The owner of East Pier Smokehouse says Fife Council’s decision to more than quadruple its rent is threatening the future of the business.
James Robb operates the popular fish restaurant in St Monans.
He owns the building but, as the business operates at the harbour, it pays a ground rent to the local authority. Since 2012, this has been set at £1,800 a year.
Fife Council has now demanded the business increases this rent to £8,000 a year.
East Pier Smokehouse future in doubt
Mr Robb had intended to sublease the restaurant to new owners as he seeks to retire.
However, he said this rent increase, which he would be liable for, threatens the deal with the new operators.
He is hoping a “public outcry” might mean Fife Council reconsiders its decision.
He said: “The lease was set up in 2012 and Fife Council has not actioned any rent reviews.
“Now, out of the blue, they have said it’s going up to £8,000.
“Initially they wanted £10,000 but reduced the amount when I complained. I still think the amount is madness.
“According to them it’s not based at all on how busy or successful the business is.”
Owner hoping for ‘public outcry’
Mr Robb said he has agreed terms with a new operator, but as part of this deal he pays the ground rent.
He says the increase in rent means he might decide to sell the fish restaurant instead.
He said: “The deal is on hold. If the ground rent goes up this much, it knackers me subleasing the building.
“It won’t make it worth my while, I’d be better selling up.
“I haven’t agreed to the £8,000 amount but there’s not much I can do. The deal with the council is that if there is a rent review they have to appoint a surveyor.
“Needless to say, it’s a Fife Council surveyor and this is the figure they have come up with.
“A lot of things in the village have shut down. I feel Fife Council are driving out businesses and not helping at all.
“I am hoping a public outcry might mean Fife Council reconsiders this rise.”
Fife Council response
Mr Robb had appealed to North East Fife MSP Willie Rennie about the situation. He wrote to Fife Council on his behalf, but this did not lead to a resolution.
Michael O’Gorman, assets and estates manager for Fife Council, confirmed the increase.
He said: “The rent on this property hasn’t increased since 2012, and we need to bring it into line with current market rates.
“The council is operating in a challenging economic environment and we need to make sure that rents are fairly applied to all of our tenants.
“We’ll work with Mr Robb if he wants to transfer the lease to a new operator of the business.”
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