The Wailua Marina Restaurant will live to see another year. The lease on the 38-year-old restaurant on state land was put up for auction several months ago, when its lease expired.
There were no bidders.
Jim Springer, property manager for the Division of State Parks of the state Department of Land and Natural Resources (DLNR), said once a state lease expires it is required by law for state officials to put the property up for auction if DLNR leaders are seeking a commercial lease to exceed a one-year period.
Springer said the Arashiro family, which owns the restaurant, was granted a one-year, revocable permit by members of the state Board of Land and Natural Resources, to continue operating at its venerable and popular location.
He said the approved permit was sent to the family April 15.
“They are good tenants, and we have had an excellent relationship,” he said.
Darlene Arashiro said the family had received the permit, and would likely sign it.
“We’re moving in that direction,” she said, adding she was grateful for all the local support.
The restaurant, which is known as something of a local institution with homespun charm and excellent food, had previously been on a month-to-month lease, according to Arashiro.
Previously, the family paid $350 a month in rent, or a percentage of gross receipts, whichever was the higher figure. The percentage of the gross receipts was nearly always higher than the rent.
Under the conditions of the new arrangement, the family would be required to pay $2,300 a month against a percentage of the gross.
Springer said an appraisal of the business revealed that, under the conditions of their former lease, the Arashiros were essentially paying about $2,300 a month anyway.
Springer said the new rate was “quite modest” for the 5,800-square-foot building.
Springer said that, under this permit, the disparity between the rent and percentage of gross would be far less than before.
When the one-year, revocable permit expires, the site will be put up for bid again. The Arashiros will be able to take part in that process, Springer said.
The DLNR officials are looking for an entity to sign a five-year lease.
