End of an era

Looming retrofits have sent two longstanding downtown restaurants searching for new permanent locations.

McCarthy’s Irish Pub, located at 1019 Court St. for 50 years, and Mo’s Smokehouse BBQ, located at 970 Higuera St. for 30 years, will be forced to leave in March as each facility is made earthquake compliant.

Quaglino Properties, which owns both adjacent facilities, has chosen to undergo the retrofits more than three years before a city ordinance mandates them to be completed. After the retrofits are finished, the leases for both restaurants will become null and void.

Mo’s owner Larry Kowalski said that the company is using the retrofit as an excuse to raise the rent and force his restaurant out of the location.

“We have a lease through 2009. We should be able to stay another year or two, but the landlord wants to kick us out sooner,” he said.

In order to keep the location after the retrofit, Kowalski said he would have to pay $7,000 more per month on rent and spend up to $400,000 to rebuild the restaurant.

“Generally, the landlord will pay for tenant improvements, but he’s charging us top-of-the-market rent and is not willing to pay for leasehold improvements,” Kowalski said. “I think that’s ridiculous since we’ve been there for 30 years.”

Mo’s, which also has a location in Pismo Beach, has a few leads for a new downtown location, Kowalski said. No specific spots were disclosed.

McCarthy’s bartender Jerry Bender said the pub hasn’t been invited to return after the retrofit is complete.

“Everybody’s sad. McCarthy’s has been here for like 50 years in the same spot. But the bottom line is McCarthy’s isn’t dead, it’s just going to a new location. We’re going to be here for a long, long time,” said Bender, who started as a doorman at the pub 18 years ago.

The pub is also looking to stay downtown, though a new location hasn’t been finalized. The owner of McCarthy’s could not be reached.

Matt Quaglino, real estate manager for Quaglino Properties, said the rent will be raised to recoup the cost of the retrofit and keep pace with property costs that have risen throughout downtown.

“Our business is leasing space. As like everything else, whether you’re selling space or selling beer, you sell it at a profit. No one wants to sell it at a loss,” he said.

Quaglino said he has turned down offers from businesses willing to pay $4.50 per square foot for the space. Mo’s and McCarthy’s currently pay $3 per square foot.

In addition to the retrofit, Quaglino said a glass store front will be added along the Court Street side of the facility. There are also plans to renovate the interior of the building. No decision has been made on what businesses will be brought into the new facility.

City economic development manager Claire Clark said a retrofit can take three months to one year to complete and cost $100 to $200 per square foot.

The retrofits stem from a 1997 city ordinance that required 126 buildings in San Luis Obispo to become earthquake compliant by 2017. These buildings, usually made from brick, were built at the beginning of the 20th century before building codes required the addition of steel to the masonry of all new structures.

After the San Simeon earthquake in 2003, City Council pushed the deadline forward to July 1, 2010 for most buildings. Currently, 69 buildings in San Luis Obispo, including Frog & Peach Pub located at 728 Higuera St. and Koberl at Blue restaurant at 998 Monterey St., still need to be retrofitted.