Agenda Item # 10.A.
City Commission Regular Meeting - 5:05 PM
- Meeting Date:
- 04/06/2026
- Re
- Crabby's Update
- Submitted For:
- Shyanne Harnage
SUBJECT:
Update on Crabby’s Lease
SUMMARY:
At the March 16, 2026 City Commission meeting, the Commission directed staff to notify the current tenant of the City’s intention to provide an opportunity for a potential assignment of the existing lease before pursuing termination. Following that direction, the City Attorney contacted the tenant’s legal counsel to discuss the possibility of an assignment consistent with the lease provisions.
Since that outreach, the tenant has provided initial feedback indicating an interest in exploring the assignment option. Staff is currently awaiting formal written confirmation of the tenant’s intentions and an anticipated timeframe. This item provides an update on the status of those communications.
If the tenant declines or is unable to pursue an assignment, staff will request that the Commission consider approval of a Resolution terminating the lease and authorizing litigation. That Resolution would be presented as an independent item requiring formal Commission action.
Since that outreach, the tenant has provided initial feedback indicating an interest in exploring the assignment option. Staff is currently awaiting formal written confirmation of the tenant’s intentions and an anticipated timeframe. This item provides an update on the status of those communications.
If the tenant declines or is unable to pursue an assignment, staff will request that the Commission consider approval of a Resolution terminating the lease and authorizing litigation. That Resolution would be presented as an independent item requiring formal Commission action.
RECOMMENDATION:
Staff requests direction from the City Commission on how to proceed after receiving an update from the City Attorney regarding the tenant’s position on a potential assignment.
ALTERNATIVES:
The Commission may provide any additional direction it deems appropriate regarding the future of the lease, tenant communications, timelines, or next steps.
RESPONSIBLE STAFF:
Richard D. Chess, City Manager
Sara Hedges, City Attorney
Shyanne Harnage, Community and Economic Development Director
Sara Hedges, City Attorney
Shyanne Harnage, Community and Economic Development Director
COORDINATED WITH:
N/A
Fiscal Impact
OTHER INFORMATION:
The City currently has an outstanding receivable of $209,394.10 for past due rent and property taxes owed by the tenant for the period of October 2025 through February 2026. Future fiscal impacts may occur depending on the tenant’s decision regarding assignment or any subsequent Commission action related to lease termination or litigation.