Seaboard Speakeasy proposal advances; council and staff to negotiate lease terms for freight depot

Southern Pines — Kevin Drum, the sole formal proposer in the town’s recent RFP process for the town-owned freight depot, described a concept called the Seaboard Speakeasy and asked the council to consider a revised lease schedule: a two-year initial lease with an option to extend for five years and a proposed June 1, 2026 opening or upfit start date.

Town staff described the public outreach and marketing for the RFP (news releases, social-media promotion, an open house on Oct. 2) and said multiple inquiries were received but only one full submission (Drum's). Staff and the manager met on-site with the applicant to review the building and discuss timelines; Drum told the council health-department and design constraints mean the original January timeline is unlikely and that a summer start better fits his designer’s schedule. He emphasized a historically sympathetic interior and limited operating hours (Thursday–Sunday) to reduce noise concerns.

Staff reminded council that statutory posting and leasing rules limit some shorter-term leasing options and that a resolution and public-notice timeline could be required if the council chooses a lease of less than 10 years without 30 days published notice. Council members raised questions about the lease term, rent (RFP requested $3,000/month plus utilities for a five-year initial lease), the proposed upfit costs (applicant to pay), and the option to use the space for short-term rentals in the interim. Staff said they would gather additional details from the applicant and return with a recommended resolution and timeline for council action.

What happens next: Staff will follow up with the applicant to clarify whether the June 1 date is upfit start or opening date, negotiate lease-term particulars (including potential phased terms or rent escalators), and present a resolution and timeline that complies with state and town leasing rules for council consideration.