The Pensacola City Council on Thursday night approved a lease for a new boat manufacturer at the Port of Pensacola in a 6-1 vote.
Streamline Boats of Northwest Florida will get an initial 10-year lease at the port, paying $127,875 per year for the first five years of the lease and $255,000 each year for the second five-year term of the lease.
The lease allows for additional renewals up to a total of 40 years.
The company will be responsible for completing construction of the unfinished 92,000-square-foot buildings known Warehouses No. 9 and No. 10 at the port within two years.
Streamline Performance Boats Corp., a different legal entity, operates out of Hialeah and its owners are partnering with an investor from South Palafox Group to sign the lease with the city as Streamline Boats of Northwest Florida.
The company said it will invest more than $1 million to complete the buildings and will create 45 jobs within its first few years of operation, although those terms are not required by the lease.
Mayor Grover Robinson pulled the lease in May to allow for issues raised by council members to be addressed and then brought the lease back to the council. The biggest issue of concern was over odors caused by the manufacturing process.
The updated lease allows for the city to shut down operations of the company if odors are coming from the facility.
Councilwoman Sherri Myers said while the lease addressed the odors, she had questions about the ownership of the company and couldn’t support the lease. She made a motion to pull the lease for another 30 days, but the motion failed because it lacked a second.
Councilwoman Ann Hill asked Port Director Amy Miller if she was confident that the lease protects the city.
“I do,” Miller said. “I think we’ve done everything we can do to protect our interest, our asset and our community.”
Miller said because of the decision to pull and re-evaluate the lease in May, the city now has a much better lease and is in a stronger position.
“It’s simply deciding is the risk worth the reward,” Miller said.
This story will be updated.
Jim Little can be reached at [email protected] and 850-208-9827.