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
This does not seem right and
Bob EdgartownThis does not seem right and smells of politics. How can having a monopoly on gas in Edgartown be a good thing. Once again the MVAC has got it wrong.
I agree with Bob
MBI agree with Bob
I also agree with Bob. This
Barbara Grollimund EdgartownI also agree with Bob. This isn't right.
I agree with Bob also
MH WTI too agree with Bob
Small biz owners have to be
Jony Cape MVSmall biz owners have to be so careful with greedy LLords - u have no control of your biz and they can ruin your life- sad
That's a shame!!!! I bet this
dick heath MashpeeThat's a shame!!!! I bet this man has given his blood, sweat & tears to this place and this is what you get. A kick in the ass!!! I've stopped at this station a few times for gas or whatever, and everyone has been so kind and helpful. I hope he's able to get a location somewhere else. I'd like to hear from the commission and find out why?
Michael and his staff at
Beth McElhiney Easthampton and EdgartownMichael and his staff at Airport Mobil are great and there is no reason his lease should not be renewed. I hope he is successful in his suit and I wil be able to continue filing my bus there this summer.
That stinks. Michael Rotondo
Martha MageeThat stinks. Michael Rotondo is a good man and has been running that business for a long long time. Mr Rotondo's original lease ought to be honored, for goodness sake. What the hell is wrong with people?
Ms. Crook?
This station/wash has been a
Bruce West TisburyThis station/wash has been a great addition since it opened and always had relatively fair prices... considering the alternatives down island.
Did Mr. Rotondo pay for the
Lionel Spiro ChappyDid Mr. Rotondo pay for the buildings and equipment on he land?
Who paid for the construction and maintenance?
Does the "land lease" include use of what is there?
Yes Mike paid for all of the
Rich RIYes Mike paid for all of the buildings, carwash and gas dispensing eq. he owns the actual structures and everything in them!
Mr Rotondo has been a very
Mike ChilmarkMr Rotondo has been a very helpful and personable business owner over the years to me my family and employees. I think its a shame to see a business owner with such a passion for cars and people to be displaced like this!! I hope that it all works out for Mike and his family.
Go get 'em, Michael! ✨
Martha MageeGo get 'em, Michael! ✨
He's doing the right thing.
MR "A" Edg.He's doing the right thing. You don't build a business for 20 years, and then loose everything you astonished. Hope it goes in in favor. Then maybe the Commitssion will think twice about doing this to the other businesses around there.
Who would want to be a tenant
Ellen OBrien EdgartownWho would want to be a tenant if you are treated this way? Something's wrong. Existing tenants with no trouble in their history should have some kind of advantage in the process.
How about some basic
J.P. Edgartown, ConcordHow about some basic journalism here? Has anyone read the current lease to verify the renewal provisions, if any? Has anyone reviewed the four proposals and/or the RFP, itself? Has anyone verified the existing station's compliance with environmental regulations (e.g., disposal of car wash waste)?
WHAT AN OUTRAGE! Honest hard
Trish EdgartownWHAT AN OUTRAGE! Honest hard working islanders getting messed with!
I agree with all the comments above. But he's not the only one who suffers...we all do; year rounders and visitors! Gas prices get jacked, business owners now have to watch their backs, it trickles down to all. If there has been no trouble in your tenant history then there should be no trouble with your lease. LET NOT SET A PRECEDENT HERE!!
Mr Rotando has built up a
James Athearn EdgartownMr Rotando has built up a customer base in that location which should be his asset to keep, so long as he is doing a good job of serving the public. That station has been steady and reliable and provides good service to all. He should have his lease renewed.
The default should be that
Islander TooThe default should be that the incumbent tenant gets to renew.
Even if that clause weren't in the original lease.
But what business owner would sign a long-term lease *without* such a clause?
If there is a problem with the business, that should be resolved rather than turfing out the incumbent. Just like an employer with an employee. You can't just fire someone without a good-faith effort to resolve issues. Regardless of what might be the m.o. on "The Apprentice"!
