Parks Canada intends to stay put in the former Marine Discovery Centre under a 36-year lease despite city plans to sell the harbourfront building for redevelopment.

City politicians say the lease shouldn't impede plans to sell the harbour-dominating building, but some residents argue it's just another reason to keep the former museum "in public hands for public use."

Council decided in January to buy out the long-term lease for the centre and its parking lot with the Hamilton Waterfront Trust for $3 million. The move allows the city to take over the star-crossed harbour building and offer it to consortiums bidding on a larger redevelopment plan for Pier 8.

But a recently released report associated with that decision notes the federal government retains the right under the lease to keep its office, gift shop and parking spaces associated with the centre until 2054.

In a brief email statement, Parks Canada confirmed the lease and stated it "will continue to operate under the terms and conditions of that agreement."

Mayor Fred Eisenberger said he didn't consider the lease a "barrier" to a building sale. "My understanding is they want to maintain a presence in the (pier) area, which I think is absolutely doable," he said. City waterfront point person Chris Phillips said discussions are underway with federal officials.

Some residents question why the city is in a rush to sell the building without public consultation. "I think the idea of selling it is misguided and myopic," said Graham Crawford, who is putting together an online campaign to keep the 19,000-square foot building "in public hands for public use."

Crawford is also involved in fledgling efforts to promote the idea of a Hamilton museum.

While he said the harbourside building would be a great museum site, Crawford noted residents have floated other "great ideas" for the space. Online, suggestions have ranged from a North End library branch to a child care or community centre.

"It's the only large, public indoor space we have on the harbour. It would be folly to give that up," Crawford said, noting the city needs to plan ahead for its hoped-for influx of new Pier 8 residents.

He also expressed surprise at the city's eagerness to sell the building given its institutional zoning and the fact the building is enmeshed in a $15-million lawsuit launched by the former operators of Sarcoa. That restaurant was booted last summer following an acrimonious dispute over noise complaints and rent.

Council's plan is to sell the building as part of a 1,500-unit redevelopment of Pier 8 via a bidding process already underway with five shortlisted consortiums. The deadline for technical submissions is Tuesday.

But that planned redevelopment is also being appealed to the Ontario Municipal Board by a resident group as well as industrial neighbours wary of the impact of cheek-by-jowl condos on existing noisy operations.

Coun. Chad Collins said he supports the sale of the building as a way to "maximize value to the city."

But the Ward 5 councillor, who is also supporting a motion to explore prospects for a Hamilton museum, acknowledged the harbour setting "would be ideal in several ways," particularly as an existing tourist draw.

He suggested a redeveloped building could still end up as a potential site for community or tourism uses. "I don't think you could rule it out," he said.

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