Riverfront Tumbleweed says adios, plans party

The Tumbleweed restaurant at Waterfront Park is closing, with its last day Nov. 15, the restaurant corporation confirmed Friday.

An agreement on the closure of the Tumbleweed Tex-Mex Grill & Margarita Bar off River Road near the Big Four Bridge was reached late Thursday amid an onging dispute between the restaurant and its landlord, Waterweed LLC, over how much back rent the restaurant owes.

"It's been a great run and a lot of fun," Matt Higgins, Tumbleweed's president and CEO, told reporters Friday at a news conference. He confirmed the restaurant's imminent closure and a plan for what he called a "hasta la vista, baby" celebration to make the shuttering.

Unfortunately, because of what the restaurant deems as prohibitive lease provisions, "it's not been a profitable" operation, Higgins said, adding that "we are leaving with our heads held high."

Waterweed leases the riverside spot from the Waterfront Development Corp. and subleases it to Tumbleweed.

Tumbleweed's abandonment leaves the location available to another operator. And at least several potential operators reportedly have a keen interest in the site.

David Karem, the Waterfront Development Corp. executive director, said the agency "looks forward to working with Waterweed to acquire a new tenant as quickly as possible."

And, asked if Waterweed is confident it can find a new tenant, Greg Berman, Waterweed's attorney, said, "We believe it is a terrific location."

Most of the noontime visitors to the restaurant Friday were inclined to bemoan the impending closure.

"I like the food, and the prices are good, especially the $5 lunch specials," said Brian Luckett.

"It's a shame that it's closing. It's a great location, and it offers a great opportunity to get out of the office and eat on the riverfront and enjoy the view," said Jeff Peden, another frequent Tumbleweed visitor.

"I like the food, and love the location and the view," echoed Matt Eckert. Although he said he will miss Tumbleweed, he said he probably will become a regular customer of whatever new restaurant might replace it.

Higgins and Berman said the amount of back rent to be paid is still being negotiated.

Jefferson District Judge Erica Williams signed an "agreed judgment" in the case Friday morning. Berman said the order specifies that, if Tumbleweed remains on the riverfront property past Nov. 18, then Waterweed can "set out" the restaurant's furnishings and equipment for sheriff deputies to haul off — in other words, to start eviction proceedings.

Berman said district court does not have the ability in eviction disputes to issue orders involving money payments — including payment of any back rent — but merely has the authority to determine who has rights to the disputed property.

In a counter to Waterweed's eviction effort, Tumbleweed filed suit in Jefferson Circuit Court last week against both the waterfront agency and Waterweed, challenging any eviction and contesting the amount of the rent owed. That litigation remains in place.

Berman and Higgins both said, however, that they expect soon to resume negotiations on the rent. Berman declined in an interview to say exactly how much he thinks is owed but emphasized that the landlord strongly believes that Tumbleweed is in default on the lease.

Higgins said that, for now, Tumbleweed has no intent to withdraw the Jefferson Circuit Court suit.

Higgins said Friday that the riverfront restaurant — a two-story structure with about 12,000 square feet of space that employs as many as 100 people at peak times — will throw a going away party to celebrate the closure, with details of the celebration apparently to come.

He said he expects to relocate all of the waterfront restaurant's workers to the chain's other area stores.

Higgins said that Tumbleweed wasn't interested in staying on the waterfront, unless it could arrange more favorable lease terms. He said the restaurant had lost $1.8 million in recent years.

In the circuit court suit Tumbleweed contended that it has overpaid rent by about $270,000 since 2011 and asked for reimbursement for that amount from Waterweed. In comparison, the waterfront agency has contended that the restaurant owes $57,000 in back rent.

Tumbleweed has operated at the riverfront location since 2005. It has paid varying amounts to the waterfront agency under the lease, most of the time 3.5 percent of sales. The restaurant paid $115,000 to the agency last year and $105,000 in 2012, Lawrence has said.

Tumbleweed has said it has held back rent payments in the hope of attaining less expensive lease terms.

Tumbleweed has more than 20 restaurants, about half of them in the Louisville area. Tumbleweed emerged from Chapter 11 bankruptcy in 2010, several years after filing for financial reorganization.

Reporter Sheldon S. Shafer can be reached at (502) 582-7089. Follow him on Twitter at @sheldonshafer.