Key West Real Estate Sales

Waterfront Market's lease extended six months

The ongoing battle over the waterfront market was extended another six months.  I think everyone who lives, works or shops in Key West has stopped in The Waterfront Market at one point or another.  If you have dined in any restaurant in Key West chances are you've eaten something from The Waterfront Market.  The gourmet style specialty grocery store has something for everyone and is truly a piece of Key West.  Personally, I love their deli.  They have fed me lunch many days but who's counting?  They also have Feta Cheese Stuffed Jalapenos that are wonderful.  There is a neat array of micro brews and an excellent wine selection too.  OK, I've made my point.  I like The Waterfront Market. 

The following story was in The Key Noter today, Saturday, December 08, 2007.  If you haven't shopped at The Waterfront Market stop by.  I bet you'll like what you see.

Waterfront Market's lease extended six months  By Kyle Teal kteal@keynoter.com

McPherson votes against the extension

The Waterfront Market saga in Key West bought itself some more time Tuesday.

With a last-minute addition to its meeting agenda, the Key West City Commission voted to extend owner Buco Pantelis' lease by six months, offering the popular store an opportunity to keep serving Key Westers, as well as restaurants, with fruits, vegetables and other foods.

The Bight Board approved the same resolution at its meeting in late November.

While commissioners expressed support for the restaurant, Commissioner Mark Rossi demonstrated some impatience. “This has to come to an end,” he said.

A team striving for a market cooperative is collecting money from community business leaders and concerned residents in an effort to keep the store open.

Calling themselves Friends of the Waterfront Market, they began accepting donations and created a Web site, http://www.waterfrontmarketkw.com.

Mayor Morgan McPherson cast the only negative vote to extend the lease, saying he thinks it doesn't make sense to give a leaseholder more time to advertise that same lease he's unhappy with.

Pantelis declined to comment on McPherson's stance outside Old City Hall Tuesday evening.

But Richard Tallmadge, a co-op member, said he was surprised to learn that extending the lease was a contentious issue, and says the extended time is necessary to work out a viable business deal.

“We need the six months to make it happen,” Tallmadge, owner of the Restaurant Store, told the Keynoter. “We're trying to pursue a community business for the community. We didn't know this was going to be an issue of contention.”

“The co-op is a whole different subject,” McPherson said in an interview. “He has two chain stores he is negotiating with.”

Commissioners spoke of the Waterfront Market's character, and how it adds to the Old Town disposition.

“This is the character of someone taking advantage,” McPherson said.

Also Tuesday:

Commissioners rejected a $359,163 grant for an engineering firm to conduct a cost-benefit analysis on the permitting for up to 19 gravity injection wells for the East Front Street Mitigation Drainage Project.

Commissioners Clayton Lopez and McPherson voted for it, Lopez wanting more information.

“I think we need to do a cost-benefit analysis of this cost-benefit analysis,” he said.

Commissioners against the resolution cited high engineering service fees and continuing costs the city would have to incur after the project. Most commissioners opted to give more time to hear other firms' offers.

Commissioners approved a $1.04 million project to bring sidewalks, signage and crosswalks to Flagler Avenue. The Florida Department of Transportation will reimburse the city.

Waterfront Market to close

It's been rumored for many months but looks like a rumor come true.  The Waterfront Market is set to close.  The market is somewhat of a meeting place for Key West locals.  Kind of like Cheers without bar stools.  Many of the local restaurants and tourists shop there.  The quality can't be beat.  The food is fresh, prices are good and service is great.  They carry all the specialty items that can't be found in the chain grocery stores.  I personally love the deli section.  I get my lunch there on a regular basis then the sugar junkie in me hits the fresh pastry section too.  YUMMY!!

The following story was printed in Saturday's The Keynoter.

Planned closure has some fearing job futures

It's official - Buco Pantelis will soon close and walk away from the Waterfront Market grocery store he has owned for more than 20 years on the waterfront in Key West's Old Town.

In his wake are scores of employees and long-time customers left wondering how they are going to make it without him - and what kind of business will take the market's place.

“What are we going to do now? That's the question, and it's sinking in on us,” said Richard Hatch, owner of the Blue Heaven restaurant in Key West. “It's a sad day.”

Hatch said he has relied on Pantelis for the majority of his restaurant's fresh produce for 14 years. He says there is none better.

“He's got a huge semi truck and he makes a couple trips each week to Homestead,” Hatch said. “The produce is so fresh, and it's local, and we can order it just the way we like. Nothing compares to Buco's tomatoes, or his blueberries and strawberries.”

Marilyn Wilbarger, property manager for the Key West Bight, confirmed city officials received a letter this week from Pantelis' attorney, Ginny Stones, indicating the grocer would not sign a 10-year lease agreement he negotiated with the city in July, and would liquidate his business and close Sept. 30.

Wilbarger said the letter cites “the rising costs on all fronts, the unstable labor market, and the general downturn in the local economy” as reasons for not renewing the lease. In addition, the letter says “significant rent increases” and the “loss of lease exclusivity and other traditional lease enjoyments” were to blame for Pantelis throwing in the towel.

In an earlier letter from Stones to the city, this one Aug. 8, Pantelis asked for a delay until Oct. 1 for him to sign the agreement, citing “several personal matters which are directly related to [Pantelis'] ability to enter into a 10-year obligation with the city.” The city granted that request.

Since then, Key West officials had been waiting for Pantelis to sign the lease.

Wilbarger explained that the market portion of the Waterfront Market had not had a rent increase since 2001. Since then, she said Pantelis paid a base rent of $11,390 per month.

Under the new lease, his base rent climbed to $15,136 per month for an increase of $3,746 monthly. She said that breaks down to a blended rate of $16.25 per square foot, which she called “a very fair rate.”

“Other tenants pay over $30 per foot in the bight,” Wilbarger said.

Since all tenants at the bight have an annual 5 percent rent increase, had Pantelis signed the agreement in July as had been previously arranged, his base rent would have steadily risen to a high in 2016 of $23,482.26 per month, according to Wilbarger.

Wilbarger said rents in the bight are based upon the market rate, and calculating them is “an art and a science and is determined by what the market will bear.”

Bight Board Chairman Ray Capas said city ordinance requires the board to collect the market rate for properties on the Bight.

“You don't go to a textbook and pull out a rate and say that's it,” Capas said. “There's a detailed analysis of how they came up with the rate.”

The Waterfront Market is not alone in seeing the city raise its rent to market rate. Two years ago, the Schooner Wharf Bar saw its rent raised to more than $230,000 annually from $109,000.

The Waterfront Market's seafood manager, Curtis Knowles, said he and his co-workers are concerned about what the future holds.

“That unemployment line is going to be pretty long,” Knowles said. “And I don't know what all the restaurants are going to do either. This is going to affect 40 to 50 restaurants, at least.”

Knowles said he blames the city for Pantelis' decision to close.

“I think the city is messing with Buco and made the rent so high they're running people out of business. It's ridiculous,” Knowles said. “All they want is the money.”

Wilbarger said she knows some in the community are pointing accusing fingers at the Bight Board for the Waterfront Market's pending demise, but said she believes Pantelis got a fair shake.

“What more can you do for a guy?” Wilbarger asked. “We gave him almost 50 percent off market rate, eliminated the competition and gave him a 10-year deal.

“The city did everything they could. We cannot subsidize private enterprise.”

Capas said until Sept. 30, the door is still open for Pantelis to have “a change of heart” and decide to stay.

Neither Pantelis nor Stones returned repeated calls from the Keynoter and Keys Sunday seeking comments for this story.