City Commission to Vote on $380K Settlement with Brett’s Waterway Café Owners

By Mike Lednovich | Fernandina Observer

City commissioners will vote Tuesday on a proposed legal settlement that would pay $380,000 to the leaseholders of Brett’s Waterway Café, resolving a lengthy legal dispute over the soon to be demolished restaurant at the city marina.

The settlement agreement, listed as Resolution 2025-118 on the agenda, would bring an end to years of haggling and legal sparring including a lawsuit filed by Center Street Restaurant Group, Ltd., Amelia’s Restaurant, Inc., and Brett’s Waterway Café, Inc. against the city. The dispute emanates from the city’s 2021 notice declaring the Brett’s building substructure supporting the restaurant over the Amelia River was unsafe and its subsequent intent to condemn the structure, which the plaintiffs challenged in court.

Under the proposed settlement terms, the city denies any liability but agrees to pay the lump sum of $380,000 to settle all claims. In return, the plaintiffs agree to dismiss their lawsuit with prejudice and release the city from any further legal action related to the matter. Both sides also agree to bear their own attorney fees.

To cover the settlement payment, commissioners must approve transferring $334,570 from the city's contingency account and $45,430 from the IT salaries account.

The original lease between the city and the restaurant group —dating to 1997 — will remain in effect until it expires on December 1, 2025, unless the tenants choose to terminate early with 30 days’ notice. The agreement makes clear that the existing lease with the city cannot be renewed, extended, or held over.

Additionally, the city waives any claims for back rent or taxes and affirms that any property at the site — such as furniture or trade fixtures — remains the private property of the restaurant group and may be removed at their discretion. The city owns the restaurant building.

Inspectors documented these conditions of a concrete support bean under Brett's

A clause in the settlement also outlines that any needed structural repairs to the premises before the lease ends can be declined by the tenants, in which case they may terminate the lease early. The settlement states that upon expiration, the property will be surrendered to the city “as-is.”

The city also agreed to cover 60% of inspection of the restaurant's substructure of costs (up to $10,000) following any major storm that closes the nearby Shave Bridge, a stipulation that has been in place before re-opening the restaurant after storm-related closures.

The lease was held by Center Street Restaurant Group, who then entered into a sublease with Brett's Waterway Cafe, Inc. As a result of the sublease, the city has not collected any rent from the restaurant in more than a year.

Tuesday’s vote represents the final step needed for the city to formally approve the agreement. Once enacted, the settlement payment will be made within 10 days, and the lawsuit officially closed.