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HomeMy WebLinkAbout00 056 Kincardine Yacht Club Agreement .. . . ~. AMENDED/REPEALED BY - BYlAW NO. 4.000 - /~'"' DATEn Decew,b"fr .?o :J{)()D j THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE AMENDED/REPSAlED BY BYlAW NO. .;l(){J/'/f" DATEn J:./;fuarf.:;R- ,laol j BY LAW AMENDED/RErEAl:Cxt} !Y - BYlAW NO. .::J ODS- - 1t>:S DATEo...Q..t~ 13. 0) DU:;'- NO. 2000-56 I Q A BY-LAW TO AUTHORIZE THE SIGNING OF AN AGREEMENT WITH THE KINCARDINE YACHT CLUB WHEREAS the Municipality now owns the Kincardine Harbour as a result of the Federal Harbour Divestiture Program and as a result of an agreement with the Small Craft Harbours Branch of the Federal Department of Fisheries and Oceans. AND WHEREAS the original April 21, 1994 agreement provides for a new agreement in the event of harbour expansion; AND WHEREAS this is intended to be an agreement for a period of ten years (April 1, 2000 March 31, 2010); NOW THEREFORE the Council for The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine enter into an agreement with the Kincardine Yacht Club. 2. That the Mayor and Clerk be authorized to sign, on behalf of The Corporation of the Municipality of Kincardine, the Agreement with the Kincardine Yacht Club attached to this by-law and to affix the corporate seal as and when required. 3. This By-law shall come into full force and effect upon its final passage. 4. This By-law may be cited as the "Kincardine Yacht Club Agreement, By-law" . READ a FIRST and SECOND time this 1 ih day of April, 2000. READ a THIRD time and FINALLY PASSED this 10th day of May, 2000. ~~ . . . ~ ,. Schedule C To Kincardine Yacht Club Agreement (amended July 7, 2005) As per Schedule C, "Profit Sharing and Repayment Schedule" of an Agreement between the Municipality of -Kincardine and the Kincardine Yacht Club, dated May 10, 2000 and authorized by the adoption of By-law No. 2000 - 56,profit sharing between the Municipality of Kincardine and the Kincardine Yacht Club on the net profits earned by the Kincardine Marina will be split in the following manner, for the remainder of the agreement (2005 through to March 31, 2010) and based on an estimated $35,000 net profit per year. i) 50% ($17,500) to Kincardine Yacht Club. ii) 50% ($17,500) to the Municipality of Kincardine. The municipality's share will be used to pay down an existing loan required to finance floating docks. Once the floating dock loan repayment is complete, the Municipality's 50% share will be placed into the Harbour Reserve Fund. The intention of the Harbour Reserve Fund is to maintain/replace all infrastructure in the harbour basin, lighthouse property and facilities within 200 feet of the harbour{ie. washrooms, docks, lighting, dredging, etc). Priority will be given to direct marina requirements. In the event that the net profit earned by the Kincardine Marina, prior to full repayment of the loan is greater than $35,000 in any given year, any net amount over $35,000 will be distributed in the following manner: iii) 50% to the Kincardine Yacht Club iv) 50% to the Municipality of Kincardine for placement in the Harbour Reserve Fund. THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE YJh--te. ~ Mayor ' \:, '-- ~~~~~ r.-~~ CAO YACHT CLUB ~ ~~ Treasurer ~...-.- '-",:,..;i 1.'. 0....'"'" .. . ~ ~-~.,. This AGREEMENT made the ,I 0 ~ day of f(\rld ,2000. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE hereinafter called the "Municipality" of the First Part. -and- KINCARDINE YACHT CLUB hereinafter called the "K.Y.C." or "Club" of the Second Part. WHEREAS the Municipality now owns the Kincardine Harbour as a result of the Federal Harbour Divestiture Program and as a result of an agreement with the Small Craft Harbours Branch of the Federal Department of Fisheries and Oceans. AND WHEREAS the original April 21, 1994 agreement provides for a new agreement in the event of harbour expansion; AND WHEREAS this is intended to be an agreement for a period of ten years (Aprill, 2000 to March 31, 