Commission approves 10‑year lease for 340 Jefferson; operator Chaska Rio to open El Salvadorian restaurant

The Port Commission approved Resolution 25‑24, forwarding a proposed lease for 340 Jefferson Street to the Board of Supervisors for final approval and authorizing the executive director to execute the lease upon such approval.

Staff described the deal as a 10‑year lease for approximately 3,750 square feet with two 5‑year renewal options. The operator, Chaska Rio, plans to serve El Salvadorian‑inspired soups, stews, pupusas and whole fish preparations. Financial terms presented by staff and property manager Don Kavanaugh included a year‑one base rent of $10,395 per month, a 3% annual rent escalation, and a 5.5% gross‑revenue percentage rent above base rent. The Port will provide a $470,000 tenant improvement allowance (approximately $125 per square foot) funded by the ARPA Tenant Attraction Retention Fund (TARF); reimbursements will be made via monthly draws after the tenant documents eligible spending and registers as a city vendor.

Staff said the lease includes a termination option if the tenant does not achieve roughly $2,100,000 in gross sales by the end of the third lease year; the Port may terminate but is not required to do so. Don Kavanaugh said the equipment left behind by the prior tenant had limited value and would largely need replacement. Partner Chris McGarry said the team expects to open roughly 120 days after lease execution, contingent on permitting and a liquor license application; he said they planned to apply for an on‑premises full‑spirits license and did not intend to pursue live‑music permits.

The commission moved, took public comment (none on the phone or in the room), and adopted Resolution 25‑24 unanimously.