Operations of the McIntyre Coffee Shop will remain with Marc and Judi Duciaume, known as 'Boogy's Diner Inc.' for the foreseeable future after an agreement was proposed on Tuesday night at city hall.
The city was approached by the company for an update on the terms of agreement, even though the current lease agreement doesn't expire until 2019.
The City of Timmins owns the historic McIntyre Arena and Community Centre and leases out the operations of the restaurant facilities in a public-private partnership.
Ward 3 Councillor Joe Campbell commended the Duciaume family on their efforts, and said he spends 'a lot of time there.'
"They do a marvelous job there. I know years ago, when we (City of Timmins) were running it, I don't know if the city was making anything, basically because we weren't in the restaurant business, and probably shouldn't have been."
Councillor Noella Rinaldo, despite insisting it wasn't a slight against the Duciaumes, questioned why it wouldn't be going to an RFP (Request for Proposal) process.
"The atmosphere in the last eight, nine years has changed dramatically when it comes to restaurants. Should this not be going to an RFP? When we're looking at what they're paying in rent, I have no doubt that there would be other people coming forward. I am not sure why or how we cannot have RFP," she said.
"Ultimately that would be council's decision. Obviously the restaurant has been operating very well, and we see no reason why we shouldn't continue the relationship. Unless there's a very good reason that we're un-satisfied with the services being provided, I don't see a real need to do that," replied city Director of Development Services Mark Jensen.
Rinaldo pressed on.
"I'm just saying, for $333 a month, I have a feeling that someone else would come forward and be willing to run the restaurant. Do we not have to go to an RFP?" she asked again.
"No, I don't believe we're required to go through an RFP. The decision was made back in 2004, that we should do an RFP process, to identify a company to come in there and operate the restaurant. That was done. Satisfied. Both parties are happy with how things are operating, no need to revisit it," said Jensen.
Rinaldo still didn't seem particularly satisfied with the response.
"I have a feeling we're going to be getting calls saying 'I would have liked to have the chance'," she said.
Jensen added that 'Boogy's Diner Inc.' has invested a lot of 'sweat equity' into the business, and replacing that could prove difficult.
The updated agreement includes:
- A five year lease, with an option to renew for an additional five years
- An annual lease increase of three percent (up from the current two percent)
- Boogy's Diner to assume responsibility for hall rentals
- Boogy's Diner to receive 25 pre cent of hall rental fees, the City of Timmins gets 75 per cent
- Boogy's Diner will have exclusive food, beverage, and alcohol rights associated with hall rentals
Jensen insisted the city will still set the rates for the hall rentals, and will assume some man-power savings, possibly to the tune of $30,000 per year, as Boogy's will assume responsibility for cleanup of the halls.
Councillors Mike Doody, Andrew Marks, Pat Bamford, Rick Dubeau, and Campbell all praised the Boogy's team for their efforts. Several also used the term 'sweat equity'.
Mayor Steve Black is currently on vacation in Jamaica, so Deputy Mayor and Ward 2 Councillor Walter Wawrzaszek chaired the meeting. He was also on board for the updated lease agreement.
"I think this is a win-win situation for both parties. I will support this. I'm very happy with the service they are providing," he said.
Council will vote to approve the new agreement at the next council meeting, although it seems to be a mere formality judging by the reception on Tuesday.
