the business a sure footing.
That revenue would come from three sources: $60,000 in lease payments each year, a $0.25 per passenger head tax, and half of all net parking revenue from city land. As part of a proposed partnering agreement, the service provider would commit to three round-trip sailing per day, or 2,190 sailings per year.
Nanaimo Economic Development CEO Sasha Angus recently told the Daily News that the investor had lined up two international investors interested in funding the venture.
He added the parties are currently in the financial due diligence phase.
Tor the deal to go ahead, the city would also need to enter into a formal partnership agreement, which has yet to be brought before council. A formal lease agreement would follow.
Mayor John Ruttan recently said a fast ferry service would be a natural fit with the longanticipated hotel development now slated to be built on Gordon Street next to the Vancouver Island Conference Centre.
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