AMI vs formula business, Part 2
“If we look at the American economy, who’s really creating value? It’s the small businesses. Unchecked greed and the creation of false value gets us all in trouble.”
— Robert Herjavec, entrepreneur and multi-millionaire
Island residents frequent CVS. Some shop with regularity at Ace Hardware and the Dollar Tree.
They also enjoy bagels at Paradise Cafe. They wander into Holy Cow on a hot afternoon or evenings after dinner for a scoop or two of ice cream. They fiddle in the local shell shops and look for that perfect dress in the boutique that has a feline guarding the cash register. This is Anna Maria Island.
Or it was.
Many of the formula-chain businesses on the island are located in or near the Anna Maria Island Centre on East Bay Drive in Holmes Beach. The development has stood at the gateway to the Manatee County coastline for more than 20 years.
It is owned by Benderson Development of Sarasota, one of the nation’s largest privately held real estate companies.
Peppered between the Dollar Store and other chains, are independent small businesses, run day to day with an eye toward the bottom line.
Jackie Estes has operated Paradise Bagels Cafe and Catering for more than 20 years. Currently at 3220 E. Bay Drive, in the long strip center, she was displaced from her original location six years ago when new construction made way for a bigger Walgreens. The drugstore giant moved from the space now leased by Dollar Tree.
Estes was forced to relocate and rebuild, as her original store was attached to a defunct Shell’s restaurant that was leveled to make way for Walgreens.
“Benderson gave me six weeks’ notice. That’s it. It was a mess. I had to move all the equipment and redo this space,” she said, waving to the seating area adjacent to the counter.
“Eventually, they did compensate me a small amount of money for the move, but it was spread out over a long period of time. I spent over $29,000 just to turn the beauty salon and dry cleaning space into usable restaurant space,” Estes said.
Estes is empathetic to other center occupants when it comes to adding more chain stores — a combination Dunkin’ Donuts/Baskin-Robbins and Smoothie King — at the Benderson center.
“I’ve been there, with that feeling in your gut about what to do. My heart breaks for Chet at the ice cream store and Judy at the cupcake place. They are still struggling to build up their businesses,” Estes said, referring to the owners of Holy Cow and Cupcake Delights.
“I’ve had 21 years to build my customer base,” Estes added. “I’ll be alright.”
Judy Owens arrived to turn the key for her first week of business to find a sign in the vacant storefront near her new bakery, Cupcake Delights, touting the arrival of the Dunkin’ Donuts/Baskin-Robbins.
She was not so resolute.
“I was not happy. I had just invested a very substantial amount of capital into buildout, purchasing inventory and getting this store open,” said Owens, whose flagship store is located in Mount Dora.
“And advertising dollars. I don’t think it’s right for me and I don’t think it’s right for the island.”
Holy Cow owner Chet Zarzycki agreed. He and Owens stand to lose a substantial amount of revenue as the new stores promise direct competition.
Both owners have spoken to Holmes Beach commissioners and Mayor Bob Johnson, urging them to address their concerns.
News about the city commission’s May 26 work session finally elicited a response from Benderson.
In a letter dated June 3 and addressed to Johnson and commissioners, along with city attorneys Patricia Petruff and Charlie Bartlett, attorney Todd Mathes, Benderson director of development, said the “work session discussion regarding the proposed legislation which would limit formula retail operations on the island was clearly held in response to criticism directed only at Dunkin’ Donuts/Baskin-Robbins.”
Mathes also stated that the operator signed the lease and permits were applied for on April 21. “We urge the city to promptly issue the permits which have been applied for and to refrain from pursuing anti-competitive, protectionist actions.”
Estes said true islanders might eschew the chain stores in favor of independent businesses in a protectionist action. But the tourists who come for a week or two probably won’t.
“People know what to expect from chains. They stay busy because they are the same everywhere, not because they are good or different,” Estes said.
Zarzycki has a five-year lease with Benderson.
“In a few years, it will be time to renew,” he said. “What can we do now before the fact? That’s what we need to see.”
“I want my grandchildren to come and enjoy the island as we have known it. It’s about the character of Anna Maria Island.”
Deb Wing, chamber president, along with board members of the Anna Maria Island Chamber of Commerce, sent a letter to the business owners in the shopping center, encouraging them to make their voices heard in the dispute.
The chamber copied the letter to Benderson Development, urging Benderson to “join us in protecting our local island business community and our unique island branding.”
“Let’s face it,” Wing said. “No one comes to Anna Maria for a cup of Starbucks. It’s not what we are about.”
Next week: Part 3. More on Benderson, how other communities have dealt with the issues of small business versus chain stores and how the city of Holmes Beach is addressing local concerns.