<p>After three months of legal battles, the owner of Airport Mobil said he will close the station and car wash at the end of the day Monday, July 17.</p>
After three months of legal battles, the owner of Airport Mobil said he will close the station and car wash at the end of the day Monday, July 17.
Michael Rotondo said he plans to tear down the buildings and dig up the fuel tanks, rather than sell them to the new leaseholder, following a lengthy dispute over the awarding of a new lease by the Martha’s Vineyard Airport Commission for the lot at the airport business park.
“Everything is coming down, “ Mr. Rotondo said. “They didn’t leave me much choice. That’s a wrap. It’s heartbreaking.”
The shuttering and demolition of the Mobil station leaves the Island short one gas station at the very peak of the summer season.
The airport commission held an open bidding process for the lease in March, but Mr. Rotondo’s bid was not the winner. Instead commissioners awarded a new 20-year lease to Louis Paciello, owner of Depot Corner Inc., which operates two fuel stations in Edgartown.
Mr. Rotondo unsuccessfully challenged the bid process in court, while continuing to operate the fuel station.
Under a recent eviction order issued by a Dukes County superior court judge, Mr. Rotondo has until July 31 to hand the lot back to the airport commission. The terms of his lease require him to remove all improvements, including the buildings, fuel pumps, and underground tanks.
Mr. Rotondo’s lease expired in March, but was extended to give him time to negotiate a sale price with Mr. Paciello for the buildings and equipment. They were unable to reach an agreement.
Mr. Rotono opened Airport Mobil in 1997. Speaking to the Gazette by phone on Thursday, he said Mr. Paciello’s offer of $250,000 for the buildings and equipment was an insult.
“In the interest of pride and 20 years of hard work, I’m not going to give it away,” Mr. Rotondo said.
Airport commission chairman Myron Garfinkle called the decision to decommission the station unfortunate.
“If Mr. Rotondo wants to tear down his buildings, that’s his decision,” Mr. Garfinkle said, adding: “It’s unfortunate that Rotondo has decided to stay on past his lease and create a situation where those of us who live here and those of us who vacation here are going to be inconvenienced at the height of the season by the loss of a gas station.
Mr. Garfinkle said the airport commission’s legal action against Mr. Rotondo continues, but he declined to elaborate.
Comments
The real tragedy here is that
Dana EdgartownThe real tragedy here is that Michael wasn't given the opportunity to match Louis' bid. It's all a matter of who you know and who you're friendly with.....
The airport commission is corrupt and a joke.
You're serious? The bidding
deshandra brown mvYou're serious? The bidding process isn't there to benefit the former leaseholder. If he was willing to pay market rate for the lot, he would still be in business. Lesson to be learned= READ the terms of your lease. If he wants to spend money out of spite to demolish the old depreciated buildings and remove the tanks that are at the end of their useful life that's his option. So rather than taking 250k...he's going to spend 184k (per prior articles) to remove the improvements. I guess that the gas business is quite profitable if you can make another dumb decision like that.
Not necessarily. The airport
Ken Edg.Not necessarily. The airport commission didnt take the highest bidder. He might not have had a chance no matter what he bid. There were two higher bidders that were rejected. The system is flawed and easily corruptable. I dont see how the judge is making these rulings.
It's been a continuing attack
BillyB MVIt's been a continuing attack on this poor owner. Why on earth would Mr. Garfinkle continue his assault after he drove this business under? This smells and there is no oversight. Given how they've been treated why should the Rotondo family hand their lease improvements over for an insulting amount? I'm actually glad it's all being leveled.
Mr. Garfinkle, so many of us
Debra Luce Vineyard HavenMr. Garfinkle, so many of us don't blame Mr. Rotondo for this "situation"...we blame YOU. And we will find alternative locations for gas, car washes, oil changes, and snacks and ice on the way to the beach. And we will thank YOU for the need to find these alternative options.
I agree!
Blastoff West Tisbury,I agree!
A teaching moment for
Foolish OBA teaching moment for entrepreneurs to read their agreement and focus on what happens at the end of a lease. Twenty years is not a very long time for a business lease. No tears need be shed for a businessman who doesn't understand his business.
