Pacific Grove snack stand operator Joe Cavallaro plans to plead his case for a hearing over the city's proposed rent hike for The Grill at Lovers Point.
Cavallaro said he intends to address the City Council on Feb. 6 during the public comment period.
Cavallaro, whose lease expired this year, contends the new terms offered by the city are excessive and will force him to raise prices or go out of business.
He contends the $1,725-a-month rent demanded by the city, up from $1,250, far exceeds the going rate for commercial property in Pacific Grove.
Cavallaro said the snack stand is only 300 square feet, making the monthly rental $5.75 per square foot under the city's latest offer.
City Manager Thomas Frutchey said Tuesday that Cavallaro's lease area amounts to 800 square feet, including the adjacent outdoor patio where customers sit and eat their snacks, and a storage room for restaurant supplies.
That brings the square-footage rate to about $2.16 a month, similar to that of other commercial properties, Frutchey said.
Other aspects of the rent negotiations include keeping the stand open for more hours a week than in recent years, he said.
While negotiating a new lease, the city extended Cavallaro's existing lease through March 31 at a rate of $1,530, Frutchey said.
Cavallaro said he has proposed rent based on $2 per square foot — $600 a month — and to pay an additional 10 percent of gross receipts.
Last year, the Grill had $86,000 in sales, he said, which he attributes to the economic downturn.
If Cavallaro speaks to the council next week, Frutchey said, it could be set for hearing as early as Feb. 20.
Kevin Howe can be reached at 646-4416 or firstname.lastname@example.org.