Award-Winning Chef To Open Mexican Restaurant In Walnut Creek

WALNUT CREEK, CA — On the same night they cut $6.5 million from the city general fund budget, Walnut Creek City Council members on Tuesday approved pursuing a 10-year lease, with two five-year options, for the Mexican restaurant Los Moles to occupy the ground floor of the city-owned South Locust Parking Garage.

The lease could eventually cost the city more than $627,000.

Part of the council's approval of this lease was a transfer of $377,000 from various budgets to the city's capital budget for use toward the restaurant.

Some council members said they view the expense as a long-term investment in Walnut Creek's downtown in general, and in its restaurant community specifically.

And because the city owns the garage and its ground-floor commercial space, council members said Tuesday night's approval reflects the action of a responsible landlord to rid downtown of a vacant storefront.

"We know this is a challenge," Mayor Pro Tem Kevin Wilk said about spending the money. "Sometimes it is (about) biting the bullet. But let's invest in our community ... and support these businesses."

The retail space located at 1352 Locust St. It was last occupied by Tender Greens, a restaurant that closed in June 2018.

Los Moles and its owner/chef Lito Saldana have existing restaurants in San Rafael, El Cerrito and Emeryville.

Saldana has won awards for his modern Mexican cuisine, and is known in particular for his sauces.

Base rent for Los Moles would be $15,937.50 per month, increasing 10 percent every five years.

In response to the challenges related to the COVID-19 pandemic, the city and Los Moles negotiated a 20 percent rent reduction each month that Los Moles' gross sales are less than $200,000 for the first two years of the lease.

The city has agreed to provide an eventual $438,000 in tenant improvement allowance and funding repairs for the space's grease trap.

The city's total expenses, including real estate broker commission, come to about $627,750. Councilman Justin Wedel did not support the lease agreement for Los Moles, saying it was inappropriate for the city to commit that much money to a commercial project when the council would, an hour later, make $6.5 million in budget cuts because of COVID-19-related drops in revenue.

Wedel also said there already are at least three other Mexican restaurants near the South Locust Parking Garage.

Councilwoman Cindy Silva countered that all restaurants have different audiences and business situations, and that the existence of three other Mexican restaurants shouldn't dictate whether Los Moles is allowed to take over that space.

"I think we would be completely short-sighted not to be investing in economic recovery," Silva said.

The lease was approved by a 3-1 vote, with Silva, Wilk and Matt Francois voting "yes."

Wedel voted "no;" Mayor Loella Haskew recused herself from the vote, citing an unspecified potential conflict of interest.

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