The popular Grill at Point Pinos in P.G. will close in November after a disagreement with city officials over rent.

Five years ago, Tamie Aceves of La Créme Hospitality Inc. overcame stiff opposition in Pacific Grove to become the operator of the Grill at Point Pinos, but quickly won the hearts of locals and proved the doubters wrong.

The restaurant that serves both golfers at the Pacific Grove Municipal Golf Course and the general public has won “Best Restaurant at a Golf Course” three years in a row in the Monterey County Weekly Best Of readers polls, as well as “Best Huevos Rancheros.” It’s a favorite brunch spot of many and is consistently busy during peak hours.

Despite the success, Aceves gave the city her 60-day notice in mid-September after the two sides could not come to an agreement on rent. On the same day the Best Of winners were revealed, Oct. 9, Aceves thanked supporters on social media for the restaurant’s awards then ended with the announcement that the grill’s last day will be Nov. 21.

The bottom line, says Aceves, is she cannot afford to remain in the city’s building at the rent the city is proposing, $15,000 a month, which she contends is above market value for comparable restaurants in the area. She also is expected to maintain the building's bathrooms used by golfers and the public, a cost of about $5,000 a month. 

According to P.G. City Manager Matt Mogensen, La Créme’s contract was for a five-year lease with an option to renew for another five years. It included a clause for escalating the rent based on how well the business was doing. In 2020, La Créme was paying 4 percent of gross receipts per month. It’s now at 7 percent of gross receipts. (Currently the monthly rent is $20,000, Aceves says.) 

The Pacific Grove City Council negotiated with Aceves, offering other concessions, according to Mogensen. The rent offered was considered by officials to be fair for taxpayers.

When Aceves agreed to the contract, it came during the Covid-19 pandemic and a contentious time when then-mayor Bill Peake and two other Pacific Grove councilmembers in office fought to have the contract go to a different vendor, against the recommendation of city staff. The council vote to award La Créme the contract was 4-3.

Aceves agreed to the terms of landing at 7 percent, although she says she told officials then the rent would climb to above market value as sales grew. Earlier this year her accountant told her she was paying above what restaurants on Ocean Avenue pay, which wasn’t sustainable. It was the profits from her catering company that kept the Grill afloat, Aceves says.

In February, Aceves laid out her expenses for the city, making the case for why she needed the rent to come down.

“‘I can’t stay, I can’t continue like this. It doesn’t make any sense,’” Aceves says she told officials.

The city didn’t budge for months then officials made a final offer of $15,000 per month. She decided it was time to move on to other pursuits.

Besides the cost of rent and bathroom maintenance, Aceves says she loses about $1,000 a week due to a requirement to be open for golfers during unprofitable hours. She also says she invested $350,000 in improvements and in the last two years spent $100,000 in advertising, due to the fact that the restaurant is in a quiet section of town, lacking presence from the street.

“I’m really proud of what we accomplished. We took a spot that had never been kicking and happening before and made it this wonderful community hub,” she says—it was a “dead space” before she came along.

Aceves hints at a new business coming in January. “Onward and upward,” she says.

The city issued a press release later on Oct. 9 stating that during a search for a new operator, the golf course operator, CourseCo, will operate "a limited service restaurant and/or bar for the golfers and community."

It states the city will begin a search for a new operator shortly. 

"Although the city is disappointed we could not agree upon the terms for a new lease with The Grill, we are confident we will find a new operator that can meet the goals to serve the golf course and community," the release states.