SEAL BEACH
Ruby’s, the restaurant on the pier, recently accused the city of breach of contract because it discontinued the tram service it operated on the pier. The city has countered by saying the diner is in breach of its contract by refusing to pay a part of the rent, known as overage.
City Manager Keith Till estimated that the city has lost $40,000 annually in rent revenue from the restaurant, but said the city hasn’t seen any evidence that the lack of the tram has hurt the diner’s business. The city discontinued the tram service in 1995 because of the damage it caused the pier.
A resolution of the dispute may be on the horizon, however.
The city’s business association and the Chamber of Commerce are looking into reinstating the tram service, and are studying insurance, licensing and feasibility issues.
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