2010); NOW THEREFORE THIS AGREEMENT WITNESSETIi THAT in consideration of other good and valuable consideration and the sum of TWO DOLLARS ($2.00) of lawful money of Canada, now paid by each of the two parties hereto, (the receipt whereof is hereby acknowledged) the parties hereto covenant, promise and agree with each other as follows: 1.0 LIST OF snm,DUL~ ATIACRRD The following scheduleS8re attached and forms part of this agreement: Schedule "A": Description of the land owned by the Municipality (herein called the "Harbour").Facilities shall be the lands in this schedule. Schedule" B" :April 3/2000 Proposal Notes . Schedule "c" : Profit sharing & repayment schedule. Schedule "0": Reunion station hours of operation & maintenance schedule. 2.0 EXISTING LEASE 2.1 The Club agrees to abandon its existing agreement (April 21, 1994) of the lands covered in Schedule "A" with the municipality in favor of this new agreement (April 1/2000 to March31/2010) 3.0 HARBOUR MANAGEMENT 3.1 The Municipality will appoint the club as managers for the Facilities. 4.0 REVENUE Sc.HF.DULE 4.1 The marina physical assets shall be transferred to the municipality upon signing of this agreement. In exchange the K. Y.C. shall hold a note from the municipality in the amount of $135,000 and this note will be reduced in accordance with Schedule "c" of this agreement. (The year 2000 dR-Aging K.Y.C. share of h1kblbylawsl..........,rlyot club r ,~ , " .".~-.. .' r~':" Page 2 of 5 Kincardine yacht Club Agreement $12,000 part 2 of the project will be deducted in advance of Schedule "C" being activated.) . 4.2 The municipal Treasurer shall be the key contact (for the Marina manager) with respect to any financial matters contained in this agreement. The financial operations of the marina shall be operated through the municipality and be subject to municipal audit. 4.3 The Kincardine marina operations shall be established as a committee of Council, under the auspice of the Harbour liaison committee. 4.4 The club shall present a yearly business & financial plan to be reviewed by the liaison committee, subject to approval by Council. 4.5 The municipal Treasurer and club shall meet and develop a financial protocol that will be followed in order to be in compliance with municipal policy. 5.0 MARINA 2000 RATES mese rates wiD be in effect for the year 2000 and shall be aubiect to review and chaDl!:e by Council on a yearly basis) 5.1 Seasonal Rates - SliD size ~. 1) Flo9nno Docks up to 22' up to 32' up to 35' over 35' $ 616.00 $ 765.00 $ 924.00 $1,095.00 5.2 Tran~ient Rate A rate of $ .90 per foot per night (minimum 20 feet), seventh day is free. -Note; 10 1:rIInsiein1 sUJlB will be allocated in the new harbour section and 10 transient slips will also be allocated in the old harbour section. (GST not included in this rate.) 5.3 Fixed Docks A 25% discount will apply to the fixed docks. (Based on rates from item 5.1) . 5.4 North Wall A 30010 discount will apply to the North wall. (Based on rates from item 5.1) 5.5 Fish Derby Dock Rental Rate Dock rental = $15.00 per day or $120.00 per 10 day period. 5.6 Launch RamD The ramp shall be free to all members of the public. . 5.7 Winter Storal!e Location of boats to be confirmed by the Municipality prior to the first weekend in October. It is the intent of the Municipality to not store boats in front of the condominiums, thus respecting the public nature of the marina basin area. Alternative boat storage areas will be provided along the south side of the new harbour basin. $200.00 per season .' "'~ ,~<. ,,~ . . 