City council in Portland has approved a two-year lease agreement to resume ferry service between the Maine city and Yarmouth, N.S.
Officials in Portland believe the service will pump about $150,000 a year into the local economy and there is no upfront cost for American taxpayers.
On the Nova Scotia side of the border, taxpayers will shell out more than $30 million over the next two years to keep the service running.
According to the agreement, Bay Ferries will pay a little more than $15,000 a month between June and September, and another $4,000 a month in the off-season, to use the facilities in Portland.
The company has also agreed to pay the City of Portland set fees for every passenger and vehicle that use the service. The first 60,000 passengers cost $2 per person, but that price will increase to $3.50 afterwards.
The agreement also includes nine blackout dates – one day in August and eight days in September. The City of Portland wants those dates set aside due to an anticipated high number of cruise ships in the harbour.
Bay Ferries has agreed to provide service seven days a week, but the berthing fees will remain the same if the ferry doesn’t run all week. If the ferry doesn’t run for more than 10 consecutive days for any reason other than a major mechanical failure, the landlord can terminate the lease.
Under the agreement, Bay Ferries is responsible for repairs and maintenance of the ramp in Portland.
The decision comes after the previous operator of the ferry, Nova Star Cruises, filed for bankruptcy after running the ferry for just two seasons.
The ferry will run between Yarmouth and Portland from June 15 to Sept. 30.
