ANNA MARIA – German brewer and restaurateur Oliver “Oli” Lemke is the new owner of the iconic Rod & Reel Pier and restaurant in Anna Maria.
German businessman Mario Schoenfelder bought the Rod & Reel Pier in 1999 and sold it to his friend and fellow German businessman on Nov. 21.
Oliver “Oli” Lemke is the new owner of the Rod & Reel Pier. – Lemke Berlin | Submitted
In response to a Dec. 7 email inquiry from The Sun, Lemke wrote, “Having been a friend of Mario’s family for many years, I´ve known the pier for quite a while as a guest. After the closing of the sale on the 21st of November, I came over and stayed at the pier for 10 days to get to know the team, the guests and the atmosphere. Everything at the pier will stay the same. To me, it´s a little piece of paradise and I intend to keep it that way.”
Lemke is a brewmaster who has operated his own brewery in Berlin since 1999. In addition to his Lemke Berlin brewery, he also owns four restaurants in Berlin.
These are just a few of the many beers brewed and bottled by Lemke Berlin. – Lemke Berlin | Submitted
“I always wanted to extend my business to the U.S. because I´ve been a fan since I first touched U.S. soil in 1984 as an exchange student in North Carolina – so I took this chance. I plan to come to the pier about every 10-15 weeks,” Lemke wrote.
Longtime Rod & Reel Pier Manager Dave Cochran will continue in his managerial role.
“It’s new ownership but everything’s basically staying the same. It’s the same program. Oli owns restaurants and a brewery in Berlin, so he’s no stranger to the business,” Cochran said.
The second-story Rod & Reel Pier restaurant offers a scenic view of Tampa Bay. – Joe Hendricks | Sun
The Rod & Reel Pier’s upstairs restaurant provides a scenic view of the Anna Maria shoreline and Tampa Bay – a view that often features marine life swimming in the waters below.
The restaurant menu offerings include appetizers and several sandwiches, including the half-pound Pier Burger, the grouper sandwich and grouper Reuben and the Krab Cake sandwich. The main course menu includes a grouper dinner, garlic grouper, Mexican grouper, the Krab Cake dinner, a seafood combo, a shrimp dinner, a sea scallop dinner, fish and chips and more. The offerings also include soups, salads, side dishes and desserts.
The breakfast menu includes steak and eggs, several types of omelets, including a seafood omelet, pancakes, French toast and breakfast sandwiches.
The Rod & Reel Pier bar is a popular local gathering place. – Joe Hendricks | Sun
The Rod & Reel Pier’s downstairs bar is a popular gathering place for visitors and locals alike, and a place where locals often drop by to discuss what’s happening on the Island.
ANNA MARIA – Current City Pier tenant Mario Schoenfelder is requesting a $65,000 settlement in exchange for the early termination of his pier lease agreement that expires Dec. 15.
In response to Schoenfelder’s request, the city commission authorized City Attorney Becky Vose to attempt to negotiate a more favorable settlement for the city.
Meanwhile, Mayor Dan Murphy is attempting to negotiate a new long-term pier lease with Ugly Grouper restaurant co-owner Mike Ross and General Manager Thad Treadwell.
Vose, Murphy and the commissioners discussed Schoenfelder’s request on Thursday, May 28.
Murphy referenced two letters that attorney Lori Dorman sent the city on behalf of Schoenfelder and his company, TCPR Inc. Those letters pertain to the lease Schoenfelder and the city signed in 2000 and later extended.
“All of you have been provided with Mr. Schoenfelder’s letter of March 27, where he demanded to have the pier back so that he could operate a restaurant. And then his subsequent letter of May 21st, where he said he didn’t want the restaurant back, but now he would like $65,000,” Murphy said.
In her May 21 letter, Dorman wrote, “TCPR is willing to enter into an early termination of the lease. In return, TCPR expects the city to compensate it in the amount of $65,000. This amount represents a portion of the lost income TCPR has incurred as a result of the city’s delays.”
Hurricane Irma ripped the roof off the old bait shop in 2017. – Joe Hendricks | Sun
Regarding that letter, Murphy said, “His contention is that since we didn’t have insurance of the pier – since we were self-insured – that we could have rebuilt the pier a lot quicker with insurance, and thus the lost revenue. Never once was the pier construction held up as a result of not having funding.”
Murphy said it took more than a year to get permits from the Army Corps of Engineers and several other permitting agencies. During that time, the city secured project funds from FEMA, Manatee County tourist taxes and the state.
Murphy said the request for proposals process created additional delays, as did two tropical storms and a construction barge crashing into the pier.
“The money was never an issue,” Murphy said.
Murphy provided the commission with three options.
“We can pay the ransom of $65,000 and move on, or we can authorize our city attorney to attempt to negotiate a settlement outside of litigation, or we could proceed with the buildout. We could turn the pier over to him as he requested in his March 27th letter and begin charging him rent. The Ugly Grouper is more than willing to work with us on any one of these three alternatives,” he told the commission.
Murphy said the Ugly Grouper representatives are willing to wait until mid-December to take occupancy of the pier buildings if necessary.
