Smiths Falls council approves lease agreement extension with Le Boat

Le Boat
Le Boat has been granted an extension of their lease agreement to Oct. 31, 2034, and their payments to the town will decrease by half. Photo credit: Laurie Weir.
Posted on: November 1, 2024

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.

Laurie Weir
Author: Laurie Weir

One thought on “Smiths Falls council approves lease agreement extension with Le Boat

  1. CHRIS BRENNAN

    Why should Le Boats get a 50 discount when what makes them so special.They take away space from the Locks for Boaters to pull up and stay in Smiths Falls Ontario when they spend money down town bringing money to the stores in Smiths Falls Le Boats rent Boats and the Renter’s go towards Kingston or Ottawa they don’t spend money in Smith’s Falls they spend money some where else Le Boats have not brought anything to Smiths Falls the Camping trailer park brought more money into Smiths Falls then Le Boats but some very brain dead council got rid of the trailer park income that employed staff and made money

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