A settlement been reached between the Policy & Resources Committee and the tenants of Fermain Beach Café.
The former beach kiosk leaseholders have been compensated, and costs have been settled after the initial loss on the new tenancy.
Costs associated with the lease had already climbed to over £100,000, but the agreement 'brings the matter to an end'. With a court hearing no longer necessary, to avoid further costs.
Belmiro de Freitas and Manuela Walter will continue to operate the café until 31 October 2028.
In 2024, the lease was put to tender for the first time in more than two decades.
The current tenants tried and failed to secure renewal despite holding the lease for 21 years.
States Property Services agreed a lease with the owner of Coco and Lola in town, and Belmiro de Freitas and Manuela Walter were told they had to hand over the building by summer 2025.
Guernsey's Fermain beach kiosk gets a new owner
They refused, however, and took legal advice to challenge their eviction.
Deputy Lindsay de Sausmarez, President of the Policy & Resources Committee, said:
"Avoiding any further costs associated with another court hearing is clearly in everyone’s best interests and allows the tenants to focus on the continued operation of the café until 2028.
"While the terms are understandably confidential, we are pleased to have this amicable resolution with Belmiro and Manuela and wish them well over the coming seasons.’
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