City takes control of Sarcoa site but won't take over the waterfront trust

The city is taking over control of a key piece of waterfront property from Hamilton's Waterfront Trust.

The city is buying out the lease for the land and building on Pier 8 that house Sarcoa restaurant, as it looks to make the land part of its grand plan to redevelop a section of Hamilton's waterfront.

Hamilton city council voted Wednesday to buy out the 44-year agreement it had, leasing out the land to the trust for it to manage and oversee. The move will cost $3 million, payable over 15 years, but it'll free up the land for part of its Pier 8 plan that will include condos and a boardwalk.

The future of the Sarcoa building has been a question mark for months.

The waterfront restaurant opened its doors in 2012. But the owners eventually clashed with the city over the ability to play music on the patio.

Last July, Sarcoa closed. A notice posted to its doors said it failed to pay more than $226,000 in rent, among other contract breaches to the trust.

On Wednesday, councillors brought its part of the saga to a close by gaining "direct control of the lands at 57 Discovery Dr.," the city said in a statement.

Now it'll look at making the land part of its Pier 8 redevelopment, which will see one large consortium build condos and commercial space there.

The move comes after the city met with the Hamilton Waterfront Trust (HWT) in late 2017 on what Mayor Fred Eisenberger said were possible efficiencies.

The HWT, which oversees operations of amenities on the waterfront, has endured scrutiny for months. Coun. Donna Skelly in particular asked why the trust owes the city nearly $400,000 in back taxes and regularly runs annual deficits, and why it didn't post financial statements online or provide minutes of its meetings.

Then-chair Bob Charters, who quietly resigned in December after nearly 20 years on the board, called the questions "an insult."

The city won't take HWT operations in house, council said Wednesday.

Jason Farr, Ward 2 councillor, is acting as the board's interim chair.