ST. JOSEPH — Silver Beach Pizza has solidified its future in St. Joseph by securing a long-term lease agreement with the city. The St. Joseph City Commission approved the 30-year lease extension on Monday, allowing the popular pizzeria to operate at its current location until 2054.
The lease agreement aligns with the proposal made by Silver Beach Pizza’s co-owners, Jay Costas and Tony Bertig, during the city commission’s meeting on August 12. Initially, the owners considered purchasing the building, but ultimately decided that extending the lease was a more viable option for both the city and their long-term plans.
“We appreciate city attorney Laurie Schmidt for drafting a lease that reflects our proposal,” Bertig said on Monday. “We also thank Commissioners Sarola and Ulrey for their efforts.”
The decision to pursue a long-term lease came after the owners encountered complications related to Amtrak’s ownership of the railroad, as well as issues with the road entrance, ramp, stairs, and the building’s location in a street right-of-way. Since March 2005, the Amtrak railroad depot at 410 Vine St. has been leased from the city by Valpo Pizza, Inc., the parent company of Silver Beach Pizza.
Bertig, who co-owns the pizzeria with members of the Costas family, expressed confidence that the long-term lease will ensure Silver Beach Pizza remains a fixture in St. Joseph for decades. Their proposal for a 30-year lease was reviewed by the city’s property committee, which includes Commissioners Mike Sarola and Tess Ulrey.
The original lease, dating back to 2005, had been extended several times, with terms ranging from five to seven years. Over the years, the owners have invested more than $1.5 million in improvements to the building and grounds. These upgrades include expanding the parking lot, adding an elevated dining area, constructing additional restrooms, and creating a new Amtrak passenger waiting room.
City officials praised Silver Beach Pizza for its success in a location where other businesses have struggled. They noted that the restaurant draws visitors to the community, serves as a good partner, and aligns with the city’s long-term goals and downtown vision.
Under the new agreement, rent will be set at $2,080 per month starting in June 2025, with increases based on the Consumer Price Index and annual inflation rate. The rent increase will range from a minimum of zero to a maximum of 5 percent per year. Additionally, Silver Beach Pizza will make an extra rent payment of $25,000 per year for eight years, starting December 1, contributing a total of $200,000 to the city.
Bertig also agreed that Silver Beach Pizza would cover all repairs and maintenance, excluding any major environmental remediation. The city, which has accumulated over $200,000 in a deferred repair account, will now have access to those funds for other uses.
City attorney Laurie Schmidt noted that the new lease agreement retains much of the previous terms, with updates to remove outdated provisions and include new requests.
The city commission voted unanimously to approve the agreement.
“Thank you for being a valued part of our community,” Mayor Brook Thomas told the Silver Beach Pizza owners.