5.8 ". Page 3 of5 Kincardine Yacht Club Agreement GST Note Rates include GST (excluding item 5.2 of this agreement) 5.9 All rates are subject to the terms of the federal government divestiture agreement with the municipality. Please note that the original fishing tugs that were located along the north wall are subject to rates as outlined in the federal agreement. All fees must be paid in advance of service or use of the facility. Dockage fees must be paid by March 31 of the current year in order to be assigned a slip. Please note the rate schedule shall be reviewed by the Harbour liaison committee on a yearly basis and such recommendations shall be subject to approval by Council 6.0 GENERAL 6.1 Charter boats will pay the same as the seasonal rate or transient rate. 6.2 The provisions of the K.Y.C. promissory notes (original capital to finance the original marina) shall be honored, until the +/- $135,000 debt has been deemed to be paid as outlined in Schedule "B", Page 4, Subsection "A". 6.3 Members of the Public that join the K.Y.C. and use dock facilities may on approval by the manager, exercise a work detail option, which would be reimbursed at the approved labour rate( to be credited to dock rental). 6.4 The public launch ramp in the harbour basin shall not be chained or obstructed in any fashion that prevents boaters from launching their craft. 6.5 The Kincardine Yacht Club will be responsible for maintaining a public marina and ensuring a well-maintained efficient operation. .6.6 The Kincardine Yacht Club in cooperation with the municipality shall offer free <io<'lrllptoboth theBluewatec Rescue Boat and the Navy Cadets (North wall area only). 6.7 6.8 . 6.9 6.10 6.11 7,0 7.1 7.2 7.3 . The Kincardine Yacht Club shall continue the cleaning and maintenance of the Reunion Station Building (see attached hours and duties Schedule "D''). The Municipality will endeavour to continue the same uses of the lighthouse once it is transferred to the Municipality. A prominent location for a Satellite Tourism Station will be located in the Reunion Station Office. The Municipality will furnish the Reunion Station Office in a train station motif, pending availability of furnishings at an appropriate cost. Debenture notes are capped at the 1999 level and new notes will not be sold. TERMS OF AGREEMENT This interim agreement shall start April 1, 2000 (or upon signing) and will terminate March 31, 2010. This agreement may be terminated by either party, with a sixty (60) day notice period being utilized. In the event of termination by either party then related clauses of Schedule "B" shall be enacted. "'.- . . . . ~ .., Page 4 of5 Kincardine Yacht Club Agreement IN WITNESS WHEREOF the Municipality has hereto affixed its corporate seal attested by the hands of its mayor and clerk this, I day of ~ ,2000. The Club has hereunto set its hand and seal this day of , 2000. SIGNED, SEALED AND DELIVERED ) in the presence of ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) P~. Witness ..,.--) THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE ~~./~ 'Mayor - G Jarrell .:J- ~r-A', Clerk - Rosaline Graham ~~ '.. ,-:;..: . - . . . Page 5 of5 Kincardine Yacht Club Agreement SCHEDULE "A" Waterlot and lying adjacent to the Town of Kincardine, as shown on Plan dated 1851.05.05 (between Lambton Street and Huron Terrace) and also as outlined in green on Plan Tl792. Parcel or tract of land lying along Huron Terrace, Lot 'E', in the Town of Kincardine on Plan L-807-5 Part of Town Lot 6 in front of Lots 1 0 "A" and "B" on Plan Tl792 Waterlot DT 52, pt of Harbour Reserve in town of Kincardine Part 1, Plan 3R-302 Waterlot DT 53, pt of Harbour Reserve in Town of Kincardine Part I, Plan 3R-303 (Legal Description to be verified) .:"''''-- -,JO:< . . .~ e. Vision: Apri16,2000 SCHEDULE B PROPOSAL NOTES Kincardine Harbour Management Revision 4#6 The harbour facilities will be operated in a manner which encourages boating in the Kincardine area, promoting the enjoyment and sportsmanship of recreational boating, while showing regard for the harbour's role as an important tourism attraction for the non-boating public. Principles of Operation: 1. Integrated harbour operations for all boaters (sail and power) . Welcome public access to areas surrounding waterfront facilities, which respects the privacy of transient and seasonal slipholders and supports the safe and efficient operation of harbour facilities. Public accounting for the marina operations. Continuing upgrade of facilities in keeping with good business decisions. Management by a clearly defined, single source with experience in harbour operations. Interface between manager and Municipality through a liaison committee with each appointing two (2) members. Financial benefit..to owners and managers after .the operating costs. Long-term arrangement with managers to facilitate planning. 