After two years of vacancy, the former Scalawags space on State Street in downtown Traverse City could soon see new life. City councilors will vote Monday on a five-year lease with Malkeat Singh — a veteran restaurant owner who ran Bombay Cuisine and Curry Kitchen in Grand Rapids — to open a new Asian fusion restaurant on the ground floor of the Larry C. Hardy parking garage.
Singh’s bid was one of three for the urban space submitted through a request for proposals (RFP) managed by Alex MacKenzie of Coldwell Banker Commercial Schmidt Realtors. The RFP was open to the public for two weeks, and interested parties submitted bids “focused on the experience, term, lease price and contingencies,” according to Nicole VanNess, director of transportation mobility.
Singh proposed paying $273,960 for a five-year lease, which works out to $4,566 per month. The contract includes a proposed five-year renewal option. Under the modified gross lease, the city would be responsible for property taxes and building insurance, while Singh would pay utilities and prorated janitorial costs. The city will inspect that the electrical and mechanical systems are in good working order and replace the hood and vent ducting in the rooms.
Singh will be responsible for paying the first month’s rent and security deposit on the day the lease is signed, which is set to begin in early September. Under the proposed deal, he will have three months rent-free to complete the build-out of the space, which would get the restaurant up and running for a late 2024 opening. VanNess says Singh is “eager to get back into the restaurant business in the Traverse City area” after a long stint successfully running restaurants in Grand Rapids, adding that the planned Asian fusion concept will “serve a mix of Indian and Chinese cuisine.”
Two other Traverse City restaurateurs also submitted bids. The owners of Panda North — currently closed in Logan’s Landing — also responded, although their proposed five-year contract of $191,136 was significantly lower than Singh’s. The owner of Korean food truck Heart N Seoul — which operates at The Village at Grand Traverse Commons — also submitted a bid for a three-year contract at $166,908 (just slightly higher than Singh’s monthly rate of $4,636). However, VanNess says: The Ticker that Heart N Seoul’s proposal is contingent on obtaining a liquor license – a condition that could significantly delay the opening of a restaurant.
“Since the place has been empty for the past few years, we would like to find a tenant soon,” says VanNess. “Besides, they have never opened a restaurant before.”
VanNess says the city received other informal offers, including a proposed yoga studio. Those proposals were not part of the official RFP process. “We didn’t consider them official until we listed the property,” she says. Staff evaluating the proposals also wanted the space to continue to be used as a restaurant — a fact emphasized in the RFP — since the refrigerators, range hoods and other appliances were already in place. Downtown leaders had previously expressed concerns that restaurant space could be converted to offices or other professional uses downtown.
Scalawags closed abruptly in 2022 after owner and operator Jamie (Jamo) Washburne died unexpectedly in his home at the age of 64. Washburne had operated the premises since 2005. A court case for his estate delayed the timeline in which the premises could reopen to a new tenant.
Rental revenue goes into the Auto Parking Fund, which, thanks to a recent shift in parking management services, is now under the control of the city rather than the TC Downtown Development Authority (DDA). VanNess noted in a memo that the HVAC system at Scalwags’ premises had reached the end of its life and had been scheduled for replacement since 2019. However, that replacement was put on hold “pending a determination of whether the premises would remain as a restaurant or be converted to office or retail space, as a conversion would have changed the scope of the replacement.” After a lease is approved, a request for proposals for replacing the HVAC system is expected to be issued next, VanNess wrote.
