HomeMy WebLinkAbout05.a.2) (Handout)Monsoon Masala Inc.
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June 16, 2011 5.Q •Z
Central Contra Costa Sanitary District
Attention: Board of Directors and
Ms. Earlene Millier
5019 Imhoff Place,
Martinez, CA 94553
Re: Notice of Public Hearing
To give you a little background on the issue — We entered into lease agreement in
September 2006 and constructed the restaurant from October -2006 to April- 2007
after getting required permits from Contra Costa County. The capacity use
program was not mentioned anywhere in our lease nor at any point of the permit
process did county or the property ownerimanager reveal the existence of this
program to us. We were caught completely off -guard when two days after opening
the restaurant; a representative from CCCSD stopped by and told us that we need
to be compliant with capacity use program.
This program is unique to Contra Costa County; it was our first experience of this
kind so we had absolutely no idea what this was all about, who is responsible for
complying with it and what is the fee involved. We never considered the financial
aspect of Contra Costa County Capacity Use fees in our business plan. In hind
sight, if we had known about it we might have made different set of decisions.
However, since we had already invested a huge amount of money in constructing
and opening the restaurant, we had no choice but to agree to pay. At that time, we
asked the property owner to sign the Capacity Use agreement but they refused
and since the lease was already written and we had already invested in the
business, property owner had all the leverage and we couldn't do anything about
it We however, could not come up with additional $45,000 or so of lump -sum fee
so we agreed to a monthly payment plan of $1,630. Till date, we have already paid
about 40% of the total fee in about 4 years. In comparison, the amount already
paid is substantially higher than what would have been payable, had the property
owner agreed to sign the capacity use program.
Over the last two years, hit with wave after wave of bad economic environment,
we have somehow managed to get by and survive. However, we could no longer
afford to pay the $1,630 monthly fees to the county. Faced with drastically
reduced business (For example - our lunch business over the last two years has
all but disappeared and dinner business has
2375 Contra Costa Blvd, Pleasant Hill, CA 94523 @ Phone: 925.685.9100 . priyanka @monsoonmasala.com
Monsoon Masala Inc.
suffered immensely) — on one hand, and increased rent and food raw material
cost, on the other, we have had to invest everything we had in trying to keep the
business from going under.
Recently, upon learning the details of the capacity use program we found out that
if the owner agrees to sign the capacity use agreement the fees is levied over a
period of 15 years. To recap some relevant facts:
• We have already paid $18,834 under the program within the first 4 years.
• Remaining amount is $28,260.
+ Spread the remaining amount of fee over the remaining period i.e. $28,000
divided by 10 years and levies a yearly fee of $2,800, payable in equal
monthly installments.
If the county insists on us paying the whole amount, and refuses to take back the
lien on the property the property owner will shut us down. That will not only cause
great financial hardship to us but will also put 4 to 6 people out of employment
besides resulting in loss of tax revenue to the county in an environment where
many small businesses are shutting down every day.
It is true that we have had to put all our effort and money in trying to keep the
business going but our business model is solid. We have good reputation in the
market and over 70% of our customers are repeat customers. It is purely the
economic reality that we have more dinner customers than ever before, but sale
per customer has gone down. The lunch business has suffered because the
offices around us have shut down. Slowly, in the last 2-3 months, we have seen
some signs of life and business is starting to stabilize. We are willing to put all our
resources and effort into making this business a success, God willing.
Frankly, we are tired of fighting this constant battle on so many fronts. We appeal
to you to help us in these trying times and prevent this restaurant from shutting
down. Personally, we have done all we can, we have spared no effort, no financial
resource, even going to the extent of selling our family car at a loss to put money
in the business. If conditions improve we will willingly increase the payment
voluntarily to the extent that we can, but for now all we can afford is a yearly fee of
$2,800.
Best Regards,
Priyanka Kumar
2375 Contra Costa Blvd, Pleasant Hill, CA 94523 > Phone- 925.685.9100 priyanka @monsoonmasala.com