Langford strikes bowling deal to spare taxpayers.
Think of it as a municipal government version of bowling for dollars.
Langford has struck a deal with the private operator of Langford Lanes that will see the city pay for about $398, 000 worth of building improvements in exchange for a larger share of the bowling operation's gross revenues.
"It's a great deal for us, long term," said Mayor Stew Young. "It guarantees the taxpayer, no matter what politician is in, a revenue stream. So when they the bowling revenues grow, we grow. "
Under the original operating agreement, the operator, Planex Development Corp. doing business as Langford Lanes, was responsible for the almost $400, 000 cost of what were considered tenant improvements.
But after looking at receipts and projected revenues, city staff proposed instead to amend the agreement so the city would cover the cost of the improvements in exchange for a two per cent boost in the citys share of gross revenues, to 14 per cent from the current 12 per cent.
The operator agreed.
City staff estimate that based on existing annual gross revenues of $2.5 million, the additional two per cent would be equivalent to $50, 000 — enough to cover the additional capital costs and interest in eight years.
"Once the tenant improvements are paid, the city would continue to net additional revenue for the balance of the ontract term — an estimated $550, 000 over 11 years,"...