Harbor Park Lease and Amendments

The announcement of new lease-holders at Harbor Park  was welcome news for many in Middletown who felt that the current lease-holder was not adhering to the agreement made with the city.  Still, there are several, including some who have contacted, and posted in the Eye, who question the wisdom of extending the lease with new lease-holders.

The city was about to go to trial with Frank Marratta when it was announced that he had found two experienced restaurant operators from New York City willing to buy-out the lease.  The city of Middletown took the opportunity to negotiate some modest alterations to the lease and accepted the new leaseholders because they presented an proposal appealing to city negotiators, and because it would avoid a costly trial that "was not a slam dunk,", in the words of Mayor Sebastian Giuliano.

"I don't care how good your case is," Giuliano said.  "When you go to court, anything can happen."

The original 25-year lease (available in full here)  gave Marratta a twenty-five year, nearly automatic extension.  This extension is what the city was fighting.   The terms of the original lease are considered by many to be generous, perhaps excessively so, especially considering the current value of real estate.  Marratta is reported to be paying just over $22,000 a year currently, with increases tied to the Consumer Price Index.

The new lease-holders, Dan Cronin and John Krevey, in a partnership called the Mattabessett Canoe Club, will simply take over the terms of the old lease, with some notable changes:

 - No outdoor amplified music for the entire term of the agreement
 - A "reasonable modification of rent in outlying years (years 8 to 10)"
 - The new leaseholder will make lease payments directly to the city
 - Frank Marratta, while holding "security interest in the lease" for foreclosure purposes has agreed never to run an establishment on the site again
 - Any change in leaseholders must be approved by the city

There are 22 years remaining on the lease, with no extensions.

Of note in the negotiations is the fact that Krevy and Cronin will continue to pay the lease price, and they paid what is estimated to be a handsome purchase price to Marratta for lease rights.

"We are not privy to those negotiations," Giuliano said.  "And unfortunately there is nothing in the lease that prevents him (Marratta) from creating a deal to sub-lease the property."

In their proposal to the city, Krevy and Cronin expressed an interest in "working in partnership with the city to expand the historic focus" of the site.  They pointed to their work in achieving a special designation from the National Trust for Historic Preservation for the John J. Harvey, a ship permanently docked at their Pier 66 Maritime restaurant on the Hudson, and to the rescue and preservation of the ship Frying Pan which had been sunk in Chesapeake Bay and is now harbored at the same New York pier.

The partners also indicated that they are willing to host civic events at their new restaurants, and at the announcement said that in some instances these community meetings could be held without charge.

What is not in the contract or in the proposal provided by the new partnership, or in the resolution to be considered by the Common Council Monday, are some commitments the new partners made at the announcement Wednesday.

Cronin and Krevey expressed an interest in encouraging the use of non-power boats like canoes and kayaks on the Connecticut River with their restaurant as a focus for this activity.  They also made a commitment to be personally involved in the operation of the restaurant.

Their proposal promises to "upscale" the restaurant from its current status with a new menu, using "organic and local seasonal products" and to use green practices in the operation of the restaurant.  They plan to completely renovate the site and remain open year-round.

The partners plan to attend the Common Council meeting on Monday when the resolution to accept them as leaseholders is considered.