The EYC has operated on city-owned property since 1934, becoming a fixture of Escanaba’s harbor through decades of racing, cruising and social events. Under past agreements, the city has leased the property to the club in 10-year terms with automatic renewals unless terminated by either party.

That arrangement is now under renewed scrutiny as the council considers a proposed lease update from the EYC.

As outlined in the proposed agreement, the EYC pays the city $1 in annual rent. The lease also details the club’s responsibilities related to community engagement and awareness, public access opportunities, maintenance, insurance and other operational matters.

While there were small changes that simplified the lease, noted City Manager James McNeil, it is “more or less the same as our last lease.”

At a recent Escanaba City Council meeting, the Escanaba Yacht Club's (EYC) proposed lease agreement was discussed in detail. In this Daily Press file photo from July 10, 1938, friends meet at an EYC picnic. Pictured from left to right: Mrs. Carl Miller of Iron Mountain, Alfred Henes of Marinette, Mrs. O. H. Henes of Marinette, Mrs. Roy Hubley and Mrs. Caley of Marinette.

Council members expressed interest in a lease agreement that accounts for rising costs and the harbor’s significance to the city.

“The harbor is not really a money-making proposition for Escanaba,” said Council Member Karen Moore. “It’s our prime piece of property.”

After noting over $1 million worth of expected improvements to be made in that area in the city’s five-year plan, Moore said “I’m questioning why the yacht club wouldn’t consider paying rent or contributing monetarily to the harbor since they really aren’t.”

“I think generally through lease discussions there are concessions or suggestions made on both sides,” added Moore. “It’s been pretty much a discussion on keeping things the way they are, and I think that the way things are now, [with] costs up and the fact that we are trying to make some changes down there, that there have to be some changes in this lease.”

Council member Todd Flath agreed, noting “I think $1 a year is not anywhere near [where] we need to be.”

Mayor Mark Ammel summarized the council’s interests and hopes for the agreement moving forward.

“It seems like the city is interested in allowing the continuance of some measure of the autonomy that the club has had for the use of the building, provided the club makes concessions about either welcoming visitors better, opening things up or some significant changes in programs that actively involve the public,” said Ammel.

Ammel added, “If that’s not the case, then the city is interested in increasing the rent because the courtesy rent is in exchange for some sort of service.”

Council member Tyler DuBord stated he is interested in seeing what the EYC is looking to do to improve or increase the use of the EYC, possibly in the form of a five-year plan.

McNeil described further changes that could be adopted in the agreement, stating “The way some of these services are provided, we certainly could be a little more prescriptive – a certain number of hours that it has to be available to transients, or as it relates to events, what some of those contributions might look like.”

EYC representation is set to appear at the council’s Mar. 19 meeting.

In other business, the council:

– Observed a presentation by representatives from Clark Schaefer Hackett, an accounting firm based in East Lansing, on the June 30, 2025, audit results. The unmodified opinion stated the city’s total net position increased by approximately $22.1 million this year, reaching a total of $118.2 million. It also detailed balanced budgets across governmental funds, reduced pension liabilities and more. In a statement to the Daily Press, McNeil said “Overall, the audit reflects a city in a very strong financial standing with improved reserves and a lighter long-term debt load.”

– Approved an agreement with the Community Foundation for Delta County to establish the City of Escanaba Community Benefit Unendowed Agency Fund. The fund aims to serve as a flexible financial tool to support local economic vitality through initiatives including job creation and housing growth. There is approximately $450,000 in the fund as of now, according to McNeil. The Community Foundation’s role is to hold and invest the funds.

– Approved a contract between the city and the Central Upper Peninsula Planning and Development Commission (CUPPAD) in the amount of $10,600 to update the recreation department’s five-year plan, which expires Dec. 31 of this year. Fiscal year 2026-2027 budget funds will be used to pay CUPPAD $5,3000 within the month of July 2026, with the latter half of the payment being sent upon the delivery of the recreation plan.

– Approved a resolution that adds two streets to the current Act 51 system within the Blueberry Ridge Subdivision: 9th Avenue South from South 25th Place extending 267 feet east, and South 25th Place from 9th Avenue South extending 747 feet south. The resolution increases total miles of city streets, allowing the updated streets to be eligible for state road funding and maintenance.

– Approved changing the names of Power Plant Road east of Sheridan Road to 21st Ave N and Ore Dock Access Road to N 14th St. The resolution will state the placement of the street as being within the City of Escanaba Street System to allow the city to obtain funds under Act 51.

– Discussed an update on the search to fill the city manager position upon McNeil’s upcoming resignation. Council member Ronald J. Beauchamp noted about 30 applicants were received. Applications closed Sunday, Feb. 1. Interviews are expected to begin within the next few weeks.