Deerfield Beach Cafe -The Lease The Termination Letter

Deerfield-News. com-Deerfield Beach, Fl-In the ongoing saga of who the city will rent the restaurant at the pier out to . The following documents are public records requests we received from the city.

On March 7th ,2023 the city notified  for the second time the current operator Class Act Restaurant Group they will extend the lease 180 days until October 27,2023 but will not give a five year extension as requested by the operator.

The lease indicates the current operator Class Act is paying $10,000 per month in rent  or 8 percent of the gross sales whichever is greater.

The city has opted to seek “Requests for Proposals”. The city has apparently received offers that we published earlier this week from the owners of The Cove and Ocean’s 234.

Local restaurateur  Lou Mosakos who bought The Cove restaurant is competing against local restaurateur Danielle Rosse owner of Oceans 234. Seems the current operator says they can not compete with the offer to the city from the other two operators. Class Act’s lease with the city of Deerfield Beach will expire in October.

Mosakos has offered the city $200,000 in lease payments for the first five years with a two percent increase every year thereafter as well as make $3.8 million in improvements to the building.

The Rosse bid would invest $2.3 million in the restaurant and pay $125,000 a year to the city for the first five years with 5 percent increases in subsequent years.

 

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ORDINANCE NO. 2013/ 007
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DEERFIELD BEACH, APPROVING A LEASE OF THE PIER
RESTAURANT; CONTAINING A SEVERABILITY CLAUSE;
CONT AINING AN EFFECTIVE DATE
WHEREAS, the City wishes to lease the Pier Restaurant located at 202 N.E. 21, Avenue,
Deerfield Beach, Florida ( Pier Restaurant); and
WHEREAS, the City sought proposals for the operation of the Pier Restaurant in a
competitive solicitation process; and
WHEREAS, as a result of the process, staff was instructed to negotiate a Lease with the
proposer ranked number one by the City Commission, that proposer being Class Act Restaurant
Group, LLC ( Class Act), and
WHEREAS, the attached Lease with Class Act for the Pier Restaurant ( the Lease) has
been recommended to the City Commission for approval; and
WHEREAS, pursuant to Section 7. 09 ( 2) of the City Charter, such a lease must be
approved by an affirmative vote of four/ fifths ( 4/ 5) of the City Commission; and
WHEREAS, the City Commission finds the Lease to be in the best interests of the City;
NOW, THEREFORE, THE CITY CODE OF THE CITY OF DEERFIELD
BEACH IS HEREBY AMENDED, AS FOLLOWS:
SECTION 1. The above Whereas clauses are incorporated herein and made a part hereof.
SECTION 2. The Lease with Class Act is hereby approved by the City Commission and the
Mayor is authorized to execute the Lease for the City owned restaurant at 202 N.E. 21 Avenue,
Deerfield Beach
Florida..
The Lease is attached hereto and made a part hereof and provides for:
Rent of $1 0, 000 a month or 8% of the gross whichever is greater;
A term of 10 years with the right of the City, in its sole discretion, to grant 5 year
extensions;
Limitation of use as a restaurant only;

March 7, 2023
Via Email and US Mail
Toula Amanna
Class Act Restaurant Group, LLC
220 South Federal Highway
Hallandale Beach, FL 33309
VXx
Deerfield Beach
Florida
954.480.4263
954.480. 4268 Fax
web. citymgr@dfb. city
www. dfb. city
Toula Amanna
5030 SW 109t1′ Avenue
Davie, FL 33328
Re: SECOND NOTICE – Lease Agreement, dated March 7, 2013, for Restaurant
Operations at International Fishing Pier, RFP #2011- 12/ 32 ( the ” Lease”)
Dear Ms. Amanna:
It was a pleasure meeting with you on March 1, 2023 to discuss the lease extension. I appreciate
you providing your perspective and input during the meeting and your email response received on
March 2, 2023. This letter is the second notice of lease extension issued to you and reflects the
terms of the extension we agreed to. The Extension Period has been clarified to indicate the
expiration date of October 27, 2023, 180 days from April 30, 2023, the initial term of the Lease.
For the reasons discussed below, the City will not be extending the Lease for a five- year renewal
term. The Lease terms provide that Class Act agrees to operate the Pier Restaurant according to
the terms of the Lease upon the written request of the City Manager or designee, with a maximum
extension period of 180 days beyond the lease expiration date, which the City is exercising.
As you are aware, City staff requested direction from the City Commission regarding several
business items pertaining to the Lease. At their Special Meeting on December 15, 2022, the City
Commission directed staff to exercise the option of preparing a new Request for Proposals ( RFP)
with revised terms discussed during the meeting in the interest of exploring available opportunities.
Please note that this direction in no way precludes Class Act from responding to this competitive
solicitation, and the City encourages Class Act’ s participation in the forthcoming RFP.
To afford time for the RFP process to properly unfold with minimal interruption to Pier restaurant
operations, and pursuant to Section 3 of the Lease, the City is hereby exercising the City’ s rights
under the Lease to extend the initial term of the Lease for a period of 180 days ( the ” Extension
Period”). Therefore, the lease extension shall expire on Friday, October 27, 2023. During the
Extension Period, Class Act shall pay the City the current prevailing rent payments.
More Ihl1N. IU.st ll1′ 1’PllyBe(1 1
Honorable Mayor District 1 Commissioner District 2 Commissioner District 3 Commissioner
Bill Ganz Michael Hudak Ben Preston Bernie Parness
District 4 Commissioner
Todd Drosky
Lease Agreement ( Pier Restaurant)
page 2
Please acknowledge your receipt of this letter and acceptance to operate the Pier Restaurant during
the Extension Period in accordance with this correspondence by signing below and returning a
copy of the executed letter to the City within five ( 5) business days. The City thanks Class Act
for being a valued business within the City.
Sincerely
David Santucci `
City Manager
Agreed to and Accepted By:
Managing Member, Class Act Restaurant Group, LLC
c: Anthony Soroka, City Attorney
Horace McHugh, Assistant City Manager
Kris Mory, Economic Development Director

 

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