Vito, NYPD PizzaI guess the star of the evening, at least in my mind, was Commissioner McVoy. He has not forgotten what we petitioned for several years ago and what the people told him then. We want to keep our beach a beach; we do not want further commercialization of our beach park. Rachel Waterman also had a good understanding of what the people have always said that they wanted.
I have never been happy with the idea of Johnny Longboats there especially wanting to take the upstairs restaurant space as well. A sports type bar is not what I envision for our new building costing $6 million and designed to our 1922 elegant Casino. As several of the public mentioned last night, we asked for a restaurant for fine or upscale dining on the second level. We have never wanted a business to take over our Casino and dictate hours of operation. We never wanted early morning closing hours. It is our property.
I went to the beach lease meeting with the expectation that the Commission would be signing the beach leases and throwing out NYPD Pizza and Lake Worth Beach Tee Shirt Company. It was an upsetting thought as these two companies have been at our beach casino for 17 years and 25 years. They have proven that they could have a successful business by the sheer fact of longevity.
The real estate broker, Snitkin, as well as the City of Lake Worth were the culprits, the ones who put the wrench in the wheel. Snitkin brought 3 other pizza companies to the table for consideration. This never should have happened as NYPD had right of first refusal and the City Commission had already accepted their Letters of Intent. The City Staff nixed it with a bad recommendation (due to paranoia as previously stated in another blog) because they were sometimes late in paying their rent. The NYPD shop was late over the past 32 months due to the uncertainty of the entire casino situation. Everyone was operating there never knowing if the building was going to be condemned the next day. He got slow on his rent during that time but subsequently paid everything in full as he did for the prior 15 years.
I can well understand why the City wants to be extra careful as to whom rents in our Casino. It must be a business that can make money, afford the rents and the City has to feel comfortable that they can do so as the building must pay for itself. If just one store defaults on a lease, it could cost us dearly. As Scott Maxwell said, this has to operate as a business. But these two long time tenants have already proven they have sustainability.
Attorney Tom Connick with Barry FreedmanBarry at Lake Worth Tee is asking for one exclusive because his business is 100% with "name-drop" merchandise. He wants anything with the words, "Palm Beach," "Lake Worth," "Florida," and "Lake Worth Casino" to be his exclusive.
The Fox Surf Shop, on the other hand, wants to encroach upon the merchandise usually associated with a typical and classic tee-shirt shop. Fox has asked for ten exclusives that consist of clothing with name-drops that the owner says is 30% of his business, gifts, ladies and junior beachwear, sandals and shoes, jewelry, beach accessories, swim-wear, sunglasses and hats, surfboards and surf accessories (that one is definitely reasonable) and souveniers. Barry's has asked for one exclusive that is 100% of his business.
It's no wonder that the two owners could come to zero compromise on exclusivity. Fox wants to sell and have an exclusive on everything under the sun including surfboards that should be his main business and Barry just wants to sell his name-drop merchandise as he always has. Vice Mayor Mulvehill was correct when she suggested several times that each have only one exclusive.
The City Staff once again gave Barry's a poor recommendation in order to solve the "problem" not considering the circumstances or his long tenure at our beach, a repeat of the NYPD situation.
The brokerage firm of Anderson and Carr was represented by Robert Banting who has served as president and managing partner of Anderson & Carr since 1994 and Paul Snitkin, head of sales and leasing for the firm. I have to say, in spite of their top reputation, these two were the most negative brokers I have encountered in quite some time. Banting actually said that they can't rent the 2nd floor level--no one wants to be there.
This is ocean front property and will be a brand new building. Other very successful restaurants are in buildings on upper or roof levels. It certainly can be done and it just takes a broker willing to do the job and earn that 7% real estate commission to find the client. They didn't even have to find Johnny Longboats. That sweet deal fell in their laps. They and the City really do not want to look further. The City Staff would rather give Longboats what they ask: lower rents; no escalation during the 10 year lease and a closing time of 2am. This is the time to find that tenant so that the building can be built to accommodate that upstairs entrance whether it is an extra elevator or staircase as Chris McVoy said.
Nothing was voted on last night. The Commission asked Anderson & Carr to discuss the business model with Johnny Longboats as they had long left and had not made a formal presentation--no visuals, no menu, no back-ups and it was felt that their vision for our community is not what we want as it does not represent the character and flavor of our beach park. It was also stated that there must be a balance of hours, personal guarantees and possible additional security deposits.
I am happy that we had a Commission that stood up for what was right and not what staff pushed on us.
Yes, a nice restaurant on the second floor over-looking the ocean and the Florida sunsets in the evening is just not rentable. Who in this world would want that sort of a view for their diners? I can't imagine a soul. Longboats is jerking us around and the CM is culpable.
ReplyDeleteWhat about Golden asking Kilwin's to reduce prices for the poor? Why is there such a problem about Kilwin's prices because the Mayor and her family can't afford to go there. That's like advertising to "her public" not to support one of our local merchants. You have to pay for quality and it is worth it. Save up and only go occasionaly as a special treat. Kilwan's is a successful chain and somehow they have gotten along without advise from our "Peanut Gallery". Also, Rita's across the street is comparable in price. Next, is Dave's going to picked upon because in someone's opinion their beer is too expensive. Wonder would the Mayor would do if someone complained because her husband's sculptures were not affordable to the "poor"!
ReplyDeleteThey're not even affordable to the rich. Have you seen those prices?
ReplyDeleteAll the Commissioners were very aware and agreed that the beach would need tenants right off the bat that were solid, dependable money makers.
