The Chanute City Commission on Monday continue discussion on getting a new tenant at the Stone Creek Golf Course clubhouse to operate a restaurant.
The clubhouse roof is being repaired now and should be done in March.
Dalton’s Back 9 was in the restaurant for seven years and Colborn’s Kitchen was there less than a year more recently. Colborn’s signed a year lease in April 2023.
Ideally, a new restaurant would be in place by April, but commissioners acknowledged the search may take longer.
City Manager Todd Newman asked commissioners about rent and utility costs for the new restaurant. He said Dalton’s paid $2,500 a month rent and $475 for utilities. Colborn’s paid $1,500 a month rent and $1,000 for utilities. The city owns its utilities.
Commissioners wondered how much utilities are costing now in that space as a way to know what to charge a new restaurant tenant. The pro shop is still operating in the building and it and the restaurant space are on the same meter.
Newman said the utilities for the building and related out buildings run about $3,000 to $4,000 a month, but that includes all utilities. An irrigation system for the golf course runs on a different meter.
“I mean you’ve got a lot going on with that facility,” Newman said.
Commissioner Kevin Berthot wanted to know the cost of utilities when the restaurant space was occupied.
“I just want to get an idea if we’re charging $1,000 but they’re consuming $8,000 to $10,000 to $12,000 worth of utilities,” Berthot said. “Are we doing ourselves justice going that route?”
Commissioners also asked if the rent charged should be different.
Newman said the city used a template from Girard when Dalton’s came to Chanute. But he thought $3,000 a month, like what Dalton’s paid was a lot.
“To me, in today’s world, I know that a lot of restaurants are struggling,” Newman said.
Commissioner Tim Egner said the city should make the cost attractive to a restaurant. He also didn’t want the new restaurant See CITY, Page 10.
to get an unfair advantage over other restaurants in town by having a favorable rent and utility expense.
City Attorney David Brake said the restaurant at the golf course handles a different customer base at least part of the year by offering golfers a place to get a meal while at the course. The restaurant would attract non-golfing customers as well because the restaurant would not be members only.
Berthot said he still wanted more information on utility usage before he could recommend how much to charge on rent and utilities. Apparently, the HVAC system and gas are used for both the restaurant space and the pro shop.
Mayor Jacob LaRue said he thought the lease term should be a year. Commissioner Tim Fairchild said the lease term should have a renewal provision to give the restaurant owner some protection.
Commissioners agreed to discuss the matter at the next meeting once more utility information is known from when the restaurants operated in that space.
