Council to vote on settlement agreement for Boathouse Tiki Bar & Grill
The Cape Coral City Council will vote on the settlement agreement and concessionaire agreement between the city and Boathouse Tiki Bar & Grill during Wednesday’s meeting.
The Boathouse Tiki Bar & Grill entered into a lease agreement on Sept. 25, 2013, for operation of the waterfront restaurant, marine fuel sales and bait shop on the city owned property. A catastrophic fire in October 2024 took place where “an electrical fire could not be excluded.”
According to the resolution, “a dispute arose between the city and Boathouse as to the extent of the damage for the purposes of a substantial damage determination under the FEMA 50% rule.”
To resolve the dispute and facilitate the rebuilding, “the parties intend to execute this settlement agreement and proceed forward with negotiations of a new concessionaire agreement, the terms of which will be finalized within 30 days.”
Both the city and Boathouse management have agreed to waive any claims related to the dispute and determined it’s in their best interest to enter into a settlement agreement.
One of the highlights of the agreement includes the Boathouse being responsible for all costs associated with the demolition of the structure, which shall be done within 30 days from the issuance of the permit.
The concessionaire agreement – the exclusive right to construct, manage, and operate food/beverage, fuel, retail and beach operations – is for a 30-year term.
As far as the construction and improvements – the concessionaire commitment is for the responsibility for all costs for planning, design, construction, and maintenance of all improvements.
There is a minimum guarantee of $7,000 a month paid in 12 equal monthly installments. There is a 5% of gross receipts for years one through 10, 6% for years 11 to 20 and 7% for years 21 to 30. During the interim operations of construction, there is a $3,500 a month base rent and 5% of all gross receipts above rent.
The city contribution is $1 million reimbursement towards restaurant construction, applied as a monthly PG credit for the first 10 years and the city will pay for the installation for the fuel facility cost and the concessionaire reimburses 50% over the agreement term.
As far as insurance, the commercial general liability is not less than $10 million per occurrence, with the city named as the additional insured and the property insurance is all risk insurance for full replacement value.
The operations include food and beverages, including alcohol for the restaurant, and for retail – apparel, art, beach, sundries, bat, tackle and fuel. The beach operations includes equipment rental with a city residential pass at 20% discount.
The hours are from 8 a.m. to 10 p.m. daily for the restaurant and retail, and beach and fuel is from sunrise to sunset.
The City Council meeting will be held at 4 p.m., Wednesday, Sept. 17, in City Council chambers, 1015 Cultural Park Blvd. The meeting is open to the public.
To reach MEGHAN BRADBURY, please email news@breezenewspapers.com