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Sean Murphy withdraws his pier lease bid

Sean Murphy withdraws his pier lease bid

ANNA MARIA – Restaurateur Sean Murphy has withdrawn his bid proposal to lease the city-owned restaurant and bait shop buildings at the end of the new Anna Maria City Pier.

Today, Sean Murphy sent Anna Maria Mayor Dan Murphy a note regarding his decision to withdraw his offer. The mayor then forwarded copies of that digital communication to city commissioners, along with his own response.

In his note to the mayor, Sean Murphy wrote, “It was my intention when I entered the RFP process to be as helpful as possible to you in your endeavor to find the best operator for your pier franchise. I was far from certain that the operator should be me, but I was convinced that I could be helpful.

“Since I formed that resolution our community has been assaulted by a pandemic. The hospitality industry has been turned on its head. I was dismayed when my RFP became one of only two submitted at the closing date and was further dismayed when the motion was made and then passed that we would be the first negotiant. I believe we have fallen into a difficult time for planning any hospitality project. It is not your fault that in the middle of your RFP mechanism our world has turned inside out,” Sean Murphy wrote.

“I would recommend to you and the commission that you begin the RFP process over again when potential applicants have adjusted to the new environment and can make better decisions. I am certain that you will receive more and better proposals than you have now. I am withdrawing my proposal and encouraging you and the commission to begin again,” Sean Murphy wrote.

In response, Mayor Dan Murphy wrote, “Sean. Thank you for your note. I will relay your note to our commissioners. Our city appreciates your having taken the time to bid and hope that if a new RFP is issued, you would consider submitting an offer again. This will confirm receipt of your notification withdrawing your offer from further consideration for the City Pier restaurant.”

Sean Murphy withdraws his pier lease bid
Sean Murphy’s Beach Bistro restaurant had not yet reopened as of Saturday. – Joe Hendricks | Sun

Previous actions

During the special city commission meeting on Wednesday, the commission voted 4-1 in favor of authorizing Mayor Murphy to begin pier lease negotiations with Sean Murphy, the owner-operator of the Beach Bistro and Eat Here restaurants in Holmes Beach, where he also owns and operates The Doctor’s Office craft cocktail bar.

Commissioners Joe Muscatello, Mark Short and Amy Tripp supported Commissioner Jon Crane’s motion to move forward with Sean Murphy as the commission’s preferred pier tenant. Commissioner Carol Carter opposed that decision.
The commission majority selected Sean Murphy’s offer to pay the city $14,000 per month in base rent over the $18,000 in monthly base rent offered by the Ugly Grouper LCC group that includes Ugly Grouper restaurant co-owner Mike Ross and General Manager Thad Treadwell.

On Friday, Tripp submitted a request to rescind the commission’s pier lease decision. Tripp’s request for a “Motion to rescind action taken at meeting of May 6,” was then placed on the agenda for the commission’s next meeting on Thursday, May 14.

On Sunday, Sean Murphy withdrew his offer. Now that he has withdrawn his offer, the commission will decide on Thursday whether to authorize Dan Murphy to begin lease negotiations with Ross and the Ugly Grouper LLC or to reject both bids received and issue another request for proposals (RFP) as part of its efforts to secure a new pier tenant.

Thursday’s meeting

Because city hall remains closed to the public due the coronavirus (COVID-19) pandemic, Thursday’s commission meeting will again be conducted via telephone, and public comment will be allowed. The meeting will start at 2 p.m. To listen to and/or participate in Thursday’s meeting call 1-408-650-3123 before the meeting starts. When prompted, enter the access code, which is 590303789.

Commission will discuss rescinding pier lease decision

Commission to reconsider pier lease decision

ANNA MARIA – On Wednesday, the Anna Maria City Commission voted 4-1 in favor of authorizing Mayor Dan Murphy to begin pier lease negotiations with restaurateur Sean Murphy.

Next Thursday, May 14, at the request of Commissioner Amy Tripp, the commission will reconsider that decision.

When contacted Friday, Tripp declined to comment on why she’s asking the commission to take such action.

Referred to as Thomas Sean Murphy in his bid proposal, Murphy is the owner-operator of the Beach Bistro and Eat Here restaurants and the Doctor’s Office craft cocktail bar in Holmes Beach.

During a special city commission meeting Wednesday, Commissioner Jon Crane made the motion to authorize Mayor Murphy to begin pier lease negotiations with Sean Murphy. Commissioners Joe Muscatello, Mark Short and Tripp supported Crane’s motion. Commission Chair Carol Carter opposed the motion.

The commission majority chose Sean Murphy’s offer over the proposal submitted by the Ugly Grouper LLC headed by G. (Gary) Michael Ross. That proposal notes the Ugly Grouper restaurant in Holmes Beach is co-owned by Scott Rolen – a retired Major League Baseball player. Thad Treadwell is listed as general manager.

On Friday, the city released the agenda for the May 14 meeting. The agenda item says, “Motion to rescind action taken at meeting of May 6.”

The agenda item includes a subsequent request from Mayor Murphy that says, “Consideration of City Pier lease RFP proposals – if previous motion is successful.”

During Wednesday’s meeting, Mayor Murphy presented the commission with three options: Choose a preferred bidder to begin negotiations with, reject both bids and reissue the RFP that was issued before the COVID-19 pandemic struck or take no action at the time. It is not known what options will be considered at Thursday’s meeting, which begins at 2 p.m.

Because city hall remains closed to the public, the meeting will be conducted via conference call. To attend the telephonic meeting, call 1-408-650-3123 and enter the access code, 590303789. Public comment will be allowed.

Bid proposals

Ugly Grouper LLC offered to pay the city $18,000 per month in base rent to lease the city-owned restaurant and bait shop buildings at the T-end of the new Anna Maria City Pier. Sean Murphy offered $14,000 per month in base rent.

The $4,000 difference equates to the Ugly Grouper offering $48,000 more per year and at least $480,000 more over the course of a 10-year lease, not including any periodic rent increases included in the long-term lease.

The Ugly Grouper and Sean Murphy also submitted alternative rent proposals based on a percentage of the revenue generated. Mayor Murphy said the pre-COVID-19 estimated annual revenues for the pier-based business operations were $3 million to $4 million.

The city will retain control of the pier walkway, the boat landing and outdoor public space at the T-end of the pier. When opened after the COVID-19 concerns subside, the fishing pier and public restrooms will remain open for 24 hours a day.

