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Fox Surf Shop Pulls out of Casino.
Fox originally put in an offer of $30 a square foot and got offered the space at our new casino. When it came down to the nitty gritty, Fox thought they had us stupid folks over a barrel. They told the city they only wanted to pay $25 per s.f.
I agree with the owner, however, when he said, "The entire leasing process has been an utter nightmare that has been going on for almost a year. The city is being shortsighted in allowing the bidding process to dictate the initial base rents. Highest bidder 'wins' can quickly turn into highest bidder 'fails.' "
Can we now get LW Tee back on the beach?
ReplyDeleteCan we kick Margolies and Snitkin's sorry azzes out of our town and get back our loyal businesses like L.W. TEE?
ReplyDeleteEven though the taxpayers are going to be on the hook when they can't pay the rent?
ReplyDeleteThere is a Letter of Credit built into the lease. There is a guaranty. They were at our beach for 25 years. They are paid in full and don't owe the city anything. Why do you keep harping on BS?
ReplyDeleteHello Lynn, I read in the paper this morning about the bad news with old vendors that will not sign on with $30.00 per sq ft on 1,348 sq ft which equates to $ 3,370.00 per months rent plus tax ($202.22) plus utilities (guessing $1000.00 per month including phone and insurance of some kind) plus employees ( ? ) which equate to $4,572.22 plus 2 employees at $4000.00 a months = on the very conservative side is $8572.22 per month of over head.
ReplyDeleteHow many tee shirts will they have to sell just to cover the overhead at say $ 10.00 of profit plus cost each tee shirt which they don't make that much on and forget that the big retailer are selling the same tee shirt for $ 10.00 total. So $8572.00 div. by $10.00 profit each sale = 857 tee shirts per month div. by 30 days is 28 tee shirts per day and for every 5 customer (I could be wrong on this number it might be more) that come in one will buy something , so they will need 140 customer per day just to make the overhead cost.
Its unsustainable, it will not happen and the owner has not made a profit yet, yes the idea of starting a business is to make a profit. In today's business environment there is no profits for the most part for small business's, it's all about the big corporations and all these small to mid-size business will fail, bankruptcy is the word of the day.
I'm not at all surprised about commissioner Mulvehill's response as being shocked that somebody pulled out of the lease because it's very desirable, she is a socialist European with government glasses. Cadillac's are very desirable but not every one can have one, $400,000.00 home with on money down were very desirable and most every one bought one and look what happened and now we have a big building expensive building that will not be able to pay for itself and these asshole in local government will look to the peasantry local residencies to pay for it at a time when we are already over burden with taxes.
I don't care what small business it is, in today economy they can barely pay $1000.00 a month for rent, and the business economy is not coming back anytime soon. The city is now trying to put a square peg into a roll hole and it will not work out well.
How can anybody be surprised that none of this will work and should not have been done in this manner?
CF
The asshole in this little drama is Fox Surf, who did everything they could in collusion with Snitkin and Margoles to screw Barry Freedman. Now that they have succeeded, they decide that they are not interested? Total assholes. Maybe they should have consulted a high-power economist like CF before they turned this into such a farce.
ReplyDeleteBTW, the Sundries Shop will be selling more than t-shirts. Also BTW, apparel has quite a nice margin.
And there are about 1300 residencies (sic) in LW who are overburdened with a big FAT ZERO tax bill, which Mulvehill the european socialist tried to remedy. Can we get some more european socialists to run for office please? They're better than the podunk uneducated nimrods we got now.