The clock was ticking down when pier tenant Mario Schoenfelder delivered his Anna Maria City Pier lease proposal to the city commission.
Anna Maria commissioners granted Schoenfelder an extension from Dec. 13 to Dec. 31 to make his final offer for a new lease.
Schoenfelder, who also owns the Rod & Reel Pier in Anna Maria, requested the extra time to perform a cost analysis based on the floor plan and equipment that will be needed in the bait shop and restaurant.
His city pier lease is set to expire in December 2020, so a new lease is essential to move forward with the improvements.
“Mario sent his offer and it will be discussed at a special meeting at a date yet to be determined,” Anna Maria Mayor Dan Murphy wrote in a Dec. 27 email to The Islander.
“As to the construction of the pier platform — not the restaurant and bait shop — we have an inspection scheduled with I+Icon for Jan. 9. This should be the final inspection of the pier platform — if all passes.”
In the lease proposal, Schoenfelder lists several concerns, including how casualty insurance will be provided and how contractors are hired.
According to Schoenfelder’s proposal, on June 19, 2019, he received an email from Murphy stating the city had selected Mason Martin LLC to construct the shells for the restaurant, bait shop and bathrooms at the T-end of the pier.
“I expressed my concerns about having the city choose the contractor while I am paying the bills and the lack of competition in my letter to the mayor from July 15, 2019, but I received no response from city hall,” Schoenfelder wrote.
On Oct. 23, 2019, Mason Martin declined to bid on building out the interior of the buildings, according to Schoenfelder, and the project architect, Schimberg Group, had to begin anew the bidding process.
“Since I have now received the necessary bid that allows me to evaluate my investment, I am ready to present this offer,” Schoenfelder wrote.
Schoenfelder had the opportunity to discuss with Murphy the details of a new lease and thought they were closer to reaching an agreement, at least on a number of items, he wrote. But “that is not the case when it comes to the rent the city demands.”
Murphy had emailed Schoenfelder Sept. 30, 2019, and presented him with two base-payment options for a new lease.
The first option included a monthly base payment of $21,600, along with either a 3% annual increase to begin after the first year, or an annual adjustment based on the consumer price index.
The second option included a monthly base payment of $18,900, along with the same options for annual increases.
While the monthly base payment in the second option is lower than the first option, the second option required Schoenfelder to pay $250,000 upon signing the lease.
Schoenfelder countered with his own offer: a monthly rent of $8,000 with the first six months rent-free, CPI-based adjustments kicking in after three years and a 10-year lease with two five-year options.
Schoenfelder previously offered a monthly rent of $12,000 based on total build-out and equipment costs of $500,000, he wrote. “I now have received actual bids for build-out and equipment (through Schimberg Group) adding up to $865,000. Therefore, I had to adjust the rent that I am offering.”
According to Schoenfelder, he had offered on several occasions to invest up to $500,000 — now $865,000 — for the restaurant and bait shop build-out and equipment and he is still willing to do so. But he is not willing to meet the $250,000 up-front demand.
“Do you, mayor and commissioners of the city of Anna Maria honestly believe and expect the City Pier Restaurant to successfully sell one cheeseburger for $18-$20?” asked Schoenfelder, who states that the market will not rise up to honor price increases of 59% to 82% that the rent demand would cause.
Schoenfelder originally signed a 10-year lease with the city in 2000 and exercised two five-year options for a monthly base payment of $5,000, with periodic increases of $500.
The monthly payments, which over time increased to $11,500, were discontinued when the historic pier, which was built in 1911, was closed due to damage from Hurricane Irma in September 2017. The old pier was demolished in 2018 and the city hired I+iconSOUTHEAST to construct the new pier, including the T-end and a replacement restaurant and bait shop.
While the new pier remains on track for a February opening for fishing, the dates for the opening of the restaurant and bait shop are not yet determined, Murphy wrote in a Dec. 18 email to The Islander.
“Provided the city accepts this offer, I will invest $865,000 in the build-out to make the city pier once again the city’s most valuable and productive asset,” Schoenfelder wrote.
If negotiations with Schoenfelder fall through, the city commission has a plan in place to issue a request for proposals seeking a new tenant.
Schoenfelder maintains residences in Germany and Holmes Beach. He has been the city pier’s tenant since 2000.
Go Islander. u da best!
This restaurant has been a disappointment since 2000. When I see boxes of grouper from China stacked on the pier to be carried in- forget it. The food is less than. Bring back Anna Maria Oyster Bar or ask the Cortez Cafe to give it a go! In the meantime, allow a hot dog cart or a taco wagon. Wait for quality! Our island is too nice to allow mediocrity.