City, Boathouse negotiations continue
Second deadline approaching
The city of Cape Coral will move forward with its plans to tear down the fire-damaged Boathouse Tiki Bar & Grill but negotiations are continuing for a new agreement that would keep a Kearns Restaurant Group eatery at the Cape Coral Yacht Club.
After city staff and the Kearns Restaurant Group, which has a lease with the city for food and other operations at the riverfront city park, failed to settle the existing agreement, the city said Wednesday it will begin the procurement process for demolition of the Boathouse, heavily damaged in Hurricane Ian, rebuilt, and then destroyed in a fire last October shortly after re-opening.
A replacement agreement for the lease — a new city-preferred concessionaire contract — remains on the table, however, with both sides still hopeful the parties will hit the Council-approved Sept. 6 deadline for a new agreement.
“Administration remains committed to work with the Boathouse to get the restaurant open to the community. We did not have a settlement agreement by the initial date,” City Manager Michael Ilczyszyn said.
Council had voted on Aug. 6 to give the city attorney seven days to finalize the settlement agreement with the Kearns Group by Aug. 13, and 30 days to finalize the concessionaire agreement, Sept. 6.
“The action that this board took in the last meeting, we had directed the city manager to continue working with the Kearns Group trying to formalize a contract or agreement with them. They have until Sept. 6,” Mayor John Gunter said.
A few council members criticized social media posts following the failure of the parties to come to terms by Aug. 13.
“I want to mention a couple of things in respect to the operator,” Councilmember Joe Kilraine said. “We recognize the Kearns is a wonderful restaurant operator. We appreciate that and like to get things settled with you. There is a little bit of a process you must go through — it’s a little unprofessional to try to negotiate in public. Generally it does not work to a resolution of a problem, it creates a division, or more of a division to reach an agreement. I can assure you that we have an aggressive attorney protecting the city’s rights and citizen’s rights. We look forward to having a good relationship.”
Councilmember Bill Steinke held a similar view.
“I, too, was kind of taken back by the way this whole issue was brought about on social media. It’s pretty ridiculous as far as I am concerned. The general gist of what was out on social media is the city has been blocking any efforts for the Boathouse from reopening,” he said.
Steinke said he sat in his driveway during a 45-minute phone call addressing the issues in an effort to get an agreement.
“I was in full agreement with the position that was taken by Zak (Kearns) and the group and met with city staff to share in my dismay of what was being asked with some of the terms of the agreement that was being put in front of them. City staff listened; a meeting was established. I was there and Zak was there,” he said.
A letter of intent was issued on June 17, Steinke said.
“On June 17 we had a deal. When the paperwork was put together and sent to the Boathouse that wasn’t good enough, but yet here is the letter of intent that says it was,” he said. “I took offense to that especially after the time I spent listening and representing the interest of the Boathouse. Through those efforts we come to an agreement and then we don’t.”
Mayor John Gunter said he, too, was surprised with the engagement and did not feel that the whole story was told.
“I think it is in the best interest to have negotiations at the table. That kind of conduct that I have seen over the last couple of weeks doesn’t set well for me,” he said. “Throwing mud at each other isn’t going to get that done any quicker. Hopefully we don’t have any more hiccups along the way.”
Gregg Truxton with Bolanos Truxton Law Firm, who represents the Boathouse, said he does not want to rehash what has occurred up to this point in time.
“I do think we have had some productive discussion,” he said. “The letter of intent left a lot of detail out.”
Truxton said they responded with comments regarding the very extensive document from the city attorney’s office. He said it came back with redlined revisions to the document, which they received on Aug. 15.
That document was promptly reviewed. Truxton said Wednesday he believes they had a great productive meeting with resolving open issues.
“We may be down to a couple open issues,” he said. “We are expecting, based upon our discussion today, to receive back from the city attorney’s office another revised document based upon our discussion. I hope it is consistent with discussions we had today. Assuming that is the case, I don’t see a reason we cannot reach a final agreement within the time frame. We are working diligently.”