2. 3. 4. 5. 6. 7. 8. Methodology: 1. All rates will be proposed by the manager, considering with good business practices and adjacent harbours, for annual review and approval by the Municipality. The rates will be published annually. K.Y.C. shall submit a business plan and budget to the liaison group for the Municipality's review and approval. The business plan and budget shall cover all items of operations, improvement and maintenance. 2. '..! ;;.~- 2 . 3. The municipal treasurer shall meet with the K.Y.C. and develop a fmancial protocol that shall meet the requirements of the municipality and the K.Y.C. In addition, the marine operations shall be considered as a committee of Council. The K.Y.C. management group shall report to council through the harbour liaison committee. 4. Costs of items not specifically outlined in the business and financial plan shall be paid from revenues of operation (upon mutual agreement by K.Y.C. and the Municipality). 5. Members of the public that join K.Y.C. and use the dock facilities may, on approval by the manager, exercise a work detail for reimbursement on dockage at the approved labour rate. 6. The launch ramp to the harbour basin shall not be obstructed in any manner that prevents the launch of a boat. Ramp services shall be provided free to all members of the public. 7. Harbour facilities include: . Harbour basin and north dock; . Lands surrounding the basin associated with harbour operations; . Areas for winter storage owned or leased by the Municipality; . Reunion Station building. 8. The Municipality shall furnish the Reunion Station in a train station motif and provide a satellite tourism station in the office. K.Y.C. shall clean the building. (See Schedule "D" for hours and duties.) 9. A portion of the docks shall be reserved for transient boats and shall not be leased for the season. A total of 20 slips shall be reserved with 10 being with floating finger docks. 10. All harbour i.nfra.structures will be owned by'the Municipality with marina assets transferring to the Municipality upon signing of the new contract. 11. K.Y.C. shall reserve, on behalf of the Municipality, one (1) slip on the north dock if space is available, for each of the Rescue Auxiliary and the Navy Cadets. 12. K.Y.C. shall be solely responsible for the hiring, assigning and release of all individuals performing work on the harbour facilities. 13. K.Y.C. shall be solely responsible for the acquisition of goods, choice of suppliers and collection for all fee's associated with the Marina operations. . . " "1'-t ,;........ 3 . 14. All profit for harbour operations above operating costs shall be shared between the Municipality and K.Y.C. The Municipality shall direct their share of the profit to harbour contingency, harbour improvement and repayment of new docks. The K.Y.C. may direct revenues to contingency planning or any other efforts, including Harbour improvements. (see Schedule "1" for revenue details) 15. Dredging operations planned for the Year 2000 shall be: Contract #1 $60,000 total ($35,000 Municipality and $25,000 K.Y.C. (K.Y.C. payment by cheque outside of agreement); Contract #2 $24,000 total ($12,000 Municipality and $12,000 K.Y.C.(bothamountsareto be paid inside the new contract). 16. Terms of Proposed Agreement: (i) Ten Year Contract (April 1, 2000 to March 31, 2010); . (ii) Municipal ownership on all harbour facilities shall be 100% upon signing of the new agreement. The Municipality shall give the K.Y.C. a forgivable note for +/- $135,000 as payment in full, for the K.Y.C. marina assets that are to be transferred to the municipality upon signing. This note shall be interest free and be forgiven in amounts equal to the K.Y.C. share of the net profit. (iiil Invoices to be paid by the Municipality; (iv) The K.Y.C. Management Agreement to be deemed a Committee of Council. 