City, Kearns Restaurant Group, reach agreement on rebuilding of the Boathouse
Cae Coral City Council approval still required
The city of Cape Coral and the Kearns Restaurant Group have reached an agreement that will allow for the rebuilding of the Boathouse.
City Manager Michael Ilczyszyn notified Cape Coral City Council late today that the city and the Kearns Restaurant Group have reached an agreement.
“Good evening Mayor Gunter and City Council, We (City Administration and the City Attorney’s Office) have successfully concluded our negotiations for the rebuilding of the Boathouse restaurant in Cape Coral.
“The signed Settlement Agreement and Concessionaire Agreement were delivered to City Hall this afternoon. I have attached a Term Sheet which summarizes the business terms contained within the
agreement which will be presented to you at the next regular city council meeting. Have a great weekend.”
The agreements signed by the city attorney and a representative for the Boathouse Tiki Bar & Grill LLC, which allow for the termination of the existing lease agreement for the restaurant’s location on the Cape Coral Yacht Club acreage, the demolition of the existing fire-damaged structure and a new concessionaire agreement still need council approval.
Terms of the Concessionaire Agreement include a 30-year term and grants the Boathouse Tiki Bar & Grill LLC exclusive rights to food/beverage, retail, fuel, and beach equipment concessions within the Concession Area as well as first right of refusal if the city engages with another freestanding restaurant at the Yacht Club with matching terms/conditions.
Payments to the city will include $7,000/month ($84,000/year), paid in 12 equal monthly installments; 5% of gross receipts above the minimum guarantee in years 1-10, 6% in years 11-20 and 7% in ears 21-30.
During construction the base rent would be $3,500 month base rent plus 5% of all gross receipts above rent with no exclusions.
The city will commit to $1,000,000 reimbursement towards restaurant construction, applied as a monthly PG credit for first 10 years. The city also will for installation of the fuel facility with the Boathouse LLC to reimburse 50% of the cost over the agreement term.
If Council opts not to approve the agreements, the existing lease, which has about nine years left to run, will be reinstated.
Council had set a deadline of Sept. 6 for a signed concessionaire agreement with the original deadline for a settlement of the existing lease for the damaged building already past.
According to the agreement signed by Zak Kearns the Boathouse will again be responsible for cost of demotion of the structure with the demotion to be completed with 30 days of receiving the permits to do so.
To reach VALARIE HARRING, please email vharring@breezenewspapers.com