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  #1841  
Old Posted Jun 6, 2014, 5:09 PM
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It looks like this is a dispute over workmanship rather than inability to pay. I'm sure there are ample funds in the newly created 28 Lister company - if only thanks to the owner fleecing someone through another company.
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  #1842  
Old Posted Jun 6, 2014, 5:59 PM
markbarbera markbarbera is offline
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Originally Posted by Jon Dalton View Post
It looks like this is a dispute over workmanship rather than inability to pay. I'm sure there are ample funds in the newly created 28 Lister company - if only thanks to the owner fleecing someone through another company.
Or, the operator of Lister Chop House is using an accusation of shoddy workmanship to delay payment until his cash flow 'issues' are 'resolved'. Sounds like his modus operandi.
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  #1843  
Old Posted Jun 6, 2014, 8:46 PM
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Originally Posted by markbarbera View Post
Or, the operator of Lister Chop House is using an accusation of shoddy workmanship to delay payment until his cash flow 'issues' are 'resolved'. Sounds like his modus operandi.
That was my first reaction too.
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  #1844  
Old Posted Nov 4, 2014, 2:21 PM
thistleclub thistleclub is offline
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Lister Chophouse Grill seized by city
(Hamilton Spectator, Meredith MacLeod, Nov 4 2014)

The troubled 28 Lister Chophouse Grill has been seized by the city.

Bailiffs posted a notice on the door shortly after 8 a.m. Tuesday. They also disabled the current locks. Security is posted at the door.

Owner Chris DesRoches implored city staff last night to give him a 48-hour extension on his default notice, said facilities management director Rom D'Angelo.

The request was denied.

The bailiff's notice warns any unlawful entry of the property "will result in criminal prosecution to the fullest extent of the law."

28 Lister has been plagued by repeated allegations of non-payment to contractors, employees and service providers.

A number of legal actions are underway.

D'Angelo says city staff are working on a request for proposals to find a new operator for the ground-floor restaurant in the city-owned Lister building.

He says there are 12 to 15 interested parties.

More to come
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  #1845  
Old Posted Nov 4, 2014, 3:23 PM
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Lister Chophouse Grill seized by city
(Hamilton Spectator, Meredith MacLeod, Nov 4 2014)

The troubled 28 Lister Chophouse Grill has been seized by the city.

Bailiffs posted a notice on the door shortly after 8 a.m. Tuesday. They also disabled the current locks. Security is posted at the door.

Owner Chris DesRoches implored city staff last night to give him a 48-hour extension on his default notice, said facilities management director Rom D'Angelo.

The request was denied.

The bailiff's notice warns any unlawful entry of the property "will result in criminal prosecution to the fullest extent of the law."

28 Lister has been plagued by repeated allegations of non-payment to contractors, employees and service providers.

A number of legal actions are underway.

D'Angelo says city staff are working on a request for proposals to find a new operator for the ground-floor restaurant in the city-owned Lister building.

He says there are 12 to 15 interested parties.

More to come
This really could've been all prevented had any one of those other 12 to 15 interested parties been chosen from the beginning.

Something tells me someone at the city received a bit of a kickback after DesRoches was selected.

Seems shady all around. An external investigation should be conducted reviewing the selection process.

And the city claims all the money given to DesRoches was spent on "capital improvements." Given his reputation I find that hard to believe. I have no doubt in my mind that he pocketed a decent portion of that money. The city IMO is claiming all taxpayer money went to capital improvements to cover their rear ends.
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  #1846  
Old Posted Nov 4, 2014, 4:12 PM
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Originally Posted by king10 View Post
This really could've been all prevented had any one of those other 12 to 15 interested parties been chosen from the beginning.

Something tells me someone at the city received a bit of a kickback after DesRoches was selected.

Seems shady all around. An external investigation should be conducted reviewing the selection process.

And the city claims all the money given to DesRoches was spent on "capital improvements." Given his reputation I find that hard to believe. I have no doubt in my mind that he pocketed a decent portion of that money. The city IMO is claiming all taxpayer money went to capital improvements to cover their rear ends.
The city would never cut Des Roches a cheque. They would pay for capital improvements directly. Since it was a custom build-out, these would include HVAC, electrical, insulation, finishing, and probably a fair share of the kitchen retrofit.

