Michael Rotondo is losing his lease after 20 years in business.
Mark Lovewell

Airport Mobil Owner Sues Over Loss of Lease

The owner of the gas station and car wash facility has filed a lawsuit against the Martha’s Vineyard Airport Commission after the commission voted to award a lease to a competing station in Edgartown.

The owner of Airport Mobil, a gas station, car wash and small auto service facility situated at the airport business park, has filed a lawsuit against the Martha’s Vineyard Airport Commission after the commission voted early last month to award a 20-year lease for the business to a competing station in downtown Edgartown.

Airport Mobil owner Michael Rotondo claims in the complaint that the process, which involved a request for proposals, was unfair and misleading. A hearing is set for April 11 in Dukes County superior court on a request for an injunction to prevent the airport commission from awarding the lease for lot 33 at the airport business park to Depot Corner, owned by Louis Paciello.

The commission voted to grant the lease to Depot Corner at a meeting on March 9.

Draft minutes of the meeting show the vote followed an executive session where commissioners discussed details of the lease proposals.

Airport manager Ann Crook said this week that the 20-year lease for lot 33 held by Airport Fuel Services Inc. (the legal name of Mr. Rotondo’s business) expired on March 9. She said a request for proposals was issued in January, with a Feb. 10 submission deadline. She said four proposals were submitted and later evaluated and ranked by the airport commission, according to a detailed set of criteria listed in the RFP, including the amount of rent to be paid, a description of the proposed operation, a statement of experience and business references.

Rent was one criteria but was not the deciding factor, Ms. Crook said. “The commission wanted to make sure that the decision was in the best interest of the airport — they were not just going for the high bidder, they were going for the best proposal,” she said.

Ms. Crook said lot 33 is 36,000 square feet, and the proposed rent in the four proposals was as follows:

• G.J. Smith Inc., $2.21 per square foot.

• Airport Fuel (owned by Mr. Rotondo), $3.01 per square foot.

• Depot Corner Inc. (owned by Mr. Paciello), $3.49 per square foot.

• MVYABTlot 34 LLC, $5 per square foot.

The owners of G.J. Smith and MVYABT were not immediately available. The minutes of the executive session held prior to the vote on the RFP have not been released yet, Ms. Crook said. She did say that spokesmen for all four proposals were present at the March 9 meeting of the commission.

The March 21 complaint filed by Mr. Rotondo also names Depot Corner as a defendant. It claims among other things that a clause in the draft of the original lease gave Mr. Rotondo an option to renew for another 20 years but was left out of the final document, and that since 2006 he has tried to resolve various issues with the airport commission, and was assured he would be able to keep his property. The complaint also alleges numerous flaws and irregularities in the RFP process.

There are about 50 lots at the business park, all owned and leased by the airport commission. Ms. Crook said with some exceptions, the majority of the leases run for 20 years.

Comments

Submitted by Anonymous (not verified) on Tue, 04/04/2017 - 23:19

Permalink

Cranston East Chop

Why would the Town of Edgartown want a monopoly of all of their gas stations in town? That is not good for business! In addition, he wasn't even the highest bidder! And what exactly did the "Best proposal" consist of?

Submitted by Anonymous (not verified) on Wed, 04/05/2017 - 00:02

Permalink

HR Oak Bluffs

We also had problems with previous airport management. It resulted in a suit which we won and the lawyers won big time.
This is no way to treat a business that has been built up over 20 years. I assume airpot does not own the buidlings, fuel and washing equipment. What happens to that investment?

Submitted by Anonymous (not verified) on Wed, 04/05/2017 - 03:51

Permalink

Islander Aquinnah

Michael has built up and run a good and consistent business all these years, and he has employed and mentored local kids providing year round jobs .He is an asset to our community and should be given an option to renew his lease without gouging .50 per foot that will surely lead to higher prices for consumers. I hope that this decision is reversed and that it doesn't cost him an arm and a leg for legal fees. He deserves to keep his business in that location that he pioneered. Hopefully community support will prevail for a beneficial outcome.

Submitted by Anonymous (not verified) on Wed, 04/05/2017 - 05:18

Permalink

Nunzio Edgartown

I think Bill Reilly should take a shot at this on his show. I'll inform his people. This reaches far beyond a "Help me Hank", situation.

Submitted by Anonymous (not verified) on Wed, 04/05/2017 - 06:39

Permalink

charlie callahan so boston/edgartown

This man and his employees seem like very nice hardworking people who are getting screwed. I see it in southie all the time . A guy runs his business fair and honest treats his customers well and time comes to renew their lease and someone took care of the right person and this guy is on the street. Not right but that's what GREED does,especially on an island like this

Submitted by Anonymous (not verified) on Wed, 04/05/2017 - 15:57

Permalink

Laura

Michael has built and maintained a clean and well-run business. A definite asset to the Airport Business Park. He is facing a $250,000 to $300,000 cost to demolish and remove his property due to the loss of his lease. Unbelievable! His bid was in the top 3 as required. Waiting for more information

Submitted by Anonymous (not verified) on Thu, 04/06/2017 - 10:41

Permalink

What a Gas Capeside

A lot of factors discussed that really have no bearing on the matter. The terms of the lease are just that and should not be ignored in any way because of purely personal reasons. Greed is a buzzword thrown about here in a somewhat irresponsible way. This is all business and both renter and leaser are only "greedy" in that they both desire the most for their efforts.

If the lease is 20 years with no clause for a preferred renewal then thats it. Its not relevant to consider factors outside of the lease. Have a lawyer read it and sign on, or pass and look elsewhere. Hearsay and personal opinion of character aren't factors that should have any place in interpreting legal documents. A clear cut process was followed and the results should not be in question unless someone went astray of the terms that were clear and present from the start.

Submitted by Anonymous (not verified) on Thu, 04/06/2017 - 19:28

Permalink

Rich Vineyard Haven

The claim in the lawsuit seems to be that a renewal clause was considered in a draft of the lease, but that clause was later omitted when the lease was signed. How is that claim helpful to the tenant? It seems the parties considered the issue and decided that no renewal clause would be included in their final agreement.

Add new comment

Plain text

  • No HTML tags allowed.
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.