The Good Bar Faces Possible Eviction Amidst Contract Dispute with City

Peymo Group LLC d/b/a The Good Bar, a local restaurant operating within the San Felipe Springs Golf Course, is facing possible eviction by the City of Del Rio. The situation was sparked by a contract dispute. Both parties have sought legal counsel. Owners Dorian and Jose Carlos Guadarrama initially opened the establishment in October 2020 at 703 East Gibbs and relocated to the golf course in 2023 with hopes of business expansion. Instead, things have fallen short.

On March 11, 2025, Mayor Al Arreola announced for public knowledge that the Good Bar will be asked to vacate the city facility by March 31st. This announcement was made after a closed-door executive-session meeting with the City Attorney Ana Markowski Smith. Legal consultations are standard practice when dealing with contractual matters. City officials have emphasized that these closed-door sessions are necessary to protect private information and ensure sound legal counsel.

The City of Del Rio confirmed the eviction notice is due to non-payment of rent. Refraining from further comments, city officials said they have “contemplated litigation” but stated no formal legal action has been taken. In response, Jose Carlos Guadarrama has lawyered up. Guadarrama commented, “The only thing I can tell you is the city has been in breach of contract since day one.” The restaurant, known for its steaks and Tex-Mex cuisine, has been operating at the golf course location for approximately 1.5 years.

View of the golf course and abandoned pool, from The Good Bar's back patio

Discussions between Guadarrama and the City of Del Rio regarding their contractual agreement have been on-and-off since the beginning. Allegedly, the city made promises to The Good Bar that were not fulfilled. The Good Bar was expecting the city to improve the site over time, by rehabilitating the swimming pool, installing a marquee sign by the highway, and providing some new kitchen equipment. It is unknown how far said promises can be legally enforced by contractual obligations, that is what the lawyers are trying to figure out.

The original City of Del Rio vendor bid solicitation (R:2022-141) scope of work states, “Services will be provided at the San Felipe Golf Course, located at 1524 US-90, Del Rio, TX 78840.” It includes a designated vendor status for golf course patrons, and a contingency that the restaurant would be the exclusive food and beverage supplier. The scope of work extended to include catering services for at least 35 city events annually.

A major setback occurred when a city-initiated address change for the golf course led to unforeseen TABC restrictions, preventing The Good Bar from selling alcohol directly to golfers. This significantly impacted their revenue. Texas law mandates that alcohol vendors share the same address as the golf course. The city changed the address of the golf course a few months into the Good Bar’s contract, making it different from the one on TABC license. They likely didn’t realize it would cause a problem.

The exact reason why The Good Bar stopped paying rent has not been disclosed, but it reportedly hasn’t been paid in at least 4 maybe 6 months. Despite their original success, The Good Bar's transition to the golf course location has been laden with difficulties, including the TABC limitations, unfulfilled promises, and increased competition following the opening of Texas Roadhouse in Del Rio.

Public Works Director Greg Velazquez and Operations & Compliance Manager Scot Carcasi get funding for golf course safety improvement projects at city council meeting

City council meeting records reveal that while funds were approved for golf course improvements, such as prefabricated restrooms and bridges, requests related to the pool and signage have not. Operations & Compliance Manager Scot Carcasi addressed city council on 3/25/25. He explained how decisions are being made about funding golf course improvements. Carcasi said, “When those COs were issued, when council approved them, there was a scope of what they were to be used for… A bunch are from 2023, these were set aside for some of the park improvements for the Park Master Plan.” Public Works Director Greg Velazquez added that they are focusing on improvements for “safety first,” and “starting small to stay within budget.”

As the March 31st deadline approaches, The Good Bar continues to operate, expressing a desire to resolve the dispute amicably. However, with both parties now represented by legal counsel, their negotiations must henceforth proceed through formal channels. The future of The Good Bar at the San Felipe Springs Golf Course hangs in the balance, awaiting the potentiality of an amicable solution.