Holmes Beach commissioners are putting a stop to future formula businesses in the city — temporarily.
Commissioners agreed to move a moratorium ordinance to first reading that bans formula or chain businesses from establishing in Holmes Beach. The moratorium, if approved, would be retroactive to June 14 and would expire in February 2017.
It will not include businesses with permit applications submitted to the building official — Smoothie King and Dunkin’ Donuts/Baskin-Robbins.
The moratorium would define formula businesses as retail sales or service establishments with 11 or more locations in operation, a standardized facade, decor or signage, a trademark or service mark and uniform apparel for employees.
The moratorium would prevent the encroachment of new formula businesses while commissioners construct an ordinance to manage the number of formula businesses in the city.
Out of the 173 commercial businesses in Holmes Beach, 20 are classified as formula businesses, including banks, gas stations and real estate offices, according to Mayor Bob Johnson.
Currently, no additional formula businesses are known to be in talks to open a Holmes Beach location besides Smoothie King and DDBR, according to building official Jim McGuinness.
“I think the purpose is to provide time to look at the situation and determine an appropriate course of action for the city,” said Johnson. “Moratoriums are an effective way to let us look at the situation and come up with a solution.”
“This doesn’t affect anyone with a construction permit or business tax application in,” said Commission Chair Judy Titsworth. “They’ve already got their foot in the door.”
The moratorium does not affect formula businesses currently operating in the city. It also does not prohibit the two new formula businesses planned at the Anna Maria Island Centre shopping plaza on East Bay Drive: Smoothie King and Dunkin’ Donuts/Baskin-Robbins. Both applied for construction permits with the building department earlier in the spring.
“I think this is the best thing we can do,” Commissioner Pat Morton said.
“It’s a very complicated issue,” said attorney Stephen Dye, stepping in for city attorney Patricia Petruff, who was on vacation. “It’s not an easy type of ordinance to do.”
“It’s going to take all the time we’re allotted to come up with the right wording,” said Commissioner Carol Soustek.
Steve Galloway, a resident of Lutz and the franchisee of the future Holmes Beach DDBR store, addressed commissioners during public comment.
“I’m surprised by the resistance from the community,” he said. “We thought Anna Maria Island would be a great location for our business. We like to be good neighbors.”
Galloway asked commissioners if they thought a community meeting would help the business to be well received.
“I don’t think so,” said Commissioner Jean Peelen. “You’re going to get angry residents.”
“One of your problems is location,” Soustek said. “It’s too many similar businesses too close together. The competition could be disastrous.”
“Good competitors grow markets,” Galloway said, adding he has been working with Dunkin’ Brands for 15 years and has the development rights to the brand, including DD/BR stores, in Manatee County.
Galloway owns several DD/BR stores in Manatee County and in Tampa.
“Why pick that site?” Soustek asked, referring to the Benderson plaza in Holmes Beach.
The plaza has a bagel cafe, a homemade ice cream parlor and a new shop with coffee and cupcakes.
“I looked at that site for more than two years,” Galloway said. “Anna Maria Island has been on my radar. I’ve done work with Benderson before. It fit. We really thought we’d be welcome in the community.”
Commissioners will next meet at 7 p.m. Tuesday, June 28, at city hall, 5801 Marina Drive, Holmes Beach.