The Ugly Grouper proposal says the Ugly Grouper restaurant opened in 2016 and has produced greater than 10% bottom line profits after budgeting a monthly rent of approximately $10,000.

The Ugly Grouper proposal references a partnership with Project Corporate, an entity that provides administrative and promotional support for the Ugly Grouper and other restaurants in Indiana not co-owned by Ross and Rolen.

The proposal says the Ugly Grouper is pre-approved for a $2 million line of credit that can be used for buildout, and Mason Martin Builders provided an estimate of slightly more than $1 million to complete the interior buildouts.

According to Sean Murphy’s proposal, he has an available cash commitment of $400,000 from the Robert Schwaeger Family Trust, $300,000 in commercial financing and a liquor license valued at $360,000.

“The Beach Bistro also has a full complement of restaurant equipment available to outfit the operation,” Murphy’s proposal says.

His proposal estimates $300,000 in renovation completion costs and an additional $50,000-plus for furnishings and light wares.

“A final corporate entity has not been selected for the operation. Sean Murphy will be the principal,” his proposal says.

Financials

According to the Florida Secured Transaction Registry website, a State of Florida Uniform Commercial Code (UCC) financing statement form was filed on June 10, 2016 that lists Beach Bistro Inc. and Thomas Sean Murphy as the debtor and Shawn Kaleta and attorney Louis Najmy as the secured parties. The agreement pertains to a commercial unit/condominium identified as Resort Sixty-Six – a resort that shares the same 6600 Gulf Drive address as the Beach Bistro.

The financing statement does not list a dollar amount but says, “This financing statement covers the following collateral: All furniture, fixtures, equipment, alcohol and beverage licenses.”

That agreement was terminated on May 3, 2018.

According to official records posted at the Manatee County Clerk of the Circuit Court website, on May 5, 2016, Beach Bistro Inc. and Thomas Sean Murphy entered into a $250,000 mortgage agreement with Kaleta and Najmy. Murphy is listed as the mortgagor. Kaleta is listed as the 1/5 mortgagee and Najmy is listed as the 4/5 mortgagee. On June 17, 2016, a mortgage modification document was filed that added $90,000 to the previous mortgage agreement.

On Jan. 10, 2020, a mortgage and security agreement originally dated March 12, 2018 was filed for a $125,000 mortgage agreement between Murphy, Kaleta and Najmy.

On January 31, Eat Here AMI LLC and Murphy entered into a $60,000 mortgage agreement with Mask Cigar & Liquor LLC – an LLC that lists Vimal Patel and Darshit Patel in Sarasota as authorized persons and managing members.

Eat Here operates in leased space at the Waterline Shoppes plaza owned by Waterline Shoppes LLC. The 14,376-square-foot restaurant, retail and office building is currently listed for sale at the Ian Black Real Estate website for $3.2 million.

The only official record located in association with the Ugly Grouper is a 2016 Holmes Beach city resolution pertaining to a revised site plan.

Official records pertaining to Gary Michael Ross list two non-monetary affidavits associated with FL Blue Sky Properties LLC and the 50 North Shore Drive 1 LLC.

Menus and fishing

“To accomplish rent goals for the city, the product offerings will have to make higher check averages possible. We can’t get the rent the city needs with just hot dogs,” Sean Murphy’s proposal says.

According to Murphy’s proposal, the food will be authentic and chef-crafted in-house, with an emphasis on fresh seafood, top quality meats, cheese and charcuterie. The bar offerings will feature a “creative cocktail list,” traditional American beers, craft beers and a moderate wine list.

The Ugly Grouper proposal says, “We want City Pier to be the best dining experience on the Island, which would include live music. We plan to provide breakfast, lunch and dinner. Our menu will give a variety of local and fresh items at price points that are comparable with most restaurants on Anna Maria Island.”

It also says, “We will also offer a fishing experience that even the most novice fisherman can enjoy. Our goal is to provide guests with assistance, if needed, and promote the enjoyment of the fishing pier.”

During public comment at Wednesday’s meeting, it was suggested that the pier tenant, whoever that may be, consider selling affordable burgers, hot dogs and chips at the bait shop for the families and fishermen and fisherwomen on limited budgets. Tripp and Short expressed informal support for that suggestion.

Pier lease bids to be discussed at special meeting

Pier lease bids to be discussed at special meeting

ANNA MARIA – The details contained in the two pier lease bid proposals opened in early April are expected to be made public at a special city commission meeting on Wednesday, May 6 at 2 p.m.

Thad Treadwell and Mike Ross from the Ugly Grouper and Sean Murphy, owner of the Beach Bistro and Eat Here, submitted the two bids the city received in response to the request for proposals (RFP) issued in January seeking a tenant for the new pier buildings.

The new pier tenant is also responsible at their own expense to complete the interior buildouts of the city-owned pier buildings.

When the sealed bid proposals were opened in the commission chambers on April 8, Mayor Dan Murphy said the city had 30 days to make the proposals available to the public and the media and that he expected to provide his initial evaluation of the bid proposals to city commissioners on Thursday, April 23 and then to the public.

During the April 23 meeting, Murphy told the commission he needed some additional information from the bidders before he could make his recommendation as to which of the two bidders he recommends negotiating with first.

“As you know there were two bidders. Both were contacted to provide more information as to who would be the responsible party for the lease, on the buildout, as well as us knowing what the financial responsibility pieces are on the bid itself,” Murphy told the commission on Thursday.

Murphy said he expected to have that information by the close of business on Friday.

“I want to incorporate that into the bid and then make sure the commission understands who it is that we’re doing business with. Once that’s received, I’m going to gather more information, do more research on what we have with these bids, spend a little more time with our consultant. I will then discuss with the commission some of my findings,” Murphy said.

The consultant Murphy referred to is former Sandbar general manager and long-time restaurant CEO Doug Sullivan.

Murphy requested a special city commission meeting be scheduled to discuss the bid proposals, at which time he will bring options and a recommendation to the commission for a decision.

Murphy also said he would meet individually with each commissioner provide them with an update before the formal public discussion takes place.

“We have until May 8th to make a decision and make a vote,” Murphy said.

With city hall still closed to the public, restaurateur Sean Murphy attended Thursday’s meeting via telephone.

“I’m listening and open to any and all suggestions,” he told the commission.

