Cape Coral City Council members raised concerns about a proposal from Kearns Restaurant Group to operate a concession bistro and food truck court at Jaycee Park for up to 30 years, but signaled they want to continue negotiations.
Kearns, known locally for restaurants Capone’s Coal Fired Pizza, Ford’s Garage, Boat House Tiki Bar & Grill and Cabos Cantina, among others, is the only respondent after the city renewed its request for proposals in December. City staff negotiated terms with Kearns Restaurant Group co-owner Zak Kearns.
“I’d like to see Kearns do this,” council member Bill Steinke said. “I just want it to be a win-win.”
Council member Joe Kilraine praised the company’s track record but said, “It’s a bad deal for the city right now, and I’d like to see it sweetened a little.”
Fencing and signage surround Jaycee Park in Cape Coral as renovations near completion. City Council is reviewing a proposed long-term concession agreement for the waterfront site.
Evan Williams
The proposal was discussed during a Feb. 25 Committee of the Whole meeting, which is typically used for discussion rather than final action.
Jaycee Park is nearing completion of major renovations, with reopening expected in late April. Officials previously struggled to secure a concessionaire.
Under the proposed agreement, Kearns Restaurant Holdings LLC would not make an upfront payment for exclusive operating rights. Instead, it would spread an initial payment of $1,064,876 plus interest over 240 monthly installments. The agreement would include a 20-year term with a unilateral option for Kearns to renew for an additional 10 years.
“I appreciate the opportunity to have Kearns, but I just don’t see that the city is being aggressive enough [about] what we expect to be paid for such a location and such an opportunity,” Kilraine said.
Several council members said they prefer an upfront payment to help offset the city’s cost of constructing the concession bistro shell after earlier proposals fell through and to reduce debt exposure. Council member Rachel Kaduk noted that the proposal would at least generate revenue for the site.
“[The] alternative is we eat the cost,” she said.
Steinke suggested an initial 10-year term with two 10-year renewal options that would require mutual agreement from both the city and Kearns.
Kearns would bring a liquor license and complete the interior buildout, including furnishings and operating equipment. The company would manage daily operations, maintenance and repairs, and cover utilities, taxes and assessments. Hours of operation would be determined by Kearns but could not begin before 8 a.m. or extend past 9 p.m., except for special events.
In addition to the installment-based initial payment, Kearns would pay a minimum guaranteed $75,000 annually, or $6,250 per month, plus a percentage of gross receipts — 4% in years one through 10, 5% in years 11 through 20 and 5.5% during any renewal term.
New sidewalks and playground structures take shape at Jaycee Park in Cape Coral. The city is considering a concession agreement as part of the park’s broader redevelopment.
Evan Williams
The proposal also includes a plan to build 24 boat slips, up to 40 feet long, along Jaycee Park’s waterfront, pending regulatory approvals. Kearns would construct the slips at a maximum cost of $1.3 million. However, the city would effectively reimburse that amount by crediting it against the minimum guarantee — a provision that drew criticism.
“We might as well do it ourselves,” council member Laurie Lehmann said. “That’s ridiculous that we’re going to give the money back. I don’t agree with that at all.”
Mayor John Gunter said he would support requiring some or all of the initial payment upfront and revisiting the proposed term structure. He also suggested the city seek a percentage of food truck rental fees, calling that a key factor in evaluating the deal. Gunter said the city could consider managing and leasing the six food truck pads independently.