The City Council plans to vote on a new rent agreement for the Old Spaghetti Factory, a restaurant housed in the historic Union Pacific train depot, during its meeting on Tuesday, August 18. Under the proposed lease, the restaurant will pay $260,000 annually, with gradual increases to $275,000 per year by May 2031. City officials clarify that this raise is attributable to a long history of below-market rent, not a targeting of the restaurant or an attempt to address a budget shortfall.
The Old Spaghetti Factory has occupied its current location since 1983. The new payment structure reflects a significant increase of 54% in its first year and a total increase of 119% by 2041, according to city staff. Community and Economic Development Director Sunayana Thomas emphasized that despite the seemingly steep increase, it is part of a transition from a historically low rent to fair market value, defined as the current rental price for similar spaces.
Thomas explained that the new rate of approximately $2.03 per square foot is at the lower-mid range for the market. Factors influencing this rate include the building’s size, its historic preservation status, and the restaurant’s plans for tenant investment. She also pointed out that few other tenants could take over the space if the restaurant chose to leave…