City sets contracts deadline for the Boathouse
Settlement for current lease, new new concessionaire agreement still on the table
Cape Coral City Council has set a deadline for the finalization of an arrangement that would bring the Boathouse back to the Cape Coral Yacht Club.
Under what exact arrangement between the parties remains the sticking point.
Council gave the city’s attorney seven days to finalize the settlement agreement with the Kearns Restaurant Group that would provide for the tear-down of the exiting structure and 30 days to finalize a new concessionaire agreement for operation of a replacement restaurant.
The motion was made by Mayor John Gunter who said he is worried about safety because the fire-damaged Boathouse Tiki Bar & Grill structure has not yet been torn down. Gunter said if a settlement agreement is not made in seven days, the city will move forward with the demolition permit with competitive bids so the city can do the work.
“If we do not have an agreement signed by Sept. 6, then we will move forward with the RFP process,” Gunter said.
The settlement agreement would also result in termination of the existing lease agreement the city has with the Kearns Group, leaving it without a contract to operate a restaurant or restaurants at the city’s planned “resort-style destination” where the historic Yacht Club complex stood before Hurricane Ian destroyed the pier, marina and much of the riverfront amenities, including the original Boathouse.
Gunter added the discussion item to Wednesday’s agenda because the expected item had been withdrawn.
Gunter said the expectation was that when Council came back from its hiatus a new agreement was to be on the agenda to finalize.
“Unfortunately, that was not the case,” he said, adding that it was pushed two weeks later. “It was supposed to be tonight, and we are still not ready.”
He said he brought it back because of the concerns of the partially standing structure, rebuilt by the Kearns Group after Ian and then damaged by a fire shortly after re-opening in October, could be a hazard in a hurricane was to hit the area.
“At some point, the life, safety, and welfare of the community outweighs any agreement with anyone,” Gunter said.
City Attorney Aleksandr Boksner said the city provided a concessionaire agreement well in advance, so the Kearns Group understood what the city is seeking for a new 30-year agreement.
“We made sure we had legitimate control,” Boksner said, adding that late Friday they had received a substantial redline.
The agreement was further amended, and the version was sent out on Sunday.
Boksner said they are hopefully optimistic.
“We have a current agreement with 8-1/2 years remaining. There could be litigations from the current lease agreement,” he said, adding that the building needed to remain and be preserved in case the issue goes into litigation.
Councilmember Bill Steinke said he is extremely disappointed that on at least two occasions he was told they had a deal.
“All we have to do is get it in writing and get ink spread,” he said. “Once (it’s)time to spread the ink, no we want to change the writing. Health, safety, and welfare of our citizens is paramount. That building sitting there is unacceptable – nothing but projectiles waiting to be launched.”
Zak Kearns, of Kearns Restaurant Group, said they applied for a demolition permit Wednesday morning.
“I said it two months ago; I am willing to waiver whatever is against us to knock it down. We have paid rent every month; liability falls on us. We stand at the forefront of that,” Kearns said. “Having these conversations – they won’t issue the permit until we sign a termination – it should happen simultaneous.”
He said the Kearns Group has not changed anything in the deal. The new concessionaire agreement received from the city went from 22 pages to 94 pages and includes multiple details such as chair colors and menu approvals by the city.
“It’s a lot more inclusions that have never existed in operation before,” Kearns said. “In the city’s new position of where they want to be involved, it’s very detailed.”
Boksner said there could be an agreement in good faith for the settlement agreement and continue on with negotiations of the concessionaire agreement.
“We will absolutely in good faith proceed in that route,” Kearns said.
To reach MEGHAN BRADBURY, please email news@breezenewspapers.com