I've never been a fan of the
Kelly Anne Up IslandI've never been a fan of the Martha's Vineyard Commission. But after Mike levels the existing buildings I hope the MVC looks into whatever the new owner plans to put on the site, and they take their sweet time doing it.
A sad transition to a brand
Rob Burnside Kingston, PAA sad transition to a brand-new station,in an age when so much of what we treasure is superceded this way. I hope the airport board will drop its legal action and find a means of honoring Mr.Rotonda for all the service he has rendered over the years.
I need to leave Edgartown for
John Divver Riverside, RII need to leave Edgartown for gas forever after this tragedy! Airport Mobil has been my favorite station for years. I will NOT give the new owner my business at ANY of his stations. Shame on the Airport Commission for not having loyalty & working with a 20 year good tenant!
Good for Mr Rotondo - I
John EdgartownGood for Mr Rotondo - I applaud his decision - good luck to the new lease holder now that he has dug himself into an immense financial, legal and regulatory hole - it will be years to dig himself out of that and then his lease will be up - touche'
Based on the commentary here
GRM20 East Dennis, MABased on the commentary here it is clear that no one really knows the truth in this matter. This entire process was a legal issue based on a contract that the previous owner executed 20 years ago. He failed to live up to the terms of that agreement on several occasions over the last 6 months in the eyes of the Commission and the Massachusetts Court system - and when it was time to have a legitimate negotiation with Louis Paciello, it was too late. His 20-year old tanks and pumps are not worth as much as he thinks and neither is his building. Just facts. He may have run a very nice business, but in terms of valuation for the next 20 years, his assets are not his business. Louis Paciello would liked to have worked something out with the previous owner and they were headed down that path, but 99% of this was out of his hands based on the fact that the current owner did not follow the terms of his agreement. At that point it was truly a legal matter and they no longer had the ability to save the structure from demolition. Fact, not fiction. Louis Paciello always does the right thing by the island, never turns his back on a local charity or youth sports organization. He is a good businessman and a great advocate for the island. Sad to see his name brought up in a negative light when no one cares to find out about the truth of the matter.
I have know the Paciello
Sam Chiancola Laura's Way EdgartowI have know the Paciello family as long as Lou is old. Fran and Barb are great
Resources to the Island. Lou will put a station in helpful to islanders.
The piece that no one is
Steve C VHThe piece that no one is mentioning is that now there will be three down-island gas stations in the hands of one owner, something which is sure to put upward pressure on gasoline prices in the area.
Spot on!
edSpot on!
It is ironic that Mr.
Tom West TisburyIt is ironic that Mr. Garfinkle is blaming Mr. Rotundo for this situation when he should be looking in the mirror.
Sad that businesses are not
Emily DVSSad that businesses are not given the opportunity to continue at the same location. This was a very convenient location to get gas. Where's the loyalty?
I've made my last visit to
Gary West tisburyI've made my last visit to the station. With all due respect this island stands for more than the terms of a contract and I spend every working day negotiating contracts. All leases should have good guy clauses and various provisions that allow both parties to seek a good faith, fair and equitable solution to any problems that arise. Not knowing all the terms of the lease renders any comments to be pure speculation. However what is clear is that the bidding process could have been amended to allow a number of options. The Commission has properly been called out for what they are.
Irony that the fossil fuel
Roger Becker ChappyIrony that the fossil fuel retailers are clustered around the electric car retailer. I suppose we are in for another 20 years of gas guzzling from a new station before the tides finally reach the MVC building or the airport.
Tearing a building down for
TAD ChappyTearing a building down for spite. If only the Hall family would apply such logic.
Are all the other businesses
TriciaAre all the other businesses in the airport park area at this same risk? Its like building a house and after ten years the bank says, "sorry you can't keep your house here anymore but we will buy it from you for pennies on the dollar". All other businesses in the airport area better take a long hard look at their leases and what verbal "promises" were made.
