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Exclusive: Surrender the Premises Letter Sent to Coney Island Boardwalk Veterans

Posted in Real Estate, Redevelopment, tagged Boardwalk, Central Amusement International, Coney Island, Luna Park, mom & pop businesses, NYCEDC, vacate the premises letter on November 4, 2010| 10 Comments »

On Wednesday afternoon, several owners of mom-and-pop businesses on Coney Island’s Boardwalk met to discuss taking legal action against eviction by Central Amusement International/Luna Park. ATZ obtained a copy of the two-page vacate the premises notice sent to the business owners. We’re told all nine of the booted businesses received the same form letter, down to the generic salutation “Dear Sir or Madam…”

When the business owners received the Fedex envelopes containing the long-awaited letter on Monday morning, they expected to read CAI’s specific response to the business plans which they had prepared and submitted. But the letter doesn’t contain so much as a “We regret to inform you that your business plan was not selected.”

According to the letter’s second graf, the City’s Economic Development Corporation (NYCEDC) licensed the Boardwalk properties to CAI. The deal was done in February. “As part of our arrangement with the EDC, we licensed those Boardwalk properties (including your site) to EDC, which made it possible for EDC to grant you the License Agreement for the 2010 summer season.”

New kid on the block Luna Park plans to replace the gritty authenticity of the Boardwalk’s oldest bar and sausage and clam joints with a huge sports bar, an upscale year-round restaurant, another Nathan’s satellite and a beer garden. The new businesses would flank the Luna-esque entrance to CAI’s Scream Zone, which will be where Shoot the Freak is now.

The cruellest part of the letter calls for the business owners, some of whom have occupied the same spot for decades, to formally acknowledge the surrender of the licensed premises and vacate within 15 days or face penalties. Coney Island history, including the Boardwalk’s vernacular signage, will be swept away to make way for the new Luna Park-inspired fronts shown in CAI’s renderings. “They didn’t have the vision that we have for the Boardwalk,” Valerio Ferrari, president of CAI/ZAmperla USA told ATZ on Monday. “It’s a business decision.” The letter says….

We want you to understand that while our company is affording you fifteen additional days in which to leave the licensed premises, the timing is critical in order for the Boardwalk properties to be ready for operations next season. For this reason, please be aware that Central Amusement International will enforce the penalties provisions in your License Agreement as well as seek all available legal and equitable remedies in the event that you should fail to leave by November 15, 2010.

ATZ learned from one of the business owners that the penalty is $2,500 per day for each day after November 15th.

Friends of Ruby’s Bar Launch Petition, Plan Nov 6 Rally

Posted in Events, Redevelopment, tagged Coney Island, Coney Island Development Corporation, Monday Morning Massacre, petition, Ruby's Bar, Zamperla on November 3, 2010| 3 Comments »

Ruby's Bar & Grill, Coney Island. May 28, 2010. Photo © Tricia Vita/me-myself-i via flickr

Ruby's Bar & Grill in Coney Island. May 28, 2010. Photo © Tricia Vita/me-myself-i via flickr

Despite the Monday Morning Massacre of the Boardwalk businesses, Halloween was not Ruby’s last day after all. The bar’s devotees have put out a call via Facebook and email to “all Ruby’s family and friends”: Ruby’s will open, possibly for the last time, on Saturday, November 6th. “We are not going quietly, ” Rubys host said in an email. “Come out and show your support.” The rally/party begins around 12:30 pm and goes on till 6 pm or later.

On Facebook, supporters were urged to bombard Zamperla, the Mayor and local pols, and the Coney Island Development Corporation (CIDC) with e-mails and phone calls. “Ruby’s has been told they have 15 days to get out. If you want to see them stay they need your help please CALL or send letters.” A petition “Renew Ruby’s Lease” is on the Petition Site as well as Facebook. By 1 am on Wednesday morning, the petition had nearly 200 signatures. The goal is 10,000, but time is short. The petition begins…

Dear Mayor Bloomberg and Mr. Ferrari,

It has been brought to my attention that a historic piece of Coney Island is being kicked out. How does a business that has been there since 1934 get kicked out?

The Last Night at Ruby's Bar. October 31, 2010. Photo © Tricia Vita/me-myself-i

While one of our Facebook friends said she “unliked” the CIDC’s very popular “Coney Island” page in protest, others went there to post links to the petition or voice their displeasure. “I’m posting to protest the eviction of Ruby’s from Coney Island, a 76-year-old family business that is being cruelly ousted,” one poster wrote. “If this plan goes forward, I hereby pledge not to patronize any of the newly-developed businesses and will tell my family, friends, and colleagues to do the same.” UPDATE: This afternoon, the CIDC asserted control over their “Coney Island” page by removing some, but not all, of the links posted by irate fans and removing the link button. “I guess you want to silence us hmm..,” a poster wrote.

