Giving Nanaimo Harbour Back to Nanaimo Presentation to City Council 27 March 2017 Nanaimo Marina Association In Collaboration with:

Solving Nanaimo Harbour Crisis

• Introduction of the Nanaimo Marina Association • Background and Update on Nanaimo Port Authority • Replacing the NPA with a Made in Nanaimo Solution:

• Greater Nanaimo Waterfront Association

• Update on Discussions with Transport Canada • Next Steps • Discussion, Questions and Answers

Nanaimo Marina Association • Newcastle Marina: 140 berths • Anchorage Marina (Asia Pacific Yacht Group): 128 berths • Blue Nose Marina (Harbour City Entertainment): 35 berths • Palms Marinaside Resort: 100 berths • Harbour Homes Marina: 20 berths • Waterfront Suites and Marina: 80 berths • Townsite Marina: 135 berths • Channel View Marina: 70 berths • Nanaimo Yacht Club: 370 berths, 750 members • Representing the interests of more than 1,500 boaters

Strategic Alliances from Departure Bay to Duke Point • Nanaimo Marina Association is working with:

• Snuneymuxw First Nation • Nanaimo River Estuary Log Storage Association • Nanaimo Hospitality Association • Boating BC • Chamber of Shipping • Sea Plane Operators • Shipping Operators • Port Terminal Operators

Nanaimo Marina Association

• Association was formed to address the unfair rate approach by the Nanaimo Port Authority

• NPA created an environment that is unfair to: • Business Owners • Boaters • Users and Citizens • Investment

• NPA has suppressed investment and development of Nanaimo Harbour

Dispute with Nanaimo Port Authority

• Began in late 2012 after NPA changed Lease Rate Formula • Lease rates were traditionally set by Public Works assessments • In 2012 Nanaimo Port Authority used a Private Appraisal Model which

used upland property value to determine water lot values • Rates saw immediate, triple percentage increases in lease fees • In some cases, marina operators have seen lease rates go up by over

450% • NPA lease rates accounts for more than 80% of a marina’s gross

revenue

NPA Acknowledges Crisis, Takes No Action • Marina industry met with NPA in November 2016 • NPA officials stated the rates crisis was created by Minister Marc

Garneau of Transport Canada (TC) • NPA said they had to follow “rules” outlined by the Minister • NPA promised to help solve the rate crisis at a meeting with TC in late

November 2016 • Nanaimo City Council offered a letter of support in order to help bring

rates in line with the Province of BC • NPA meeting with TC never ocurred

NPA Creates Their Own Rules

• According to Canada Marine Act, Letters Patent, and communication directly from Minister Marc Garneau; NPA sets its own “rules”

• The NPA could have prevented this crisis by following the Provincial model

• The NPA could have resolved this crisis long ago by listening to the user groups and listening to the community

• The NPA privately says that there is no problem • The NPA has not been honest with us, nor acted in good faith

Industry United, Community United

• Businesses operating along Nanaimo Harbour have been emboldened by the real peril that our businesses face

• From Departure Bay to Duke Point, from North to South, our community is united in dispatching the NPA model

• We have no confidence and no faith that the NPA will work in the best interest of the local public good

• NPA has been given numerous opportunities to do what is right for the community; they have failed over and over again.

Inspiring Solution

• Other harbours have taken a different approach, and have far more successful harbour communities than Nanaimo

• Victoria, BC is of particular inspiration as the Society model ensures that governance of the harbour reflects and is responsive to the local public and economy

• Creating the Greater Nanaimo Waterfront Association, is the first step in reclaiming the harbour for the people of Nanaimo

• The Society model forms the basis of our “best-in-class”, Nanaimo-based solution

Greater Nanaimo Waterfront Association (GNWA)

• A not-for-profit, community based solution • Entity becomes official steward of Nanaimo federal crown water lots • Focused on economic development along Nanaimo Harbour for all

industries • Financial benefit is mandated to stay in Nanaimo with revenues

generated, to be reinvested in Nanaimo Harbour • Annual revenues to be raised for re-investment in Nanaimo - expected

to be in the millions • GNWA follows the successful creation and operation of the Greater

Victoria Harbour Authority (GVHA) which was established as a not-for-profit under similar conditions, 15 years ago

Community Partnerships

• The City of Nanaimo, Snuneymuxw First Nation, Regional District of Nanaimo, industry and businesses along Nanaimo Harbour are essential participants in this model

• We expect to work with all parties and stakeholders to finalise this proposal and model; in order to advance it with Transport Canada

• As a community, we are strongest and most united, when we work together for the betterment of the community

Transport Canada Waiting for Nanaimo

• The Nanaimo Marina Association has had discussions and meetings with senior federal government officials since summer 2016

• Discussions have been comprehensive and focused on the problems stemming from Port Authorities across Canada, and the available solutions

• Senior government officials directed Nanaimo Marina Association to formulate a “Made in Nanaimo” solution

• Solution should be community-based with an improved model • Bonus consideration if model can be applied nation-wide

Benefits to Nanaimo • Nanaimo Harbour becomes a self-sustaining community asset • Community has a say on waterfront enhancements and growth • Waterfront amenities, public access and amenities would be mainly

paid for by revenues accumulated from foreshore leases and industry • GNWA, through consultation with community and Board of Directors

can fund and finance other plans for recreational, commercial and industrial districts of Nanaimo Harbour

• A fair economic playing field is created where all industries and businesses have an equitable relationship and fee structure with GNWA

• Creates more economic development by promoting sustainable growth

Benefits to Nanaimo Marine Industry

• GNWA offers stability and certainty for commercial/industrial clients • Industry can forward plan, and invest in their business and facilities,

knowing that the lease/revenue sharing model is fair and equitable • No surprises • Industry will be able to grow their operations and employ more

people • Boating and waterfront activities will return to growth

Next Steps

• Council support efforts to work with Snuneymuxw First Nation, the City of Nanaimo, the Regional District of Nanaimo, the Marine industry and the Community-At-Large to form a not-for-profit Society tasked with becoming the official steward of Nanaimo’s water lot properties

Questions / Comments