Port Orchard’s Lighthouse restaurant closed its doors Wednesday, Aug. 31, after a Tacoma-based buyer closed on his purchase of the distinctive waterfront building that the business has occupied.

A sales price had not yet been made public at press deadline.

The building has an assessed value just under $2 million. Taxes paid to Kitsap County are $24,000 a year.

The new building owner, Ali Kashi, owns a chain of Cheers Bar and Grill restaurants in the Puget Sound region. Kashi purchased the property from 429 Bay Street LLC, led by Tim Tweten. The seller then gave Konig a 30-day notice to vacate as the purchase agreement went into escrow.

Lighthouse owner priced out

Negotiations between Kashi and Lighthouse business owner Brookes Konig ended last week after the new owner presented the restauranteur with new lease terms, which included a $9,000 jump in monthly lease payments.

“The lease terms were outrageous,” Konig said. “We have been leasing the building for $6,000 a month on a gross lease basis. The new owner wanted $15,000 a month, which we — or any other restaurant owner — couldn’t justify and make money.”

He believes Kashi bought the building to house his own branded restaurant.

Konig notified the restaurant’s 43 employees of the imminent closure on Friday, Aug. 26. “I’d love for us to stay in the community,” Konig said while conducting an inventory count on the day the purchase closed. “We’ve had the same staff working here from the start.”

Konig purchased the existing Lighthouse business and reopened it in September 2014. He was just days away from celebrating his second anniversary there on Sept. 4.

Following the sale, Konig said 429 Bay Street LLC leased him the building on a month-to-month basis until the sale closed.

Konig emphasized that he wanted the Port Orchard community to know his intent was not to close, nor to leave the area.

“Business has been good. Last year we grossed $1.26 million in sales. This year, we were on track to take in $1.6 million.”

The outpouring of community support since he made the announcement early this week has been overwhelming, Konig said.

“I’ve been on the phone all day today with residents who’ve called me.”

The landmark restaurant has about 7,000 “likes” on Facebook, he said, more than any other South Kitsap restaurant — which attests to its popularity.

“I was just as surprised as everyone else when the announcement came out,” said Rob Putaansuu, Port Orchard’s mayor.

“I’m saddened for Brookes because he’s been a huge asset and has given back to our community in so many ways through his business.”

Putaansuu said he spoke with Konig on Tuesday about some ideas he had, “but nothing concrete,” he added.

“He’ll need to put together a good business plan if he reaches out to a property owner in town.”

By having to abruptly shutter his business, Konig said he’s taking a $100,000 hit on investments put into the building at 429 Bay St. He’s also sad about leaving his employees — including himself and his wife — without jobs. One still reeling from the closure announcement is dining room manager Lorin Corcoran, who said she doesn’t have a new job lined up — not surprising since it’s been only a week since the closure was announced.

“Our employees all live in the South Kitsap area and have local families,” Konig said. “This is the part that is so agonizing for me.”

Despite the abrupt closure of his business, the Lighthouse owner said he’s looking at locations in Port Orchard and Gorst where he might relocate his restaurant. Konig did stress that he won’t be taking the Lighthouse name to another location — for obvious reasons.

“There’s a lot of history in this building,” he said, “and calling a new restaurant The Lighthouse when it isn’t, doesn’t make sense.”

One dark horse candidate is the vacant 737 Bay Street building, which previously housed Myhre’s Restaurant for many years. That location is problematic, however, because its interior was gutted by a fire that blazed through the building in July 2011 and would need an extensive and expensive build-out.

Konig said he didn’t know if a new building occupant moving into 737 Bay Street would be on the hook to pay for the build-out that could take the better part of a year to complete. But one scenario he said is a possibility would be to temporarily lease the vacant Port Orchard Pavilion space from building owner Mansour Samadpour, whose Abadan Properties manages a number of properties he owns in Port Orchard — including 737 Bay Street.

Concurrently, Konig said, he and a new business partner could implement a plan to renovate the building’s interior for a new restaurant.

Putaansuu said he encouraged the restauranteur to reach out to the normally elusive Samadpour.

Konig said he has spoken with Samadpour about the possibility. The property owner-investor, Konig said, was open to discussing those plans.

“I fully support (Konig’s) ideas,” Putaansuu said. “Mansour is willing to commit resources to his properties if you have a good business plan.”

Just what Kashi plans to do with the lighthouse-topped building hasn’t been announced, but his group of Cheers Bar and Grill restaurants is expanding. Kashi has not returned a phone call for comment, but in a Renton Reporter article in August 2015, the new building owner said he plans to expand his Cheers restaurant chain to 10 restaurants in the Puget Sound area. He opened a restaurant — his sixth — in Renton last year.

An official in the City of Port Orchard’s Community Development department said no plans have been submitted by Kashi or his associates to remodel the Lighthouse building.