City to revisit eatery's lease

[attach]989[/attach]The city is set to revisit the terms of a contract awarded to the operators of the landmark Boardwalk Pub and Restaurant at Woodbine Beach, three years after a competitive bidding process was sidestepped at council.

Back in 2006, the owners of Tuggs Inc., the company that has operated the eatery for more than 20 years, submitted an investment proposal to the city’s economic development and parks committee to extend their lease for an additional 20 years.

Rather than be put out to tender, the proposal was approved on conditions, including an agreement that Tuggs make $2.15 million worth of building repairs and upgrades by 2009.

However, as the deadline fast approaches, the Town Crier has learned city staff is in the midst of renegotiating the original conditions.

Things have changed, said Doug McDonald, of parks and recreation.

“With the economic downturn … the owner had to revisit his business plan.”

Part of the plan was to include sponsorship activities, said McDonald, but that market seems to be drying up in terms of available funds.

Considering this, he said the owner had to take a step back and take a long, hard look at expected revenue.

This change in direction has forced city staff to bring the issue to council for further authority, McDonald said.

They are currently in the process of putting it on the January agenda for review by the Government Management Committee.

Once there, McDonald said it will be debated and then put before council members.

“Some decision has to be made soon,” he said.

Councillor Sandra Bussin, who supported the plan to award the contract without putting it out to tender, now says she has absented herself from discussions regarding the pub, and “won’t be involved in any way”.

She declined to elaborate on the matter.

Other councillors were critical of the renewal back in 2006, saying it was giving preferential treatment, and a competitive bidding process would have been more appropriate for a such a long-term financial arrangement.

Should city staff approve the owner’s proposal, the maximum contract would allow Tuggs Inc. to continue to operate the restaurant for a maximum of 21 years less a day.