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City manager says boathouse building damaged beyond 50%; negotiations underway with Kearns group

3806750 · April 17, 2025
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Summary

City Manager reported the boathouse was damaged beyond 50% and cannot be rebuilt under the lease; the city is negotiating with the Kearns restaurant group on a replacement/concessionaire arrangement and will bring any legislative matter to council for review.

Council and public speakers raised the future of the boathouse at the yacht club following a fire that destroyed the prior structure. City Manager said April 16 the boathouse building was “substantially damaged beyond 50%” and therefore cannot be rebuilt to its prior condition under the lease terms. He said the city is negotiating with the Kearns restaurant group on a new building and that any formal agreement or legislative action will be returned to council for review.

Public commenter Tom Shadrach urged council to cancel the current lease, take insurance proceeds and run a competitive procurement for a new boathouse restaurant when the larger yacht club construction is scheduled. Shadrach said the lease allowed 120 days to rebuild and that the city could claim insurance proceeds if the lease is canceled. The city manager confirmed negotiations are underway and that he is acting with council support to seek a new building arrangement with the Kearns group; once negotiations conclude, any proposed concession or agreement will be presented to council.

Council members asked staff to summarize the approach and to provide the public with a high-level update on negotiations, while reserving detailed legislative review until a formal proposal arrives.