City demands $400K from restaurant chain. Feb. 22 is deadline for new business proposals
Seal Beach wanted $400,000 from Ruby’s Diner to pay for improvements it says were never made.
The deadline for payment has passed. Meanwhile, the city is requesting business proposals to replace the restaurant that once occupied the building at the end of the Seal Beach Pier.
The former manager of the Seal Beach Ruby’s Diner said the company is working on a proposal.
On Friday, Jan. 4, Seal Beach sent a “notice of breach” letter to the Ruby’s Restaurant Group, demanding payment of $400,000 for improvements to the restaurant space on the pier that city officials say were not made.
The deadline for payment was Thursday, Jan. 24.
In a Tuesday, Jan. 22 e-mail, City Manager Jill Ingram said that “ … I can confirm that as of yesterday, the city has not received the $400,000 payment from Ruby’s that was due to the city no later than January 24th to compensate the city for Ruby’s failure to make the required improvements, in addition to any other unfulfilled obligations under the lease.”
In mid-January, Tad Belshe, a spokesman for Ruby’s Diner, said the restaurant chain was not in breach of the contract. Belshe also said the company believes it has made the improvements to the site that city officials say were not made. The Sun has left multiple messages with both Belshe and Ruby’s CEO Doug Cavanaugh’s voice mail seeking comment. None have been returned.
Seal Beach Community Development Director Jim Basham referred the question of collecing the $400,000 to City Attorney Quinn Barrow. “I don’t think that has been resolved,” Basham said.
Administrative Manager Patrick Gallegos, who works for the city manager’s office, also said the city attorney was handling the issue of collecting the money. Gallegos is handling media inquiries about Ruby’s for Seal Beach.
Basham said the city’s request for proposals to replace the Ruby’s Diner that occupied the end of the Seal Beach Pier went out “a couple of weeks ago.” The deadline for aspiring replacements is 4:30 p.m., Friday, Feb. 22. Basham said the city would see who responds to the request for proposals after Feb. 22. According to Basham, it was too soon to know if Ruby’s would submit a proposal.
“Ruby’s is working on a proposal for returning to the Seal Beach Pier,” said Art Haack, former general manager of Seal Beach Ruby’s.
District One Councilwoman Ellery Deaton has said Ruby’s is welcome to submit a proposal.
