Restaurant proposed for Gulfport harbor

GULFPORT -- The city has a proposal for a privately owned restaurant at the harbor's south end, where Hurricane Katrina destroyed the iconic White Cap Seafood Restaurant that has since reopened on U.S. 90.

The city had planned to spend $4.1 million in Katrina recovery funds on a city-owned building that would house a restaurant and other businesses. But Chief Administrative Officer John Kelly said the idea was scrapped when it became clear a lot of restrictions would come with the federal funds.

Kelly said the city's urban renewal agency, the Gulfport Redevelopment Commission, recently advertised for proposals for a private restaurant at the harbor. Kelly, City Councilman Ricky Dombrowski and the five GRC members selected one proposal from three submitted.

Kelly said the city is negotiating a ground lease with an undisclosed restaurant group that submitted the winning proposal. The restaurant group would borrow money for construction, estimated to cost around $5 million, repaying the loan with proceeds from the business, Kelly said.

He expects a public announcement about the development within the next few weeks.

The restaurant would take about a year to build, Kelly said. The one-story building with a large deck would sit over the beach. Kelly said 20th Avenue, which curves around to the harbor's south side, would be rerouted so that it would not sit between the restaurant and the beach.

Because the property is in an area at high risk of storm surge, the building would have to sit about 26 feet above sea level. The city had planned to include a bait shop and fuel dock in a two-story building, but now that the federal money is no longer in play, Kelly said it will be a one-story building with jet-ski and kite rentals below.

He said the city is considering a barge for the bait shop, while the restaurant owner will operate the city's fuel dock, which may or may not be part of the new building.

Kelly said the city wants to get rid of the two Mississippi cottages where the bait and fuel shops are now located. The city has to move the cottages, which are on wheels, every few months to show FEMA the structures can be evacuated during a storm. It is costly and time consuming.

As for the Katrina recovery money, the city plans to transfer it to a project to clean out Brickyard Bayou. The $4.1 million will allow the city to expand the area being cleared, which is a flood-prevention measure.

Kelly said the bayou floods areas around Courthouse Road and 28th Street around U.S. 49. City officials believe cleaning out the bayou will alleviate much of the flooding. The additional money will allow the city to extend the ongoing project five or six blocks to the west.

This story was originally published March 7, 2016 at 5:20 PM with the headline "Restaurant proposed for Gulfport harbor ."