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.