Actually, no, it's not like
BrianActually, no, it's not like that at all. You OWN your house. As long as you pay your mortgage for the stated period of time, the bank can't do anything and at the end of the mortgage nobody can displace you. These businesses are LEASING space for a fixed period of time and unless they have a renewal clause, they have no rights beyond that period. They don't own the land. It's about as different as two situations can be.
That's why you hire an
WashAbhored EdgartownThat's why you hire an attorney to read and negotiate your lease. It's not like this should have caught the tenant by surprise. I'll also bet that the building and tanks were pretty much completely depreciated (tax basis) by the end of the term.
Considering that a gas
Andy T. V.H.Considering that a gas station and convenience store sold for 1.2 million where I grew up in the early 2000s. In a location on the mainland with no other services... 250K does sound extremely low. It really seems like Mr. Rotondo was expected to roll over and give his enterprise away. I do not know the terms or conditions at which the original lease was agreed upon 20 years ago, but i doubt that Mr. Rotondo thought that this is how anything would go down.
I am pretty sure that deal
GRM20 East DennisI am pretty sure that deal that you are referring to in your comment included the land as well. In fact, I am willing to bet that it did. This deal is a completely different set of circumstances with the business being a part of a leased parcel of land. How long do you think the state environmental agencies will allow those gas tanks to stay in the ground? They have already been in the ground for 20 years. That particular liability is the responsibility of the business operator, not the Airport. There are so many variables here that no one seems to have interest in learning about. It is all a matter of public record, take the time to find out the facts before commenting.
Just turn it over and get
Ken Edg.Just turn it over and get what you can for it. You have your freedom not to get up every morning to run the place now. Its just unfortunate for the people that work for you.
Airport Mobil's prices were
Chris K EdgartownAirport Mobil's prices were always competitive and it was the only convenient car wash down Island. It's a tragedy that greed again wins out over the town's populace and the little guy. Shame on you commission and Mr. Rotondo my condolences. Sometime the scorched earth approach is the only way.
A gas station and car wash
Joel M. New JerseyA gas station and car wash with a loyal following on an island??? I would have paid Mr. Rotondo his asking price PLUS I would have employed him to run the place. Lost opportunity, Mr. Paciello!
This is outrageous! Is there
Israel EdgartownThis is outrageous! Is there any leadership on this Island? We all need to get involved - it has gone to far and I will indeed boycott the new station.
That gas station pumped 1.2
WashAbhored EdgartownThat gas station pumped 1.2-million gallons a year. Because of the bloated prices on the Island the profit is roughly $1/gallon. We're not exactly talking about struggling small businesses here. Hire a lawyer, and read your lease.
I'm also not sure why there's so much hatred for the family that won the bid. They're paying almost twice the rent that the previous tenant did. They're a long time Island family that has provided nice service at their other stations.
The Gazette sure doesn't like
Down IslanderThe Gazette sure doesn't like my comments!
I will just say, again, that Garfinkle sounds a lot like Sweet, at the hospital: blaming the victim for not going "quietly" and causing inconvenience to the guy who axed him.
And, something about this lease deal does not sound fair, regardless of the small print in the bidding process.
Now you have ONE person who
Paulli D EdgartownNow you have ONE person who owns 3 stations on island. Where's the competition?
Three times before MVC has
John chivers EdgartownThree times before MVC has allowed existing tenants to modify their bids to continue established businesses. Why not this time? Closer scrutiny is needed right away so the community can know what is really happening! Stay strong Michael Rotundo and don't let the bastards get you down!
Pretty stupid to tear down a
Rich Vineyard HavenPretty stupid to tear down a building when someone will give you $250k for it. If you don't want the money, donate it to an Island charity.
You tear it down when you can
SoupyYou tear it down when you can get more for the parts than from the pitiful offer you were made. And the Edgartown Fire Department is happy to be taking 3 great underground storage tanks being donated by Mike Rotondo. They will most likely be used for much needed water storage on various parts of the Island. What's stupid is making comments when you don't have the facts.
Mike and his wonderful crew
Nancy Gardella Vineyard HavenMike and his wonderful crew at Airport Mobil have always gone out of their way for me. I SHALL miss this group, very, very much.
