The Town of Niagara-on-the-Lake has reached a settlement with Niagara Gorge Jet Boating Ltd. that will end a years-long dispute over the Melville Street dock and bring new public paddling infrastructure to the waterfront.
The settlement, valued by the parties at about $330,000, will see the jet boat company supply and install a new floating dock system at 1 Melville St. for kayaks, canoes, paddleboards and other non-motorized watercraft.
The agreement resolves an arbitration dispute dating back to 2022 over unpaid licence fees and the jet boat company’s use of the town-owned dock.
Under the settlement, Niagara Gorge Jet Boating will provide the docks, gangways, ramps, mooring blocks and chains needed for the new system. Once installed, the infrastructure will become town property.
The company will also cover the cost of installing and removing the docks seasonally, adjusting mooring chains as Niagara River water levels change and storing the system during the winter for seven years.
The mooring blocks are expected to be installed this fall, with the floating docks scheduled to be ready for the 2027 recreational season.
To reduce disruption on Melville Street and River Beach Road, the dock system will be launched and removed through the Queenston dock using a jet boat, according to the town.
No commercial use of the new dock is contemplated under the settlement.
The agreement marks a change in use for a site that for years was associated primarily with the commercial jet boat operation.
The town says the new infrastructure will provide easier access to the Niagara River for paddlers while fitting into longer-term plans for the surrounding waterfront.
Niagara-on-the-Lake’s 2015 Waterfront Park Land Improvements Master Plan called for a passive waterfront corridor serving residents and visitors and specifically identified an area for launching kayaks, paddleboards and canoes.
A more recent update to the dock area plan has also considered repurposing the Melville Street dock following the relocation of the jet boat operation, including dedicated access for small watercraft.
The town says the settlement does not determine what will ultimately happen through the ongoing dock area master plan process and would not prevent council from approving further changes to the dock or surrounding waterfront.
Council is also expected to receive options in early 2027 for possible transient visitor docking at the site, including information about operations and potential next steps.
The settlement follows a dispute stretching back several years.
Niagara Gorge Jet Boating entered into a 10-year licence agreement with the town in September 2012 for non-exclusive use of the Melville Street dock for its jet boat tours. The agreement was scheduled to expire March 31, 2023.
The relationship became contentious after high water levels in 2019 and pandemic restrictions in 2020 and 2021 limited the company’s operations.
Niagara Gorge Jet Boating argued those circumstances significantly restricted its ability to use the dock, while the town maintained licence fees remained owing.
In June 2022, the town issued a notice cancelling the licence agreement over unpaid fees.
The company launched arbitration proceedings the following month, seeking repayment of some licence fees as well as other damages. The town filed its response to the arbitration in May 2023.
Council discussed the dispute in closed session on Sept. 8 before the parties entered into minutes of settlement.
The agreement resolves all claims arising from the former licence arrangement and avoids the additional cost and uncertainty of continuing with arbitration.
Once the terms of the settlement have been completed, including installation of the new docking system, the town and Niagara Gorge Jet Boating will exchange full and final releases and the arbitration will be withdrawn.
