Tuggs Inc.’s lease is unpopular with some Beach residents and the local councillor, but city staffers say it lets the former Boardwalk Café host chain restaurants at Ashbridges Bay.

On July 1, Carters Landing — a restaurant owned by food-services giant Cara — opened at the east-end beach site, beside a Tim Hortons franchise earlier opened by Tuggs owner George Foulidis.

Last month Councillor Mary-Margaret McMahon called the latest eatery opening, without permission from city hall, a “slap in the face” for Ward 32 residents already unhappy with a 20-year, sole-sourced lease extension meant to help a mom-and-pop business and keep out chain eateries.

On Tuesday, city staff told government management committee that the lease passed by council in 2010 allowed Tuggs to let Carters Landing open as a “third-party agreement.” Also, there is no reason to deny Tuggs’ request to make the arrangement permanent by “assigning a portion of the lease” to Cara.

Essentially transferring part of the favourable sole-sourced lease for a prime spot overlooking Woodbine Beach and the boardwalk is “currently acceptable within the lease terms and conditions,” and will not increase revenues to the city, said Janie Romoff, parks, forestry and recreation general manager.

Foulidis did not respond to a message left at his Athens Café, which also operates at Ashbridges Bay.

Resident Gord Holtam, in an email to the committee, called the lease “an embarrassment to residents of Ward 32 and Toronto,” and urged the committee to do what it takes to put the lease out to tender. Two other residents and one deputant also urged councillors to reject any new Tuggs requests.

Committee went into closed session and voted on a McMahon motion which will be debated, likely again in closed session, at the Oct. 5 meeting of full city council.

McMahon would not disclose her proposal but questioned why Tuggs needs part of the lease reassigned.

“It’s a tragedy all around and I’m working to see what I can do to improve it,” she told reporters of the deal.

City council voted in 2007, despite a city staff recommendation for competitive bids, to give Tuggs a 20-year extension of the lease it had held since 1986.

When it came to light in 2010 that Tuggs had not signed the extension because Foulidis was trying to negotiate a better deal, council agreed to new terms that included annual rent of $200,000, Tuggs spending $2 million on renovations and the city getting a reduced cut from beach events and activities which Tuggs controls.

Tuggs got control of the then-Boardwalk Café, a large parking lot, patios, two nearby concession stands and limited commercial rights for four parks including Ashbridges Bay and Kew Gardens. Charity events, and other activities that could potentially compete with Tuggs, need the company’s permission for activities in those city parks.

Helen Hatzis, founder of Aloha Toronto, says she moved her annual fundraiser for Autism Ontario from Woodbine to Balmy Beach, outside Tuggs’ jurisdiction, because getting permission “was such a pain in the ass.

“It’s a wonderful sharing community but we’re separated from our own backyard because of this stranglehold on the beach,” Hatzis said.

Loading... Loading... Loading... Loading... Loading... Loading...

However John Ladouceur, who puts on the annual Beaches Arts & Crafts Show in Kew Gardens, has no complaints.

“We have had nothing but co-operation,” from Tuggs which grants permission for the show that helps raise money for non-profit support service agency Neighbourhood Link Support Services, he said.