From the little known Department of You Knew It Was Going To Happen comes news that the Cactus Club has been recommended to the Parks Board as the best overall bidder aiming to operate the upcoming, brand-new super-spanking English Bay beachfront restaurant and concession in Vancouver’s West End. The project still needs final approval, mind, but it reads like a good fit.

A little background from the Parks Board after the jump…

A new bistro is to be built in the present location of the English Bay Concession. The project is part of the Park Board’s Concession Services Food Plan that recommends the creation of tenant-built and operated food services at prime park locations. The Park Board developed and approved an overall plan for the redevelopment of its concession food services on May 1, 2006. The plan recommended a strategy which would see the creation of new tenant-built and operated food services offering both table service and take-away facilities at prime locations in city park locations. These would offer a higher level of service and improved food quality and choice over what had currently been offered by the aging concession system.

Staff were instructed to undertake a community consultation process in Spring 2008, and to report to the Board with the findings of that consultation and design responses in June. A public meeting held on June 12, 2008 and a beachside information display on June 14 provided opportunities for the public to view the proposal and to share their thoughts with staff and architects.

The Board approved the redevelopment of the existing English Bay Concession on July 7, 2008. In 2009, the project proceeds to Development Permit Application.

And now, after several bids for the project from prospective operators were examined…

The selection team recommends the Cactus Restaurants Inc.(Cactus Club) proposal as the best overall submission with particular emphasis on their proven ability to provide the Board with a first class casual dining and take out experience at English Bay.

The Cactus Restaurant Group

The Cactus Restaurant Group was established in 1988 and is Vancouver owned and operated. Its Cactus Club Café brand is well known as being amongst the most successful casual fine dining restaurant operations in BC and Alberta with 20 locations generating annual sales over $115 million.

The Cactus Club proposal and discussions with Cactus management have addressed the following issues:

Term: The initial term of the lease will be 5 years with five options to renew in each case for an additional 5 year term.

Rent: The guaranteed base rent of $240,000 gives the Board assurance that no matter what level of sales is achieved, they will be getting a guarantee of 6% of the first $4,000,000 of gross revenue. This is a similar rent to other comparable park board restaurants. The rent on all revenues over $4,000,000 will be 4%.

Taxes: Similar to our other leases, an amount in lieu of property tax will be charged based on the size of the main floor of the restaurant (4,212 sq ft) multiplied by an appropriate amount as determined from time to time in consultations with the BC Assessment Authority (2009 rates were $6.25/sq ft).This amount is increased or decreased each year depending on City of Vancouver commercial tax rate changes.

Rent Reviews: There will be a rent review after 10 years (if the Tenant exercises the second 5 year option) and again at 20 years (if the tenant exercises the fourth 5 year option). The rental rate following each rent review will be no less than the rental rate paid in the immediately preceding term or option term as the case may be. In the case of the first rent review only, any increase in the base rent will be no more than the compounded annual CPI over the first 10 years. There will be no such limitation on rent increases under the second rent review.

Operations and Management Plan: Cactus has agreed to abide by a plan that ensures that impacts on neighboring properties are minimized. These include the following: hours of operation, noise and odor management, maintenance of building and grounds, safety and security provisions for patrons and park users, monitoring and communication protocols with local neighbors as required, parking and traffic management.

Menu Selections: The Cactus menu is extremely varied with a wide selection of choices. The restaurant prices are consistent with other casual fine dining establishments.

Take-Out: Cactus has advised staff they intend to offer lower priced fare with a far greater selection than traditional concession food. The large outdoor seating space should be a popular addition for beach visitors.

Sustainable Practices: Cactus is a founding partner in both the Vancouver based Ocean Wise and Green Table Network programs. The restaurant has been designed to a LEED Gold standard.

Construction Schedule: Cactus has advised staff that subject to receiving all permits in a timely manner they intend to commence construction after Labour Day and intend that the restaurant will be open in June, 2011. The inconvenience to patrons at English Bay will be minimized during the construction period.

SUMMARY

The proposal by the Cactus Restaurant Group has offered the Board an opportunity to partner with one of the leading restaurant companies in BC. The terms of this agreement ensures that the Board receives a guaranteed rent structure that will be carried forward for the first 20 years of the lease. This is an exciting progression in the Board’s food service strategy and will result in a significant improvement to our customer service at English Bay.

You can read the document in its entirety here.

Though I’ve never been all too wild about the Cactus Club, I like this development. I’ve had two very pleasantly surprising meals at their new Bentall spot in recent months, and I know they are trying hard to turn a good company into a great one. With 20-something locations, they do a far superior job than the other CFD chains, especially on the sustainability front (they are members of the eco-conscious Ocean Wise and the Green Table programs). They’ve also seen their food significantly improve under the stewardship of new “food concept architect” Rob Feenie.

Of course, we’ve never had a lot of luck with waterfront restaurants in the first place. I’m not saying that every room with a view needs to be a “C” or a Beach House. It’s just that with so much seawall and beachfront to play with I think we deserve a hell of a lot better than some of the newest offerings we’ve seen slicking our shores. When an operator takes on a stunning, iconic location that is well loved by the citizens of Vancouver, they have an unwritten responsibility to live up to those affections. Watermark at Kits Beach was one such spot, and it was an absolute embarrassment, a jilting of epic note.

Call me crazy, but I trust Cactus to do much better.