Article published May 12, 2007
Navy Bistro's owner wants to buy Docks
Cousino says deal would net city $500,000
Visitors to The Docks stroll alongside the Maumee River on the walk that was built outside the restaurants at the complex of restaurants in East Toledo.
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THE BLADE
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By TOM TROY
BLADE STAFF WRITER
Tom Cousino, owner of the Navy Bistro restaurant at The Docks, is attempting to buy the East Toledo dining complex from the city in a deal he says would net the city at least $500,000 and take a $2.1 million debt off its books.
Mr. Cousino said his lease gives him a right of first refusal to buy the property, which sits along the Maumee River facing the downtown.
So far, the city isn't snapping up Mr. Cousino's offer.
Andy Ferrara, the city's real estate manager, confirmed that The Docks is for sale and that the city is in negotiations with Mr. Cousino. Mr. Ferrara said Real Seafood Co. owner Michael Gibbons also has signaled an interest in the property. Mr. Gibbons could not be reached for comment.
Mr. Ferrara said the city would hire an attorney to handle the negotiations. He acknowledged that Mr. Cousino "may have" an option to purchase but said it's still being studied. He said the city hasn't determined an asking price for the property yet.
"We're looking at offers. We're going to do some advertising," he said.Mr. Cousino said he has made an offer under which he and possibly other private buyers would take over the obligation of the $2.1 million debt owed on bonds issued by the Toledo-Lucas County Port Authority, and that the city would net $500,000 to $600,000.
Exact terms of Mr. Cousino's offer were unavailable. But Mr. Cousino said the price being offered is based on a professional appraisal that recognizes that he and the other restaurant owners invested between $9 million and $11 million to convert the former city warehouse and garage into the dining destination it is now.
He said that investment ultimately spurred interest in the nearby Marina District site now being marketed as a site for $320 million worth of residential and commercial development.
Mr. Cousino made his first offer in February. It was rejected, and Mr. Cousino submitted a new offer yesterday, Mr. Ferrara and Mr. Cousino said.
Mr. Cousino said his offer could end up including other restaurant owners at The Docks, but the bottom line is that the operators would take over the debt obligation.
"The ownership could well end up being all or some portion of the owners of the restaurants," Mr. Cousino said.
"We're the ones that put $9 [million] to $11 million into it. I would think the city of Toledo would want to do what is right to keep independent and individual entrepreneurs coming to the table in this city," he said.
The complex includes Mr. Cousino's locations - Navy Bistro, Tango's, Tango's Cantina, The Courtyard at the Navy, and Eileen's Wine Bar; Real Seafood and Zia's owned by Mr. Gibbons' business, Main Street Ventures, and Oasis on the River, operated by Dean Skillman.
Mr. Cousino recalled that he accepted Mayor Finkbeiner's challenge to develop The Docks into a restaurant complex in 1997 when many other people turned it down.
"It wasn't until we proved it was a viable property that everyone else wanted to get involved," Mr. Cousino said.
City taxpayers spent more than $500,000 on the International Park building to prepare it for the Navy Bistro that opened in 1997.
James Hartung, president of the port authority, which issued the bonds, said $2.12 million remains on the debt, which is being paid off at the rate of $22,219.33 a month. He said the payments are current.
Mr. Hartung said the bond holders can refuse to agree to an ownership transfer if they don't believe the new backers are financially as strong as the current backers.
The negotiations occur as the city and River East Economic Revitalization Corp. have been in Lucas County Common Pleas Court over who has the right to manage The Docks.
River East, a nonprofit community development agency, has managed the complex on behalf of the city since 1997, collecting rents and making the bond payments. But in February, the city served notice that it intended to take over management, claiming River East was in default on payments owed the city.
The city claimed in a March 9 letter that River East was in default on $62,893 that was supposed to have been paid to the city since May, 2001.
In a reply, River East attorney Richard Scheich requested more information about the alleged default.
The city's agreement was that River East would take a 15 percent management fee on the rents it collects, make the monthly bond payment, and then forward the balance to the city, according to a letter to Mr. Scheich from Adam Loukx, the city's general counsel.
Mr. Loukx said the city was the manager of The Docks after Judge James Jensen denied a temporary restraining order sought by River East April 18.
Contact Tom Troy at:
tomtroy@theblade.com
or 419-724-6058.
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