So our last interaction with SC was an email from us on the 16th January. Last week we received a response from Deborah Burns who is our main point of contact now. You can read and comment on the latest response at the end of this document: https://docs.google.com/document/d/1vC5wjJC3fCMyWza9gqHW-4qeyTQkvhMIfl5u8_5I2lM/edit?usp=sharing
But to cut to the chase, here are the first actual costs they have given us in the email:
I was looking for some form of alternative proposal from you in terms of what rent you could afford to pay based on your appraisal projections. In order to move this point forward I have a suggestion (subject to contract);
Basing mooring prices on the market rates for the closest comparable we have at Causewayend I would anticipate you should be able to generate the following income;
Residential mooring (2 of) – £5400 per annum
Commercial mooring (1 of) – £2,700 per annum
Leisure mooring (3 of) – £6,435 per annum (assuming 15m length)
TOTAL BASE RENTAL (exc any income generated from visitor moorings) – £14,535, say £14,500 per annum so the base rental you will pay is 10% – £1,450 per annum.
Phased in over 3 years;
Year 1 – £450 per annum
Year 2 – £1,000 per annum
Year 3-10 – £1,450 per annum
If the income you generate from the moorings exceeds £17,000 per annum then you will pay 10% of this additional income to SC in addition to the base rent.
At year 10 the base rent will be reviewed on the basis of this calculation or alternatively we can build in an RPI inflationary rise at year 10 to the base rent.
So at last we have some numbers to work off. On face value, this seems like a useful arrangement for us on two counts. Firstly the amount payable is as a percentage of our income and thus helps cash-flow (however the minimum cost is a pain), and secondly it is phased in over three years which will help our cash flow as it will take some time to ‘fill the bank’ with boats.