SAN JUAN CAPISTRANO : Rail Depot’s Tenants May Soon Change

The city may soon change tenants at its historic downtown train depot.

The proposed switch, to be discussed by the City Council today, would mean a different operation of the 100-year-old depot, where a restaurant has put its owners $25,000 behind in rent, according to city officials.

The council, acting as the city’s Redevelopment Agency, will be asked to forgive the past-due rent, then assign a five-year lease to a new group of investors. The group intends to run a “Rancho California”-style restaurant, but also use about a quarter of the 12,000-square-foot depot for specialty retail shops.

The council will also be asked to approve a settlement agreement with the current leaseholder, Trackside Dining Inc., which filed a claim against the city last May. Among other things, Trackside Dining Inc. alleged that the city failed to provide sufficient parking and restricted an expansion of nighttime entertainment.

Under the settlement agreement, the city would pay Trackside Dining Inc. $50,000.

Cassandra Walker, the city’s community development manager, said that Trackside Dining Inc. spent roughly $300,000 for remodeling and other work allowed under the terms of its seven-year lease. The lease, which began November, 1989, can be assigned to other investors, provided it has city approval.

Under the new lease terms, the new investment group, Rancho Capistrano Limited Partnership, would be reimbursed for up to $100,000 in improvements to the depot.

Walker said the partnership plans to attract patrons looking for a “family-oriented” atmosphere.

If approved, the new lease will go into effect Feb. 1, sooner if the restaurant opens before that date.