By Laura Lennie, News Staff

Newport Yacht Club-Stoney Creek Inc. has saved Newport Marina from possible bankruptcy and received a break on taxes in the process.

The new not-for-profit resident-controlled cooperative is finalizing plans to take ownership of Rosart Properties’ 240 properties at the marina in hopes of ending long-standing tax arrear problems. City of Hamilton staff agreed last week to combine individual boat slips and shift their designation from a commercial to lower residential tax rate going forward.

“It’s been a five-year drama,” area councillor Brenda Johnson said. “The residents were absolutely thrilled that it got through council. This was researched, it was hammered out for six long months to get this, so that we can now start seeing the tax bills getting paid.”

Rosart Properties owes the city $520,548 in back taxes for the 240 properties – 238 individual boat slips plus the lake bed and a 1.44-acres parcel of development land currently used for parking. City tax staff have been involved in collection efforts on the lands since 2007. After years of substantial losses, Rosart had been looking to get out of the marina business, but previous attempts to find a buyer had failed.

Newport Yacht Club-Stoney Creek Inc. made offers of purchase and sale on the marina, the boat slips, parcel of development land, as well as three pieces of land at the mouth of the marina, which was held by a third party, to ensure access to dredging and keep the marina running.

The city would have likely had to write off over $475,000 if it attempted to recover funds through a tax sale. The offer made by Newport Yacht Club-Stoney Creek Inc. reduces the write off to about $260,209 ($520,548 less $160,339 for the land taxes, $50,000 from the residents and $50,000 from Rosart Properties) and results in the continuation of the marina and additional taxes going forward.

“I asked staff to go and take a look to see if any other marina would be interested in buying this property. Both  Fifty Point and the Hamilton Yacht Club turned their noses up at it because they said, it’s just a hornet’s nest, as far as taxes and it all being individual and the fact that the construction of this marina is not well-constructed,” Johnson said. “The city has set up the tax structure differently going forward and we’re absolving some, not all, of the tax arrears in the past to help the residents go forward.”

Because the marina, at the base of Fruitland Road, was losing money every year, nobody wanted to buy it. Now, the residents have purchased it and are making it viable to pay taxes in the future.
“To me, it’s a win for the tax payers, because now we’re going to start seeing taxes being paid on it.”

In addition to the $100,000 being paid towards the existing marina back taxes on closing – Newport Yacht Club-Stoney Creek $50,000 and Rosart Properties $50,000 – all Rosart parking lot back taxes – about $160,000 – will be paid up in full on closing, as well.