Those exec. session minutes have to be made public.
I have gone to that Mobil station a few times, also to top up air in tires.
Very nice of them to provide this service for free.
Until the MVAC shows cause for failure to renew, this has a bad smell.
This is a shame, does not
Donna VHThis is a shame, does not seem right at all. The employees there are always helpful and beyond courteous. How do you do this to a business, a family, especially here on this Island where it is hard to keep a business going at all. This is how you treat people ? Very disheartening.
Seems unfair. I always go
Elinore Standard ChilmarkSeems unfair. I always go there for gas and I feel bad for the present owner.
And while we're at it: how come there isn't a supermarket at the airport. Just saying...
It would be a shame to lose
Nancy K. West TisburyIt would be a shame to lose the great service and the car wash.
Airport Mobil is very
Arlen Roth AquinnahAirport Mobil is very important! Edgartown is already choked with traffic in the summer.....now, what? People are going to have to go into that town JUST for gas?! This is crazy...the mid-way location of Airport Mobil and the oil-changing service they provide is crucial to the Island! Keep it going, they have my full support!
Nobody is saying that the
Ned Williams Potomac, MdNobody is saying that the station will be closed. It will simply be run by another entity.
We are not " entities". We
Jules EdgartownWe are not " entities". We are people.
Mike and his people are such
Paul iantosca ChilmarkMike and his people are such an asset to this island. He took the risk initially and
Built up the business. He created the value and kept prices Affordable.
Sure the other offer to pay more , then they will raise the consumers prices to make way for the higher rent
Mike has never gouged anyone.
I say we protest and call the board . I will donate $100 right now for Mikes defense fund. Looks like the incompetence and lack of sound reasoning is still missing from the committee.
We should put them up for bid and remove them.
I llboycott any new owner.
Mike deserves what he built up. This is so anti vineyard... he is a hard working nice and fair man. Let's fight for him. Paul Iantosca
So agreed. Michael Rotundo
Washashore EdgartownSo agreed. Michael Rotundo and his employees are honest, polite, friendly, attentive. Sounds like dear old Edgartown politics for sure! If the town administrator and selectmen are not trying to ruin people's lives, they are doing favors OR pulling strings to cause trouble for the great businesses like the Airport Depot. How awful for the Vineyard. Power corrupts and it's been going on too long.
Did you bother to even READ
deshandra brown EdgDid you bother to even READ the article? The Edgartown Selectmen and town administrator have nothing to do with operations at the airport or leasing of space there. It's apparent you have a bone to pick with them....so ask them when was the lease for the Chappaquiddick ferry put out to bid? And what were the bids?
Having been a commercial
Tom R Vineyard Haven.Having been a commercial property landlord in my past, it is unfortunate for the gas station owner but, when you are just leasing a business location, you are at the mercy of your landlord. Ownership has its privileges and the Airport Commission has the right to lease the space to the highest bidder. It is just business and it is the way it is done in a free market country like ours. The Airport Commission did what hey are supposed to do, they gave anyone that wanted it the opportunity to bid for the lease and Mr. Rotondo did not make a good enough offer. Instead of wasting money on lawyers, he should be seeking out a new location to relocate his business.
So let's see if I understand
Diane Vineyard HavenSo let's see if I understand this correctly....Michael has spent his own money building a car wash on this property that he has been "renting" and enhanced the the convenience store that he has been "renting", etc. and now he's been told that he can no longer have the lease to the property after 20 years? That it's been awarded to someone else? Does that give him the right to tear down the car wash, etc.? It was HIS money that built all those things on this "leased" property. That's just WRONG!!!
I believe significant
Neil Off IslandI believe significant improvements to rented property become part of the property, thus the tenant pays rent on their building materials and labor.
A reputable 20 year business
J. Probst EdgartownA reputable 20 year business owner should have the option to renew his lease. Also, Edgartown does not need a monopoly on gas stations. Gas prices are inflated enough on the Vineyard.