17. All future capital costs at the marina shall be subject to recommendation by the Harbour Liaison Committee. . '.' ;:...... . . . 4 SCHEDULE "1 " to SCHEDULE "8" REVENUE SHARING SCHEDULE A) TEN YEAR TERM . 60% of the net profit after expenditures to the K.Y.C. . 40% of the net profit after expenditures to the Municipality. . K.Y.C. profit shall be tracked to verify when its total profit reaches +/-$135,000 & the note is forgiven in total then Part B shall be activated. B) Once the K.Y.C. reaches +/- $135,000 in total profit, then the cost- sharing shall revert to: . 50% of the net profit after expenditures to the K.Y.C. . 50% of the net profit after expenditures to the Municipality. C) In the event of termination by the KY.C. they may choose to either: (i) negotiate with the Municipality to financially recover the balance of the unpaid +/- $135,000 K.Y,C. debt. (ii) failing on Item #i, both parties shall agree to appoint a single, third party who shall negotiate a binding settlement. D] In the event of termination by the Municipality, the balance of the K.Y.C. $135,000 shall be paid within a 90 day period. E] KY.C. promissory notes: commitments to outstanding KY.C. Note Holders shall be honored v . . . Schedule C: Profit Sharing and Repayment Schedule Net profit each year is to be shared on the following basis: 60% to K.Y.C., 40% to the Municipality until the Municipality's note to K. Y.C. has been forgiven. In Year 2000 the K.Y.C. share of the net profit is to be allocated as $12,000 repayment to the Municipality for the K.Y.C. share of the Contract #2 2000 Dredging Costs. The balance of the K.Y.C. 2000 net profit share shall be allocated to the repayment of the Muncipality's note. This allocation of K.Y.C.'s 2000 net profit share shall supercede the allocation referred to in Schedule B: April 3, 2000 Proposal Notes, Schedule "I" Item A. The following is the anticipated profit sharing and repayment schedule of the Municipality's note based on an estimated yearly net profit of $35,000. The amounts, excluding the payment for the Contract #2 Dredging, will be adjusted to reflect the actual net profit realized in each year such that the note may be forgiven before or after the years shown. The year following the year in which the note is forgiven, the profit sharing shall be: 50% to K.Y.C., 50% to the Municipality in accordance with Schedule "B": April 3, 2000 Proposal Notes, Schedule "1" Item B. Year Estimated Total Net Profit Anticipated KYC share Fixed Payment for Contract #2 Dredging $12,000. 2000 $ 35,000. $ 21,000. 2001 $ 35,000. $ 21,000. 2002 $ 35,000. $ 21,000. 2003 $ 35,000. $ 21,000. 2004 $ 35,000. $ 21,000. 2005 $ 35,000. $ 21,000. 2006 $ 35.000. $ 21.000. Total $245.000. $147.000. $12.000. Anticipated Forgiveness of Municipal Note Anticipated Municipal Share $ 9,000. $14,000. $ 21,000. $14,000. $ 21,000. $14,000. $ 21,000. $14,000. $ 21,000. $14,000. $ 21,000. $14,000. $ 21.000. $14.000. $135.000. $98.000. ,} f;'. SCHEDULE D REUNION STATION . MAINTENANCE COMMON ROOM 1. Daily cleaning ofOoor 2. Daily update of brochures etc. 3. Daily minor repairs. Major repairs to be reported to Director of Recreation. 4. Weekly cleaning of windows, doors, waDs etc. 5. K. Y.C. to be in charge of all bookings for Common Room. HOURS OF OPERATION 1. June 1 - Labour Day - Open 8 a.m. - 9 p.m. 2. Will be open during the Spring and Fall while K.Y.C. staff on duty and also at any other times due to special requests. . WASHROOMS 1. Daily cleaning of washrooms including toilets, urinals, sinks, mirrors, counter tops and removal of garbage. 2. Daily cleaning of floors and showers. 3. Daily filling ofsoap dispensers and toilet paper dispensers. 