SRIA wants commercial leases to reopen (and generate income)
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

The property where the Five Flags Inn stood for over 40 years is still vacant three and a half years after Ivan destroyed the structure. The Island Authority is looking for ways to get businesses reopen so it will resume collecting a percentage of sales in addition to lease fees.

Hurricane Ivan's affects are still impacting the operation of Pensacola Beach, as several businesses are not yet reopened.

Now, members of the Santa Rosa Island Authority (SRIA) are wondering what to do about leases that are not generating revenue.

Under the terms of most leases, only a minimum lease fee is charged to any business that closes for whatever reason. During the time the business is closed, it doesn't generate the expected revenue for the SRIA coffers, and when it occurs to multiple businesses at once, as in the case of a natural disaster, it causes a prolonged interruption of cash flow into the authority, which is responsible for maintaining infrastructure, overseeing development of and attracting visitors to Pensacola Beach.

Now, three and a half years after Ivan made landfall, and two and a half years since Dennis, several businesses are still in the process of being sold or negotiating a new plan.

Workers are finalizing details on the building formerly known as the Dunes. When it reopens in Spring, it will carry the Holiday Inn Express flag.

It is currently costing the SRIA a projected $425,000 in revenue per year, according to SRIA's Jayne Bell.

"That is what we had received in 2002, 2003 looking at those numbers and subtracting the lease fees," said Sharon Santurri, Director of Administration for the SRIA.

Apparently, the planners couldn't foresee a time when businesses would remain closed for a prolonged period of time, and the SRIA is planning to fix that oversight.

"Let's take Five Flags for example," said Buck Lee, SRIA Executive Director, regarding the hotel that was destroyed by Hurricane Ivan in 2004. "The minimum lease fee is $500 a year for them to stay closed. We need them to open, so we need to talk to them to see what we can do to help them reopen."

The Five Flags Inn, if open, would generate approximately $25,000 per year in percentage of sales.

Several other properties are showing signs of coming back to life.

¦ Beachside Resort owners are planning to build an Embassy Suites hotel.

¦ Holiday Inn owners submitted plans for the first phase of its Indigo Hotel project.

¦ SunRay Village (Clarion) owners are planning to rebuild a fractional ownership hotel.

¦ Prom Queen II (formerly Coconuts) is planning to rebuild as the Grand Marlin Marina.

Businesses that have not submitted rebuilding plans are:

¦ Five Flags Inn - vacant property

¦ Holiday Townhouses - vacant property

¦ Tiki House - vacant property

¦ Julilee Restaurant on the Boardwalk

¦ Azure Development Soundside)

¦ The Palace retail shop.