Council approves concession payment, five-year pontoon lease extension and $51,178 for final boat-launch costs; TIF funds to cover concession payment

Oconomowoc aldermen on Sept. 16 approved three related actions for City Beach: a city payment tied to the new concession building, a five‑year extension of pontoon-boat docking rights that will go to RFP after that term, and a $51,178 authorization to cover additional final construction costs for the boat launch.

The largest debate centered on payment for cost overruns on the new concession building constructed as part of a public-private partnership with concessionaire John Suttner. City staff described three components of extra costs: site work and retaining wall completed by the contractor for the boat‑launch work ($59,791.10); unanticipated soil stabilization, foundation reinforcement and winter tenting/heating costs that Suttner asked the city to share (he sought half of those totals, which he said amounted to $72,852); and two city-requested items — floor coating in the lifeguard area and an electronic door lock system — totaling $15,571.

City staff summarized the combined items as $148,214.10. After discussion and an amendment requiring any payment to be structured as a lease payment to comply with TIF rules, the council approved Resolution 25‑R‑3311 to provide the amended payment. The resolution states the city will fund the payment from TIF (increment) revenues; staff said the payment will not increase property taxes. The roll-call vote on the amended resolution was recorded as: Alderman Altman Cloth — Aye; Alderman Ellis — Nay; Alderman Spiegelberg — Aye; Alderman Mulder — Aye; Alderman Shellpepper — No; Alderman McConnell — Nay; Alderman Youngworth — Aye; Alderman Rosic — Aye. The motion carried.

Suttner, who addressed the council during the discussion, said he had absorbed most of the increased cost and asked for partial reimbursement: "I'm asking for extras only half of the extras that I really couldn't control," he said, and added he was contributing more than he asked to recover. He also said he intended to give the building to the city at the end of a concession term and hoped the partnership would continue.

Also related to beach operations, the council approved a first amendment to the pontoon-dock lease that extends docking rights for five years and requires the city to go to an RFP after that five-year term. The amendment was supported by members who said continuity with an experienced local operator was valuable, but some council members urged a shorter term or an RFP sooner to permit competition and oversight. The roll-call vote approving the five-year extension and subsequent RFP requirement recorded the motion as passing with a majority (noes from select members were recorded in the minutes).

Finally, the council approved a resolution authorizing an additional $51,178 to close the final contract on the boat-launch project. Staff reported that the contractor's final estimate for the Yankee contract was $2,520,278 and approved funding including contingency was $2,610,274; after contract completion the project had a remaining balance of $89,996 and subsequent additional project items totaled $141,174, producing the $51,178 funding gap. Staff reported these additional costs included a kiosk system ($57,000) and extra camera and signage items. The council approved the additional $51,178 by roll call; the recorded vote was unanimous.

Several council members praised Suttner's long-term community involvement while also criticizing cost control and bidding process questions during construction. Alderman McConnell and others said better oversight and earlier communication might have reduced overruns; others said the city's funding plan — using TIF funds rather than the tax levy — limited direct taxpayer impact.

Public commenters had mixed views. Laura Gibbs, a resident, raised concerns about the concession design and whether public access and costs were appropriate. "I don't think that it's appropriate to have a private bar on something that the city people are paying for," she said during public comment. Council members told residents staff would meet with them to go through details.

Staff said the concession payment will be structured as a lease payment to conform to TIF requirements, and that use of TIF increment means the payment should not increase the general property tax levy.

The council's decisions concluded a months-long and sometimes contentious thread of discussion surrounding City Beach improvements, the boat launch and the new concessions building.