CRA to seek operator for shared commercial kitchen at 102 NW Fifth Ave

The Delray Beach Community Redevelopment Agency on March 25 gave staff direction to solicit proposals for a shared commercial kitchen or a single tenant restaurant for two vacant bays at 102 NW Fifth Ave, a CRA‑owned, five‑bay historic building.

Staff said the building, purchased by the CRA in March 2024 and located in the West Settlers Historic District, contains two empty tenant bays that previously housed a food establishment with a commercial‑kitchen setup. CRA staff proposed issuing a notice seeking a qualified tenant to operate a food business or a shared commercial kitchen and recommended mirroring lease terms used previously on NW Fifth Avenue: $21 per square foot (about $4,837 per month for the 2,764‑square‑foot space), a four‑year base term with two two‑year renewal options, and a 6 percent annual escalator.

Bryce (CRA staff) explained the building “does require significant build out” and that as a CRA‑owned property it would be eligible for CRA funding assistance programs. Board members debated whether to solicit a single restaurant tenant or preference for a shared kitchen, which multiple commissioners favored as a more sustainable option for small catering and food entrepreneurs.

Commissioner comments focused on viability and community benefit. Commissioner Marker said the shared kitchen “allows multiple people to use it,” providing opportunities for small catering businesses and pop‑up users. Commissioners also asked about operator oversight; staff said the tenant selection would use an application process and an evaluation committee to recommend a qualified operator to the executive director for final lease approval.

The board directed staff to put out notice for a shared commercial kitchen first and to circulate a short market survey to gauge community interest and the pool of potential users. Staff said they would start with the shared‑kitchen notice and evaluate responses; if responses indicate a single‑tenant restaurant would be superior, staff could pursue that route.

Key contract and site details provided during the meeting: - Location: 102 NW Fifth Ave (CRA‑owned) in the West Settlers Historic District; building has five tenant bays and two are vacant. - Approximate space for lease if combined: 2,764 square feet. - Proposed comparable lease rate: $21 per square foot per year (approx. $4,837/month). - Typical lease terms used previously: 4‑year base term with two 2‑year renewal options; 6% annual escalator.

Staff said the selection process would include an application and evaluation committee; the executive director would sign the lease with the recommended tenant. The CRA will also conduct outreach and survey potential users to confirm interest before finalizing the solicitation.

The board did not vote on the lease terms at the meeting; it gave staff direction to solicit a shared kitchen and report back on responses.