Black Cow Lease Up for Final Approval on Monday

A lease between the city and Black Cow restaurant to build a new restaurant on the city's waterfront property will go before the City Council for a vote on Monday night.

The lease got a 3-0 vote in support from a City Council subcommitee last week.

Some councilors have questioned whether the city is getting enough for the $30,000 per year lease payments, but Mayor Bill Scanlon the agreement also calls for Black Cow owners to build the restaurant and make other site improvements worth $3 million.

"To stop this now would be insanity," said Councilor Jason Silva as a city subcommittee delved into the lease specifics.

Councilor Brett Schetzsle was worried that Beverly Waterfront Inc., the company that has been set up to lease the land at the base of the Veterans Memorial Bridge from the city, would have any assets if it were to break its lease.

"We would be suing an entity that has no assets other than the lease," he said.

Attorney Gerard Fong, who was hired by the city to help negotiate the lease, said the city would own the restaurant building and could seek a new operator.

Jim Latter, the Ward 3 City Councilor, wondered whether the lease could be held until a new City Council and new mayor take office in January.

Scanlon said there has been a lot of work put in to arranging the lease agreement and they have all come to a consensus.

"It's in our best interest to do it now," Scanlon said.

In addition to the lease payments, Scanlon estimated the restaurant would be worth at least $100,000 annually to the city's coffers, including $40,000 in taxes annually and revenue from parking meters that will be installed near the restaurant.

The project can not get started until an appeal of the permits in resolved. Neighboring business Beverly Port Marine has appealed, challenging the project, and the case was heard by the state Appeals Court earlier this fall and no decision has yet been issued.