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City to renegotiate lease with K C’s River Stop owners

By Staff | Dec 15, 2009

K C’s River Stop could stick around for a few more years, but it’s unclear for how long, and at what price.
City Council directed staff to work toward finding common ground with Carmine and Betty Serrago, owners of the popular Yacht Club restaurant, through renegotiating their lease agreement.
Currently the Serragos pay $1,000 a month or 7 cents on every gallon of gasoline sold, which ever is greater.
With their 17-year lease expiring in July 2010, the city was expected to put the location through a request for proposal — or RFP — process.
But overwhelming response from K C’s supporters pushed council to re-examine the Serragos’ lease.
District 5 Councilmember Eric Grill suggested renewing the lease for one year at a flat rate of $2,600 a month, along with the Serragos being responsible for paying property taxes, which the city had been paying.
“It gives them and us approximately 18 months to address anything with the Yacht Club area,” he said. “At the end of the day, this time next year, we could be looking at the RFP … but it gives them and us some breathing room.”
Council shot down the idea, saying, among other things, that the true value of the property is unknown because an RFP has not been put out.
District 6 Councilmember Kevin McGrail thought the city could renegotiate a 3 – 5 year lease, but didn’t speculate on the specifics.
Instead, city staff is going to work on a “close to final” proposal over council’s holiday break, which it will bring before council when the board reconvenes.
District 7 Councilmember Derrick Donnell said the approach would challenge staff to work with the Serragos.
But, Grill warned that without the RFP, no one is going to know what the true market value of K C’s really is.
“How do you negotiate something and not know what its worth?” Grill asked of the task city staff has. “I don’t know how staff can negotiate something we don’t know the value of.”