Circuit Judge Chris France has granted a joint request by Flagler County government and Captain’s BBQ to delay the trial over the two sides’ four-year-old dispute until next February. Trial had been scheduled to start on June 26.
The two sides asked for the delay jointly, but not necessarily because a resolution is pending. Rather, each side still has adversarial motions that have yet to be heard in court. Captain’s is also attempting to bring the county back to the mediation table. The county had been resisting. A trial would have been premature, the two sides agreed. The judge granted the delay two weeks ago.
Captain’s sued the county in 2019, claiming breach of contract, after the Flagler County Commission in the county’s view rescinded its own approval of an amended lease with the business. The commission had initially approved allowing the business to build a new, larger restaurant, at Captain’s own expense, nearer the center of Bing’s Landing. But it had done so with remarkably limited transparency. Then-County Administrator Craig Coffey had placed the new, replacement lease as a proposal on the “consent” part of the commission’s agenda–where routine items get approved wholesale, because they’re presumed not to be controversial, hoping for swift and uncontested approval.
But the Captain’s expansion was controversial: even in the most objective terms, it would reconfigure the character and complexion of Bing’s. It would enlarge the parking area. It would provide more seating. The item was pulled from the consent portion of the agenda and led to an extended debate between commissioners, with plenty of public opposition. But the 3-2 vote approving the lease was the only time the commission had discussed the proposal until then.
Opposition built swiftly from such groups as the Hammock Community Association. Commissioners proposed a different location, further out from the center of the park and even closer to the Intracoastal (on land that would subsequently be under water during severe weather events). Captain’s declined. The commission reversed its decision on the lease weeks later. Captain’s never saw the commission’s reversal as amounting to a rescinding of the lease. That’s one of the contentions at the center of the dispute.
The county not only argues that there was a reversal. But even if there wasn’t one, the county never acted under the purview of the newer lease, so it couldn’t have breached it. The county also now argues that Captain’s is in default of the existing lease, offering up what Captain’s may see as a Catch-22 reasoning: the new lease required Captain’s to pull all necessary permits within 12 months of its approval. Captain’s never did so. Therefore, as the county sees it, Captain’s is in default even as it has continued to operate from the old building.
“Assuming the Amended/Restated Lease was ever a valid contract,” the county argued in its pending motion for summary judgment, “Captain’s BBQ is now in default of it, and as Captain’s BBQ did not cure the default, the lease has terminated.” Since it would have been impossible for Captain’s to secure some of the necessary permits from the very agency–the county–that considered the restaurant’s expansion plans dead, it’ll be up to a jury to decide whether it buys into that sort of disingenuous reasoning.
It isn’t the only odd line of reasoning the county is relying on. The county also claims that the county commission broke the law when it approved the new lease, making the lease null and void. Circuit Judge Terence Perkins, who presided over proceedings before France took over, is on record all but ridiculing that claim. (“I’m not sure you get to say that our error excuses us from our contract obligations,” Perkins told the attorney representing the county.)
The county bought the 7.45-acre Bing’s Landing property in the Hammock in 1989, turning it into a county park. It was already a fish camp with its own bait and tackle shop, as it had been since the 1950s. It was also part of an archeological site. But it was run down. The county rehabilitated the property. It had trouble leasing the bait shop to a reliable business until 2011, when Captain’s took it over and launched its barbecue restaurant, generally to acclaim.
And on very generous terms: $500 a month, increasing each year by an additional $40. Current rent is $980 a month.
For comparison’s sake, Loopers, the restaurant at the Palm Coast city-owned Palm Harbor golf course, pays $1,500 a month. High Jackers, the restaurant operating at the county-owned airport, was paying $1,290 a month when it renewed its lease in 2021. Rent there increased to $3,000 a month last June. (The restaurant just changed ownership.)
The lease for the Funky Pelican at the city-owned Flagler Beach pier, signed the same year Captain’s signed its lease, called for a starting rent of $3,000 a month, increasing by 3 percent a year. The restaurant is now paying $4,227 a month, plus a 2 percent share of profits above $1 million in gross sales. The Funky Pelican is the only restaurant in a government-owned property sharing profits.
Toward the end of Coffey’s term as county administrator, he worked out the new lease proposal with Captain’s, essentially making what the restaurant took to be pledges that all would be well, that the commission would approve the new lease and that the restaurant would expand. Coffey was a master dealmaker, though his deals, lacking a full analysis or the sort of transparency that would invite constructive criticism, at time had unintended consequences. When Coffey presented the proposal to the commission, he said the existing restaurant was falling apart and wouldn’t be worth rebuilding.
Lo and behold, in June 2019, an additional county inspection found that the building wasn’t in such bad shape after all, and that it was repairable for what, at the time, would have cost $60,000.
The county’s renewed motion for summary judgment would, in the unlikely event that it is granted, scrap the need for a trial. When Perkins ruled against a similar motion
A judge already ruled against a similar motion, but left the door open to file another one once Captain’s had deposed all its witnesses. The county also filed a motion demanding answers to a long list of questions, and for documents, from Captain’s.
Captain’s has filed a motion to compel the county to return to the mediation table. The two sides held mediation previously, without ultimate success. The county administration at one point was willing to make generous concessions, but the commission overruled.
