CAPE MAY — Dining establishments on Washington Street Mall may pay less rent for a piece of the pavement.

City Council amended an ordinance May 6 to lower fees by 50 percent that eateries will pay to rent patio space on the pavement in front of their establishments on newly refurbished Washington Street Mall.

Council will hold a public hearing on the ordinance and a final vote May 20 at 7 p.m.

Councilman David Kurkowski said he had not heard any objections to patio fees of $5 per square foot per month for businesses that serve alcohol and $2 per square foot for restaurants that offer seating but no table service on their patios. He said he did hear objections to the $4 per square foot fee for establishments that don’t serve alcohol.

Kurkowski suggested lowering that fee to $3 noting restaurants that serve alcohol have a higher profit margin than those that do not. Council amended the ordinance to incorporate that change.

Council’s original proposal was to offer a 50 percent discount in the fees for the first two years.

Mayor Jerome E. Inderwies suggested deleting the patio fee rate increase in 2010 and keeping the initial 50 percent discount as the patio fee.

City Manager Luciano V. Corea Jr. calculated current patio fees on a six-month basis and the increased cost if council passed the original
ordinance.

He said A Ca Mia restaurant would have seen an increase from $1,600 to $3,800, pizza shop from $1,100 to $2,600, Cucina Rosa from $900 to $2,100, Dairy Queen from $1,000 to $1,200, Jackson Mountain from $4,000 to $6,000, Stumpo’s from $1,000 to $2,400, Uncle Charley’s $1,300 to $1,560 and the Ugly Mug from $5,000 to $7,500.

Deputy Mayor Niels Favre said restaurants that do not serve alcohol would have seen a 200 percent plus increase in patio fees.

Council amended fees to $2.50 per square foot for restaurants that serve alcohol, $1.50 for restaurants that do not serve alcohol and $1 per square foot per month for restaurants that do not offer table service.

City Solicitor Tony Monzo said the new ordinance would not take until the second week of June preventing restaurateurs from using the patios on busy Memorial Day weekend.

Council approved a motion to issue patio permits with the fees pending when the mall has been completed and bricks sprayed with sealant.