By: Ellen Cans

Things are looking bleak for the Central Park Boathouse.

As reported by the NY Post, New York City turned down an offer by billionaire investor Andrew Murstein to upgrade and save the ailing lakeside restaurant.  Murstein’s $6 million offer, would allow long-time operator Dean Poll to continue to manage the famed eatery.  The operator announced in August that they will be shuttering the landmark venue on Oct. 16, because of skyrocketing labor and food costs and unsustainable license costs.

The current operator told the Post he was excited about Murstein’s offer and the capital improvements proposed — which would feature a redesigned outdoor bar, more outdoor public bathrooms and rebuilding the Boathouse’s parking lot. The upgrades “would make it a jewel box and an even greater amenity for the city,” Poll said.  Lawyer Barry Le Patner, who presented the offer to the Parks Department on behalf of Murstein and Poll, said, “Andrew came along and said he’d like to be a white knight.”  Murstein is the founder and president of Medallion Financial Corp., an investment company publicly traded on the Nasdaq.  He didn’t return the Post’s calls for comment.

Last rebuilt in the 1950s, the restaurant offers views of the lake and Venetian gondolas gliding by, as well as the towers of Central Park West.  Sitting in the restaurant has an outdoor boat feel to it, thanks to the open floor-to-ceiling windows and wrap around design which sit directly on the water.  After the announcement came out that the site will be shuttered, the Parks Department had taken it seriously, saying it would bypass the notoriously slow “request for proposals” process, so that a new license can be issued under a quicker time table.

The department conceded that the standard RFP could leave the property shuttered for years. So instead, the Parks Dept would cut through the bureaucracy and allow prospective operators to just apply to take over the existing contract.  Whoever is chosen as a capable operator, and given the contract, will be on the hook to pay the city $1.7 million a year for the license or 7.2% of annual revenue, whichever is greater.   That’s the same price which Dean Poll was paying, which ended up being unsustainable for him.

As per the Post, sources say several prospective restaurateurs have already applied to take on the venue.  There is, however, another difficulty.  There is a strict labor agreement in place with union Local 6 of the Hotel Trades Council.   Sources told the Post that those terms demand a 3 percent annual salary hike for all 163 employees at the restaurant. It also requires the operator to pay kitchen employees five hours of guaranteed overtime weekly from April to October, whether or not they need the labor.  These terms are part of the contract made in Nov. 2015.  The built-in pay hikes are expected to scare off competent bidders for the restaurant, especially as food prices and inflation are already a serious threat. The Parks Department reps commented saying, “Any agreement between the union and a future operator would be based upon negotiations between the relevant parties.”