R2021-222 Resolution Authorizing a Memorandum of Understanding between the Decatur Park District, G&H Marine, Inc. and the City of Decatur for Additional Docks

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December 2, 2021 MEMORANDUM OF UNDERSTANDING Between the Decatur Park District,the City of Decatur, and G & H Marine, Inc. The following is a Memorandum of Understanding for developing a marina expansion plan in Decatur, Illinois: I. Background The City of Decatur(City) and the Decatur Park District (DPD) are working together to facilitate the construction of a new marina by a local private company. The City owns the lake bottomland and DPD owns the surrounding land.The City and DPD will be facilitating this project through a Leaseor License Agreement between the two agencies and the private developer. G&H Marine, Inc. (G&H) has been selected to be the marina developer for the DPD and the City following a Request for Proposal.The following are key points for this transaction: • DPD will hold the lease/license agreement with G&H. • DPD will cover the upfront cost of landside utility infrastructure in exchange for an annual percentage(80/20)of slip revenue. • G&H will be responsible to finance and construct the floating covered docks, gangways, anchoring,dock utilities, dredging, lifts, etc.to properly build the marina.The first phase of the marina will be40 slips. • The lease agreement will require G&H to continue to invest in the maintenance of thedocks,and continue to expand the dock system (per demand)to offer more slips. • It is desired that G&H or separate contractor take over the boat fueling operation from the City of Decatur and provide amenities such as ship store supplies,boat licenses,etc.as development increases. • Although marina services will gradually shift from the City to the DPD or from the City to a private operator, the City will retain complete and exclusive control over construction, use of City property and the lake, and will issue permits for all dock and lake improvements and infrastructure. II. Proposed Lease Terms The lease between the DPD/City and the Developer will contain the following terms: A. The length of the lease shall be 20 years with renewable provisions based on performance and continued investment in expanded phases. B. G&H will be responsible to finance, construct, build, market, and operate the slips and cancharge market rates for those slips. Phase I will consist of 40 slips with an estimated investment of$400,000 by G&H. Further, G&H agrees to construct additional docks and slips within 12 months of formal notification and verification by the DPD that there are at