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Paul’s Daughter Dishes on the Boardwalk Brawl

Posted in Real Estate, Redevelopment, tagged Coney Island Boardwalk, Gregory & Paul's, Paul's Daughter, Sodexo on January 13, 2011| 9 Comments »

1959: Paul's wife and daughter visit him on the Bowery. Photo © Tina Georgoulakos via Paul's Daughter Facebook

Over the past two months, the owners of Ruby’s and Shoot the Freak have emerged as the spokesmen for the Coney Island 8, the eight Boardwalk businesses locked in a eviction battle with Zamperla’s Central Amusement International. But we’ve heard very little from the others. ATZ got in touch with Tina Georgoulakos, owner of Paul’s Daughter, which was founded as Gregory & Paul’s in 1962, for her view on the Boardwalk Brawl.

“I wanted so much to be a part of the New Coney Island but they didn’t even offer me a tiny little spot on the Boardwalk,” says Tina. “They didn’t even respond to me about my proposal, they didn’t even write my name on the eviction notice. And then to find out I’m being replaced by Sodexo, a company who paid out $100 million to settle lawsuits because of racism against their employees and fraud against New York schools. I feel like I’m in a bad B movie.”

Day after the eviction: Tina and Paul Georgoulakos. Photo © Tina Georgoulakos via Paul's Daughter Facebook

Zamperla’s plan for Paul’s Daughter’s Boardwalk location at the southeast corner of Luna Park is a restaurant run by food management giant Sodexo. The French multinational is the world’s 22nd largest corporation. Since the park opened in May, the company has been Zamperla’s partner for “On Site Service Solutions,” setting up and managing food and beverage kiosks in the park.

In early December the Boardwalk businesses were asked to give access to architects from a firm that was hired by the EDC this summer to do existing condition reports on each of the Boardwalk properties. They were requested to provide access for them since the city needed these reports for insurance purposes.

“The architects did complete floor plans and elevations, they then turned those drawings over to Sodexo,” says Tina. “One of the architects asked Sodexo rep Sandy Boyd if Sodexo was going to be a year-round restaurant and she replied ‘oh no, it will be seasonal, there aren’t enough people here off season.’ Of course being open all year is what CAI has been pitching to the public so it’s just another lie.”

Burger Girl at Paul's Daughter. Photo © Tricia Vita/me-myself-i via flickr

After the shock of finding out that her location at the Boardwalk entrance to the park would become a Sodexo-run restaurant, Tina was disapppointed that the City and Zamperla didn’t at least offer her another space, even a smaller one, on the Boardwalk. If another location had been offered she would have a smaller menu and take the Burger people from the roof and put them together, along with the iconic signage, she says.

The lack of support from City officials and some comments in the media have also been hurtful. In Monday’s NY Post, Councilman Domenic Recchia said, ‘I understand the sentiment that these businesses have been here a long time, but they also made a lot of money paying cheap rent all these years. If they really cared, I know firsthand that they had plenty of chances to buy these properties and fix them up, but they never did.”

1962: Paul partners with Gregory Bitetzakis and takes over the old Howard Johnson’s on W. 8 St. and the Boardwalk. They call it Gregory & Paul’s Bar and Grill. 1968: Rockefeller buys the property their store is on and donates it to the Aquarium, putting them (and seven other stores) out of business. Photo © Tina Georgoulakos via Paul’s Daughter Facebook

“I wish Recchia had called me. I imagine he’s going to be very angry when he finds out he was misinformed,” says Tina. “It hurts me to hear such untruths about my store Paul’s Daughter. There aren’t any violations against it. I’ve been handcuffed by one year leases for years and years. And I would have given anything to have been given the opportunity to purchase the property but it was never offered and by the way it sold for 32 30 million dollars to Sitt. I pay $100,000 for seven months. I guess some people don’t think that’s a lot. I proposed to spend hundreds of thousands of dollars to modernize my iconic store.”

Paul’s Daughter is located on the former Astroland property and was able to remain there after Sitt bought the land. In 2009, the city purchased the property along with two additional lots on Stillwell for $95 million and leased them to Zamperla, which pays $100,000 annual rent plus a small percentage of the gross receipts to the City. According to CAI’s contract with the City, Luna Park also received a subsidy of $5.7 million from the City for “among other things, facilitating the purchase of certain equipment necessary for the Tenant to operate the Premises as a first class amusement park.”

Easter Brunch at Paul's Daughter on the Boardwalk. Photo © Tricia Vita/me-myself-i via flickr

“I would have been elated to share in Valerio’s vision for Coney Island only he kept it a secret,” said Tina. “If they were even entertaining the idea of me staying wouldn’t they have shared their vision with me?” On the day of eviction, Valerio Ferrari, Zamperla USA CEO, told ATZ: “They didn’t have the vision that we have for the Boardwalk. It’s a business decision.” He said Zamperla/CAI’s vision is to revitalize the Boardwalk by making it a lively place open 365 days a year. But it’s also a matter of investment dollars.

