Business & Tech

Historic CA Restaurant Sues Landlord Over 'Unconscionable' Rent: Report

The restaurant's current rent is $61,403.70 per month, according to SFGate.

SANTA BARBARA, CA — A historic restaurant on Santa Barbara’s coast is suing its landlord over an “unconscionable” rent, according to SFGate.

John Thyne, an attorney and restaurateur of the Harbor Restaurant, filed the lawsuit Dec. 5 against its landlord, the city of Santa Barbara, the outlet reported.

The lease, first signed in 2002, includes rent increases based on revenue, with the restaurant’s current rent at $61,403.70 per month plus $6,000 monthly to pay off $358,000 in back rent deferred when the business was undergoing repairs, according to SFGate.

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“The lease was entered at a time when economic conditions, visitors to Santa Barbara County, and the restaurant landscape of Santa Barbara was vastly different than today,” the lawsuit said, SFGate reported. “The lease contains certain terms that Plaintiff asserts have become economically obsolete.”

The city “believes the allegations are without merit,” administrator Kelly McAdoo told the outlet via email, noting Santa Barbara has not gotten required rent payments in months and is “pursuing its own legal remedies.”

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Another factor is that the restaurant’s owners went three years without paying property taxes, and Santa Barbara County seized about $304,000 earlier this year, according to SFGate.

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