Annual repayment to town will decrease by 50%
LAURIE WEIR
The Town of Smiths Falls council has approved a request from Le Boat to extend its Dock Lease Agreement, ensuring continued support for the company’s operations in the area.
The decision came during the committee of the whole meeting on Oct. 28, following a recommendation from Julia Crowder, Economic Development and Tourism manager.
Since establishing its North American headquarters in Smiths Falls in 2018, Crowder noted in her report that Le Boat has become a significant player in the local tourism sector. To facilitate the business’s growth, the town originally purchased a section of docks in the Victoria Basin for mooring 16 vessels. The initial five-year agreement, which expired on Oct. 31, 2022, was renewed in 2022 to include additional docking capacity.
Crowder noted, “Le Boat continued to expand and add new vessels to the operation which resulted in the need for additional mooring capacity.”
The revised agreement will allow for a five-year extension of the repayment terms, reducing Le Boat’s annual operating costs as the company works to replace older vessels with new models. Le Boat has the option of repaying the fee at any time.
The previous repayment plan required $131,460 over seven years, translating to annual payments of $18,780. Under the new agreement, if the remaining balance is spread over a 10-year term starting in 2025, Le Boat’s annual repayment will decrease to $9,390.
With the extension approved, the new agreement will run until Oct. 31, 2034. It has no direct budget implications as the full cost of the purchase will be recovered over the repayment timeline, and was funded through a municipal reserve.
Council supported the staff recommendation, and it will come back to a future council meeting for final approval.
