THUNDER BAY -- Sandy Beach leaseholders will not receive an extension, city officials confirmed at a Thursday evening meeting.
Property lease holders at Sandy Beach have been waiting month for any word of a possible lease extension. On Thursday, at a meeting at the Da Vinci Centre that was closed to media, those leaseholders learned that the city would be making buyout offers in the coming weeks.
Leaseholders told TBT News after the meeting that they were told those who accept the city’s offer within 30 days, and vacated within 120, would be given an early possession incentive.
The city’s offer will be made using past appraisals on file, adjusted for time. But buildings or improvements completed after 1974 will not be compensated for, leaseholders say.
The leaseholders may remain on the property for up to two years, with the final date for occupancy set for Dec. 31, 2016.
In a media background release issued Thursday, the city says it wishes to return the land to park purposes “consistent with the intent under which the property was purchased in 1917.” Council's policy since 1974 has also been to purchase and demolish the original 85 cottages as they become available.
The release goes on to explain that the city decided it was not in the public interest to renew the leases and spend “significant public funds to provide water, sewer and fuel storage services” to the 26 leased properties.
City officials also say most Sandy Beach wells do not produce potable water, and that the city will provide bottled water delivery beginning this December.