Murphy said a court battle would cost the city money even if the city prevailed and he recommended authorizing Vose to attempt to negotiate a settlement instead.
“If that fails, then we can move on to option three, complete the buildout and begin charging rent,” Murphy said.
“Have our city attorney try to negotiate a settlement and let’s move on,” Commissioner Joe Muscatello said.
“Option two is the most appealing one to me, although I do feel we need to defend our city against this. I don’t think there’s the evidence that he claims in these letters that he’s been harmed because of anything the city has done,” Commissioner Amy Tripp said.
“We’ve got a new concessionaire, we’re ready to negotiate with them. Let’s get this behind us. I trust attorney Vose to put a good faith offer in front of Mario’s attorneys. And if they don’t accept it, I think we can win the lawsuit. But I’d rather not, I’d rather get it behind us,” Commissioner Jon Crane said.
Commissioner Mark Short said he’s read Schoenfelder’s lease several times.
“There’s nothing in the lease agreement that says the city was required to insure the entire pier. The whole premise of not having insurance is moot. With respect to repairs being done in the event of a casualty, the tenant is also partially responsible to conduct repairs on certain portions of the leased premises should a casualty occur, which obviously did,” Short said.
Murphy ordered the old pier and pier buildings closed in September 2017 after Hurricane Irma removed a large portion of the bait shop roof, damaged the restaurant building roof and damaged much of the old pier’s T-end decking.
Wave action associated with Hurricane Irma displaced the old pier decking in 2017. – Joe Hendricks | Sun
“The lease agreement specifically calls out that if a casualty occurs the tenant’s sole remedy is limited to the abatement of rent, which is what the city has done,” Short said.
Schoenfelder made his last $11,898 monthly rent payment on Sept. 6, 2017.
Short said the city attorney should attempt to negotiate a settlement agreement that factors in these lease terms not referenced in Dorman’s letters.
Vose said she agreed with Short’s interpretation of Schoenfelder’s lease.
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.
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.
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.
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.
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.
ANNA MARIA – Mayor Dan Murphy is asking city commissioners to provide their feedback on the lease terms they want for the tenant of the soon-to-be-built Anna Maria City Pier.
Construction of the new pier is expected to begin the third week of January and be completed in August 2019. Current tenant Mario Schoenfelder’s lease expires in December 2020, and he will have the option to sign a new and extended lease.
During the commission’s Thursday, Dec. 13 meeting, Murphy presented a single-page document that provides several lease options for commissioners to consider. Murphy said the list was designed to provoke feedback from each commissioner on the lease terms to be discussed with the Schoenfelder. He wants that feedback by Dec. 31.
Based on that feedback, Murphy will prepare a “straw man contract” to bring back to the commission in January when seeking authorization to negotiate a new lease with Schoenfelder.
According to Murphy’s list of contract considerations, Schoenfelder had been paying the city a flat rate of $11,900 per month (with an annual Cost Price Index escalator). Those monthly payments were suspended at some point after the hurricane-damaged pier was closed in September 2017.
Schoenfelder’s current lease is for the entire pier structure in addition to the restaurant and bait shop spaces at the pier’s T-end. The current lease includes city-owned parking spaces and requires Schoenfelder to pay the county property taxes for the entire pier, the utilities and the liability insurance.
The current lease requires Schoenfelder to maintain the entire pier. Commissioner Dale Woodland is among the commission members who have indicated they want the city to be responsible for the maintenance of the new pier.
Lease considerations
The lease considerations include a proposed $500,000 down payment, or some other contribution, from the pier tenant for the buildout of the restaurant, bait shop and restrooms to be built at the pier’s T-end.
Murphy and Schoenfelder have already engaged in preliminary buildout discussions with architect Barron Schimberg. If satisfactory terms are reached, Schoenfelder will have input on the interior buildout of the city-owned building.
Lease considerations include the length of the new lease and any additional extensions to be granted. Commission input will help determine whether the new lease is based on a flat monthly rate, a percentage of revenues or a combination of both, and will help determine how much of the new pier is leased to the tenant and how the property tax and utility bills are to be handled.
Murphy said he expects the new pier building to be turned over to the pier tenant in December 2019 or January 2020.
It has been stated at previous meetings that if lease terms cannot be reached with Schoenfelder, a new tenant would be sought.
Additional funding
Murphy told commissioners the Federal Emergency Management Agency (FEMA) has reduced its proposed financial contributions to the pier project from approximately $1.35 million to approximately $800,000. This is due to confusion regarding the use of the word ‘repair’ versus ‘replace’ when the city sought and received $750,000 from the state Legislature during its 2018 session.
Murphy said he planned to attend a Manatee County commission meeting on Wednesday, Dec. 19 at the Patricia M. Glass Commission Chambers, where he and several other local leaders will present their legislative priorities and funding requests to incoming Florida Senate President Bill Galvano and incoming State Representative Will Robinson.
Murphy will ask the state Legislature to help fill the $500,000 pier funding gap created by the FEMA decision. He will also seek Galvano and Robinson’s support regarding any vacation rental or home rule legislation proposed during the 2019 legislative session.
