Fullerton City Council lowers lease rates for outdoor dining program
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With fierce political feuds at the center of Fullerton’s city government, even outdoor dining and patio lease rates can fan the flames of polarization.
But faced with an outdoor dining program that has seen several restaurants fall behind on payments to the city — with one having its patio lease terminated — the City Council Tuesday found a way to work together and lower the rates.
For the record:
9:00 a.m. Dec. 8, 2025An earlier version of this story said that Pilgrims Cafe was located by the train station.
“There’s a few things we can do to fix this, and I think it’s an easy fix,” said Councilmember Nick Dunlap. “It’s obvious that the city got this wrong.”
Three years ago, Fullerton councilmembers decided to raise lease rates for businesses that wanted to use a public right-of-way for outdoor dining. The index-based increase nearly doubled the amount the city collected from businesses.
The rates came into sharper focus over the summer when Les Amis Restaurant & Lounge, a Lebanese eatery with an outdoor patio, fell substantially behind on its lease payments.
Fullerton faced public pushback against the rates during a July council meeting, while Les Amis owner Jinan Montecristo tried to negotiate a solution with city officials. By October, city workers had dismantled the restaurant’s outdoor patio.
“We need to be fair,” Montecristo told councilmembers Tuesday. “We wanted our environment to be as inviting and as complementary to the city as possible. We should not be punished for that.”
Les Amis fell more than $40,000 behind on $3,200 monthly payments until the agreement was terminated in October, city records show.
Critics of the program cited a fee exemption for businesses with outdoor areas smaller than 100 square feet and no liquor licenses. Pilgrim’s Coffee House in downtown paid no fees under the exception.
The coffee shop is a tenant of Tony Bushala, a property owner who has contributed to the campaigns of Dunlap, Mayor Fred Jung and Councilmember Jaime Valencia — a fact that program critics pointed out.
Three other Fullerton restaurants have fallen into arrears, while another establishment has kept current.
Councilmember Ahmad Zahra asked why it took so long for a review of the program to appear on a council agenda; he asked for it months ago.
Interim City Manager Eddie Manfro took the blame and attributed the delay to his transition into his new position last summer.
Zahra said he didn’t buy the explanation.
“What do you believe is the case?” Jung countered. “Spit it out.”
“You set the agenda,” Zahra responded.
Jung criticized Zahra’s questions as political “theater” while Dunlap interjected, wanting to redirect the conversation toward a solution.
“I think the solution is to reduce the fees,” Zahra said. “[For] the long-term, I think we need to reenvision this entire policy, so that it’s fair for everybody.”
Dunlap agreed and proposed making the lease agreement a flat rate — 90 cents per square foot — for alcohol-serving businesses with an annual cap, essentially reversing the 2022 changes.
He also suggested that businesses compliant under the program receive a credit as the new, lower rates are implemented.
Zahra wanted to see the rate slashed further, to 60 cents per square foot, which was supported by his council colleagues. At that rate, an annual cap would be $8,000, councilmembers agreed.
Councilmembers unanimously passed the lower rate and program changes with a 5-0 vote. The fee exemption for small businesses that do not serve alcohol will remain intact.