In late April, the county renewed its demand for answers to questions it it first sought answered from Captain’s in August 2020, albeit to a different set of attorneys. (“We are working on this,” Hillary Mesa, one of Captain’s attorneys, wrote Dale Scott, one of the attorneys representing the county, in March. “We need some additional time.”)
The request is wide ranging and often vague, as with the request for correspondence relating to the dispute between “you and any other party,” all “documents” related to the issue, damage and relief claims and other documents. It also includes requests for documents the county already has, or that don’t exist, such as mortgages or property tax documents: the property is owned by the county. Captain’s does not pay property taxes there.
Captains told the court it produced the answers on May 3.
Laurel says
Can you imagine renting a commercial building, right on the ICW, with the park’s parking and county maintenance, for under $1,000 a month, and no property tax? Can you imagine building a new, larger building in the center of the park, and because of the larger seating, getting a liquor license, more of the park’s parking, and exclusive boat slips? That’s what Captain’s BBQ wants, and because they didn’t get it, they are now suing us taxpayers.
Originally, the park was supposed to have a small bait and tackle building that was allowed to sell some sandwiches to boaters and park visitors. Then Captain’s took over, and the tackle ended up on one, small rack, and it was really difficult to get bait. Then, it became a busy restaurant, no bait, little tackle and less parking for park visitors, and less boat slips for the same. More money for the renters.
I say boot them out! Let them do what other businesses do: buy a property, build it according to code, maintain it themselves and pay taxes on the property. Let them jump through hoops like everyone else (well, for the most part anyway). Give the park back to the park patrons. We have eaten there once in the last five years, and in our opinion, it went down hill. No great loss.
Destiny says
The owner use to live in Island Estates he needs the money
Save Malacompra says
Well said Laurel. Couldn’t agree more. Seems like there was also a requisite for opening early….for bait. They used to have live bait, then switched to frozen and maybe not even that anymore. As a frequent user of Bing’s Landing for the boat ramp (hence the name landing), it is quite frustrating when all spots, including the 15 minutes only, are all used up for the restaurant…eh hmmm…bait shop.
Sure hope the restaurant gets closed. Would be okay if the excessive traffic was caused by the intended purpose…a bait shop. The owner can change one of his many other properties to be used for a mediocre BBQ restaurant. And the fishing “captain” should be ashamed of his adverse impact on the boat ramp users.
Todd Swinderman says
The Park was purchased with Environmental Sensitive Land funds that the Property Tax payers pay into. So this is not normal County property and should not be used for the benefit of an individual business owner.
JimBob says
A virtual goldmine for lawyers billing by the hour!
Go Bears says
Do not renew another lease with these people. They’ve cost the citizens more money in litigation than they have paid in rent. Turn it strictly into a park and historical site, which it is. The man that built and resided at Mala Compra was Joseph Hernandez. He was a General during the Seminole Wars and was also responsible for the capture of Osceola and Wild Cat. Both were prominent figures during the Seminole Wars. He was also the first Hispanic member of the US Congress. I have been told that no complete archaeological survey has been performed on the property where there may be over a dozen structures. I am very happy that the County Manager we have now is actually worth a damn compared to what we have endured in the past. With her guidance, I hope she can persuade the County Commissioners to move on from this deal. This site needs to be preserved in its entirety for the vast amount of history it holds. Always remember that Mala Compra means “bad bargain” in Spanish. That’s exactly what we are in right now with these BBQ boys.
The Sour Kraut says
Please don’t make this another Green Lion! Restaurant owners will stop wanting to do business with FPC.
DaleL says
The “approval”, at the heart of this dispute, was passed in haste by the county commission during the Thanksgiving week of 2018. It was also based on the premise that the existing restaurant building was falling apart and wouldn’t be worth repairing. The owners of Captains promoted this false narrative to the county commission. Then, “Lo and behold, in June 2019, an additional county inspection found that the building wasn’t in such bad shape after all, and that it was repairable….”
The county commission acted in haste and on false information. To what degree that the owners of Captains knew that the building was repairable is arguable and difficult to prove. However, having a brand new, much larger, restaurant building would have benefited them greatly.
Tim says
I would love to see that inspector report ,
palmcoaster says
Stand your ground Flagler County as this is the people’s park and bought with the peoples monies. No judge should ever forget that. Captains have profited enough now they need to go, buy their own land and set his eatery there.
The Sour Kraut says
Just how many places ate there to eat right on the water? Even if I don’t have a boat it can benefit me because restaurants accessible by boat will be a draw for tourists.
palmcoaster says
Hey Sour we are only asking that Captain’s that sure made enough money all these years for the owner to reside in trendy Hammock Dunes needs to buy their own land on the ICW and set up their eatery there and leave the people’s park to the people! Enough is enough. Want to expand then go and do it in your own land.!
Bings defender says
The owner of captains bbq has gotten the sweetest deal from county commissioners in the past and has tried to get an even sweeter deal since. Shame on those commissioners who allowed the deal in the first place, and Shame on the Captain’s owner, for not being happy with the deal, already in place. And also, for trying to expand and ruin what the park was originally purchased for, and bought by the county with environmentally sensitive land funds.
Hopefully the County will have the courage to not back down or give in and Captains owner will not continue with the law suit.