Lease renegotiations for Seaport tenants almost finished
BY PRU SOWERS
KONK LIFE STAFF WRITER
With the approval of a new lease for Turtle Kraals restaurant in the city-owned historic seaport, the city has successfully renegotiated all but one of the 33 tenant leases, bringing their rental payments up to market rates.
City officials recently approved a new 10-year lease for Turtle Kraals that boosts the annual base rent from $246,046 to $371,619, bringing the square foot rent up from $25.50 to about $30. Lease holder Pat Croce’s Moro Management will also pay an additional amount equal to six percent of gross sales in excess of the base rent amount, which is determined by dividing the annual rent by six percent. All Seaport tenants pay this six percent fee over and above their base rent.
Moro Management will also pay to repair and/or replace the roof of the 9,700 square foot structure over the term of the lease.
“This lease is one of the two remaining twenty-year-old leases in the Historic Seaport that will reflect a significant increase in rent to bring the rate up to market consistent with other city restaurant leases and to reflect the actual square footage occupied by the tenant pursuant to a new survey,” said Marilyn Wilbarger, Key West City Senior Property Manager.
The 10-year lease base rent will increase 1.5 percent each year to reflect the consumer price index. All of the Seaport tenant leases have the same annual percent increase.
The last remaining 20-year lease holder is the Conch Republic Seafood Company. That lease expires next April. However, Wilbarger said the restaurant owner is already paying close to market rental rates because of the six percent of gross sales clause. While Conch Republic Seafood Company currently has a below market base rent, high sales figures and the subsequent six percent cut the city takes bring the rental rate up, Wilbarger said.
Once the Conch Republic Seafood Company lease is renegotiated next year, the city will have completed a huge tenant lease renegotiation project, one that Wilbarger said she will be glad is over.
“It’s a thankless job,” she laughed. “Nobody is happy when you raise their rent.”
The average rental rate per square foot for Key West restaurants is $33.84, Wilbarger said. The median rate per square foot on Duval Street is $84.02.
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A www! Poor little greedy Wilbarger, laughing while gouging on behalf of the avaricious and duplicitous city of Key Lest. The city is corrupt and so are the so-called officials–though the correct spelling should be ‘oaf’ fishells. Grabbing grasping twisting the real nature of the rulers in his town can be clearly seen as they stuff their pockets and drive prices higher and higher. Is it any wonder that locals cannot afford to hang out in laces like these, when the inflationary spiral is driven ever higher?