Due to the coronavirus (COVID-19) pandemic, the opening date for the new pier has not yet been announced. As of Monday, the pier remained closed.

Ugly Grouper and Sean Murphy submit pier lease bids

Ugly Grouper and Sean Murphy submit pier lease bids

ANNA MARIA – The city of Anna Maria received two bids from parties interested in leasing the restaurant and bait shop buildings on the new Anna Maria City Pier.

Thad Treadwell and Mike Ross from the Ugly Grouper in Holmes Beach submitted a bid, as did Sean Murphy, owner of the Beach Bistro, Eat Here and The Doctor’s Office in Holmes Beach.

Current pier tenant Mario Schoenfelder did not submit a bid proposal in response to the RFP the city issued in January. Nor did any other restaurateurs or restaurant groups.

Anna Maria Mayor Dan Murphy opened the sealed bids during a public pier bid opening at 1 p.m. on Wednesday, April 8. That date and time also served as the deadline to submit a bid proposal.

The public pier bid opening was conducted as a virtual meeting with most meeting attendees participating by phone, including city commissioners Carol Carter and Amy Tripp

The proposed monthly base rent amounts and all other details contained in the RFP proposals received are not currently available to the media or the public.

Ugly Grouper and Sean Murphy submit pier lease bids
Two parties have submitted proposals to lease the city-owned restaurant and bait shop buildings at the end of the new Anna Maria City Pier. – Joe Hendricks | Sun

After opening the sealed bids in the presence of City Clerk LeAnne Addy, Murphy said, “Those are the two bids we’ve received. The way this process works is we’ll have 30 days to do an analysis of these bids. I don’t suppose it will take 30 days. It is my anticipation that I would be able to report on these bids, back the commission, by the April 23 meeting at 6 p.m.” Murphy said.

“These bids are confidential for 30 days – or they’re not confidential once I release them back to the commission and make a report on the bids. If we give a report back on April 23, they would then become public record,” Murphy said.

After Murphy presents his report to the city commission, the commissioners will decide whether to accept or reject the proposals. If the commission accepts the proposals, the commission will then rank the proposals and authorize Murphy to discuss and negotiate lease terms with the top ranked bidder.

If the discussions and negotiations with the top-ranked bidder do not produce a suitable lease agreement, the mayor will seek commission authorization to discontinue those discussions and begin a similar process with the second-highest ranked bidder.

According to the RFP, “The city reserves the right to reject any or all proposals with or without cause; to waive any or all irregularities with regard to the specifications and to make the award to the proposer offering the greatest advantage to the city. All bids must be sealed and will be rejected if received after the submission date and time.”

Ugly Grouper and Sean Murphy submit pier lease bids
The opening date for the new pier walkway and T-end platform for fishing and sightseeing remains unknown. – Joe Hendricks | Sun

The opening date for the new pier walkway and T-end platform for fishing and sightseeing remains unknown due to the coronavirus (COVID-19) pandemic. Murphy has previously stated that he intends to make the new pier and pier restrooms open to the public while the pier tenant completes the interior buildouts of the city-owned buildings.

Related coverage

New City Pier expected to open in April

Potential tenants attend City Pier pre-bid meeting

Mayor provides pier lease update

New City Pier expected to open in April

New City Pier expected to open in April

ANNA MARIA – Mayor Dan Murphy expects the new Anna Maria City Pier to open in April, but he has not yet determined an exact opening date.

“It looks like in the April timeframe we’ll be opening the pier for fishing and sightseeing,” Murphy told the city commission on Thursday, March 12.

Murphy said Florida Power & Light completed its work on the pier that day. That work consisted of installing transformers and electrical connections needed to light the new pier and to power the new restaurant, bait shop and public restrooms at the pier’s T-end.

Murphy said he would provide a specific opening date once he completes an analysis of the remaining work that needs to be done.

Due to the lingering concerns and uncertainties associated with the coronavirus (COVID-19), Murphy said he and the commission will soon determine whether the city will host grand opening ceremonies for the pier as previously discussed.

Pier RFP deadlines

As of Sunday, no changes had been made to the existing schedule for interested restaurateurs to respond to the city’s request for proposals for a new pier tenant to lease the restaurant and bait shop buildings.

According to the city website, Wednesday, March 25 is still the last day to submit written questions about the city-owned spaces for lease. Wednesday, April 8 is still the deadline to submit the pier lease proposals scheduled to be opened inside the commission chambers at approximately 1 p.m. that day.

Murphy recently said he expects the new restaurant and bait shop to open during the fourth quarter of the current year or the first quarter of 2021.

Potential tenants attend City Pier pre-bid meeting

Potential tenants attend City Pier pre-bid meeting

ANNA MARIA – More than a dozen restaurateurs are potentially interested in leasing the new City Pier restaurant and bait shop.

Last week, the deadline to submit proposals in response to the city’s request for proposals (RFP) was extended from March 10 to April 8. This was done at the request of the interested restaurateurs, including those who attended the RFP pre-bid meeting at Anna Maria City Hall on Wednesday, Feb. 26.

The city commission approved the submission extension on Thursday, Feb. 27. Before doing so, Commissioner Mark Short asked Mayor Dan Murphy how the extension would impact the restaurant opening.

“You’re still looking at probably the fourth quarter (of 2020) to the first quarter of next year for a restaurant to be operational,” Murphy said.

During Wednesday’s pre-bid meeting, Murphy said he expects the pier itself to open to the public in March or April.

According to the pre-bid meeting sign-in sheet, an additional list provided by Murphy and additional research by The Sun, the following parties attended Wednesday’s meeting and/or expressed to Murphy interest in leasing the city-owned pier buildings:

  • Julian Botero and Gabriella Hoock from the Gulf Drive Café in Bradenton Beach;
  • Hal Christensen and Jessica Stevens from Harry’s Continental Kitchens in Longboat Key;
  • Rod & Reel Pier manager Rockey Corby, representing current City Pier tenant Mario Schoenfelder’s TCPR Inc.;
  • Gabriel Davila and Darlene Ruth from Seabreeze Concessions, the former concessionaire at Lido Beach in Sarasota;
  • Buddy and Cate Foy, owners of Cate’s Italian Garden in Bolton Landing, N.Y.;
  • Chef Marcos Fernandez from the upscale Nineteen61 restaurant in Lakeland;
  • Joseph Guli III, CEO of the Sarasota-based Tableseide Restaurant Group whose brands include Libby’s Neighborhood Brasserie, Muse at The Ringling and Oak & Stone;
  • Kimberley Mancini, from Michael’s On East in Sarasota;
  • Brian Mathae, owner of Hurricane Hanks in Holmes Beach;
  • Sean Murphy, owner of the Beach Bistro in Holmes Beach;
  • Greg Novack, hospitality consultant and founder and former owner of Sharky’s on the Pier in Venice;
  • Steve Rose, owner of Bortell’s Lounge in Anna Maria;
  • Mike Ross and Thad Treadwell from the Ugly Grouper in Holmes Beach.

