UPDATED: Concession Stand to Reopen at Kennedy Following Contract Negotiations With Legends 1926
A previous contract agreement gave Legends 1926 Bar and Grill complete rights to concessions at Kennedy Recreation Center, which would have cost the City of Trenton over $24,000 in revenue each year.
Owners of Legends 1926 Bar and Grill agreed to allow the City of Trenton to reopen the concession stand at Kennedy Recreation Center and to pay more for utilities in a meeting with city officials Monday night at Trenton City Hall.
The concession stand is slated to reopen on Sept. 1.
Utility costs and concession revenue for the restaurant at Kennedy Recreation Center were grossly underestimated in the original contract between Trenton and the Kennedy Restaurant Group LLC, according to City Administrator Jim Wagner.
Former Mayor Jerry Brown and then City Administrator Bob Cady began negotiated the contract about a year before the doors opened in March. The issue was then approvaed by Trenton City Council unanimously in October 2011.
"The big win for the city was getting back concessions," Wagner said.
In previous years, the city consistently brought in $70-$75,000 in profit, after all expenses, from concessions at Kennedy.
The Kennedy Restaurant Group LLC agreed to pay about $46,000 annually for control over concessions. The City of Trenton lost about $24-$29,000 each year in the deal, according to Wagner.
The new contract also raises Kennedy Restaurant Group's financial responsibility for utilities. The restaurant group must now pay 12 percent, instead of 5 percent, of total utility costs at Kennedy -- saving the city a projected $40,000 annually.
Wagner said he is working on getting a special meter for the restaurant, so utility costs will be entirely separate from the city.
"I'm glad we came to a realistic agreement with them that will be fair to the city," Wagner said.
Recently, Trenton Patch reported the restaurant group had fallen behind in payments totalling over $35,000 in overdue rent and other expenses. The city received a payment of $5,000 on Monday.
In return for these contract changes, Wagner said city administrators might consider lowering the restaurant's rent costs. They are currently required to pay about $3,500 per month. He did not say what the new rent might be.
There was no word on when the concession stand at Kennedy would be open for business.
*This article was updated at 11:48 a.m. Aug. 30.