The Deal: Acquire Messina's at the Terminal (historic Lakefront Airport) for $500K. Eliminate daily restaurant operations, focus exclusively on events/catering. Sublease cafe to Austin Levy.
Structure: $75K equity (15%) + $425K SBA loan at 11%. Austin contributes $75K upfront for cafe buildout. $123K in deposits transfer at close.
Critical Path: LMA board must approve lease assignment (Mar 26). Everything gates on this. Meeting with Lou Capo (Mar 6) was very positive — he will recommend approval.
⚠ Year 1 Warning: With full atrium percentage rent (Sec 4C), Year 1 EBITDA is only ~$35K and DSCR is 0.49x. The 8% atrium question ($52K/yr) is make-or-break for loan viability. If resolved favorably, EBITDA jumps to ~$87K and DSCR to 1.23x.
2023
2024
If the sublessee fails: a single-employee counter café on the historic Art Deco lunch counter. Not a restaurant — curated infrastructure that satisfies the lease while keeping costs radically low.
| Name | Role | Organization | Stance | Notes |
|---|
Section 4B: Tiered Restaurant/Event Revenue
| $0 — $350K | 0% | No percentage rent |
| $350K — $750K | 3% | = $12,000 on $400K band |
| $750K — $1M | 5% | = $5,600 on $112K (at $862K rev) |
| > $1M | 8% | Not reached Year 1 |
Year 1 Tiered Rent: $17,600 (on $862K revenue)
Section 4C: Atrium Revenue — 8% Flat
The lease requires 8% on ALL gross atrium revenue. At $650K atrium revenue, that's $52,000/year.
Problem: Current owner marks atrium as "Non Commissionable" and pays $0. This contradicts the lease. If LMA enforces on assignment, it adds $52K/yr to costs.
Impact: With 8% atrium rent: EBITDA = $35K, DSCR = 0.49x (deal barely works). Without: EBITDA = $87K, DSCR = 1.23x (deal is viable).
Action: Must clarify with LMA before board vote. This is the single most important financial question in the deal.
| Severity | Risk | Status | Description | Mitigation |
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| P | Task | Assignee | Due | Notes |
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| P | Task | Assignee | Notes |
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| Name | Category | Type | Modified | Status | Summary |
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