Says Tina: “It breaks my heart to know that not only is my city, my beloved New York, not helping me, they are trying to tell lies about my business to make me look bad. I haven’t a clue as to why. Ask anyone in Coney Island about my dad aka ‘The Chief.’ I don’t know a soul who doesn’t adore him. Forty-one crazy, wonderful years on the Boardwalk. I love NY….. I love Brooklyn and I love the view from my store even more. I wish someone could help me stay.”

Last Day of Season at Paul's Daughter, Oct 31, 2010. Photo © Tricia Vita/me-myself-i via flickr

Coney Island 8 Eviction Hearing Postponed Till Feb 16

Posted in Real Estate, Redevelopment, tagged Boardwalk, Coney Island 8, eviction, Zamperla on January 10, 2011| 2 Comments »

Coney Island Boardwalk at Dusk. November 13, 2010. Photo © Tricia Vita

ATZ learned that the result of this morning’s Coney Island 8 eviction hearing was another postponement. The case has been postponed till February 16 at the request of Zamperla’s attorneys, who need more time to prepare. At the December 10th hearing, it was the Coney Island 8’s attorney who needed more time to prepare and requested the postponement. It means they need more time to study and respond to the papers served by the other side, so don’t expect to see what today’s NY Post calls a “surf turf war” ending anytime soon.

PS: Did we mention that we have a terrible cold and do not really feel like doing anything except napping? Please send over some homemade chicken soup!

Exclusive: NYCEDC Kiss-Off Letter to Coney Island Boardwalk 8

Posted in Redevelopment, tagged Boadwalk, Central Amusement International, Coney Island 8, Economic Development Corporation, Mayor Bloomberg, NYCEDC on January 6, 2011| 6 Comments »

ATZ obtained a copy of the cruel kiss-off letter sent by the City’s Economic Development Corporation (NYCEDC) to the Coney Island Boardwalk businesses on October 25th. The City’s lease with the businesses was set to expire just a few days later on the 31st. “Please be advised that effective as of the date of this letter, the NYCEDC (“Licensor”) has assigned its interest as Licensor under your license for the premises to Central Amusement International.”

It appears to be a slick legal maneuver by the City to abdicate responsibility for the November 1st eviction of these Mom and Pops from City-owned property by CAI, which the City certainly must have known about in advance. CAI’s Luna Park is a public-private partnership and everything of importance is done in consultation with the City. The letter is signed by John Cicerello, Executive Vice President of EDC’s Assets Management, which “manages, maintains and leases over 20 million square feet of City property assets with the goal of maximizing return on assets.”

The kiss-off letter begins “Dear Sir or Madam”– the same salutation as CAI’s October 29th surrender the premises letter— which ATZ previously posted. We have to wonder if both letters were drafted by the NYCEDC attorneys or is this type of letter always so generic and coldly impersonal?

The letter states that as of the date of this letter “any and all matters regarding your License and the Premises should be addressed with Central Amusement International.” Any license fees and charges. Any notices, inquiries, requests. Any anything. In other words, the City’s done with you, Sir or Madam. Don’t call us, blame us, bother us, ask us for support.

After the Boardwalk businesses received the eviction letters on November 1st, City officials–both elected and appointed–tried to distance themselves by referring all questions to the amusement operator. Officials told the business owners it was Zamperla’s decision and there was nothing they could do. The businesses, which had been expecting responses to their business plans, were shocked and dismayed to receive eviction notices instead.

In advance of an eviction hearing scheduled for January 10, both sides are expected to get together for talks today. Will there be an out of court settlement? At a previous hearing on December 10, NYCEDC attorneys and a representative of the asset management department were present along with Valerio Ferrari, CEO of Zamperla USA and Central Amusement International.

The Coney Island Eight’s new website asks “Who is behind the eviction of the Coney Island 8”? Their answer is that the City made the decision as to who was going to be on the boardwalk long before any proposals were submitted.

It has been reported that Central Amusements was responsible for the ousting of the Coney Island Boardwalk Businesses. This is not true. The City of New York under the leadership of Mayor Bloomberg are the primary developers of Coney Island. This became evident in meetings with Central Amusements when their top Management explained to the Boardwalk vendors that Mayor Bloomberg met with them and told them that he wanted the Boardwalk to have a fresh look. It was two days before the renewal of leases the owners of the land turned all the leases over to Central Amusements to give the impression that Central Amusements made this decision.