Marina Lease Negotiations

Background 

The District of Oak Bay owns the Marina lands located at Turkey Head and has a lease with the Province for the foreshore/aquatic area occupied by Oak Bay Marina. The District leases the land/buildings and subleases the foreshore/aquatic area to the Oak Bay Marine Group. The leases expire in December 2022.  

On September 14, 2020, Council directed staff to issue a Request for Proposals (RFP) document towards obtaining proposals for a new 30-year lease of the upland and foreshore/aquatic crown lands associated with the municipally owned marina facilities located at 1327 Beach Drive.

The RFP for lease of Oak Bay Marina Lands and Marina was issued on September 18, 2020.  Proposals were due by November 30, 2020.  

Following receipt of proposals, staff undertook a technical evaluation of each submission. Two proposals achieved technical scores sufficient (minimum 70%) to have community amenity proposals reviewed. Council directed that proposals clearing this threshold be released for public review and feedback. The two community amenity proposals forwarded for review were named Proposal 1 and Proposal A.  Proponents were advised that community amenity proposals would be read by the public and Council and that Council would evaluate and score the community amenity section separately from all other information provided. To support as unbiased review as possible, proponents were directed to refrain from using company-specific information or references. The documents given to proponents indicated that staff could remove information that might reveal the identity of the proponent.  In this regard, staff redacted some references.  Redacted references are marked with black strike-through lines. 

Public input was sought through an online questionnaire that ran from February 19, 2021 to March 2, 2021.  Results are available here.  Public input was also requested by way of correspondence with Council and at a Committee of the Whole meeting held March 1, 2021.  Public input opportunities were extensively advertised/promoted.  

Next Steps

With public input now having been received, Council will score community amenity proposals. Those proponents with community amenity proposal scores of 70%+ will go on to have financial proposals evaluated. The Marina Lease RFP reserves the District’s right to negotiate the terms of the lease. Following scoring of technical, community amenity and financial proposals, Council will determine whether/how/with whom to proceed to the negotiation stage.  It is anticipated that the next public update will be in May 2021.    

Award of contract will only occur upon conclusion of negotiations satisfactory to both the proponent and the District.