Port of Kennewick commissioners agree to lease update with Clover Island eatery

The process to sell Clover Island’s Cedars Restaurant is moving forward, following the Port of Kennewick’s revision of its long-term lease.

The waterfront restaurant in Kennewick was first listed for sale in 2017 for $2.62 million.

The property at 355 Clover Island Drive was most recently advertised at $1.97 million with a sale pending.

Cedars’ owner Dave Mitcham said he cannot talk about the sale after signing a non-disclosure agreement, but had requested a change to the couple’s lease prior to the sale.

The new buyers are Doug and Carrie Lundgren. The couple previously owned Holy Mac & Deli in Kennewick, which closed a few years ago. Carrie Lundgren, a broker at River Realty, did not return calls for comment.

The current Cedars’ lease went into effect in 2006 and expires in 2021, but has the ability to be extended through 2061, with a variety of renewal options at varying escalation rates.

The Mitchams requested a fixed yearly rate increase of 3.5 percent versus the current terms that include larger increases every five years.

Today’s terms include a $3,500 monthly rate, plus leasehold tax of 12.84 percent payable to the state. The terms are set to increase to $4,500 monthly in 2021. The revised lease terms have the new 3.5 percent fixed increases in effect beginning in March 2021.

“I think this is a good thing and good for all parties concerned,” said Tom Moak, port commission president, at the Sept. 10 port meeting.

Mitcham and his wife, Darci, have owned the restaurant for 13 years and told the Tri-Cities Area Journal of Business in 2017 they wanted to retire after nearly 50 years in the restaurant business.

The port owns the 0.29 acre lot on Clover Island where the restaurant sits.

Cedars was built in 1977 and underwent a $2.25 million renovation 20 years ago following a fire. Renovations on the 8,600-square-foot building also brought it into compliance with the Americans with Disabilities Act.

Patrons can access the eatery from land or water, where more than a dozen boats can tie up to the restaurant’s dock. It has two decks to take advantage of expansive views, including the cable bridge.

The posted sale price included all furniture, fixtures and equipment.

In 2016, the port named the Mitchams “Friends of the Port” for their efforts to make the restaurant a landmark destination.

Currently, Cedars is only open for dinner, from 5-10 p.m. Mitcham previously said a future owner could potentially double their income by offering lunch hours.

The restaurant is located near the port’s offices, Ice Harbor at the Marina and the Clover Island Yacht Club.