The City of Hamilton is spending $3 million to buy out the lease from the Hamilton Waterfront Trust, the agency that’s faced criticism over its viability and transparency.
For months the fate of this building has been a big question mark since the Waterfront Trust evicted Sarcoa for lease violations back in July. As part of its plan to redevelop this area the city has voted to buy out the lease from the struggling waterfront agency.
It’s buying out the 45 year lease for the former Discovery Centre which housed Sarcoa and its parking lots held by the Hamilton Waterfront Trust, leaving some questioning why the city is paying for land it owns.
“It’s a separate legal entity that had to be dealt with so we are not buying something we already own we are eliminating that lease so we can get on with future development of that site.” Mayor Fred Eisenberger.
Which will include condos and townhouses, retail and restaurants.
It comes as the city and the struggling Waterfront Trust fights a $15 million dollar lawsuit from the former operators of Sarcoa who were evicted in July after a dispute over rent and noise complaints. Sarcoa co-owner Sam Destro believes their sublease is still valid.
“Any attempt whatsoever to sell those lands without including Sarcoa and giving consideration to Sarcoa will be obviously not acceptable to us.”
Hamilton mayor saying, “We believe we are on solid legal ground the lease with the previous tenant has been terminated by the Waterfront Trust and so we are moving forward accordingly.”
The agency will continue to run public harbour amenities like the skating rink, ice cream shop and trolley service. But its faced criticism over its annual deficits, unpaid taxes and lack of transparency. The boards chair Bob Charters quietly resigned last month but wasn’t made public until this week. Coucillor Jason Farr is now acting as interim chair.
There have been calls to take the Hamilton Waterfront Trust operations in house but the city says it would be a million dollar cost each year but we haven’t been able to confirm that.