When contacted Friday, Schoenfelder said he has not yet decided whether he’ll respond to the RFP. In January, the city commission rejected his offer to pay an initial base rent of $8,000 per month.

Meeting Q&A

During Wednesday’s meeting, Murphy spent 50 minutes fielding questions from potential bidders.

He told attendees the city seeks proposals from those interested in leasing the pier buildings and completing the interior build-outs of the exterior shells at their own expense.

He said the potential bidders can schedule a tour of the pier and pier buildings.

Murphy said the tenant will lease the restaurant and bait shop areas and share the use and maintenance costs for the common areas that include the pier walkway, boat landing, T-end decking and public restrooms.

In response to questions posed, Murphy said:

  • The pier buildings provide 4,600 square feet of total interior space;
  • Leasing additional portions of the shared common areas is negotiable;
  • The tenant is not obligated to sell live bait at the bait shop, and the current tenant stopped doing so long ago;
  • The city expects the tenant to acquire a fishing license that allows anyone to fish on the pier;
  • The number of parking spots provided will be based on city code requirements, gated parking is negotiable and valet parking at nearby Bayfront Park is possible;
  • Live music and/or outdoor speakers in the common areas is negotiable.

Murphy said the city doesn’t have any information to provide regarding past pier revenues, foot traffic or the number of pier visitors. He said one consultant estimated that location could potentially generate a maximum of $3.5-$4 million in annual revenues with a restaurant, bait shop and souvenir and merchandise sales.

“It’s the most visited attraction in Manatee County. It’s a high visibility location. It’s a great view. That’s a big part of the attraction,” Murphy said.

Attendees asked several questions about utility lines and connections, lighting, drain locations and other technical details. Murphy could not provide specific details in every instance, but those details are included in the 65 written questions and answers posted at the city website. The updated submission schedule and the RFP are also posted there.

“We were pleased with the number of interested attendees at the meeting,” Murphy later said. “Most importantly, it was apparent there is a great deal of interest from our local restaurateurs in operating on the pier – successful businesspeople who know the Anna Maria City Pier’s potential. Attendees came from a wide range of niche markets in the hospitality industry, ranging from family-oriented to upscale and gourmet.”

Mayor provides pier lease update

Mayor provides pier lease update

ANNA MARIA – On Wednesday, Feb. 19, Mayor Dan Murphy provided city commissioners with an e-mail update regarding the request for proposals (RFP) the city issued in January seeking a new city pier tenant.

The new tenant will occupy the new city-owned restaurant and bait shop buildings at the T-end of the new pier.

“We don’t anticipate receiving any responses to the RFP until we are close to, or most likely on, the due date. This is the norm for any RFP process. Serious bidders take as much time as possible to perform their due diligence, evaluate the market and prepare a business case,” Murphy’s email update said.

“As of today, 10 restauranteurs have expressed interest in our outstanding RFP. That is not to say that all 10 will submit a bid, but a significant level of interest exists in the local hospitality community. We have received inquiries from St. Petersburg/Clearwater, Lakeland, Bradenton/Sarasota and Anna Maria Island,” Murphy wrote.

An optional meeting for interested bidders was scheduled for Wednesday, Feb. 26, at 10:30 a.m.

“Interested parties who may have open questions remaining would probably attend,” Murphy wrote.

“The final submission date for the RFP is Tuesday, March 10 at 1 p.m. The bids will be opened at that time, but only the name of the bidders will be disclosed. We will have 30 days to evaluate and rank the bids. Details of the bid contents are confidential during that evaluation process,” Murphy wrote.

When contacted Friday, Murphy said 14 parties have expressed interest or posed questions about leasing the pier buildings.

“There’s lots of interest out there. That makes me feel good,” he said.

Questions and answers

Upon request, Murphy shared a document containing written questions posed by potential tenants and the responses provided by the city. That document is referred to as Pier RFP Addendum #2 and it does not reveal the names of any potential bidders that posed questions.

In response to one question, the RFP addendum says there is no draft lease for potential tenants to review, but they can obtain a copy of the previous pier lease.

Current pier tenant Mario Schoenfelder’s lease expires in mid-December. In January, the commission rejected his final offer to pay $8,000 in initial monthly base rent as part of a new 10-year lease.

The addendum says it is negotiable as to whether the city will provide the pier tenant any allowance for the interior build-out of the city-owned pier buildings.

According to the questions posed and the answers given were:

  • The tenant will be required to obtain liability insurance for at least $2 million.
  • The tenant is allowed to sell retail items and merchandise.
  • Restaurant and bait shop patrons will have the shared use of the pier’s common areas.
  • Hours of operation are negotiable.
  • The bait shop can sell beer, the tenant’s ability to obtain a liquor license is negotiable and there is no city ordinance prohibiting liquor service on the pier.
  • Live music in the outside common area is negotiable, as is the tenant’s ability to place additional outdoor seating in the common area at the pier’s T-end.
  • Maintenance costs will be shared by the tenant and the city on a prorated basis, and those financial terms are negotiable.
  • Regarding menu expectations or requirements, the addendum says, “Good quality food.”
  • Regarding there being any city expectations or requirements for the restaurant’s name, the addendum says, “Yes – City Pier Restaurant, but negotiable.”
  • The city prefers that breakfast be served, but that is negotiable.
  • The number of parking spaces provided to the tenant will depend on how many seats the tenant proposes.
  • The city is unable to provide an estimate on the taxes and utilities to be paid by the tenant.
  • The city is unable to provide data regarding the average number of pier visitors in past years.
  • Potential bidders can request a tour of the pier and pier buildings with their own architect and/or builder.