4. Daily minor repairs. Major repairs to be reported to Director of Recreation. HOURS OF OPERATION MONDAY - SUNDAY - 8A.M. - 11 P.M. MAY - OCTOBER GENERAL . KYC is responsible for the above only during periods when staff are on duty for Marina operations. Activities outside these periods shall be the responsibility of the Municipality. ~ . . . April 20, 2000 e Marinallaison Committee Municipality of Kincardine Kincardine, Ontario Dear Members: Questions keep getting asked about the $135,000 in the pending mJlll'lg_t agreement between the Municipality and the Kincardine yacht Club. I would like to oft'<< some clarificatioDs. A Il1JIIlb<< of things must be kept in context: . First, the Kincardine yacht Club purchased the marina operations and the associated assets :from the previous owner. In the original condition it was not acceptable. The Kincardine yacht Club has made significant and costly improvements over the last l5 years of its operation. . Second, one should remember that as a noa-profit corporation the Kincardine Yacht Club has placed on Uselr a 1lUIIIbel: or restrictions on what can be done with money reaIizcd from its activities. In the case of the harbour operatiOll, its objective is to operate the harbour facilities "in a manner which encourages boating in the Kincardine area~. . Third, the value ofS135,000 in no way approaches the business value of the operations but rather a negotiated value between the parties under which the assets will change hands over a timeframe that will not be painful or put a strain on either the MUDicipality or the Club. There are four separate ways to look at the question of "why $135,OOO?~ e 1. Approximately 10 years ago we were required to gel a valuation of the marina business for the Federal Govemmeot in conjunction with our lease. As a non-profit and volunteer club our old records are not readily a=sible but the valuation was approximately $1.5M. h only stands to reason that the value of the business would not deflate since that time. 2. The Club purchased the business and assets for about $90,000 and has done $159,166 in leasehold improvements for a total of$249,166. 3. The buildings wel'llValued a $31,375, the equipment at $21,104, the improvements at$159,166 and $39,606 was prmously [not this year] spent on drertgitlg This totals $251,251. 4. If one were to take a differeot slice of the numbers and add them up and depreciate this on the schedule use by the Club one would anive at $135,187. This was not used as depreciation is not a common praclice for the Municipality when d....ling with capital improvements and purchased assets. As is evident :from the four diffireot lIDDI'Oacl1es to lIIriving at a fair exchange between the Municipality and the Kincardine yacht Club for the assets owned by the Club, the negotiated amount is mpported. I trust this will help in answering any ~ons with respect to the transfer of the assets to the Municipality, ~ Les Harrison Kincardine Yacht Club Member of the Liaison Committee e !c List of Marina Phvsical Asselll . Item Marina Bu~ding Desk and chair Store Counter Display area counters Cash Register VHF Radio WashroomlUtility Buildings Washrooms without showers Washrooms with showers Hotwater Heater Pump-out Station Distn"bution Panels Water System IUtilities . Undaground gasoline tank -3000 gal Underground diesel tank - 1500 gal Waste Oil Tank Fuel Pumos "A" Dock Supporting SuuClUres and Deck Steel Slip Pilings Fixed Docks Fuel East Wall Steel Slip Pilings Fixed Docks West Wall Pilinllll removed for new harbour IMast Facilities Motorized Mast Lift Mast Storage Racks . Miscellaneous . Lawnmower Weed-eater Tools Sheds Pile Driver Mast and rigging Pool Skimmer . Wheelbarrow Spare parts Pic:nic Tables B-B-Q Floating Work Platfonn Bulletin Board - all weather Ouantitv 1 2ea 1 2 I 1 2 2 2 2 e ;1 I 1 I 2 I 3 7 e ~I . 