How many tenants at the
Barbara Pierce Rhode IslandHow many tenants at the airport had lease renewal options written into their leases with Airport Commission, and how many did not? What was the reasoning behind those different approaches to devise a lease!
Most will agree that the leadership of the commission seemed to brush over multiple efforts made by Mr, Rotondo to bring his lease up to the airport standard which would build in his 20-year extension, While my understanding is that the majority of the tenants hold such a lease, his draft lease included the twenty-year renewal, but the lease presented at the actual signing didn't. When questioned, the commission said it was an oversight and would be fixed promptly. After 12 years of requests regarding that ommission wherein the requests were shuffled around, passed from this desk to that, put on hold while a member of the commission was seeking treatment for a health issue. As of today, a steady and reliable source of income will cease at the airport, small- and large-business owners alike will be inconvenienced, and it will be quite a long spell before the void is filled. And Mr. Rotondo, who has run a vital island business for 20 years will be left with nothing. Many, many of us would love to hear the real story - the public version isn't making a lot of sense.
You have your facts 100%
rich homeYou have your facts 100% correct about the lease. The renewal option was left out at the last minute. If I was his lawyer at the original signing I would have said no do not sign it!
This is clearly a case of
Michelle Johndrow MassachusettsThis is clearly a case of corruption and favoritism. Why is Mr. Rotondo being treated so poorly! Such a shame! Very unfair!!!
I read the handwritten sign
Fred Roven EdgartownI read the handwritten sign announcing the last day of operation for Airport Mobile with a great deal of sadness. I literally could not look at the items being sold off at discount prices. I am sure it can only help Michael and somehow felt akin to stealing from the dead. This is no exaggeration-a sad day for Martha’s Vineyard.
I do not remember a time on Martha’s Vineyard not knowing Michael and Sherryl. I do have one negative reflection. In the beginning I remember a common allegiance to Alfa Romeo and for some totally unknown reason Michael changed his allegiance to Fiat. Sides had been chosen!
I saw nearly 2 generations of youthful employees pumping fuel and selling snacks grow to maturity and move on. But not without leaving an impression that their boss treated them well and they passed on that good feeling to patrons whether for a bottle of water or a full tank of fuel. And then there was the period of time when an early morning stop was greeted by Krispy Kremes!
I have watched Michael keep that car wash running in the worst of weather conditions up to the point where all the equipment could freeze solid (but never past that point). Somehow he always smiled at those who filled-up and washed without incident as well as the folks who could not seem to follow the clear instructions. Vehicle in neutral; No brakes; fold in mirrors; any roof racks; nothing in truck bed. I must have read those signs a thousand times over the years.
There is something wrong with way the airport handles these leases. It is not even just the current commission members. I have heard many other stories about the difficulty in negotiating a new lease with the commission. A good friend just gave up and retired after many years of negotiating.
I looked back into Airport Commission meetings and find that Michael began this process in July of 2006! He wanted to upgrade the facilities including new tanks, pumps, car wash and expanding the building. There was 14 years remaining on the lease and financing was for 15 years. Seems like a simple request. He was told he could certainly do that but the new lease would have to go out to bid. He could apply to upgrade but might end up with nothing to upgrade. This seems just ludicrous. A catch 22 on MV. After 10 years of attempting to get a revised lease, this is the outcome. I have not read this lease in particular and some attorney may have made an error 20 years ago but why does the commission have to punish a good tenant for an old error. I cannot believe no flexibility exists. And how rude to be offered 10% of the cost of constructing a new station by the potential (yes I still have hope) leaseholder.
The final affront is how sad my dog will be. I have been through the gas line with 3 different dogs over the years and each one has gotten excited when I say we are going to the car wash. The gas attendant has always been there with a dog cookie or 2. Even at the risk of running out of gas, I would never consider a fill-up without my best friend in the car. Poor Nico.
Even though I will not need a fill-up on Monday, I will do my part to help Michael empty those tanks before removal and donation.
Thank you so much for those
Angel Moscardino Long IslandThank you so much for those kind words, Michael is my big brother, and for years has always been my inspiration ever since we were children. My heart is so broken for what they did to his hard working man .
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