Related coverage

Pier opening delayed by electrical issues

Commission rejects Schoenfelder’s pier lease offer

Pier lease offer to be discussed Friday

Pier opening delayed by electrical issues

Pier opening delayed by electrical issues

ANNA MARIA – Mayor Dan Murphy and the Anna Maria Commission are planning the opening ceremonies for the new City Pier, but the exact date of the opening remains unknown due to an electrical issue.

The mayor and commission discussed these matters on Thursday, Feb. 13. Murphy said he would appreciate the commissioners’ ideas and input on the pier opening ceremonies, but first he wanted to address a recent report by another newspaper that incorrectly stated an opening date had been determined.

“There was an article in one of the papers that said it was going to be opened March 10th at 1 p.m. In all probability the pier will not be opening March 10,” Murphy said.

March 10 is the deadline for potential pier tenants to submit their pier lease proposals in response to the city’s request for proposals. The proposals received are scheduled to be opened in the commission chambers at 1 p.m. that day.

Electrical delays

“We do have an electrical issue with the pier – partially from Florida Power & Light and partially of our own making. But the Florida Power & Light one is the critical one. That has to be resolved before we can do anything in terms of opening the pier,” Murphy told the commission.

“At this point, it looks like Florida Power & Light will not have their portion of this thing resolved until early March at best. Part of it is impacted by supplies and things of that nature and having to do with design. We can establish a firm date when Florida Power & Light is good to go. Other than that, it’s premature to speculate what the date would be,” Murphy said of the pier opening.

When contacted later, Murphy said the bulk of the electrical concerns pertain to the FPL transformers being readied for connectivity with the city pier.

Pier opening ceremonies

“In lieu of all that, I still need to put together a program as to what we’d like to do,” Murphy told the commission.

Murphy said former Commissioner Doug Copeland suggested a Saturday morning youth fishing tournament as part of the pier opening ceremonies. Murphy said that was an excellent idea and he’s already asked CrossPointe Fellowship Pastor Ed Moss to head up the tournament.

Murphy also wants the opening ceremonies to serve as a thank you to the other government officials and government bodies that helped fund the pier replacement project. These include Florida Sen. Bill Galvano, State Rep. Will Robinson, Bradenton Area Convention and Visitors Bureau Director Elliott Falcione, the Manatee County Tourist Development Council, the Manatee County Commission and Anna Maria resident Sissy Quinn for her grassroots fundraising efforts.

“A light program with maybe a champagne toast or something like that. I think it’s appropriate that we say ‘thank you,’ ” Murphy said, noting that hors d’oeuvres would also be served.

Commissioner Carol Carter suggested the ceremony take place on a Friday.

Murphy encouraged the commissioners in their roles as commission liaisons to invite The Center of Anna Maria Island, the Island Players, the AMI Historical Society and the Anna Maria Garden Club to participate in the ceremonies.

“This pier is so important to our city. It’s the heart of our city. That’s why I’d like the entities that are the fiber of our city to participate,” Murphy said.

Carter said a pier exhibit at the AMI Historical Museum could be reinstalled after a current exhibit is removed. She also said the museum sells pier T-shirts and more could be ordered for the opening ceremonies.

Commissioner Joe Muscatello said the Island Players have already offered to perform a historical period piece that pays homage to the original pier built in 1911 and those who first used it.

Commissioner Amy Tripp asked Murphy if he envisioned a two- or three-day ceremony. Murphy said that’s up to the commission. He asked the commissioners to provide him their individual ideas by Wednesday, Feb. 19.

“Just give me some ideas and I think we can put it all together,” he said.

The pier walkway and T-end deck are expected to open to the public before the pier tenant – who has not yet been selected – completes the interior build-outs of the city-owned restaurant and bait shop buildings.

Commission rejects Schoenfelder's pier lease offer

Commission rejects Schoenfelder’s pier lease offer

ANNA MARIA – The Anna Maria City Commission has rejected Mario Schoenfelder’s final offer to lease the restaurant and bait shop buildings at the end of the new Anna Maria City Pier.

The commission reached this decision with a 5-0 vote at a special meeting on Friday, Jan. 10. A request for proposals (RFP) will now be issued seeking lease offers from other restaurant operators.

Schoenfelder participated in Friday’s meeting by telephone from Germany. He joined Mayor Dan Murphy and Commissioners Carol Carter, Jon Crane, Joe Muscatello, Mark Short and Amy Tripp in a 45-minute discussion about the written lease offer he submitted in late December. Crane also participated by phone.

Schoenfelder offered to pay $8,000 per month in initial base rent. He also offered to pay the $865,000 his architectural team estimated it would cost him to complete the interior buildouts and install the equipment needed to operate a restaurant and bait shop.

Schoenfelder proposed the first six months of the new 10-year lease be rent-free, with an annual Consumer Price Index-based increase starting after three years. Schoenfelder’s final offer was $4,000 per month less than the $12,000 he offered last fall, which also included $500,000 for the interior buildouts.

Schoenfelder previously rejected two lease options proposed by the city. One option proposed an initial base rent of $21,600 per month. The other proposed $18,900 per month, with an additional $250,000 up front.

When Schoenfelder rejected those options, the commission gave him until Dec. 31 to submit his final offer. The commission also authorized Murphy to prepare an RFP in case his final offer was rejected.

Signed in 2000 with an initial base rent of $5,000, Schoenfelder’s current lease expires on Dec. 15, 2020. The last rent payment he made before the old pier closed in 2017 was $11,898.

Friday’s discussion

Carter asked Schoenfelder why he offered $8,000 when he was paying approximately $12,000 before.

Schoenfelder said his previous $12,000 offer was based on contributing $500,000 for the buildouts. He said the $8,000 figure factored in the additional $365,000 for his buildout and equipment costs.

The City Pier project has an estimated total cost of approximately $5 million. Murphy said city taxpayers are responsible for $2.6 million of that and it would take 20 years to recoup those costs if the commission accepted Schoenfelder’s offer.

Addressing another concern Schoenfelder raised in his written offer, Murphy said the city would take out an insurance policy on the pier that would cover the improvements made by the pier tenant, minus any items that could be removed by the tenant. Murphy said the estimated $50,000 in annual insurance costs would add seven more years to the 20-year cost recovery timetable for Schoenfelder’s offer.

“I have a concern about how much obligation the citizens of Anna Maria are going to have if we accept this proposal,” Carter said.

