"It's like being kicked in the teeth," said Kathy Regan. She and her husband, Pat, have operated Cedarcrest Restaurant at the Cedarcrest municipal golf course for five years, but their days may be numbered.

Regan admits they made a critical mistake. The lease under which they have operated since 2002 required the Regans to apply in writing to the city for an extension of the 5-year agreement. With busy schedules at work and home, the September deadline for the application passed them by.

Last October, the Marysville couple received notice that the lease would be put up for bid, and they were encouraged to submit a proposal for the restaurant's continued operation.

"We were told that if no one else bids, it would be ours," said Regan.

Another company did submit a proposal for the lease, however, so the Regans prepared to go patiently through the city's process. They made a formal presentation on January 14, and were assured they would be notified of the outcome "within a couple of days."

After weeks of waiting with no word, the restaurateurs were finally notified in late February that "they were no longer going to lease to us," said Regan, "and that the city was going to operate the business." The family must cease operations by March 31.

The Regans have hired an attorney and filed a lawsuit to extend the restaurant lease. The lawyer contends the couple "showed the intent of staying" with their continued investments in the business, even though they failed to apply in writing for the lease extension.

According to Regan, the city hopes to make up revenue losses from the golf course operation with profits from the restaurant.

A written statement from chief administrative officer Mary Swenson appeared to confirm the city's stance.

"The current restaurant arrangement is not paying the debt on the facility," Swenson wrote. "Changing direction in the operation of the restaurant will allow the City to direct its focus on retiring that debt."

Swenson noted that "the lessee failed to exercise their option to renew their lease according to the timeline within their signed lease." The statement also referred to the Regans' pending litigation and said "we have been instructed not to discuss the details" of the case.

The family-owned business employs 25 to 30 workers throughout the year, said Regan.

"We've worked so hard to build this business," she said. "This last year we spent over $10,000 on a commercial tent structure, complete with propane heaters, to expand the restaurant's capacity. We invested $1,500 to add pulltabs for customers."

"There have been no liquor violations, no health violations," she continued. "Our neighbors love coming here, and more than 500 people signed a petition to let us keep our business."

Those voices were not enough to overturn a signed lease agreement, so now it's up to the courts to decide the fate of the Regan family's livelihood.

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