Surf-Themed Eatery at Pier Is Approved

The way has been cleared for construction of a new pier-side restaurant with a surfing theme.

The City Council on Tuesday approved a 10-year lease agreement with TS Restaurants to develop Duke’s Surf City restaurant, named after surfing legend Duke Kahanamoku, on city property at the base of the pier.

The restaurant will be built on the site of the closed Maxwell’s by the Sea restaurant. It is expected to open by summer 1997.

Under the agreement, the restaurant group will pay the $5-million construction cost and have the option to renew the lease after 10 years, said Community Services Director Ron Hagan.

Hagan said the developer will pay the city a minimum of $150,000 in rent for the first two years and $200,000 for the remainder of the lease.

If the restaurant’s income is higher than the minimum rent, Huntington Beach would receive more money. For instance, the city would receive 4% of the first $8 million of gross revenue and 5% of revenue exceeding $8 million, whichever is greater, Hagan said.

TS Restaurants, which owns and operates 14 restaurants in Hawaii and California, projects $6 million in sales for Duke’s the first year and up to $9 million by the third year.

Construction of the restaurant will coincide with that of the $5-million Pier Plaza project, which is expected to be built between October and summer 1997.

Pier Plaza will include additional beach parking, a new outdoor amphitheater and Palm Court, an open area that offers views of the ocean, pier and beach.

Mayor David Sullivan cast the only opposing vote, saying that there is not adequate parking for the project.

“I think this is a very worthy restaurant,” Sullivan said. “But we’ve played fast and loose with the parking.”