Nine small businesses on the Boardwalk are getting the boot from City-owned land in Coney Island with nary a peep nor a press release from the CIDC/NYCEDC. It seems to us that all of a sudden the City is a very silent partner in its much touted and (until now) highly regarded public-private partnership with the amusement operator. Instead of holding the usual joint press conference, the City is distancing itself from the bad news and letting Zamperla play the role of the bad guy.

According to the NYCEDC’s Coney Island Amusement Operator RFP, which was won by Zamperla in February: “Responses to this RFP should articulate whether they include or exclude these [Boardwalk] structures or footprints, beginning at the earliest in Year 2 of operations.” But it also says “The Selected Respondent may propose to include subtenants for portions of their proposed operations, but such subtenants, and such subtenant agreements, shall be subject to NYCEDC approval.”

In other words, the City, which owns the property, has final say which businesses come or go.

At Ruby's Bar: Harpo Marx & Coney Island: Lost and Found. April 16, 2010. Photo © Tricia Vita/me-myself-i

Out With the Old in Coney Island: Only 2 of 11 Boardwalk Businesses Invited Back

Posted in Real Estate, Redevelopment, tagged Boardwalk, Cha-Cha's, Coney Island, Luna Park, Ruby's, Zamperla on November 1, 2010| 29 Comments »

Gyro Corner on the Boardwalk in Coney Island. October 31, 2010. Photo © Tricia Vita/me-myself-i

We’re still in shock and will have more to say in the coming days. It’s like a mass wake on the Coney Island Boardwalk at the moment. The funeral will be this weekend…It’s goodbye Ruby’s, Cha Cha’s, Paul’s Daughter, Grill House, Gyro Corner, Shoot the Freak, Beer Island, Pio Pio Riko and Coney Island Souvenir Shop. After hearing the news from folks on the Boardwalk that the venerable Ruby’s and several others were out, ATZ phoned Zamperla USA/CAI CEO Valerio Ferrari for confirmation. It’s shocking but true: the only two existing Boardwalk businesses invited back are Nathan’s and Lola Star Boutique. These lucky survivors will be offered a 9-year lease. The other nine businesses will become part of Coney Island history, unless the City helps them relocate in the neighborhood.

Ruby's, Coney Island. October 31, 2010. Photo © Tricia Vita/me-myself-i

“They didn’t have the vision that we have for the Boardwalk,” Ferrari told ATZ. “It’s a business decision.” He says 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. Luna Park is investing $1.4 million in a new restaurant at the corner of Surf and 10th Street, formerly occupied by Gregory & Paul’s. A Boardwalk restaurant/bar hoping to get a lease renewal would have had to make a million dollar investment as well, Ferrari said.

Signage at Paul's Daughter, Coney Island. October 31, 2010. Photo © Tricia Vita/me-myself-i

Where Cha Cha’s is located there will be a year-round restaurant, serving breakfast, lunch and dinner, with upscale food. Ruby’s and the Souvenir Shop will be replaced by a huge sports bar. Ferrari says they have letters of intent from the companies that will bring in the bar and restaurant, but was not ready to reveal the names of the restaurateurs.

Last night, ATZ was on the Boardwalk taking photos of the vernacular signage and gritty authenticity of Ruby’s, Cha Cha’s, Paul’s Daughter, Shoot the Freak, and the other Boardwalk businesses. It was the last day of the 2010 season. As it turns out, it’s the last day period. The businesses have two weeks to vacate the premises they’ve occupied for 7, 20 and in one case 40 years.

It seems to us that Seth Pinsky of the NYCEDC has some explaining to do. As ATZ reported last year in “Ciao Coney Island! Will Ruby’s, Shoot the Freak, Astrotower & Other Oldies Survive?” (December 18, 2009)…

Before the RFP release, Shoot the Freak’s Anthony Berlingieri made headlines when he appeared at the City’s press conference on the land buy and posed the question directly to Mayor Bloomberg: “Is there a place for us?” NYCEDC President Seth Pinsky gave a diplomatic reply: “Our intention is for the foreseeable future to keep all the tenants in place, certainly through next summer. And we’re going to be looking to work with each of you to figure out where it makes sense for the various tenants to remain as we build out the amusement park.”