After months of delay, council gives boathouse operator a week to sign a settlement or city will seek demo permit

Council took decisive action Aug. 6 to resolve a long‑running dispute over the boathouse concession that has followed an October fire and months of negotiations. The item has been on and off council agendas for nearly a year in various forms as the city and the Kearns Restaurant Group negotiated a new concessionaire agreement and contractor access to demolish the damaged structure.

Why it matters: The partially standing structure is adjacent to public shoreline and the city said the building posed an increasing public‑safety risk during hurricane season. At the same time, the city attorney warned that demolishing the structure without an agreement could compromise evidence and the city’s legal position if litigation ensued under the existing lease.

What happened: After repeated status updates and wide council concern about delaying demolition, council adopted a motion that set a strict timetable: give the city attorney and the Kearns Group seven days to sign a settlement agreement that would terminate the existing lease and expressly allow demolition; if no settlement is reached within seven days, the city manager was directed to apply for demolition permits and obtain demolition bids to remove the structure as soon as practicable. The motion also specified a 30‑day backstop (Sept. 6) for finalizing a concessionaire agreement before the city would commence an RFP to select a different operator. Council voted 8–0 on the motion.

Parties’ positions: The city attorney explained the need to preserve evidence and cautioned that destroying the building might harm the city’s litigation position if the operator sued under its existing lease. The Kearns Group said it had executed a demolition contract, had paid rent and insurance during the delay, had worked in good faith, and (per their representative) was willing to sign a settlement that would allow demolition, but wanted a contemporaneous concessionaire agreement or protections tied to re‑entering the site under a new contract before terminating the existing lease. On the public record the Kearns Group stated that it preferred simultaneous execution of a termination/settlement and a new concession agreement but, later in the meeting, indicated it would agree to a settlement that allowed demolition and continue negotiating the concessionaire terms.

Council rationale: Council members emphasized life‑safety and the risk of structural collapse during hurricane season; several members said repeated delays warranted a date‑certain approach. The motion was framed to preserve the city’s legal interests while creating an expedited path to remove a hazard if negotiations failed.

Next steps: The city attorney and Kearns Group have seven days to finalize a settlement to enable removal. If they do, the Kearns Group would be expected to demolish the structure under the agreed terms; if they do not, the city will apply for demolition permits and obtain competitive quotes to remove the structure and may start an RFP process after Sept. 6. Council asked staff to report back on the settlement status at their next procedural update.