BEN EOIN, N.S. — For Sale: About seven hectares of prime waterfront land fronting on the picturesque Bras d’Or Lake.
But the property also comes with a long-term tenant whose 50-year lease only collects a dollar a year.
The land on which the Ben Eoin Marina sits has been listed for sale by Public Works and Government Services Canada. An advertisement appeared in Saturday’s edition of the Cape Breton Post. Offers close on Aug. 1.
The marina has a 50-year lease for the property, which dates back to 2011. At the 20-year mark of the agreement, the marina also has a one-time opportunity to purchase the property. There is also a provision where the lease can also be renewed for an additional 50 years.
The assessed value of the property, located at 4964 East Bay Highway, is currently $813,300.
The tender document itself is 145 pages and includes the ground lease Enterprise Cape Breton Corp. executed with the marina.
The advertisement noted that the highest or any offer will not necessarily be accepted.
The acceptance of an offer to purchase is expected within 15 days of the tender close.
The closing date is expected to be within 60 days of the acceptance of an offer.
The tender document noted that the site has been cleared and developed for use as a marina. “Improvements include a marina clubhouse, jetty, breakwaters and wharf facilities as well as landscaping and a gravel-surfaced parking lot area,” it reads. “The marina-related components are owned by the Lessee and do not form part of the subject of this tender.”
The premises are only to be used as a marina, as defined in the lease agreement.
ECBC granted the proponents of the Ben Eoin development $4 million to construct the marina, a project that has been valued at $4.8 million. The funding was publicly announced in late 2012, after much of the construction had already taken place. The federal Crown corporation took on ownership of the property to protect its investment and is leasing it to Ben Eoin Marina Ltd. under a 50-year lease, with rent of $1 a year.
What Ben Eoin Marina Ltd. brought to the deal was the land on which the marina sits, which was left over from construction of The Lakes golf course and had been appraised at $800,000.
Gerard Shaw, regional director of Cape Breton operations with the federal agency handling the property sale, could not be reached for comment Monday. He has previously spoken with The Post about the process of selling lands formerly owned by the now-decommissioned ECBC, which includes the marina property. Shaw noted in 2016 that, while it wasn’t on the initial list of properties placed up for sale, the marina property would be divested eventually.
Shaw has said government would have an appraisal done of the property based on the lease and then make a determination of what market value would be.
He noted that there is an obligation to honour the lease.
Sydney lawyer Robert Sampson, who is listed as Ben Eoin Marina’s recognized agent with the Nova Scotia Registry of Joint Stocks, did not respond to a request for comment Monday.
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