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Committee advances Lucas Kitchen lease at Calf Pasture Beach to public hearing amid accessibility and revenue-cap questions
Summary
City staff presented a proposed 10‑year lease (with two five‑year options) to CB Beach LLC d/b/a Lucas Kitchen for concessions at Calf Pasture Beach, including a proposed $15,000 annual base rent, gross‑revenue sharing (2%/5%), and an annual rent cap of $100,000; the committee voted to send the lease to public hearing.
The committee advanced a proposed long-term lease with CB Beach LLC (doing business as Lucas Kitchen) for concession operations at Calf Pasture Beach to a public hearing after a detailed presentation and questions from committee members.
City attorney Darren Callahan outlined the key business terms: a 10‑year lease with two 5‑year options, a minimum base rent A of $15,000 per year, an amortized capital component (referred to as base rent B and carried at $6,326 in the term sheet), and a gross‑revenue rent model that gives the city 2% of general concession gross revenue and 5% of private event/catering sales. Callahan said the tenant would contribute a capital commitment toward the fit‑out and that the city would undertake construction of the pavilion, amortizing that cost through rent. He also said the selection was the result of an RFQ and that the contract includes an exclusivity provision for the tenant; Callahan said staff is negotiating limited carve-outs for special events.
Committee members raised several concerns: Jan Degenstein and others pressed for confirmation the existing concessions are being made ADA accessible, and Callahan said recent minor accessibility changes have been made and that a more robust build-out is planned. Jim Frayer questioned the proposed $100,000 annual cap on rents (with a 3% annual increase) and argued the city should share more of the upside if the tenant performs above expectations; Callahan and other staff explained the cap and attendee limits were part of the RFQ and selection rationale, and noted capacity limits (90 attendees during peak beach season; 175 in off-peak months) designed to protect park access. The committee voted unanimously to schedule a public hearing so the lease language and details can be reviewed in the public packet.
