station pub owner says restaurant not open at its former montague waterfront location over lease dispute
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the owner of station pub says a dispute over a revised lease agreement with the montague waterfront development corporation (mwdc) has forced the business to shut down its waterfront location for the 2026 season.
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the owner of station pub says a dispute over a revised lease agreement with the montague waterfront development corporation (mwdc) has forced the business to shut down its waterfront location for the 2026 season.
mike monaghan, owner of station pub, said he refused to sign what he describes as an unfair revised lease that would make it difficult for the restaurant to operate. the mwdc, however, says the revised agreement was intended to clarify existing rules prohibiting deep fryers and other cooking equipment that requires ventilation.
“we took the lease to legal counsel, and our lawyer advised us not to sign it,” monaghan said. “we tried to negotiate a lease that made sense for both parties, but they refused.”
monaghan said station pub had operated from the montague waterfront for three seasons and was preparing to open for its fourth when the dispute escalated.
according to monaghan, mwdc presented the business with a revised lease earlier this year and gave him a deadline to sign it. he said after consulting a lawyer, he decided not to sign because he believed parts of the agreement were unclear and would make it difficult to run a food business.
as a result, monaghan said the business removed its equipment from the waterfront property and has not opened there for the season.
the main disagreement centres on cooking equipment, the use of an oil fryer.
jodi king, left, and her husband, mike monaghan, own station pub in montague. monaghan said he refused to sign what he describes as an unfair revised lease that would make it difficult for the restaurant to operate. contributed
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lease changes
chris judson, chair of the mwdc board, said the organization’s position has remained the same from the beginning.
“if you saw the two agreements, they never changed,” judson said. “the only thing is that we had to spell out that they could not have deep fryers in there because there’s no ventilation.”
the lease reviewed by the guardian shows that the 2023 agreement prohibited open flames but did not specifically mention deep fryers. the 2026 lease keeps the ban on open flames and adds new language about deep fryers and other cooking equipment that produces grease-laden vapours. it says that such equipment must meet fire marshal and code standards.
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judson said station pub was originally leased as a café and that monaghan was aware the space was not designed for deep frying or cooking equipment that produces grease-laden vapours.
“they bought it as a café, knowing there were no deep fryers,” judson said. “they knew that.”
judson said he discovered deep fryers and a large griddle in the building last year.
“when i walked downstairs, all i could smell was grease,” he said. “there is no ventilation in there at all.”
he said allowing that type of equipment in the building would create health and fire safety concerns.
“you’re supposed to have a suppression system above any fryer in a restaurant,” he said.
judson also said the corporation has received an estimate showing it could cost tens of thousands of dollars to install the ventilation and fire suppression systems needed to support that kind of cooking equipment. he said the work would likely require major changes to the building.
station pub is currently operating in a limited capacity out of the local legion in montague, but owner mike monaghan said the future of the business is not certain.
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fryer dispute
monaghan, however, told the guardian that the business used self-contained electric fryers and that the original lease only prohibited cooking with an open flame.
“they said they didn’t want them in there anymore, and we said ok,” he said. “we’ll take them out and figure out something else.”
he maintains that the revised lease included more than just restrictions on fryers.
monaghan said the new agreement added other conditions, including a security deposit and provisions dealing with garbage disposal and operations. the insurance requirement in the lease increased from $2 million to $3 million.
he said his lawyer advised him not to sign the agreement in its current form.
“we just wanted them to sit down with us and make up a lease agreement that makes sense for both of us.”
judson said mwdc did try to work with the business.
“i tried all winter long,” he said. “i offered to meet with them. i tried to get them to look at other equipment besides the deep fryers.”
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he said he no longer believes the business relationship can continue.
monaghan told the guardian that because of the ongoing dispute, his employees have lost their jobs.
“it’s not just us. it’s our employees, our suppliers, our families and the community.”
station pub is currently operating in a limited capacity out of the local legion, but monaghan said the future of the business is not certain.
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vivian ulinwa is a reporter for the guardian in prince edward island. she can be reached at vulinwa@postmedia.com and followed on x @vivian_ulinwa.
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