City of Powell River Council approves reassignment of Beach Hut lease

City of Powell River Council has approved assignment of the lease for the building commonly known as the Beach Hut at Willingdon Beach to Putters Mini Golf.

At the March 5 council meeting, the matter came before council after it was introduced at the committee of the whole meeting on March 3. The company that has operated the business in past, Rodees Trucking Ltd., has sold its business to Putters Mini Golf Ltd, according to a city staff report to council.

Director of properties, development and communications Scott Randolph told council that during the committee of the whole meeting, there was a discussion about ensuring the Beach Hut remains open during the summer season.

Randolph said the city had spoken with legal council and was able to accomplish that by amending the assignment documents. He said this would mean not only assignment of the lease, but modification of the lease.

Randolph said there would be an addition to the tenant’s covenants in the lease indicating the tenant will carry on business as a food concession and not close for any longer than 14 days during the established period of operation during the term, without the permission of the landlord, which is the city. Randolph said the period of annual operation is from May 1 to August 31.

Randolph said if the business was to close any longer than 14 days during that period the landlord should be approving that, and the reasons why.

“Sometimes there are mishaps, which would be allowed within that 14-day period,” said Randolph. “There could be equipment problems, there could be labour issues.”

Councillor Rob Southcott asked why the matter was brought to the council meeting two days after the committee of the whole meeting, rather than two weeks after, as is typical.

Randolph said the current tenant, Rodees Trucking, had asked that the city expedite the assignment of the lease because they would like to close the deal with the purchaser.

“I had asked that we move it to this meeting to facilitate that,” said Randolph.

Southcott said as much as he wants to accommodate and do everything possible to make it work for business, should this not be construed as rushing this?

Corporate officer Chris Jackson said it was a decision for council to make. He said it is always discretionary when council wants to consider it. He said there was unanimous consent at the committee of the whole meeting to bring the matter forward to city council meeting two days later.

Councillor George Doubt said in this case there is a person who owns a business, his operations site is leased from the city, he has decided to sell the business, he found a buyer, the lease exists and would continue without a sale. Doubt said what is changing is the owner of the business.

“To my way of thinking, there isn’t a reason why council should stand in the way of it,” said Doubt. “We still will be getting our lease payments. We’ve modified the lease, Mr. Randolph has negotiated a modification to improve the operation of the facility over the period of the lease and I don’t see standing in the way of these people making their arrangements and carrying on business.”

Councillor CaroleAnn Leishman expressed thanks for getting the language drawn up quickly. She said she concurred with Southcott and that in future she’d prefer private leases not be fast-tracked.

Randolph said he prefers to not rush matters that come before council.

Councillor Jim Palm said the new owner was slated to open the Beach Hut on May 1, which is less than two months away. He said transfer of ownership has to take place and the new owner has to get ready for opening the new business.

“Less than two months is a pretty swift timeline,” said Palm. “The number one concern is the Beach Hut remaining open and serving our public, which is a long-standing business which people and their children enjoy.”