Molina’s, Money For West U

August 24, 2009

A 15-year deal bringing both money and Mexican food to West University Place came closer to reality Monday, as a result of action by the West U City Council. The council directed city staff to finalize a 15-year lease agreement with family-owned Molina’s, a popular cantina and eatery and gathering place that moved out of the West U area last year.

The Molina family is working with developers on a 2-story restaurant and parking garage, which would be located on a one-acre tract of city-owned land near West U’s recycling center. The garage will serve customers from Molina’s and Goode Company Seafood, which now leases the city tract. The property is just off Westpark, between
Dincans and Wakeforest.

 Molina’s moved out last year to make room for the new HEB Buffalo Market grocery store on Buffalo Speedway.

 Molina’s parking garage will include an office and restroom for the City of West U, according to City Manager Michael Ross.

In response to questions from the council, Ross said West U staff does not see a need for the city to use the land for the next 15 years.

The terms of the agreement provide for a 15-year primary lease, with options for five more 5-rear renewals. The Molina’s rent would gradually increase from $7,000 per month to $15,373 per month.

 Goode Company currently has a seven-year lease on the city property, paying the City of West U about $4,300 per month for rent.

Molina’s parking garage would accommodates customers from both Goode Company and Molina’s customers.

The primary term of the lease under consideration is for 15 years with five, 5-year renewal options.

West U resident Mike Gallagher, whose family owns a small holding company, said he’s been discussing ways to bring Molina’s back to West U since the restaurant closed last year.

“With the ground lease, it affords us the opportunity to put the restaurant within ½-mile of where the old facility was,” Gallagher said. “The restaurant would be in the middle of the lot, with 2-story parking on both sides.”

The lease also provides that Molina’s will pay all maintenance, property taxes and insurance on the property.

InstantNewsWestu Staff

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