NORTH TONAWANDA, N.Y. (WKBW) — North Tonawanda has bought out its city-run lease with LumberJack's Patio Grill, opening the door for a new restaurant to take over the River Road location by next summer.
For $350,000, Mayor Austin Tylec told me the city bought out the lease just over ten years into a 25-year agreement.
"Because the owner was looking to retire and actually shift the agreement to another business or entity, that was our opportunity to come in and buy the agreement out," Tylec said.
WATCH: North Tonawanda buys out city lease with LumberJack's Grill; looking for new tenant
Tylec said that losing the restaurant is a short-term expense, but it sets up a better deal for taxpayers.
"The city generated, at most, $45,000 a year [from the property]. When the city constructed this marina, made all these improvements and updates, it was a little over $3 million, so the rate of return was not necessarily in the city’s favor," Tylec said.
Using those numbers, it would have taken the city roughly 66.7 years to make the initial $3 million investment back.
"We really have to start looking at long-term investments and making sure that we are finding revenues outside of just property tax increases," Tylec said. "We could easily generate $150,000-200,000 a year [at this property] and make up the difference of the [$350,000] buyout."
Tylec told me that he doesn’t intend for the building to remain unused for very long. He said roughly a dozen restaurant owners have already reached out about taking over.
There will be a public bidding process in the future, but he does anticipate another restaurant will take LumberJack’s place by next summer.
Tylec said the changes do not impact boaters who rent slips from the adjacent marina. They will be grandfathered into any changes.
The owner of LumberJack’s never responded to any request for comment.
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