That being said, there should be an investigation into the selection. I remember hearing that there were three interested parties. When the city signed back the offers, DesRoches was the only one to resubmit.
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  #1847  
Old Posted Nov 4, 2014, 6:13 PM
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This really could've been all prevented had any one of those other 12 to 15 interested parties been chosen from the beginning.
Just to clarify - the city didn't have those 12-15 interested parties in the beginning. They are interested now because the business plan for the space is MUCH better now that the interior has already been fitted out by a tenant (including all the mechanical work the city paid for).

This actually isn't as bad a situation as the media would have us believe. We now have a much better chance of getting a reputable restaurateur in there.
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  #1848  
Old Posted Nov 4, 2014, 7:25 PM
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Originally Posted by arch100 View Post
Just to clarify - the city didn't have those 12-15 interested parties in the beginning. They are interested now because the business plan for the space is MUCH better now that the interior has already been fitted out by a tenant (including all the mechanical work the city paid for).

This actually isn't as bad a situation as the media would have us believe. We now have a much better chance of getting a reputable restaurateur in there.
Fair. But I mean the city was always willing to provide money for capital improvements. So any of those new potentinial tennants could have used that money to build to their own standards and fittings as opposed to what is left behind by DesRoche.
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  #1849  
Old Posted Nov 4, 2014, 10:01 PM
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quick get the people from Sirloin Cellar on the phone. Its a lay-up and an easy way to ensure an immediate, loyal customer base for years. The city owe's them a call from the fiasco on their former location. Seems like a great compromise....and the rent will never be late.
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  #1850  
Old Posted Nov 4, 2014, 11:46 PM
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Although I never ate there I would love to see the Sirloin Cellar end up in the Lister because then this whole situation would be wrapped up in a nice little bow and we could preserve a long time Hamilton business. Alas, I doubt this will happen.

Last edited by ihateittoo; Nov 4, 2014 at 11:58 PM.
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  #1851  
Old Posted Nov 5, 2014, 4:07 AM
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You just had to know there was going to be an excuse... and maybe a promise of something that is likely false to begin with. Threat of a lawsuit against the city is probably next.


City seeking new operator for ill-fated Lister restaurant
By Meredith MacLeod, Hamilton Spectator

City staff is working to find a new operator for its premier corner spot in the restored Lister building now that the plagued 28 Lister Chophouse Grill is no more.

There are 12 to 15 "reputable" restaurant owners from Hamilton, Oakville and Toronto who have expressed interest in the space, says Rom D'Angelo, facilities manager for the city.

A number of city departments are developing a request for proposals and "fast-tracking" the process as much as possible, says D'Angelo. "I'm pretty confident that we're going to get a reputable operator."

Owner Chris DesRoches says the city has made a "terrible mistake" in not letting him finalize a deal he says would have turned the restaurant over to a franchise operator.

Bailiffs changed the locks and posted a closure notice on the door Tuesday morning.

DesRoches had until 8 a.m. to pay outstanding rent and operating fees to the city. It was his second default notice for being in arrears since being granted the lease in the spring of 2013.

DesRoches contacted city employees Monday at 9 p.m. asking for a 48-hour extension on the default deadline. That was denied. D'Angelo says the city gave DesRoches 20 days to make good on what he owed in rent and operating costs.

The normal period is 10 days.

DesRoches was given longer because he has disputed some of the operating costs.

In an email to The Spectator, DesRoches claims his health is poor and that he suffers from a constant migraine, lives on pain and nerve-blocking drugs and faces a number of surgeries.

"I have the payment and always have," he wrote.

He says he asked for more time "in order to finalize a deal for the assumption of the lease by a well established franchise group, ‎all we needed was 48 hours to complete paperwork … cash is sitting in trust accounts. The city was advised of this."

D'Angelo says the city would have to approve a new leasee and a deal could only have been finalized if DesRoches was current on his rent.

DesRoches refused to name the franchise partner.

DesRoches goes on to say that the city's action was short-sighted because he could have an operator with "brand and celebrity name recognition, financial stability" running the restaurant "quickly."


Read the rest of the article here
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  #1852  
Old Posted Nov 5, 2014, 11:51 AM
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threat of Lawsuit by DesRoches would be funny....not sure how he would pay for the legal team, and sounds like his problems with the city are extensive enough to likely warrant that he was given plenty of chances.

