Buffalo, N.Y. (WBEN) There is a new agreement for the operation of Erie Basin Marina and The Hatch restaurant on the Buffalo waterfront.
The agreement is with Marina Management Group LLC (MMG). The company is led by Jon Nash, who has handled operations at the marina for the last four years. Under the contract, he would run the marina operations and restaurant space for five years.
Under the deal, MMG would pay one dollar a year in rent along with 20% of net profits from both the marina and restaurant operations this year, 25% next year and 30% the following three years.
Buffalo Common Council Majority Leader Leah Halton-Pope expressed her concerns with WBEN.
"I think it is a sweetheart deal. Taking revenue from the net, versus gross is going to put us back in the same position we were in before."
The previous contract for the marina has been criticized as being largely unfavorable to the city.
She would like to see the marina, which is likely the moneymaker between the marina and restaurant, pay more from gross revenue, rather than giving the city pennies that are left from net revenue, after expenses are paid. She admitted she does not agree with the process.
She has sent a letter, asking that the Common Council to take a closer look at the agreement. She also wants to make sure that Minority and Women Business and Enterprise requirements (MWBE) were adhered to.
City leaders want a new operator in place soon to ensure that they can offer services for boaters and waterfront visitors this year.