The deadline to submit a proposal for a new restaurant at the end of the Seal Beach Pier is 4:30 p.m., Friday, Feb. 22.
The city of Seal Beach’s “request for proposals” contains one unusual requirement: the business must perform community service in addition to paying rent on the space.
Community service is listed as “Requirement 3” in section four, “Requirements to qualify for the Leasehold Interest.”
“Applicant shall provide (a) written plan for its intention to be actively involved in serving the Seal Beach Community at large,” the RFP said.
“This community service program shall incorporate a short-term, mid-term and long-term range strategy to give back to the community in some form or fashion. Please be specific and show a budget allocation in the business plan for this community service program(s),” the RFP said.
Seth Eaker, of Black Marble Consulting, a business plan preparation service, questioned the requirement.
“It is unclear how the city can measure the community engagement, nor does the RFP enlighten the reader other than to require a budget for said purpose,” Eaker said. “To the best of my knowledge, there is not any other facility or business which currently has such a requirement. It would be standard in an RFP to request a budget line for such a project, so that comes as no surprise.
Assistant City Manager Sean Crumby said the community service project in the RFP was written in an open-ended fashion so business people could be creative. Crumby also said the community service project was a guideline, not a requirement.
Jim Basham, director of Community Development, said the requirement is included so business people will show the city how much they are willing to invest in the city.
Basham said “community service” could include giving back to schools, perhaps sponsoring the 5K/10K run or participating in the Seal Beach Chamber of Commerce.
“These are just ideas,” Basham said. “Who knows, they may have their own ideas.”
None of the ideas Basham mentioned were included in the official request for proposal document.
Basham said the community service project was a requirement, “But it’s not a contract.”
The restaurant space at the end of the pier has been empty since Ruby’s Diner served its last meals on Jan. 6. The restaurant cancelled the 10-year lease when talks about renewing the lease apparently broke down. Ruby’s Diner left its location at the end of the Seal Beach Pier on Thursday, Jan. 10.
Seal Beach sent Ruby’s Restaurant Group a “notice of breach” letter on Jan. 4, accusing the chain of violating an agreement to make $400,000 in improvements to the site. In mid-January, Tad Belshe, a spokesman for Ruby’s corporate, said the chain did not breach the lease, and had made the required improvements to the site. Belshe also said that the chain was working on a proposal to put Ruby’s back on the pier.
In the Jan. 4 letter, Seal Beach demanded payment of $400,000 from Ruby’s corporate by Jan. 24. At least report, Ruby’s had not sent the city the demanded payment.
Meanwhile, the city’s request for proposals does not include any requirement for improvements to the site.
Basham said the improvements required of Ruby’s corporate would come into play during contract negotiations for leasing the space at the end of the pier.
He said that, typically, a business would make its own improvements to the site. As for the potential rent on the space, Basham said that would depend a lot on the utilities the city will provide.The public notice announcing the request for proposals that was published in the Sun was signed Jan. 31.
Yet the property inspection dates—Crumby called them open houses—were Jan. 26 and Jan. 30. Basham said additional inspection dates could be made available.
Eaker said he hoped the RFP would be well circulated. “I know I have provided it to several potentially interested restauranteurs who wish to remain anonymous at this time due to the sensitivity of the bidding process,” Eaker said.
Basham said Seal Beach might extend the deadline for proposals if the city did not receive enough responses. Basham said Seal Beach needs at least five responses.
