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Council approves option agreement for Port Royal Marina improvements; lease extension tied to private $14M rebuild
Summary
City council approved an option agreement allowing the Port Royal Marina leaseholder to pursue entitlements and invest in a multi-million-dollar rebuild; approval sets framework for a long-term lease extension tied to meeting permit and construction thresholds.
The City Council voted to approve an option/lease framework for Port Royal Marina that authorizes the current leaseholder to pursue entitlements and to rebuild marina slips and facilities, subject to permitting and other conditions. The city—s waterfront and economic development director told the council the private sector operator proposed a minimum investment of about $14 million for slip replacement and related improvements; if required entitlements and thresholds are met the agreement will permit a long-term lease extension.
Greg Kapovich, Waterfront and Economic Development Director, summarized the proposal and said the plan calls for the existing leaseholder to rebuild slips and the marina infrastructure and to seek necessary Coastal Commission approvals, building permits and other entitlements before the long-term lease is extended. The operator—s representative, Kevin Ketchum, described a multi-generational family operation with marina management experience and said the plan is aimed at delivering a "first-class recreational yacht marina" with professional management.
Council discussion acknowledged the scale of private investment and the benefit of a rehabilitated harbor asset. Council members asked about timelines, protections for current tenants (boaters and liveaboards), revenue share and slip-fee structures. Ketchum and staff said the lease offers a revenue share to the city (a reference figure of 27% on slip revenues was discussed in the meeting), and that the operator has a long record of harbor management. The option agreement requires the operator to achieve certain entitlements and construction milestones before the lease extension is executed.
Council approved the motion to authorize the option agreement and proceed with the path that leads to a lease extension if the private party meets the agreed thresholds. Council members said they welcomed private investment that upgrades aging marina infrastructure, and staff said the operator would not wait until the current lease expiry to begin pre-construction activities and entitlement processes.
The council vote was unanimous.
