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Commission advances 20-year lease with PB Kiosk LLC for new Sandbar concession; tenant to invest $2 million
Summary
The commission approved first reading of a lease allowing PB Kiosk LLC to replace the existing beach kiosk with a new 1,511-square-foot building, fund a minimum $2 million tenant investment, and pay a guaranteed base rent plus percentage rent to the city.
The commission on April 8 approved first reading of a lease granting PB Kiosk LLC (doing business as the Sandbar at Pompano Beach) authority to replace and manage the city's beach concession kiosk at 20 N. Pompano Beach Boulevard.
Real property manager Cassandra LeMessier and Recreation Director Mark Boudreaux said PB Kiosk LLC responded to a February 2023 request for proposals and was the top-ranked proposer after an independent evaluation. The proposed lease calls for a 20‑year initial term plus one 10‑year renewal option. The tenant commits to a minimum capital investment — including demolition and new construction — of at least $2,000,000 to build a new 1,511-square-foot kiosk with public restrooms and an expanded kitchen. The vendor told staff and commissioners it plans to add walk‑in refrigeration and a larger kitchen to offer a broader menu.
Rent terms in the lease include a minimum guaranteed base rent of $60,000 per year (years 1–5), rising to $66,000 in years 6–10, and a percentage rent of 5% on gross revenue above a calculated threshold. Staff provided example revenue scenarios; if the tenant achieves $2.5 million in gross sales, the city would receive approximately $125,000 annual rent in the early years under the lease structure, staff said.
LeMessier told commissioners the lease requires tenant responsibility for utilities, maintenance and all construction costs, and requires a completion date and certificate of occupancy by April 2026.
During discussion commissioners praised the projected revenue increase over the prior lease (which had a $33,000 base rent) and asked staff to ensure sensitive materials (no glass on the beach), price oversight on core menu items and coordination with beach operations. First reading passed without roll-call opposition; staff will return for second reading and execution after permits and construction schedules are finalized.
Ending: Staff will continue permitting review and return the executed lease for final approval after second reading. Commissioners asked for regular updates as construction progresses.