Plus...who call the city at 9pm to hope to rectify a situation. Wouldn't that be like going to a school to get your homework after 6pm?

His call out on the city making a mistake for a big name franchise (Keg?) to come in, probably would have less hurdles if the interested party were to deal direct with the city. I'll bet one of the 12-15 interested parties is one party already at the table. Let's get the next place up and running before xmas season!
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  #1853  
Old Posted Nov 5, 2014, 1:49 PM
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Even if he did have a deal on the table, why not make the payment to the city (as they say he would have had to anyway to complete the deal) and put a reimbursement in the transfer agreement with this "well established franchise group"? Seems to me it's something that would be fairly standard, and the new lessee would probably be purchasing equipment from DesRoches and assuming responsibility for other financial obligations.

If you're going to create a cover, make sure it's not full of holes.
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  #1854  
Old Posted Nov 5, 2014, 2:02 PM
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“assumption of the lease by a well established franchise group” He is so full of it! If there was a franchise group they would have come forward before the closing date and said to the city “we are ready to take it over and make the payments”. They would have asked for a delay before the city changed the locks and posted a closure notice. The city is tight on lease transfers and it would have had to go to their lawyers and most likely council.
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  #1855  
Old Posted Dec 29, 2014, 1:41 PM
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Considering how much the landscape and marketplace has changed since this saga began, I wonder if the City will still be asking $15/sq. ft. for this space?

Bidding for former 28 Lister space open until Jan. 28
(Hamilton Spectator, Dec 29 2014)

Restaurateurs interested in operating out of the city-owned Lister building have until Jan. 28 to apply to the city.

A request for proposalswas released Dec. 19 "to select a qualified and experienced operator" for a 10-year lease agreement beginning about May 1 to take over the former home of pricey steakhouse 28 Lister Chophouse Grill.

The city will host an optional informational meeting to review the RFP process and offer a tour of the premises.

The meeting will be held in the restaurant space on the ground level at 28 James St. N., Suite 106, on Jan. 9 at 10 a.m.

The RFP indicates the restaurant space is available as a "turnkey" operation or "the successful proponent may, solely at its own cost, propose an alternative solution that meets its own unique vision for a restaurant that enhances the vision for the building and community."

The RFP also says the city "highly values the history of the Lister Block and sees it as a jewel in the downtown core … the corner stone of a rich and vibrant community that is evolving around the arts."

City staff has indicated there were more than a dozen parties interested in taking over the space, including at least two franchise operators.


Read it in full here.
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  #1856  
Old Posted Jan 14, 2015, 3:01 PM
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Lister Block restaurant: Can a committee make the right choice?
Steak? Ramen? A food blogger said the city needs to get the next restaurant right

By: John Rieti
(CBC Hamilton: Wednesday, January 14, 2015)

Six city staffers from departments including real estate and finance will decide who gets the second crack at opening a restaurant in the historic Lister Block building downtown. None have a food background or experience running a restaurant.

Rom D’Angelo, Hamilton’s manager of facilities and one member of the committee, said he’s aware restaurants are a volatile business and is considering adding an independent evaluator with experience in the food business to the group.

"We don’t have that expertise," D’Angelo told CBC Hamilton, adding the city is more focused on financial viability.

"I’m contemplating adding someone in there like an independent to bring in that kind of insight," he said.

Chris DesRoches, the last tenant, briefly ran a pricey steakhouse in the building before he suddenly stopped paying all bills last November, leaving restaurant locked up and employees suddenly out of work. For weeks, wine glasses and tableware sat untouched atop the 3,485-square foot restaurant’s tables.

D’Angelo is one of two people who sat on the committee that selected DesRoches’s bid, which he still says was the best offer at the time.

Chanry Thach, who has run the Hamilton-focused food blog The Hungry Gnome for nearly three years, said does seem unusual for the city to pick a restaurateur from multiple bids.

In other areas, like Locke St., "it’s usually a matter of 'if you can afford it, you get it'," Thach said.

Thach predicts whatever restaurant opens in Lister Block will have some "automatic love" from the foodie community, but the city needs to pick a restaurateur who will consistently deliver quality food.

"I think if they make another bad choice and it’s a flop, Hamiltonians would be very upset," said Thach.