I have no sympathy. Rotondo
Jack EdgartownI have no sympathy. Rotondo got beat on price, which is not an insignificant factor. This notion that he should just be able to keep it because he's been there for so long does not hold water. He knew what the rules were. He knew what his investment in the site was, and he knew his profit on the old lease, and then he got beat by $0.48 per square foot. Now, he's crying over spilled milk. It will be interesting to see the MVAC's reasoning in the executive session minutes.
No. (1)Rotondo should be
Islander TooNo. (1)Rotondo should be given an opportunity to match the bid.
(2) Fuethermore, the MVAC represents the public. The County owns the airport and the business park
They are not little Trumps.
It is not a for-profit organization.
Upping the rent means upping prices for the customers, too. Get it, Jack?
The MVAC should be required to open their books and show that it is a hardship
for them to continue to lease at the price that Rodondo offered.
They are just being greedy.
The public loses.
One guy in Edgartown gains.
Island Too, Its clear that
Jack EdgartownIsland Too, Its clear that there is a lot you don't get. First, the MVAC has a fiduciary obligation to the airport and ultimately the taxpayers to get the best tenant for that location. They obviously have a criteria and made a judgment that Rotondo was inferior to Paciello and the executive session minutes will bear that out, but a significant factor is rent. Second, Rotondo had an opportunity to bid in a fair and equitable bidding process where everyone knew the rules going in. He was the greedy one and was outbid, despite knowing what he had into the business there and despite the fact that he has been paying substantially less (around $1.00 per square foot) for the lease there for 20 years. During that time, he was making money hand over fist with that low rent. Yes, he invested in the site, but he should have protected that investment by making a competitive bid.
The public has other
Islander TooThe public has other interests than the "pure" bottom line---as is obvious from the clear majority of comments.
With a private LL the public has no say.
This is not a private LL and the MVAC has to justify its decisions to the public.
And, the public does not yet know what the bottom line is as interpreted by the MVAC.
Until we know that, all is speculation.
What is quite predictable is that higher rent will be passed on to the public. Because Depot is not a charity.
Regarding "spilt milk," presumably the bidding process is blind. which in this case we don't know.
A little history first. The
Aviation Geek West TisburyA little history first. The Federal Government and the armed forces created many small airports around the US during WWII for military purposes. After the war, they didn't need to maintain the airports so they "gave" the airports to the local municipalities. But these airports still to this day have to abide by the rules of the FAA. The FAA does announced and unannounced inspections for these airports on a regular basis. They check most importantly to make certain that the safety of the airport is at its maximum it can be. The FAA also provides funding for the MVY Airport for needed items such as repair of runways, terminal upgrades, etc.
The MVAC operates under the FAA rules and continues to be overseen by the FAA. For example, the FAA also provides the rules for the Business Park and says that all leases at an airport, including MVY, must be at fair market value regarding rents, and can't be longer than 20 years. And that to continue for an additional 20 years a current tenant is required to join a bidding process with other potential lessees. All must join the bidding process that is outlined by the FAA. The governing body of the airport such as a Commission must follow the rules set forth by the FAA. There can be no favoritism, no nepotism, etc. From what I've seen the current MVY Airport Commission has lived up to that very high bar set forth by the FAA. It is simple, the current lessee should have offered a higher rate per square foot. The MVAC can't revisit the bidding process or ask someone to up their bid. The FAA governs how the MVY Airport operates and managed. From most of the comments suggest that the MVAC is a capricious organization not caring about the airport and what is right for the community
But the reality is that the FAA oversees all the airports from this period and there is nothing nefarious about the way an airport is governed and managed.
If you do not know all the
Gio East HamptonIf you do not know all the facts, you should keep your opinions to yourself !
The dollar figure was NOT to be the ONLY deciding factor!!!
