Uncertainty follows closure of Hermosa Beach’s Mermaid
The sand-facing storefront of the Mermaid. File photo
The Mermaid, a beloved bar-restaurant that sat at the foot of Pier Plaza almost continuously for more than 60 years, closed earlier this month, leaving one of the city’s most valuable parcels empty.
Killer Shrimp at the Mermaid, as the tavern had been known since February, closed the week after Labor Day. Killer Shrimp CEO Kevin Michaels said that the restaurant had suffered significant losses the previous winter, and decided to shut down at the end of the summer season.
Michaels blamed the departure on a variety of factors, including the ingrained reputation of the place as a relatively affordable tippling option on an increasingly pricey Pier Avenue.
“The Mermaid is this awesome spot. People like coming there during Happy Hour, and hanging out. But you are barely recovering your food and alcohol cost if most of your business is happening during Happy Hour. Rent was far exceeding 10 percent monthly gross, and once you go over that, it’s time to close, especially with the tougher winter months coming up,” he said.
For much of the Mermaid’s history, rent was not an issue. Long-time owner Quentin “Boots” Thelen opened the Mermaid in 1954, and owned the land, as well as several adjacent properties, until his death in 2007. Under Thelen, who served as mayor in the early ‘70s, the bar built a reputation as a favorite local watering hole and gathering place for South Bay politicians. Its lived-in charm earned it a spot on Esquire Magazine’s 2008 list of the “Best Bars in America.”
Following Thelen’s death, his successors, including step daughter Diana Albergate, sought a buyer for the prized property. Bolour Associates, a real estate development company, acquired the land in 2013. They plan to erect Strand and Pier, a hotel and retail development, on the land, stretching from Pier Plaza north to 13th street, and east from The Strand to the land now occupied by Playa Hermosa Fish and Oyster.
The project has been revised several times to satisfy community concerns. An application was submitted to the city in June, said Adam Eisenberg, vice president of acquisitions for Bolour. The city is nearing the end of its analysis of the project’s environmental impacts, but is not certain when the draft EIR will be released, said Community Development Director Ken Robertson.
The “Thelen” era of the Mermaid came to an end in the summer of 2012, when it closed. The bar reopened on weekends, and the business was acquired by Killer Shrimp in 2013, with the understanding that it would close if and when the Strand and Pier project broke ground. Killer Shrimp had been operating a separate restaurant at the location now occupied by Playa Hermosa Fish and Oyster, but combined with the Mermaid in February.
Michaels said that he knew there would be challenges operating a restaurant with an expiration date, but that these were exacerbated by decisions made by the city, including not allowing the restaurant to lease out spaces in its adjacent parking lot, as he said the restaurant had been permitted in the past, and not allowing a DJ.
Nico DeAnda-Scaia, an assistant to the City Manager, said that the Mermaid’s conditional use permit did not allow for a DJ, and that leasing of on-site parking spaces, without providing alternatives, violated city codes.
“As long as that business can provide onsite parking for their patrons, they are free and able to lease out. The Mermaid was at capacity. If they were to lease out that lot, their patrons would have to park elsewhere, impacting parking in the downtown,” DeAnda-Scaia said.
Michaels, who still retains the liquor license for the business, and Eisenberg said they were in talks with potential tenants, but could not elaborate.