Castaway lease goes through

The City Council approved on Tuesday an amended lease with the

operator of the Castaway Restaurant that will change hours of

operation and traffic patterns to calm residents’ concerns.

Mayor Jef Vander Borght expressed appreciation to staff members

and the Verdugo Restaurant Corp. for working out the 20-year lease

that goes into effect Nov. 1.

“We’re looking forward to your serving the public in Burbank for a

long time,” Vander Borght said.

The amended lease first came before the council on Sept. 13, who

then worked out additional changes after hearing from residents

concerns over traffic and noise from the facility.

The council’s changes guaranteed free valet parking, ample free

self-parking, a security guard for events that go until 1 a.m., and

stopping alcohol sales at midnight for weekend events in the banquet

facilities.

“It’s just a clean up of the language and I expect it to go

through,” Assistant City Manager Mike Flad said.

Castaway General Manager Saeed Sazeli said he was pleased to

continue operating the restaurant.

“We were very excited to see support from the city to extend the

lease,” Sazeli said.

Unlike the Sept. 13 meeting, no residents in the neighborhood

leading up to the Castaway attended Tuesday’s meeting.

The Castaway restaurant and banquet facilities -- with spectacular

views of the city and valley below -- are owned by Burbank although

the operator, Verdugo Restaurant Corp., is responsible for

maintenance and improvements.

A main reason the city wanted to re-negotiate the lease with

Verdugo Restaurant Corp. was to change the rent structure put in

place when the lease was originally approved in 1962. It is set to

expire in 2012.

The operators pay an annual base rent of $14,400 or a percentage

rent of 2% of gross sales at the restaurant and 4% of gross sales at

the banquet facilities, whichever is higher.

The city receives between $200,000 and $300,000 from the

restaurant a year, city officials said.

The proposed amended lease includes a base rent of $180,000 that

would be reviewed every five years; and a percentage rent of 5% of on

gross sales at the restaurant and 7% of gross sales at the banquet

facilities, whichever is higher.

Closing times were set at 10 p.m. weekdays and 11 p.m. weekends for the restaurant; 1 a.m. for the banquet hall; 11 p.m. weekdays and

12 p.m. weekends for the lounge and patio; and 9 p.m. weekdays and 11

p.m. weekends for the luau grove.

QUESTION

Does the City Council’s lease agreement with the Castaway

Restaurant alleviate concerns about traffic and noise? E-mail your

responses to o7burbankleader @latimes.comf7; mail them to the

Burbank Leader, 111 W. Wilson Ave., Glendale, CA 91203. Please spell

your name and include your address and phone number for verification

purposes only.