"In the big picture, they are not major issues, but do impact your
business," Mayor Jef Vander Borght said to the restaurant operators.
"Our effort is to implement the lease agreement and allow you to move
The Castaway restaurant and banquet facilities -- with spectacular
views of the city and valley below -- are owned by Burbank although
the operator, Verdugo Restaurant Corp., is responsible for
maintenance and improvements.
Changes the council wanted made were language to guarantee free
valet parking, ample free self-parking, a security guard for events
that go until 1 a.m., and stopping alcohol sales at midnight for
weekend events in the banquet facilities, Assistant City Manager Mike
The amended lease would be for 20 years, a length that didn't sit
well with at least one resident.
"I think the term is too long," said Gene Walsh, a Walnut Avenue
resident. "I think a conventional lease term for a restaurant is 10
years with another 10 years as an extension."
A main reason the city wanted to re-negotiate the lease with
Specialty Restaurant Corp. was to change the rent structure put in
place when the lease was originally approved in 1962. It is set to
expire in 2012.
The operators currently pay an annual base rent of $14,400 or a
percentage rent of 2% of gross sales at the restaurant and 4% of
gross sales at the banquet facilities, whichever is higher.
The city currently receives between $200,000 and $300,000 from the
restaurant a year, Vander Borght said.
The proposed amended lease includes a base rent of $180,000 that
would be reviewed every five years; and a percentage rent of 5% of on
gross sales at the restaurant and 7% of gross sales at the banquet
facilities, whichever is higher.
The amended lease includes the company setting aside 2% of its
monthly gross revenues to be placed in a capital improvement reserve
fund to be used for major repairs.
Closing times were set at 10 p.m. weekdays and 11 p.m. weekends for the restaurant; 1 a.m. for the banquet hall; 11 p.m. weekdays and
12 p.m. weekends for the lounge and patio; and 9 p.m. weekdays and 11
p.m. weekends for the luau grove.
Greg Jackson, a Harvard Road resident, said that he found the
hours to be reasonable.
"I'm not totally pleased with the 1 a.m. operation of the banquet
facility but in the spirit of compromise that is something the
community has lived with in the past and will do so in the future,"
Should the city amend terms with The Castaway restaurant? E-mail
your responses to o7burbankleader @latimes.comf7; mail them to the
Burbank Leader, 111 W. Wilson Ave., Glendale, CA 91203. Please spell
your name and include your address and phone number for verification