Garrett Park council authorizes revised lease with Black Market Bistro; owners asked to sign within a week

The Garrett Park Town Council voted unanimously Aug. 29, 2024, to authorize Mayor Keller to execute a revised commercial lease with In The Kitchen LLC, which does business as Black Market Bistro, contingent on the restaurant owners signing the agreement within one week as amended by the council.

Town Manager Barbara B. Matthews told the council the revised lease reduces the building load factor from 1.5265 to 1.40, lowering the restaurant's rentable square footage from 2,900 to 2,659. That change reduces the restaurant's pro rata share of Penn Place operating expenses to 37.46% from the 40.85% figure in the terms the council considered on June 10.

Under the revised framework, Black Market Bistro would pay $100 per month for the storage shed, a flat fee not subject to the 3% annual increase applied to the five-year lease term and any extension options. The lease also provides the restaurant a $50-per-month credit for cleaning and supplying the second-floor restrooms when members of the public use them.

Matthews said the estimate for Year 1 under the revised terms is $135,061.20, which includes the restaurant's estimated pro rata share of Penn Place operational expenses; that total is lower than the $146,633.89 figure the council reviewed in June. Matthews said the restaurant currently pays the Town $82,518 annually (inclusive of its pro rata share). She added the Town will perform an annual reconciliation after each fiscal year to determine whether the restaurant owes additional amounts or is entitled to a credit based on actual building expenses.

Matthews told the council that, after extended discussions, the Town agreed not to require a personal guaranty from the restaurant owners; the current draft of the lease does not include a guaranty requirement.

Outside legal counsel Brian Kotzker said he and Matthews believed the revised terms were acceptable to the restaurant owners but that the owners had been unavailable to sign prior to the meeting; Kotzker said his conversations with the restaurant's counsel were encouraging but he could not guarantee execution before the council vote.

Councilmember Phil Schulp moved to authorize the mayor to execute the lease effective July 1, 2024. Councilmember Todd Eisenstadt proposed a friendly amendment requiring the restaurant owners to sign the lease within one week of the council's authorization; Schulp accepted the amendment and Councilmember Lisa Max seconded the motion. The council approved the motion unanimously.

Mayor Keller thanked Town Manager Barbara B. Matthews for her work on the negotiations. The mayor adjourned the virtual special meeting at 8:02 p.m.