Tempe Town Lake

Did Tempe screw Rio Lago Cruise by keeping customers away?

Hmmm.... wonder why Tempe kicked them out of the Town Toilet? Didn't they give the Tempe City Council members enought campain contributions?

Source

Lake's watercraft auctioned

TEMPE - Many of the paddle boats and kayaks that cruise Tempe Town Lake were auctioned Tuesday.

Tempe has not renewed its contract with the company that rented small watercraft on Town Lake for the past decade. Rio Lago Cruise's contract expired this month. Tempe gave the company 30 days to remove inventory.

Nearly 50 paddle boats, 17 kayaks and other watercraft were auctioned off Tuesday at Tempe Beach Park.

Dan White of Sierra Auction, which hosted the sale, said about $20,000 was raised for Rio Lago and Salt River Project utilities, a Rio Lago stock owner.

Tempe bought the dock for $3,700 at auction and hopes to replace Rio Lago with another boat-rental company. Visitors may rent small non-gas-powered boats and kayaks from private businesses and purchase a permit from Tempe for use on the lake. Sport Chalet at Tempe Marketplace, east of Town Lake, is working to get a permit with Tempe so that people can purchase kayak rentals and permits at the store. Permits for private-watercraft owners remain managed by Tempe's boating office. Rio Lago still manages large boat charters and tours of Town Lake.

Source

Paddleboats auctioned off at Town Lake

by Dianna M. Náñez - Oct. 5, 2009 04:49 PM

The Arizona Republic

The company that rented kayaks, paddleboats and small watercraft on Tempe's Town Lake for the past decade sold off its inventory last Tuesday.

Tempe did not renew Rio Lago Cruise's contract for small-watercraft rentals, which expired last month, and gave the business 30 days to remove its inventory, including the 200-foot dock, off the lake.

The sale of 47 paddleboats, 17 kayaks and other craft raised about $20,000, said Dan White of Sierra Auction, the company that hosted the auction.

The proceeds from the auction went to Rio Lago owners and Salt River Project utilities, which owned some Rio Lago stock, White said.

Don Karner, a Rio Lago partner, said the company is still managing large-boat charters and tours of Town Lake. A Rio Lago kiosk will remain on the northern side of Town Lake, and Rio Lago will begin offering thematic tours, including a Halloween costume-themed tour, he said.

Tempe City Attorney Andrew Ching said the city is expected to go to trial early next year on a lawsuit Rio Lago filed in 2006 claiming Tempe denied the company access to the lake for rentals, which Rio Lago owners allege stymied their business. The contract allowed Tempe to deny Rio Lago access to the lake up to 96 hours per calendar year.

Karner said the lawsuit centers on Tempe allowing events hosted at Town Lake to interfere with Rio Lago's ability to rent to customers. Tempe maintains that it never closed the lake in excess of what the contract allowed.