Short said the city has already paid $1.1 million of its $2.6 million pier project obligations, which leaves approximately $1.4 million in remaining city obligations.

Short said it was right to give the current pier tenant the first opportunity to lease the new pier buildings, but he believes it’s now in the city’s best interest to see what other opportunities exist.

Crane said he supports issuing the RFP and receiving additional offers because there’s such a large discrepancy between what Schoenfelder and the city think the rent should be.

“The RFP process helps you find the rent number, besides finding the vendor,” Crane said.

He said he hoped Schoenfelder would participate in the RFP process.

“If I would take part in the RFP, my proposal would be the exact same thing. I wouldn’t change one number,” Schoenfelder said.

“I’d like to see more options,” Tripp said.

“Let the market set the rate. The market will tell us what the rent’s worth,” Muscatello said.

Commission rejects Schoenfelder's pier lease offer
The current pier tenant’s time on the City Pier appears to be ending. – Joe Hendricks | Sun

During public comment, part-time Holmes Beach resident Maureen Myers said the pier restaurant needs to be economically accessible to a wide range of pier users. She also asked how the city calculated its proposed rent options.

Former Commissioner Doug Copeland encouraged the commission to issue the RFP.

“This offer is unacceptable, and I encourage you to reject it,” he said.

In response to Myers, Murphy said, “This is a plain and simple math problem. How much do you have invested and what’s the timeframe you want it paid back on?”

“Let’s let the market decide whether this should be a restaurant or not. Maybe it should be some sort of public conveyance. Parks don’t have a payback over 10 years. It could ultimately be that the pier is not the venue for a restaurant because it won’t pay for itself. Going the RFP route, the market will decide what’s in the best interest and what the payback will be,” Murphy said.

Murphy said it’s not yet known how the remaining months of Schoenfelder’s current lease will be addressed.

Pier lease offer to be discussed Friday

Pier lease offer to be discussed Friday

ANNA MARIA – On Friday, Jan. 10, Mayor Dan Murphy and the Anna Maria City Commission will discuss Mario Schoenfelder’s final offer to lease the restaurant and bait shop buildings being built on the new City Pier.

The commission originally planned to discuss Schoenfelder’s offer at the regular commission meeting on Thursday, Jan. 9, which starts at 6 p.m. But Schoenfelder is currently residing at his home in Germany and the time difference would result in him participating by telephone in a commission meeting that would start at midnight in his time zone.

Friday’s 10 a.m. meeting will allow Schoenfelder to participate in a meeting that will begin at 4 p.m. his time.

During Friday’s meeting, the commission is expected to accept or reject the final pier lease offer Schoenfelder submitted in writing on Dec. 22.

Schoenfelder proposes to pay $8,000 per month in base rent, with the first six months of a new 10-year lease to be rent-free, and an annual Consumer Price Index-based rent adjustment that takes effect after three years.

Schoenfelder previously offered to pay $12,000 a month in base rent and contribute a total of $500,000 toward the interior buildout of the new buildings, including the appliances and equipment he needs to operate a full-service restaurant and a bait shop.

“I now have received actual bids for buildout and equipment through the Schimberg Group adding up to $865,000. Therefore, I had to adjust the rent that I am offering,” Schoenfelder stated in his recent written offer.

In October, Schoenfelder rejected two lease options proposed by Murphy: an initial base rent of $21,600 per month with a 3% percent annual increase or annual CPI adjustment, or a base rent of $18,900 per month with a $250,000 up-front payment due upon signing and the same annual increases.

After rejecting those options, Schoenfelder was given until Dec. 31 to submit his last, best and final offer.

The commission also authorized Murphy to prepare and have ready a request for proposals (RFP) for the lease of the new pier buildings. If the commission rejects Schoenfelder’s offer on Friday, the RFP will be issued seeking proposals from additional restauranteurs interested in being the city’s pier tenant.

Schoenfelder’s current lease for the old pier that was closed in 2017 and demolished in 2018 expires later this year, on Dec. 15. Schoenfelder’s monthly rent payments were suspended when the old pier was closed, and the last rent payment he made was for $11,898 in September 2017.

New pier takes shape

New pier takes shape

Updated Jan. 2, 2020 – The Anna Maria City Commission will discuss  Schoenfelder’s final offer at a special city meeting  on Friday, Jan. 10 at 10 a.m.

Schoenfelder, who divides his time between Anna Maria and Germany, will participate in the meeting from afar by telephone or teleconferencing software.

ANNA MARIA – Wondering what’s been going on at the Anna Maria City Pier since Hurricane Irma closed it down?

Anna Maria Mayor Dan Murphy recently provided The Sun with an exclusive tour of the new restaurant, bait shop and public restrooms being built at the end of the new City Pier.

Murphy said he’s very impressed with the work being done by Mason Martin Builders, the local firm that’s constructing the buildings atop the pier built by i+iconSoutheast.

New pier takes shape
Anna Maria Mayor Dan Murphy takes a look at the new bait shop building. – Joe Hendricks | Sun

While standing in what will be the kitchen area for the new restaurant, Murphy pointed to the steel girders and building frame and the large bolts along the base of the steel frame that secure the new buildings to the concrete pier platform below – which was not the case with the old wooden pier.

“The quality of the construction is incredible,” Murphy said.

New pier takes shape
Mayor Dan Murphy looks in on the new bait shop. – Joe Hendricks | Sun

The new pier also has a boat landing on one side that will make it accessible by water.

Murphy said he expects the pier buildings to be finished in late February – minus the interior buildouts of the restaurant and bait shop buildings that are expected to be completed by the future pier tenant.

New pier takes shape
The far end of the new restaurant building. – Joe Hendricks | Sun

Murphy also expects the pier walkway and T-end deck area to be opened to the public in late February. There is no timetable yet for when the restaurant and bait shop will open.

The new pier replaces the old pier that was already slated for future rehabilitation when Hurricane Irma ripped the roof off the bait shop, damaged the restaurant roof and popped loose several sections of the T-end decking. The old pier was demolished in 2018.

New pier takes shape
Anna Maria Mayor Dan Murphy points out the boat landing on the new City Pier. – Joe Hendricks | Sun

The new pier has an estimated cost of approximately $5 million and is being collectively funded with federal, state, county and city money. The current plan also calls for the pier tenant to pay for the interior buildouts of the new buildings, but that will ultimately depend on who the pier tenant is.

