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Memorandum
TO: Mayor and City Council
FROM: John K. Moore, Council Member
DATE: December 12, 2003
RE: Pier Group Inc. - Negotiations for Alteration of Improvements At Venice Fishing Pier

On Friday, December 12, 2003, at 9 am, at my own request, I sat in on a meeting in the City Conference Room between the City of Venice and Pier Group, Inc., owner of Sharky's Restaurant, to discuss possible alterations of improvements at the Venice Fishing Pier. Mike Pachota and Greg Novak appeared on behalf of the Pier Group, along with their attorney, Bob Moore. George Hunt, City Manager, appeared on behalf of the City of Venice. Also present were Bob Anderson, City Attorney, Nancy Woodley, City Engineer and Larry Heath, Director of Public Works.

The agenda for this meeting was prepared by the City Attorney, and approved by the City Manager, as a result of discussions held by the same group at a previous meeting on October 9, 2003, which I also attended. It consisted of draft No. 1 of an Amended Agreement for Alteration of Improvements at Venice Fishing Pier containing eight paragraphs (copy attached).

At the request of the Pier Group, the first, and only, item to be discussed at Friday's meeting was the Beach Pavilion (item #6).

By way of background, on May 22, 2002, the Florida DEP granted the City of Venice a permit to construct a Beach Pavilion to be located approximately 400 ft north of the Venice Fishing Pier in Brohard Park. The plans approved by DEP depict a building with open-air decks, restrooms, showers and a small concession area having approximately 4200 sq. ft. of total usable space. The permit also granted the City the right to construct 440 paved parking spaces, a dune walkover, an elevated boardwalk and a stormwater runoff management area in the immediate vicinity. The Notice To Proceed was issued on Sept. 12, 2002.

The Pier Group said that in addition to leasing more property at the pier for an expansion of Sharky's restaurant, they wanted to lease the Beach Pavilion so they could operate a second restaurant at that location. They wanted the Beach Pavilion restaurant to qualify for a liquor license which would require that it have 150 seats and be substantially enclosed. However, at the very least, they wanted the right to sell beer and wine because, according to them, they can't make any money selling hot dogs. If the City approved, then it would be Pier Group's intention to remodel the existing restaurant, Sharky's, on the pier to provide only 450 seats and construct a new restaurant in the Beach Pavilion with at least 150 seats. The two restaurants combined would then total the required 600 seats, although I'm unsure where that requirement originated.

I told the Pier Group that I was not representing or speaking on behalf of City Council, but that in my capacity as an individual council member I could not agree to their proposal regarding the Beach Pavilion. I told them that I thought the Beach Pavilion should be built and maintained by the City for the use and enjoyment of the public in Brohard Park; that it should remain a handicapped accessible open-air structure with public restrooms and showers where people, especially some of our older citizens who could not negotiate the beach, could view the beach and the Gulf of Mexico; and that we did not need two restaurants owned and operated by the same people in that area. In my opinion the Beach Pavilion serves a much needed and totally different purpose than a restaurant in that location and I don't feel the Pier Group needs to be involved with it in any way. Ultimately, however, this is a decision the City Council will have to make.

After discussing this issue for more than an hour, George Hunt left the meeting apparently feeling that I had taken over the negotiations. At that point Bob Anderson also left because he felt he could not continue without the City Manager being present and the meeting broke up without any resolution of this issue or any other issue on the agenda.

It is clear that the Pier Group and I have totally different opinions regarding the function and purpose of the proposed Beach Pavilion. It is also clear that this is only one of many issues which ultimately will have to be decided by City Council. However, they need to be decided in a totally comprehensive manner and not in a piecemeal fashion.

Accordingly, I am requesting that the Mayor and City Council schedule this matter for a workshop in early January 2004 to fully evaluate and explore all options regarding the development of this area including the renovation of Sharky's restaurant, execution of a new lease with the Pier Group and development of the adjacent area including construction of the Beach Pavilion and other public facilities. At the workshop, council should elicit public comment on all of these issues and each member of council should have an opportunity to state their views about the project as well as to listen to the views of all the other council members before making a decision. In addition to providing explicit guidance to the City Manager, I would also encourage council to appoint one member of council to be a part of the negotiating team.

There are numerous issues that need to be discussed at the workshop including, but not limited to, the following:

1. How much of a expansion of Sharky's Restaurant, if any, is necessary or desirable for the City as well as the Pier Group? Is a 600 seat restaurant necessary?

2. Whether or not to extend Pier Group's lease and, if so, under what rent and terms? Or, should the City continue under the existing lease which expires in 2016 after which the property reverts back to the City?

3. Reconciling the existing lease provisions requiring Pier Group's obligation to collect fishing pier admission fees with the decision to eliminate admission fees if the bond referendum passed?

4. What portion of the parking lot improvements shall be paid by the City and Pier Group respectively?

5. What is council's concept for the Beach Pavilion? Should it be an open-air structure or another restaurant?

6. If a new lease is going to be negotiated with Pier Group should Council appoint one of its members to participate in the negotiations?

7. Council should be given a thorough presentation by staff on the terms of the DEP permit approving the plans and specifications to construct these facilities seaward of the coastal construction control line.

8. The public should be given an opportunity to state their views about how the area should be developed and in particular the function and use of the Beach Pavilion.

9. What action, if any, should be taken on the Agreement For Alteration Of Improvements At Venice Fishing Pier dated August 31, 2000, with the attached blank lease?

-- John K. Moore, 12/12/03