ReplyDeleteIn my experience it is never acceptable, nor legal to decide to stop paying the rent. You are bound contractually to pay your bills and if there is an issue, you discuss that separately.
Joann Golden, et al, do not want franchises..nor their proven track records.
Publix became very frustrated with the environmental demands thrown in by the Commissioners late in the game.
Now I understand that they are once again, late in the game, throwing monkey wrenches at prospective beach tenants by demanding they use only 'green' products.
Not so sure one can legally force someone to pay the high cost of ' green products'. And how would they enforce it?
Lynn, you seem to have such disdain for real estate brokers. Can't understand why you don't think they deserve their commission fees.
Isn't it possible that LW is a very difficult client to have?
Commissioners seem to change their tune constantly. I believe they say one thing to please the public, but they really still stick to their own agenda. Honestly, asking Kilwin's to come up with an inferior product line so 'the poor' can be customers is such a socialist agenda, it boggles the mind.
This is indeed Joann and her cohorts through and through.
Their socialist agenda will never succeed at the beach. Meaning the beach won't succeed.
Who in their right minds wants to deal with all this when considering the Casino?
Yes, it's waterfront - but it's LW waterfront and that brings with it a whole pot of problems that a great many merchants have no desire to deal with.
So frustrating, but please look at the other side of the equation.
If I had rental, but insisted that prospective renters only use expensive 'green' products to clean the house, and can only take a shower 3x a week, only use the A/C for the hours I say you can, and that you must have and use bicycles, do you think that might have an effect on the amount of renters considering a lease?
Signed,
Frustrated beyond the pale (and very worried about the Casino)
A distain for real estate brokers? That's rich. I AM A REAL ESTATE BROKER.
ReplyDeleteNow, for the next attack on the commission. Waterman brought up the green product usage. Not one prospective tenant when asked, had a problem with it. So what IS YOURS? That is NOT the stumbling block here.
I believe in Lake Worth obviously a whole more than you. I also don't happen to like a broker who is making a lot of money off the City who has a negative attitude.
I had mentioned to Kilwins myself months ago that their ice cream was expensive and therefore I seldom frequented their place.They were thinking about adjusting the price and since that conversation, they will not. They did say they have an idea about a discount card for LW residents and I think that is cool. The beach is a place for families. If they want to charge $6 for a cone (the price I paid) then they will find out quickly if they have a market for that. If not, they will adjust accordingly.
Lynn,
ReplyDeleteWhat do you have against a business being open until 2am at the casino?
Lynn,
ReplyDeleteYou don't seem to like socialism, yet you want to dictate pricing to business owners. If Kilwins is successful enough with their current business model and pricing to consider expanding to the beach then why don't we allow the free market dictate what they charge?
If you hear the brokers being negative, don't you think that it is because of the responses they are getting from potential clients?
ReplyDeleteDoesn't it seem likely that while other towns have successful 2nd floor restaurants the difference here is well, here. It's Lake Worth.
Don't you think that the brokers WANT to make this deal happen?
What do you figure is the reason clients aren't lined up to be at the Casino?
How did I dictate pricing, anonymous at 6:16. Kilwins just does not get my business. I do not buy things I can not afford unlike a lot of people.
ReplyDeleteAbsolutely believe in capitalism and the market should dictate the price. I believe that is what I said above when I said that Kilwins will find out soon enough whether its pricing fits the beach goers.
I don't like any business dictating to the owner how things should be. Normally it is the other way around in this life and if someone doesn't like it, they take their chips somewhere else.
2am is stupid and unnecessary. If this business could afford the staff, he probably would be opened 24 hours a day to make that buck off our beach. Who knows.
I have no idea why that broker is negative. My guess is that he needs to work harder to sell an ocean front space. That's the first step. My next guess is that he has made his commission with Longboats. Who knows.
Lynn at 8:11
ReplyDeleteIt just can't have anything to do with LW, right?
Must just be that gosh darned lazy broker.
Re. the 2 am closing time. Why is it stupid and unnecessary? The whole idea of a business is to make money. I guess a 24 hour dinner is stupid and unnecessary in your view. The business knows best what hours make the best sense for producing income. oh yes they will be employing people during those hours too. If the business can make a profit, pay the rent and employ people during those hours you need a better argument than just "it's stupid and unnecessary".
ReplyDeleteDoes the 2 am closing time have any negative impact on the beach?
Heck I want companies to make money off our beach!
John G's made money "off our beach" for 37 years and closed at 3pm and all you people ever did was gripe about them. This is the same little band of people who believe that we should just give it away to whomever asks. Phooey.
ReplyDeleteTo the guy above, this is our oceanfront property not for a diner on US#1 or out in Podunck, Kentucky that can stay opened 24 hours. This is on OUR terms, not the renters. If we want an earlier closer time, that is our right, not theirs. They should be able to make money closing at 3pm just not quite as much money. They want to have all sorts of concessions on rent, security deposit and escalation clauses. The lease should be OUR terms.
I am just one among many who do not want this at our beach. Bars and rowdy crap is UNNECESSARY at our park so that Longboats can make a lot of money. If you believe that they should make a lot of money off the people's beach park, tell them to find that "deal" anywhere else on ocean property.
I can't have a point of view?
the problem is we are not OUR but you seem to feel you are. Again let us have a chance to have something different and if it does not work out cancel the lease.. What is another lawsuit??
ReplyDeleteThe facts of the matter are that WE are many. I am not alone in my thinking, pal. Cancel a lease? Great forward thinking...must be from city hall.
ReplyDelete