Sour taste over Magic Apple delay
Local ratepayers have gone backwards by at least $100,000 since the closure of Barchetta cafe on the North Cottesloe beachfront, two residents said at last week’s council meeting.
The cafe has remained empty since May when the King family’s lease was not renewed.
The council voted in September to award the lease to Magic Apple Wholefoods, part of the growing Kailis Hospitality Group which runs or is opening six waterfront eateries between Fremantle and Sorrento.
Residents Stephen Mellor and Yvonne Hart stood at the meeting to ask mayor Lorraine Young a series of questions based on an amount shown as a reduction of $100,000, published in the council’s financial statements.
They wanted to know why the Barchetta site was still not operating and how much the closed premises owned by the council was costing ratepayers.
Ms Hart also asked why Magic Apple rent would be less than what the King family paid, given that its new tenants would no longer have to maintain the public toilets under the building.
The previous lessee paid $11,000 a month rent plus $27,000 a year council rates.
Cottesloe CEO Matthew Scott revealed last year that Magic Apple would not have to begin paying rent until the owners had fitted out the building ( New Barchetta to miss summer? POST, August 26).
The agreement gave them three months to do that from September 1, and a further three months if they needed it.
“They have taken longer than we had expected, due to matters out of our control,” Ms Young told the council meeting.
She said the new lease has now been executed, with delays in finalising the lease and fitting out the restaurant caused by the WA Planning Commission, which has the final say on the state-owned site.
The WAPC had issued development approval the previous week, with a building licence expected to be issued as soon as possible.
The lease period is for five years with two five-year options.
The base rent will be $108,060, plus a provision for 2% of annual turnover of the business, applying to turnover between $3million and $4.5million.
Ms Young said that the tenders were assessed by an independent panel with expert outside advice.
The rent took into account the cost of capital improvements
In answer to other questions, Ms Young said short term pop-up solutions for the cafe space while waiting for Magic Apple to open were made challenging by “procurement and regulatory requirements”.
North Cottesloe Surf Life Saving Club’s boatshed roof space, the controversial “dead zone” concrete rooftop next door, which the Kings wanted to use to expand their cafe, is not included in the lease.
It is the subject of a separate lease from “another party”, Ms Young said.
Magic Apple will operate for a minimum of five days a week but not before 6am and not after midnight.
Staff parking in cash in lieu was not part of the tender.
The Kailis Hospitality Group is also close to opening Gibney’s, a high-end restaurant on Marine Parade on the ground floor of the new Waterfront Cottesloe.
Kailis already operates successful restaurants including Shorehouse at Swanbourne, the Kailis Fish Market Cafe at Fremantle harbour, Canteen at Trigg Beach and Island Market, also at Trigg.