Fintry Queen
Okanagan Lake Boat Company Inc.
The "Fintry Queen", a 326 passenger ship on Okanagan Lake, has received an 11th hour tax credit allocation from the BC Investment Program. Investors can now receive up to a 30% BC tax credit to a maximum of $60,000 on their 2014 Returns if they sign up before the March 1st 2015 deadline.
"The Fintry Queen has finally met all the EBC criteria" stated Andy Schwab, President of Okanagan Lake Boat Company Inc., owner of the historic vessel, "but we are quickly running out of time for the 2014 program which expires March 1st".
The BC Investment Program was developed by the Ministry of Jobs, Tourism and Skills Training to encourage investment in manufacturing, destination tourism, proprietary technologies, digital media and community diversification outside of the lower mainland and capital region. For the Fintry Queen to qualify as an "Eligible Business Corporation (EBC)" it had to demonstrate that it will earn 50% of gross revenues from tourists, operate at least 120 days a year, be located outside the GVRD, Whistler or the Capital District, in addition to having moorage lease agreements in place with the City of Penticton.
"The plan is to raise $600,000 to renovate the ship and build the dock in Penticton" says Schwab. We've already started on the environmental permits to coincide with the dock design and engineering. With a little luck, we'll be painting, building docks and sailing to Penticton before the end of the year, ready to open for 2016." The investors can purchase equity shares valued at $1.00 per share up to a maximum of 49% of the total shares issued and must hold those shares for at least 5 years. The maximum allowable tax credit to any one investor is $60,000 (30% of $180,000) which can all be utilized in the first year. The Company will be engaged to redeem the shares on the 5th anniversary of the investment at a value of $2.00 per share. The investment, when combined with the 30% tax credit, yields an ROI (return on investment) of over 23%.
"Venture forums and angels are all about tech deals these days" says Schwab. "We're low tech, we're all about history and romance and feeling good, about where you are and who you're with, providing a memorable Okanagan experience that marks a time and place in your life".
The original "Okanagan Lake Boat Company" was established in Naramata in 1897. An old trade poster circa 1912, on display in the Penticton Museum, shows a small passenger craft on the lake with the caption "Ferry Service - Summerland - Naramata - Penticton". "Special Trips to All Points on the Lake for Commercial Travellers and Tourists." "Telephone Connections".
"We identified with the poster" said Schwab, who sees a future for public transportation on Okanagan Lake, linking the communities, parks, wineries and resorts along the shoreline, similar to the historic paddlewheel services provided by the CNR and CPR from 1893 - 1972 which serviced over 25 historic "ports of call". "Jump aboard, take a short cruise to a resort, park or winery, catch it again in the afternoon or evening for an easy day's trip home."
The Fintry Queen is the largest commercial passenger ship on Okanagan Lake, able to safely transport thousands of passengers annually in most weather conditions. Originally built as a car ferry in 1948 as the "Lequime", she carried passengers and vehicles across the lake year-round from the Westside to Kelowna before the days of the first bridge. Designed to get close to shore, her bow boarding ramp permits loading and unloading without the need for extensive shore facilities. In 1968 she was renamed the "Fintry Queen" to carry passengers to the new community development at Fintry Estates.
Over a 10 year period from 1990 - 2000, the Fintry Queen averaged over 28,000 passengers each summer. Operating the ship from the Kiwanis Pier in Penticton accomplishes a number of the objectives sited in that cities "Downtown Revitalization Plan". It will attract people to the city core, increase safety along the Waterfront Park at night, create jobs and encourage private sector investment, not only downtown but throughout the Valley. The Fintry Queen will honour the past, create a focal point for residents and visitors and provide the solution to "where shall we take our guests today."