Key West officials got an earful of sharp criticism from local business owners before, during and after the Sept. 1 city commission meeting, which was preceded by a public protest on the steps of City Hall.
A crowd of 100 or so sign-wielding picketers demanded stronger support from city lawmakers, seeking less punitive mask rules, relaxed COVID restrictions and permission to open bar seating in restaurants.
“Give us a break,” “Let us work” and “Protect Workers, Stop Overreach,” read some of the Sharpie-scrawled signs.
When the virtual meeting started an hour later, Mayor Teri Johnston and Commissioners Billy Wardlow and Jimmy Weekley took the oath of office after winning re-election on Aug. 18. Weekley was unopposed.
Commissioners consider two rent-relief options
Sparks flew a short time later during a discussion of rent relief for the city’s business tenants at Key West Bight (known as the Historic Seaport) and Charter Boat Row at Garrison Bight.
Several members of the Bight Board, most of whom own or represent waterfront and water-based businesses, urged commissioners to approve their relief proposal, which was significantly more generous than the one approved by four of seven lawmakers. Commissioners Sam Kaufman, Greg Davila and Clayton Lopez dissented in support of the bight businesses.
The tenants requested: Two months free rent for April and May; deferment of June and July rent (meaning they can pay it later); a 50% rent reduction for August and September and a reassessment of the situation for October through December.
The city offered and approved: One month free rent for April; deferment of May and June rent; full rent for July and a 25% rent reduction for August and September.
Johnston pointed out during the discussion that recent reports of sales tax collections in the city, surprisingly, were only down by about 10% compared to last year.
“I don’t think there’s any doubt we’ll support these 170 city tenants, but the question we’re wrestling with is what we base these decisions on. All 9,000 businesses in the city are struggling.”
Business owners and Commissioner Kaufman repeatedly reminded the commission that rent relief for the city’s bight tenants will not cost taxpayers a dime, and that the Key West Bight currently has $16 million in its coffers. “These are not taxpayer dollars,” Kaufman said. “They come from the rent that’s paid by these businesses.”
The bight district has also shared its revenues with the city’s general fund, contributing $1 million for the city’s purchase of the former Citizen building and $400,000 to help save Poinciana Gardens assisted-living facility, bight board member Barry Gibson said.
City’s tenants blast commission decision
“Your tenants were closed for 71 days, and you give them a 45-day break. It wouldn’t surprise me if you face legal challenges to this, and the taxpayers will end up paying for that,” Gibson said after the vote, thanking Kaufman, Davila and Lopez for their support.
Bight Board chair Michael Knowles, also a hotel general manager, said the commission’s decision was based on a lack of information, and sales tax collection is the wrong measuring stick to gauge the hospitality industry. “Has any commissioner looked at a STR (Smith Travel Research) report to see our occupancy rates? My occupancy was at 92% last August. Now I’m at 51%. I’d advise you to start using the right economic tools to see how far down tourism is.”
Restaurant owner Joe Walsh dismissed the mayor’s concern about whether other businesses were receiving similar rent relief from their private-sector landlords.
“One of my other restaurant’s private landlords offered me six months rent abatement (free rent), and 30% rent for the balance of the year,” Walsh said. “To my own tenants, I’ve offered three months rent abatement. So the suggestion that private landlords haven’t gotten the message is simply false.”
Lisa Althouse, who owns a business on Caroline Street, reminded officials that former commissioners granted businesses a year’s free rent in 2012, when the Caroline Street Corridor renovation and construction project made Caroline Street impassable and blocked sidewalks for a year.
In other news…
Officials made a concession to restaurant owners throughout the city by agreeing to open bar seating at restaurants. Kaufman reminded those watching the virtual meeting that the closure of stand-alone bars remains a state mandate, and is not a city decision.
The commission ultimately voted unanimously to allow groups of six or fewer to sit at restaurant bars as long as they remain properly distanced from adjacent groups and are ordering food and drinks.
Finally, the commission asked City Attorney Shawn Smith to revisit the city’s mask requirements, perhaps reducing financial penalties and relaxing the mandate when people are outdoors and able to keep proper distance from others.