Pier tenant submits final lease offer

Pier tenant submits final lease offer

ANNA MARIA – Mario Schoenfelder has submitted his final offer for the lease of the restaurant and bait shop buildings being built at the T-end of the new Anna Maria City Pier.

Dated Dec. 22 and addressed to Mayor Dan Murphy and the members of the Anna Maria City Commission, Schoenfelder’s final offer proposes a base rent that’s $4,000 less than his previous offer.

“I previously offered a monthly rent of $12,000 based on the total buildout and equipment costs of $500,000. I now have received actual bids for buildout and equipment through the Schimberg Group (the architectural firm that designed the pier buildings) adding up to $865,000. Therefore, I had to adjust the rent that I am offering,” Schoenfelder stated in his written offer.

“My offer is a monthly rent of $8,000 with the first six months rent-free, a CPI-based (Consumer Price Index) adjustment kicking in after three years and a 10-year lease with two five-year options,” the offer states.

The Anna Maria Commission will discuss Schoenfelder’s offer on Thursday, Jan. 9 and may decide that night to accept it or reject it. The meeting starts at 6 p.m.

In October, Schoenfelder rejected two lease options Murphy presented. One option proposed an initial base rent of $21,600 per month with a 3% percent annual increase or an annual CPI adjustment. The second option proposed a base rent of $18,900 per month with a $250,000 up-front payment upon signing and the same annual increases.

In November, the city commission gave Schoenfelder until Dec. 31 to submit his last, best and final offer to continue his pier-based business operations after his current lease expires on Dec. 15, 2020.

The commission also took the precautionary measure of authorizing Murphy to prepare a request for proposals (RFP) for the lease of the pier buildings and have the RFP ready at the Jan. 9 meeting in case the commission rejects Schoenfelder’s offer.

If issued, the RFP would seek proposals from other restaurant operators interested in leasing the city-owned buildings at the T-end of the new pier. The pier walkway and T-end deck area are expected to open to the public in February, before the future pier tenant’s interior buildouts are completed.

Current lease

Schoenfelder signed his original pier lease in 2000. According to that document, Schoenfelder’s base rent was $9,240 in September 2017 when the old pier was closed due to damage the pier decking and pier buildings sustained during Hurricane Irma.

The original and current lease called for Schoenfelder’s monthly base rent to increase to $10,800 on Dec. 16, 2018 and continue at that rate until the lease expired in late 2020. The monthly base rent figures listed in the current lease do not include the annual cost of living increases that are part of the current lease.

Schoenfelder’s monthly rent payments were suspended when the pier closed. His most recent payment was $11,898 paid on Sept. 5, 2017.

Rent increase

“The rent the city is demanding represents increases of 82% or 59% compared to the pre-storm rent. This does not allow for substantially increased restaurant pricing, nor would this be accepted by the public. Do you, mayor and commissioners of the city of Anna Maria, honestly believe and expect the City Pier Restaurant to sell successfully a cheeseburger for $18-$20?” Schoenfelder asked in his final offer.

“An increase of $116,000 or $84,000 annually is impossible to be covered through increased prices and increased volume of revenue. Additional annual rent of $116,000 would not only reduce the operation’s income dramatically, it would substantially increase the chances of the restaurant suffering ongoing losses and ultimately failing,” the offer states.

Schoenfelder’s offer notes the average profit margin of a full-service restaurant in Florida is 3-5%. It also notes Schoenfelder has owned the nearby Rod & Reel Pier restaurant since 1999 and he feels this provides him with knowledge regarding restaurant operations on Anna Maria Island.

Deadline extended for final pier lease offer

Deadline extended for final pier lease offer

ANNA MARIA – Mario Schoenfelder now has until Dec. 31 to submit his final offer for the lease of the restaurant and bait shop buildings being built on the new Anna Maria City Pier.

During an emergency commission meeting on Tuesday, Nov. 26, the Anna Maria City Commission unanimously granted Schoenfelder’s written request for more time to prepare and submit his final lease offer, which was originally due Friday, Dec. 13.

Mayor Dan Murphy told the commission Schoenfelder needs time to analyze the information he receives from his own contractor regarding the estimated cost for the interior build-outs for the city-owned buildings he hopes to lease. Murphy said Schoenfelder expects to have that information by Dec. 8 and he expects to submit his final offer by Dec. 30.

Mason Martin Builders is building the exterior shells of the new restaurant and bait shop buildings but that firm’s contract with the city does not include the interior build-outs to be completed by the pier tenant.

“I would recommend that we give him this extension, but it is certainly up to each of you,” Murphy said to the commission regarding Schoenfelder’s request.

Participating by phone, Commissioner Mark Short referenced the commission’s recent decision to authorize Murphy to prepare and have ready a request for proposals that would allow other restaurateurs to submit lease proposals if the commission rejects Schoenfelder’s final offer.

Short asked if giving Schoenfelder more time would delay that RFP process. Murphy said it would not. Short asked if the RFP would be ready to present to the commission on Jan. 9, if needed. Murphy said it would.

Murphy recommended the commission not make any final decisions regarding Schoenfelder’s final offer or the issuance of an RFP until a full commission is seated on Jan. 9. That’s when the commission will appoint someone to fill the commission seat Dale Woodland vacates on Dec. 5 due to his failure to properly qualify for the 2019 city elections.

Murphy said Schoenfelder will not return to the United States until March and would like to discuss his final offer with the commission as a whole.

“March is too long to wait. We need to know, and he needs to know, where we stand on his final offer,” Murphy said of that timeline.

Murphy said the commission discussion with Schoenfelder could take place in January via Skype, telephone or some other means of electronic communication, but the commission first needs to see his final offer.

Previous offers

Schoenfelder’s current pier lease expires on Dec. 15, 2020. In October, Schoenfelder rejected two lease options Murphy presented him. One option proposed a base rent of $21,600 per month with a 3% annual increase. The second option proposed a base rent of $18,900 per month, a $250,000 up-front payment and the same annual increase. In an email to Murphy, Schoenfelder noted his own previous offer was $12,000 per month.

When the old pier closed in September 2017, Schoenfelder was paying $9,240 a month, according to his lease contract. His monthly rent was scheduled to increase to $10,080 in December 2018, but that increase never occurred because his lease payments were suspended after the pier was closed.

