unimaginative2
Senior Member
It's a food fight at One Benvenuto
DEIRDRE KELLY
August 11, 2007
It's as much a landmark as the CN Tower or TD Centre, both of which can be seen from the large, conservatory windows that lend the long-standing and popular restaurant its enviable views of downtown Toronto.
But in a city where the condo is king, the hillside status afforded Scaramouche, now in its 28th year, is in jeopardy.
Carl Korte, an operating partner with chef Keith Froggett at the upscale restaurant, said in an interview this week that the developers of One Benvenuto Place have told him that they might not renew his lease once it expires in January, 2010. Mr. Korte says it isn't about rent; it's about profits. "They're looking to turn the whole building into condos and they're not sure they want a restaurant. We've not been able to come to an understanding.
"At our last meeting, I was told that it might not be financially viable for them to continue housing a restaurant in a space that could be better served as a high-priced condo residence," continues Mr. Korte. "That's when we left the negotiating table, because it was clear we weren't speaking the same language."
Mitchell Abrahams - who, with Malen Capital Corp., has over the past two years overseen the conversion of the hillside property from rental units to condos costing as much as $3-million - allows that the 8,000-square-foot space occupied by the restaurant "would work to create a spectacular residence in the city."
The views, he continued, are wonderful, as is the location - "and in real estate," Mr. Abrahams adds, "location is key."
No one knows that better than Mr. Korte, who is eager to stay at the location that has made Scaramouche the toast of the town for restaurant-goers including power lawyer Michael Levine, film producer Robert Lantos, fashion fixtures Joe Mimran and Kim Newport-Mimran, and Conrad Black and Barbara Amiel. Renée Zellweger was a regular when she was filming Chicago. Celebrity chefs Michael Stadtlander and Jamie Kennedy both got their start there.
"The priority is for us to stay here and keep on operating as Scaramouche as we know it," Mr. Korte says. "But failing that, we would have to move to a suitable location and bring our people with us. The strength is in the brand and we want the brand to continue, wherever it might end up."
Because he has not received assurances that Scaramouche will be able to stay at the current address, Mr. Korte offers that he has already started looking for alternative spaces.
"In every situation, it is better to buy," he continues. "But that would depend on the circumstances.
"We have several very interesting opportunities being presented to us right now, properties of note and interest within our community. We have to look ahead, because a plan is not yet in place."
"If they're looking at alternatives, then that's their choice," counters Mr. Abrahams, adding that, if it were his restaurant, "I'd do whatever it takes to stay in that location.
"I suspect that after they do the work, after they've seen the alternatives and discover what is fair market rent, they will come back and sit down with us."
It is Mr. Abrahams's opinion that the reason Scaramouche is anxious is because it is the first time Scaramouche has ever had to negotiate a lease.
The Yolles family were the developers and original owners of One Benvenuto Place. Morden Yolles opened Scaramouche in 1980, in what was originally the dining room for a hotel there.
In 1985, "he restructured the ownership so Keith and I are the operating partners," Mr. Korte says.
Mr. Yolles gave Scaramouche a long-term lease that Mr. Abrahams says was below market rent - "and now they're seeing what fair market rent is," he says.
DEIRDRE KELLY
August 11, 2007
It's as much a landmark as the CN Tower or TD Centre, both of which can be seen from the large, conservatory windows that lend the long-standing and popular restaurant its enviable views of downtown Toronto.
But in a city where the condo is king, the hillside status afforded Scaramouche, now in its 28th year, is in jeopardy.
Carl Korte, an operating partner with chef Keith Froggett at the upscale restaurant, said in an interview this week that the developers of One Benvenuto Place have told him that they might not renew his lease once it expires in January, 2010. Mr. Korte says it isn't about rent; it's about profits. "They're looking to turn the whole building into condos and they're not sure they want a restaurant. We've not been able to come to an understanding.
"At our last meeting, I was told that it might not be financially viable for them to continue housing a restaurant in a space that could be better served as a high-priced condo residence," continues Mr. Korte. "That's when we left the negotiating table, because it was clear we weren't speaking the same language."
Mitchell Abrahams - who, with Malen Capital Corp., has over the past two years overseen the conversion of the hillside property from rental units to condos costing as much as $3-million - allows that the 8,000-square-foot space occupied by the restaurant "would work to create a spectacular residence in the city."
The views, he continued, are wonderful, as is the location - "and in real estate," Mr. Abrahams adds, "location is key."
No one knows that better than Mr. Korte, who is eager to stay at the location that has made Scaramouche the toast of the town for restaurant-goers including power lawyer Michael Levine, film producer Robert Lantos, fashion fixtures Joe Mimran and Kim Newport-Mimran, and Conrad Black and Barbara Amiel. Renée Zellweger was a regular when she was filming Chicago. Celebrity chefs Michael Stadtlander and Jamie Kennedy both got their start there.
"The priority is for us to stay here and keep on operating as Scaramouche as we know it," Mr. Korte says. "But failing that, we would have to move to a suitable location and bring our people with us. The strength is in the brand and we want the brand to continue, wherever it might end up."
Because he has not received assurances that Scaramouche will be able to stay at the current address, Mr. Korte offers that he has already started looking for alternative spaces.
"In every situation, it is better to buy," he continues. "But that would depend on the circumstances.
"We have several very interesting opportunities being presented to us right now, properties of note and interest within our community. We have to look ahead, because a plan is not yet in place."
"If they're looking at alternatives, then that's their choice," counters Mr. Abrahams, adding that, if it were his restaurant, "I'd do whatever it takes to stay in that location.
"I suspect that after they do the work, after they've seen the alternatives and discover what is fair market rent, they will come back and sit down with us."
It is Mr. Abrahams's opinion that the reason Scaramouche is anxious is because it is the first time Scaramouche has ever had to negotiate a lease.
The Yolles family were the developers and original owners of One Benvenuto Place. Morden Yolles opened Scaramouche in 1980, in what was originally the dining room for a hotel there.
In 1985, "he restructured the ownership so Keith and I are the operating partners," Mr. Korte says.
Mr. Yolles gave Scaramouche a long-term lease that Mr. Abrahams says was below market rent - "and now they're seeing what fair market rent is," he says.
