SURF CITY — A third location for the Salty Turtle Beer Company may be on the horizon as Surf City looks to lease their welcome center.
READ MORE: Surf City residents face 30% property tax hike to fund essential services, growth
Surf City Town Council voted 4-1 to advertise a potential lease agreement with the Salty Turtle Beer Company to occupy space in the town’s welcome center during last week’s June 20 workshop. The lease proposal will return to the council for final approval in August after a required 30-day public notice period is completed.
Under the proposed agreement, Salty Turtle would lease the building for $8,750 per month, with a 3% annual escalation over a three-year term. The lease would be allowed to renew at council’s discretion. The tenant would also pay utilities, annual insurance and a security deposit on the facility.
Zach White, co-founder of Salty Turtle, said because the lease is yet to be approved, solid plans on what the space would look like are up in the air. Although, because it’s currently set up to be an event space, he said some renovations would need to be made to accommodate their business.
“If we went in there as a new bar/tap room concept it would be a few changes, but nothing too crazy,” White said.
Salty Turtle opened in 2017 and its flagship brewery is located under 2 miles from the welcome center. It’s best known for its eight flagship beers, such as Barnacle Bill’s brown ale, Coastline kolsch, and Hay Zay hazy IPA, but also brews 31 others seasonally.
In 2023, the brewery expanded to Raleigh. White said if the lease is approved, Salty Turtle’s current location at 103 Triton Lane will remain open.
“We’re not going anywhere. We’re still going to be in Surf City. This is where we started and this is where the home base is,” he said. “If we get this opportunity to do something cool over there on the beach then I think it would be a great thing for the area to extend our brand.”
White said the goal would be to have the two locations complement one another. Their flagship location would continue to focus on providing top quality craft beer, while the new location would have a beach-bar vibe with a bigger variety of beer options and a “killer view.”
Surf City’s town manager, Kyle Breuer, informed town council Salty Turtle would cover renovations to include the installation of beer coolers, bar lines and signage, as well as upgrading plumbing, lighting, the sound system and security.
The town would remain responsible for major structural maintenance and insurance claims needed for the building, as well as upkeep of the handicap ramp access to Roland Beach. But all other maintenance would be Salty Turtle’s responsibility.
Located at 102 N. Shore Dr., the welcome center is approximately 3,000 square feet and no longer accepts reservations for use as of May 5. Traditionally, the center has been available to the public to book for birthday parties, weddings, reunions and more. In FY2023-24 the center generated only $40,000 while spending $226,920 to operate it.
Breuer told Port City Daily revenue and expenditures of the center have fluctuated in recent years due to renovations and improvements conducted on the facility. Some of the most recent renovations were the replacement of windows and the roof to modernize and maintain the building. The trend of expenditures exceeding revenue has been consistent for several years.
“There’s a lot of funding that goes into that space and the return on that does not come close to meeting what the expenditures are for full-time staff, part-time staff, upkeep of the facility, et cetera,” Breuer said.
Breuer said there are currently no employees working within the welcome center so no one would be losing their jobs if the facility was leased.
The city previously advertised the space on their website and social media accounts. Breuer said several people expressed interest but ultimately Salty Turtle moved forward with the lease agreement.
While the proposal of the lease was well-received by most of the board, a few members were not fully convinced. Councilman Hugh Cannady provided the dissenting vote. While he agreed something needed to change at the center to ensure the city wasn’t losing revenue, he didn’t think leasing it was the appropriate option.
“The board knows this is not my first choice, not that it’s not a choice, it’s just not my first choice,” he said. “I do feel like this building is an amenity to the community and I feel like we’re getting ready to take that away without digging into it deeper.”
Councilwoman Trudy Solomon also expressed reservations, though she voted in favor of advertising the lease. She said the council tasked Breuer with “coming up with some other opportunities and some other ways to stop losing money on this.”
One option discussed during a council retreat in January was to sell the facility and use the revenue to invest in the town center’s central business district or Roland Avenue’s beach access 18. Another option was to use the space solely as an event center, but due to research done by Breuer, he came to the conclusion their rental fee and amount of available parking made it an unviable choice.
Despite reservations about leasing the space, other board members thought it was a good opportunity for the town.
“No utilities, no insurance, no maintenance, no employees, no TI [tenant improvement], this is a win-win for our town and taxpayers,” Mayor Pro Tem Jeremy Shugarts said.
One member of the community spoke on the lease during public comment, raising questions of whether there was enough parking for the location or if paid parking spaces would need to be relinquished by the city.
Breuer told the council parking would remain open to the public except for one space, designated for town use. Additionally, designated parking along the north side of the parking lot will be available for the tenant’s use.
“All that other parking would be dedicated to the welcome center or just general public parking, which is another benefit back to the town because that increases our paid parking revenue,” he said.
Breuer said the town is planning to create a “master plan” for the city and said the area will serve as a keystone for the island. By leasing the space the town hopes they will be able to generate revenue that will help them further invest in city projects.
“The town looks forward to seeking a renewed vision for the entire island Town Center in which this property will serve as a focal point for years to come,” he said. “This will provide an opportunity to generate revenue while the plan is being undertaken.”
Have tips or suggestions for Sophia Walsh? Email sophia@localdailymedia.com
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