PG Business Says New Lease Deal is Unfair - KCOY Santa Maria, Santa Barbara, San Luis Obispo - News

PG Business Says New Lease Deal is Unfair

PACIFIC GROVE, Calif. -- A beloved burger joint that has been in business for over two decades in Pacific Grove, said its getting the cold shoulder from the city. This, after a new lease agreement for The Grill at Lover's Point Park means a rent increase.

Every day for the past 22 years Joe and Paula Cavallaro have worked side by and side, serving burgers, fries, just about anything. While business has had its ups and downs, Joe Cavallaro said they have managed to make it work.

"My wife and I are working it together, we're doing the best we can," said Cavallaro.  

But their 10-year lease is up and they are now dealing with something unexpected. Cavallaro said the city has proposed a new lease one that he thinks is unreasonable.

"It's going to be very difficult to make ends meet," said Cavallaro.  

According to Cavallaro the new lease that is being offered is $500 more than what they pay now. But, what's puzzling for the two is, neighboring businesses like the Old Bath House and the Grille at the Golf Course have received a great deal for their new leases.

"They have been able to work out a percentage rent factor with some type of base rent with both locations and for whatever reason they do not want to do that for us," said Cavallaro.  

Cavallaro said the average rate for storefront leases in PG is $2.20 per square foot, he said what they are offering his business is over $5 per square foot.

"I'm just asking for fair treatment, I would like the same opportunity to stay in business," said Cavallaro.

Central Coast News has reached out to the City of Pacific Grove about how they decide the lease agreements, but we are waiting to hear back from them.

For now, Cavallaro hopes at the next city council meeting, he is able to talk to council and have them reevaluate the deal. He hopes to receive the same treatment as the other businesses.