The gazette should post a
deshandra brown EdgThe gazette should post a copy of Mr Rotundo's lease, so the readers can make an accurate assessment of whether or not it is a valid claim. Its quite simple, if the lease had a clause with a 'right to renew', either at a specified rate or current market rates, then there is a legitimate complaint. If it was just a 20 year lease, then he's out of luck. For those of you unfamiliar with leases at airports, there is usually a clause that states any 'improvements' REVERT back to the airport owner/operator, at the end of the lease. That would mean buildings, fuel tanks, and any other 'improvements', unless the lease specified that the tenant must 'remove' them from the site. I do recall that the lease holder of the big old airplane hanger was complaining about a non-renewal. He should have read his lease before he bought the hangar, since the lease was a 'wasting asset' meaning once the time is up, he had to leave the premises, and the county can do whatever they want with the building, whether knock it down or lease it to others. Moral of the story here= read the lease and get representation from an attorney before your sign.
from the facts in the article
clyde aquinnahfrom the facts in the article, this seems totally unfair. mr. rotondo and his hard working crew deserve better treatment.
Without the MVAC coming clean
Island GasWithout the MVAC coming clean on what happened in executive session this sounds like an inside job to give someone a near monopoly on gasoline. Maybe the Attorney General needs to take a look into this.
This smells of rotten
ANNIE BRADSHAW VINEYARD HAVENThis smells of rotten politics! I hope the MVAC has their ducks in a row b/c this island will not put up with this BS.
Michael and everyone at
Islander girlMichael and everyone at airport Mobil are a family he'd give anyone the shirt off his back. And to the comments Micheal built the company and building and has maintained the land for 20 years he and all his employees have spent blood sweat and tears to make airport Mobil the way it is . It's honestly sad someone can just rip away everything he built away everything about this situation is unfair and I'm sure he's spent countless hours trying to make sure this didn't happen
Michael has run a terrific
john OBMichael has run a terrific business. So the Airport Commission decides to award this RFP to another entity without a proven track record at this location. Maybe the entire consideration was not made for only financial reasons but let's be honest . . . . I see gas prices only going higher to make up for the higher bid . . . . a lack of competition only hurts us living here. Will my wooden nickels still be accepted for a free car wash???
Fight on Michael!! You deserve to be recognized for the hard work you have personally made with your staff to make this a successful and well respected business
There is already a monopoly
Susan EdgartownThere is already a monopoly for gas in Edgartown with consistantly higher prices. Why add to that.
Airport Mobil has had great
Business Owner Vineyard HavenAirport Mobil has had great service and caring personal ownership for 20yrs. I can't speak the same of the station(S) owner in Edg.
The commission is broken. The system is broken. I hope this brings light to the grotesque situation and leads to the necessary changes in a timely manner.
Good luck to Mr Rotondo for doing the RIGHT thing!
It's a LEASE, folks, not a
EHIt's a LEASE, folks, not a purchase!
When a lease is done, you can leave without getting sued (even if the landlord wants you to stay.) And when a lease is done, you can get kicked out without a reason (even if you don't want to leave.) If you don't like those terms, you shouldn't be leasing property.
BINGO!
Joe EdgartownBINGO!
Brilliant analysis EH - tell
Concerned Taxpayer MVBrilliant analysis EH - tell us something we don't already know - but it has absolutely no bearing on this dispute. The only factors of importance here are those that MV Airport Commission used to justify and validate their decision. Until those factors are revealed everything stated in the above comments is pure speculation. With that said, this entire matter has a toxic odor to it. Seems to me the Airport Commission has a history of "stepping in it" - my prediction is that before this thing is over, the wallets of Joe and Mary Public are going to be a lot lighter.
[shrug] Most obviously, he's
EH[shrug] Most obviously, he's paying a lot less for the property. It's a tough road if he's trying to get them to ignore a price difference. And it's a tough road if he messed up his sealed bid and is trying to get them to change the process, by allowing him (and why should it be only him?) to raise his offer.
As the person who had the highest investment at risk, you would assume that he would have submitted a bid at the top of his range. But he didn't.
Personally I don't like sealed bids at all; I think the town benefits most from having people attempt to outbid each other in various rounds. But be that as it may, the rules of the game were clear and the existing lessor didn't make a smart move. I don't think he should be allowed to change them in retrospect.
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