DOUGLAS, Mich. — The City of Douglas is one step closer to selecting the Root Beer Barrel's next lease holder.
“It’s done very well. It’s a definite attraction, a landmark for the community," said Jerry Donovan, Douglas' mayor.
Donovan believes restoring the Root Beer Barrel was a blessing. He also believes the wealth of opportunity sitting on Center Street can do more for Douglas in return.
“As a representative of the city, we sometimes have to make tough decisions," Donovan said. "Obviously this is one of them.”
Last week, FOX 17 first reported that Michael White, the barrel's lease holder since 2018, lost his bid to keep the contract.
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The city received four Requests for Proposal (RFP) to see who would take it over. You can see all of them by clicking this link (starting on page 15).
Donovan said there's been one main driving force during this whole process.
“What we decided to do is have a revenue-sharing based lease," he said. "That does two things — provides a potential increase in revenue for the city, but it also says to the operator that, you know, if it’s not going as well as you’d hoped, then they’re not bound by a lease that’s really going to handcuff them for success.”
Donovan said two of the RFP's did not meet the full requirements, including the one submitted by White.
Of the two that did, both included a revenue-sharing agreement.
One proposed an "annual lease amount of $5,000 and a shared gross revenue percentage of 5%."
Another offered a lease payment of "10% of annual gross sales with a minimum annual payment of $10,000."
Donovan said the latter one really caught the Douglas City Council Building Committee's attention.
“Also, they have experience in a revenue-sharing lease opportunity," Donovan said. "Basically, they have businesses that we can check on to see how they were doing. They’ve been doing well there, and our hope and desire is that that success transfers to the Root Beer Barrel.”
505 Water Street Cafe, LLC owns and operates three other seasonal businesses in the area, including The Grilled Cheese Shack and Basecamp Coffee & Waffles in Saugatuck.
The family's connection to the community runs even deeper.
“They’re a Douglas family," Donovan said. "They’ve been here. They have roots here. Their children, who are going to be working here, are Saugatuck High School graduates.”
Donovan said the family has bid on the barrel before, but never received the recommendation until now.
Even though there will eventually be a shift in ownership, Donovan stressed the barrel's brand will very much stay the same.
“We anticipate a very smooth operational transition," he said. "Still going to sell the root beer, the hot dogs, concessions, souvenirs. So, none of that is going to change.”
READ MORE: Douglas Root Beer Barrel booming once again
FOX 17 did reach out to the family behind 505 Water Street Cafe, LLC, but has yet to hear back.
In the meantime, nothing is finalized. The Douglas City Council Building Committee still needs to present its recommendation to city council at their 7 p.m. meeting on Monday.
The public is welcome, and encouraged to attend. Click here to access the Zoom link. If you need a Meeting ID, the code is 813 3789 2782. You can also join by dialing +1 (312) 626-6799.
Donovan said it's possible the lease agreement gets approved Monday night.
Stay with FOX 17 for updates.
