Council approves first reading of concession lease for golf-course restaurant site

The Pacific Grove City Council approved the first reading of an ordinance to grant a concession lease to Fortune Fork LLC for the golf-course restaurant site, setting terms staff said are comparable to the prior lease.

Nick Cena, presenting for staff, described the procurement process: an RFP released Dec. 15, a mandatory site visit on Jan. 5, and two proposals submitted by the Jan. 29 deadline. Staff recommended Fortune Fork LLC based on scoring and interviews. The new restaurant will operate as The Grove at Point Pinos, with a five-year lease and two five-year tenant options. Under the terms described, rent is 7% of monthly gross sales with a monthly rent cap of $13,500 that grows 3% per year.

One member of the public, Paul Dyson, supported having a new operator but raised questions about lease protections. Dyson said the security deposit listed in appendix D appeared low at $11,000 given the amount of equipment included in the lease and expressed concern that insurance minimums (noted in the lease at $1,000,000 and $2,000,000) might be insufficient to protect the city’s interests.

Council members said staff and closed-session review addressed many of the contract issues and moved to approve the first reading so the ordinance summary could be published, with a second reading scheduled for a subsequent meeting. The first-reading motion passed on the council floor by roll call.

Next step: the ordinance summary will be published per the city attorney’s approved language and the matter will return for second reading and final adoption.