THE PELICAN CAFÉ
There is a reason why I am against governments owning property for uses other than their own. The reason for owning property given by municipalities is that by having a rental stream, you can diversify the government’s dependence on ad valorem taxes. The Pelican Café is a prime example of why it doesn’t work.
Instead of looking at it as the business it is supposed to be, it is easy for Commissioners to end up on the wrong side of a public relations campaign. While the current tenant may believe it is his property, it actually belongs to the people of the City of Stuart. Paul Daly trying to renew the lease two years before its expiration is not, as he claims, “the end of the line” if it doesn’t happen now. Unless there is a sale in the lease’s future.
Sometimes, Commissioners want to use these opportunities to ingratiate themselves with the owner of the business. It isn’t their money, so making sound business decisions aren’t foremost. That is the bottom line with government…they don’t care. For elected officials, it is political expediency and for staff it is survival until retirement.
Who will remember that the last Commission gave away a sweetheart deal to George Hart who was the then owner of Mulligan’s? In that lease, the Commission promised him millions if the City ever wants to develop the property. Hart has since sold that lease, along with Mulligan’s, to investors. In that case, the profit is going to them and not the City. Good deal for the taxpayers? I think not.
Politicians believe they need to make everyone happy…that is, everyone but the taxpayer. Maybe, just maybe, there are a few Commissioners that think the taxpayers should get the right deal. The old line in the “Godfather” movies rings so true because it is business and not personal. Would you sell your car or rent your house and not want the most you could obtain?
Paul Daly may be a very nice person. The ten-year lease with two five-year options would be a gift that the City cannot afford. The rent is below market even after receiving 3% of sales. If it went out to bid, I am sure the offers would be better than that. Even if another $1000 per month was offered, that alone would translate to $240,000 additional over 20 years.
By not getting the most that Stuart can, the taxpayers are left holding the bag. No amount of publicity, public relations or talking is justification for taking money out of the pockets of Stuart taxpayers. The Commission and the staff need to maximize the citizens’ investments. Every time someone says it doesn’t matter…it does. There is no public purpose in any of this. The Pelican Café is a money-making business that is banking on getting a sweetheart deal using the citizens’ money.
If you read the current lease and addendum, it states that Daly and the City can continue to renew this lease in 5-year increments beyond 2021. Further, it goes on to state that since the lease was signed before the charter review that mandated a referendum, Mr. Daly could have his renewals without going to a referendum.
The purpose of the referendum that was held was to allow the City to sell the Northpoint property to Geisinger. Mulligan’s was added because they wanted their own lease instead of the assignment from the Spoto lease. Since the City was already going through the expense of a referendum, it made perfect sense to add the Pelican in case Daly did not renew. That is why the language “the property known as” was added.
If the Commission does nothing else, it should make sure the lease and business cannot be transferred to any other person or entity. That way it cannot be sold. Mr. Daly keeps the restaurant and when he retires, it comes back to the true owners, the citizens. I hope there are 3 votes to do what is best for the taxpayers.
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