It is found that the property owned by the City in and adjacent to Crystal Lake, and Crystal Lake, do not provide unlimited capacity for recreational or other purposes. The City property at Crystal Lake was purchased and has been maintained by the City for the use of the inhabitants of the City. The use of Crystal Lake has become increasingly popular, and permitting nonresidents to use the property has resulted in overcrowding and the inability of some residents to make use of the property, defeating the purpose for which it was acquired and has been maintained. Overcrowding threatens the health, safety and general well-being of the users. It is found and declared necessary to the health, safety and well-being of the residents of the City of Middletown to restrict and limit the use of the City-owned property in and adjacent to Crystal Lake to residents of the City and guests of residents of the City.
A. 
The property owned by the City and located in and adjacent to Crystal Lake shall be used only by residents of the City and guests of residents of the City, except as provided in Subsections B and C of this section.
B. 
The restriction of Subsection A of this section shall not apply to the area which is the subject of an agreement between the City and the state dated June 11, 1971, recorded in Volume 375 at page 440 of the Middletown Land Records. Said area contains an access road, parking area and boat launch ramp which shall be usable by residents and nonresidents for the purposes of boating and fishing in Crystal Lake as provided in said agreement.
C. 
The restriction of Subsection A of this section shall not apply to nonresidents obtaining a permit for use of the facility in accord with rules and regulations formulated by the Department of Public Works.