Lido Pool agreement approved

The Sarasota City Commission agreed Monday to sign off on a new contract with the current concession operator of the Lido Pool, with the understanding that it expects bigger and better things for the beachfront pool.

Commissioners approved by a 5-0 vote a contract with Seabreeze Concessions LLC. The contract city staff negotiated with the company calls for Seabreeze to pay a base concession fee of $3,500 per month, plus 15% of gross monthly sales and 80% of the Lido Pool fees the operator collects. In addition, the agreement requires the licensee to pay for all sales tax on the concession fee and all property tax associated with the concession.

City Purchasing Manager Mary Tucker called the contract “the highest rent” contract the city has ever negotiated.

But, in the meantime, commissioners expressed interest in a long-term plan for its future.

In August, Commissioner Shannon Snyder called the pool an “underperforming asset.” Snyder and other commissioners said they think it can be highlighted as a destination point.

Until the city is able to review more long-term options for the pool, which could include an upscale waterfront restaurant, city staff negotiated the deal with Seabreeze, which had previously expressed an interest to terminate its lease agreement.

The new lease agreement runs through April 30, 2013, and has one five-year renewal option.

Vice Mayor Terry Turner had several questions about how the lease could be terminated and wanted to make sure the city wasn’t responsible for paying for capital improvements to the property while Seabreeze is the concession operator.

Tucker assuaged his concern, explaining that the city has to sign off on any capital improvement Seabreeze proposes.

“This is an agreement with low expectations we can get out of when and if we need to,” said Commissioner Paul Caragiulo.

City staff agreed that was the direction provided by City Manager Bob Bartolotta, previously told the commission the city wants to find a long-term tenant that would be willing to sign a 10-year lease.

The city inherited the operation of the Lido Pool after the county turned it over to the city in a reshuffling of parks funding.

Although Caragiulo believes a waterfront restaurant might be a tough sell for residents and the Lido Key Residents Association, he believes the city is on the right track with finding a long-term approach.

The Lido Key Residents Association has also created a committee in support of the pool that is working to gauge the future interest of the property for its residents.

Underperforming asset
Budget memos this summer showed that the Lido Pool has $180,000 in expenditures and only brings in $78,000 worth of revenues. City commissioners believe the pool can eventually be groomed to be a major asset that makes money and draws visitors.