City will be more careful with second tenant: Mac prof

Marvin Ryder, a McMaster University professor of marketing and entrepreneurship, said the steakhouse debacle "left a strange taste in people’s mouth" and that he thinks city staff will be far more thorough in researching their next tenant.

"You want someone who will just glide in there," Ryder said.

Who would Ryder pick? A restauranteur opening their third, fourth or fifth place with a proven record of paying employees and suppliers, as well as someone with a vision for the restaurant that will fit in with what he calls the renaissance on James St. N.

Ryder said the city could bring in outside consultants, but said he thinks city staff are capable of making the decision on their own.

Now, at least 12 operators plan to submit plans for the space, the majority of whom appear to be local, D’Angelo said. He said from what he can say none of the applications are from large chains or franchises.

"Some reputable restauranteurs have shown interest," said D'Angelo.

The potential bidders will be evaluated based on their background, history, experience and financial footing. One major change is that the successful bidder will have to include a letter of credit from a bank that shows the owner is good for at least one year’s worth of rent — approximately $60,000.

While the rent is negotiable — DesRoches reached an agreement with the city to pay $50,664 per year for 10 years – the letter of credit will let the city know "who’s a real player," D’Angelo said.

Lister Block remains a prime location

The city views the restaurant as a "turnkey operation," but D’Angelo said the winning bidder will have three months if they want to pay for any modifications. He said some operators have said they could have the restaurant up and running in weeks.

As for food style, D’Angelo said it could be almost any style or ethnicity, but he wants the restaurant’s concept to reflect the heritage of the building that houses it. "We’re looking for fine dining or family casual," he said.

"We’re not looking for fast food or tacos or anything like that."

What would the food blogger pick?

"I would still love a good steakhouse … I think that would be cool," Thach said.

"I would also love something that hasn’t been brought to Hamilton yet, like a ramen joint."

In the end, quality will trump style, Thach said.

"If you’re going to be an average Joe Schmo, you won’t do well with the majority of Hamiltonians ... Hamilton’s palette is more refined than that."

While the quality of the food will obviously matter for a restaurant, what the area really needs to achieve is what Ryder calls the "miracle mile" effect, where people choose to go to James St. in general with the assumption they’ll find a restaurant they like.

In that scenario, Ryder says the Lister Block is still an “untapped gem,” that will draw in plenty of Hamiltonians who just want a look inside the historic building.

The committee’s final selection is expected to go before council for approval in March, meaning the new restaurant could be open by the summer months.

The city's request for proposals process closes on Jan. 28.
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  #1857  
Old Posted Jan 22, 2015, 7:24 PM
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Document takers to operate a restaurant in the Lister Block as of 22 January.

Closes on 01/28/2015 3:00:59 PM (ET)
  1. 1195185 Ontario Inc., 180 James Street South Hamilton
  2. Aaron Waxman, 172 Hillcrest Ave Hamilton
  3. Brown Vitulli LLP, 69 Hughson Street North Hamilton
  4. Bum Contract Furniture Ltd. 2750 Coventry Road Oakville
  5. Carmen's Group, 1520 Stone Church Road East Hamilton
  6. Contren Management Consultants Inc., 1030 Upper James St 204 Hamilton
  7. Dynamic Hospitality, 955 Lakeshore Blvd. West Toronto
  8. Edgewater Manor Restaurant, 518 Fruitland Road Stoney Creek
  9. Gretas Restaurants Inc. 1811 Mail Street West Hamilton
  10. Lo Presti's at Maxwell's, 165 Jackson Street East Hamilton
  11. Radius, 151 James St. South Hamilton 905-912-0903
  12. Recreation Leisure Services, 45 Russell Hill Drive Barrie
  13. Romano's Fine Dining Inc., 154 Main Street East Suite 100 Hamilton
  14. Scarlett House Catering, 6905 Millcreek Drive Unit 1 Mississauga
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  #1858  
Old Posted Jan 22, 2015, 7:32 PM
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Wow, thanks for the leak.
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  #1859  
Old Posted Jan 22, 2015, 11:24 PM
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I'm leaning towards number 4 - The Bum Contract Furniture Bistro. Really rolls off the tongue.
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  #1860  
Old Posted Jan 22, 2015, 11:51 PM
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Some impressive names. Why wasnt the contract awarded to anybody but the last guy.

Radius. Romanos. Loprestis. Carmens. Edgewater.

All respectable. At least more respectable than the last tennant.
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