1 2 various 2 1 1 1 various 12 5 1 I e .,' Marina - Statement of Earnings e Year ended December 31, 1999 . Sales Fuel 102,770 Slore 11.841 Cost or Sales Fuel 91.560 Store 10.601 Groll Margia OD Sales SI2,45O Other Revenue Retai1 Sales Tax compensation 452 Dockage 90.105 Launch RamplPumpoutlother 2,732 Winter Storage 6,052 Interest on overdue accounts 587 S112,378 t Operating Expeuses AdvertisiDg 209 Association Dues & Liceuses 141 Bad Debt Expeoses 1.852 e Bank Charges 3.544 Bookkeeping 1.817 Iusurance 1,679 Equipmem Rental 425 N. Dock Storage Fee [10 Municipality] 2,839 D0cka8e Fee [to Municipality] 6.901 Office Bx:penaes 1.509 ProfessioDal Pees 513 Marina operate 1.390 Repairs & Mainteaance 11.075 Dredging 10,920 Taxes [to Municipality in Ueu] 9,202 Telephone 1,735 Utilities 4.112 Wages & Benefits 35,502 595,365 . Net Earuiap. 1999 517,013 e Marina - Statement of Assets Year ended December 31, 1999 e . Correat Accounts Receivable Recoverable GSTIPST Inventory Prepaid IDauranl:e . . Capital (depreciated) Buildings Equipment Halbour AsselS [dredging. leasehold improvements, market value) 3,985 2,447 23,199 1.344 S30,975 1.000 1,314 132,873 5135,187 5166,162 e e " ~~ . -. . ~ '. X'ncarcline Yachf Ok6 P.O. &Ox .,.... J,INCAROINt:.. ON1'ARIO ~.l(".o PROMISSORY NOTE K~ncardine Yacht Club (payor) promises to pay to . . (payee) the sum of /".":1 ",' J,. .' 7," .7 J"- ,.- ,- ~ ~ ,"/ as foll~wi: .; ,.- '?" '.' .. /.' . . The, !?um of "'.1/"'. / l ,'-, ..' ,/ c'.' J.. l"'. ... ~,. -} 1 ~, ~ after the 15th day. 'of Octo~er; 1985, only on demand of the payee providing said amount is available and payment of said amount to the payee will not adversely affect the Corporation's busin~ss. Interest to be paid to the payee on the principal annually on the 15th day of April at the rate established at the annual meeting by a quorum of members of the Kincardine Yacht Club as set out in its Constitution. Should the property known as Kincardine Harbour be ~ sold the full principal on the within promissory note plus ,., unpaid accrued interest shall become due and payable. Included on the within promissory note are the following conditions and privileges: 1. The payee shall be entitled to five (5) years dockage on the ~or the boating seasons from May, 1981 to O~ inclusive without charge. Should the payee. not require dockage in any of these years he/she shall pay to the Kincardine Yacht Club when the dockage is used the difference in dockage rates between the years in which dockage i~ used and the named years sequentially to the maximum of five (5) years. For all subsequent years the dockage rate shall be the annual slip rate for members less a minimum of fifteen percent (15%). The annual slip rate and the actual discount to be established by a quorum of the members at the annual meeting. For the period that the payee holds the within promissory note and the principal amount is outstanding and all con- ditions of membership in the Kincardine Yacht Club as set out in its Constitution and Bylaws dated the 8th day of May, 1979 amended to include the current dues rate, have been met the payee shall be guaranteed a designated slip on the as described on the lease agreement. The Kincardine Yacht Club reserves the right to ~hange slip designations. 2. tit ) \ '- ...... ," . . ,"... -.... r-: I' .... Xncardine Yacht Obb P.O. lOX Uti. KINCARUIfI,"E. ONTARIO :\:0(; tCO J. Should conditions arise requ1r1ng that the payee be repaid the principal amount of the within promissory note prior to the 15th day of October, 1985 the payee shall be entitled to the principal amount less the annual dockage rate for members for the years dockage was used and all outstanding fees and dues, providing said amount is available and payment of said amount to the payee will not adversely affect the Corporation's business. In the event of death of the payee the within ~ry n and privileges shall b~ansferrable to ~ providing ~ 1S or is W1 1ng to become a member of the Kincardine Yacht Club, otherwise repayment shall be to the payee's estate and subject to the conditions set out on the within promissory note and Condition Number J as applicable. No other transfers of the within promissory note and/or conditions and privileges are permissible. 4. e We the undersigned have read, understand and agree to the above conditions set out herein. . ~ (Payee) (Witness) .-- e