Sole source deal discussed for Western Beaches
It might be another sole-source, but it’s no [url=https://streeter.ca/contract-deal-wont-reopen.html]Tuggs[/url].
That’s the message from councillors both in favour of and opposed to negotiations that are underway to solidify an exclusive rights deal for the Grenadier Group in the Western Beaches until 2031.
The city asked the Grenadier Group to submit a proposal for the Joy Oil Gas Station, which was relocated to Sir Casimir Gzowski Park after being declared a heritage site.
While normal proceedings at city hall would call for a request for proposals, the city went directly to the Grenadier Group without seeking proposals from other vendors.
Councillor Doug Holyday said that in order for the city to send out an request for proposals, the Grenadier Group would have to waive their exclusive rights to food and beverage sales for the area, which they currently have until 2016.
This left the city the option of either using the site for non-food and beverage sales, or going to the Grenadier Group.
“There’s six years left in that lease. We couldn’t lease that place for what we wanted and the only ones we could deal with were the Grenadier Group,” Holyday said, adding that going in another direction would result in a severe loss for the city.
“Staff recommended we at least try and lease it out for some other kind of use like bicycle rentals, but they anticipated the rent that we would get for it would be seasonal and minimal and not a lot of money compared to what we would get if it was a licensed facility.”
The site is located in Councillor Bill Saundercook’s ward, and he says the Grenadier Group’s proposal was very impressive.
“The enhancement they were proposing was in the neighbourhood of I think four million dollars that they would give the city for a lengthier contract, which would allow them to do the investments in the Joy Oil Gas Station that are needed,” he said. “I saw their proposal, and it’s a very impressive proposal.”
The Grenadier Group sent an extended proposal to the city, which included their other businesses in High Park. The company’s plan suggested extending all current leases and exclusive rights contracts to 2031, and incorporated extensive upgrades to all locations, as well as building a restaurant around the Joy Oil Gas Station.
Grenadier Group runs the Grenadier Restaurant and Sunnyside Grill, and a burger hut beside the Joy Oil Station.
Mayoral candidate Rob Ford took some criticism for voting in favour of continuing negotiations for the deal with Grenadier Group, as some view the proposal as another sole-source deal like the one awarded to Tuggs Inc., the operators of the Boardwalk Pub and other concession stands in the Eastern Beaches. Ford has been an outspoken opponent to the Tuggs deal.
But according to his communications director, Adrienne Batra, the two shouldn’t even be compared.
“With the Tuggs deal, it was done behind closed doors, it was an in-camera meeting, the city staff was going to bring a report forward, that staff report was then halted and it was voted on and moved forward,” she said. “In the case of Grenadier Group, they came forward to council, there will be a staff report, it won’t be done in-camera, and it will be handled in 2011, so there will be a new council by the time this comes forward.”
Holyday took more of a business approach when explaining the difference between the two, saying the deal with the Grenadier Group is more of a catch-22 for the city.
“The Tuggs deal was something that was at the end of its life, we owed nothing to the Tuggs people at all and the city’s policy was to go out and do a proposal call, and let everybody who wanted to bid on it try to create the best deal for the taxpayers,” he said. “But this one was different because we couldn’t do that because the (food and beverage) rights had been given away.”