City working to iron out ‘wrinkle’ in Dive lease proposal

LACONIA — For the fourth time in two months, the City Council will be dealing with a request to have a floating bar and restaurant operating on an expanded section of the city docks at Weirs Beach.

Next Tuesday the council will consider recommended changes to the City Code which restrict commercial leases on the docks adjacent to the boardwalk along Lakeside Avenue.

The council in early April first took up the proposal by Jamie Merriam and Betsy Sullivan, owners of the Dive, to build a large pier at the city’s public docks where the Dive would be tied up.

Since then the city and Dive owners have been in negotiations over the terms of the lease. The owners have agreed they would pay for the construction of an extension to the City Dock, at an expected cost of $157,656.

But in the latest development, which City Manager Scott Myers called a “wrinkle,” the City Code, which contains the rules and regulations by which the city operates, severely restricts the city’s ability to lease dock space. Under the language currently in the code, the city is allowed to lease dock space only to the U.S. Mail Boat Sophie C, and to the Queen of Winnipesaukee, a 46-foot sailboat that is no longer on Lake Winnipesaukee. The code further forbids the consumption of alcoholic beverages on the docks, or on vessels tied up there.

Myers said work has begun to come up with new language to allow the city to enter into commercial leases at the city docks, and to allow consumption of alcoholic beverages at businesses which have such leases.

The proposed revisions to the City Code governing city-owned docks will be presented to the council on Tuesday. He said if the council finds the changes acceptable at that meeting, it could give an initial approval and at the same time schedule a public hearing on the amendments for the council’s June 8 meeting.

Following the public hearing the council will have the option of giving second — and final — approval of the changes to the code.

Under the terms of the proposed lease which has been reviewed by Myers and the city’s attorney – as well as Mayor Andrew Hosmer and City Councilor David Bownes – the Dive would be allowed to use the dock rent-free for three years, but the owners would pay property tax for the part of the dock where the Dive would tie up. The offer also includes the option to extend the lease twice — each for a period of five years. During the first extension they would pay rent based on market rates. If the lease were extended for another five years the rent would be based on comparable rentals adjusted for inflation.