 Other pier matters

On Nov. 26, the commission also authorized Murphy to sign a grant agreement with the Florida Department of Transportation (FDOT) for the additional $285,000 the Florida Legislature approved for the pier project earlier this year.

Deadline extended for final pier lease offer
On Tuesday, Nov. 26, this stack of Ipe hardwood decking awaited installation on the new pier walkway. – Joe Hendricks

Murphy said the $285,000 includes restrictions and auditing requirements that didn’t apply to the $750,000 state legislators approved for the pier project in 2018. The $285,000 can only be used for pier enhancements that include but are not limited to public restrooms, electrical wiring from the shore to the pier buildings, pedestrian lighting and pedestrian railings that extend from the pier entrance to the mean low tide level.

The commission approved Murphy’s related request to expand the annual financial auditing services the CS&L accounting firm provides the city to also include audits of the federal and state funds received and spent on the pier project. The pier-related audit reports will also be shared with county officials in appreciation of the county’s financial support of the pier project.

Pier design conflict being addressed

Pier design conflict being addressed

ANNA MARIA – Mayor Dan Murphy is working to resolve the design conflicts recently discovered between the architect, Barron Schimberg, who designed the new pier buildings and the engineering firm, Ayres Associates, that designed and engineered the new city pier.

The design conflict pertains to the pitch of the new pier’s T-end decking for drainage purposes.

I+iconSoutheast built the pier walkway and support structure for the T-end decking, restaurant and bait shop.

Mason Martin Builders is building the exterior shells of the new pier buildings.

On Thursday, Oct. 31, Murphy met with several representatives to address the design conflict issues

The following day, Murphy sent an e-mail update to city commissioners bringing them up to speed on the results of the meeting. His email stated those who met with the mayor included Lisa Fleming from Ayres Associates, Schimberg, Mason Martin Builders owner Frank Agnelli, Building Official Luke Curtis and Eddie Miller from Infrastructure Solution Services, one of the city’s new city engineering firms.

“All proposed solutions associated with correcting this issue were identified and discussed. Some of the solutions require further details prior to implementation and any changes will be reviewed by our building official to ensure they meet code,” Murphy wrote.

“Another meeting will be held next week to nail down these details and a plan formulated to move forward. I will update you next week at the conclusion of that meeting,” Murphy’s email stated.

When contacted Friday afternoon, Murphy provided additional details.

“Schimberg designed it to be flat and Ayres designed it to be pitched, so there’s a difference of six or seven inches and that has to be compensated for,” Murphy said.

“It’s not a huge problem, but it’s a problem. So, they’re going to have to make some changes to buildings. It doesn’t look like it going be anything astronomical. They need to raise some of the door frames and probably pour concrete and drill a few holes in the platform to enhance the drainage,” Murphy explained.

“The city is not going to pay for any of that since it’s a problem between the design and the plans,” he added.

Murphy noted the new decking to be installed at the T-end of the pier will sit elevated above the concrete platform that serves as the base for the T-end buildings and decking.

Murphy was asked if the issues identified impact the work Mason Martin Builders has already done according to the plans they were provided with.

“Yes, he’s got door frames he’s probably going to have to move. There are other details that are going to have to be worked out. He’s probably going to have to level the flooring in the restaurant. It doesn’t appear to impact the walls at this point. There’s no plan to move any of the walls,” Murphy said.

Murphy was asked if these issues could further delay the anticipated pier opening in early 2020.

“That’s what we’re going to finalize next week. It depends upon the details of some of these things need to be done. I’m going to guess there might be some delay, but at this point, that’s pure speculation on my part,” Murphy said.

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Pier issues present additional challenges

Pier issues present additional challenges

ANNA MARIA – Mayor Dan Murphy will seek city commission authorization to prepare a request for proposals (RFP) for the potential lease of the city-owned restaurant and bait shop buildings being built on the new City Pier.

On Oct. 24, Murphy told the city commission that on Nov. 14 he would formally request authorization to prepare a pier lease RFP as part of the city’s ongoing efforts to secure a pier tenant.

In late September, Murphy emailed current pier tenant Mario Schoenfelder two options for a new 10-year lease.

Murphy proposed either an initial base rent of $21,600 per month or an initial base rent of $18,900 per month with an additional $250,000 up-front payment due upon signing.

Schoenfelder rejected those proposed terms and referred to his own previous offer to pay the city a base rent of $12,000 per month. Schoenfelder’s current lease expires in December 2020.

“His final offer is due to the city by December 13,” Murphy told the commission. “In case Mr. Schoenfelder’s offer is in fact rejected, I want to be prepared to quickly issue this RFP.”

Later in the week, Murphy was asked about the RFP process that could ensue if the commission rejects Schoenfelder’s final pier lease offer.

“Mario could bid it on it, as well as anyone else interested in having a restaurant on our pier if the commission authorizes putting it out for bid if Mario’s final offer doesn’t meet the needs of the city,” Murphy said.

“If it’s not in the best interest of the city, the commission could decide not to open a restaurant and use the space for other purposes. The city needs to get some sort of return on its investment over a 10-year span,” Murphy said.

Design conflict

During last week’s meeting, Murphy said a design conflict has arisen between the architect, Barron Schimberg, who designed the new pier buildings and the engineering firm, Ayres Associates, that designed and engineered the new pier.

“I have a meeting tomorrow to get to the bottom of all of that, to see exactly where the responsibility lies, as well as the scope of any delay it may cause us,” Murphy told the commission.

“Hopefully it will be a minor issue,” he added, noting that he would not publicly speculate on the exact nature of the design conflict.

On Friday, Oct. 25, Murphy issued an email stating his meeting with the architect and the engineers was delayed until Thursday, Oct. 31 because one of the parties was unavailable.

“We’ve got a plan to address any issues and I’m still investigating this,” Murphy said on Friday.

Interior build-out

During last week’s meeting, Murphy announced that Mason Martin Builders, the firm constructing the new pier buildings, has retracted its option to complete the interior build-out of those structures.

That decision came in the wake of a recent email exchange between Murphy and Schoenfelder in which Schoenfelder said he felt he was being forced to use the city’s contractor of choice to complete the interior build-outs of the spaces he hoped to lease.

Murphy told Schoenfelder he would not be obligated to use the city’s contractor for the interior build-outs and was free to get estimates from other contractors even though that could further delay the opening of the restaurant and bait shop in 2020.

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