Lister Block restaurant: Can a committee make the right choice?

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.

'I think if they make another bad choice and it's a flop, Hamiltonians would be very upset.'- Chanry Thach, Hamilton food blogger

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

Any restaurant that opens in the Lister Block will be met with 'automatic love,' one food blogger says. (John Rieti/CBC)

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.