Is Admiral’s Cut opening being held hostage?

Is Admiral’s Cut opening being held hostage?

BY PRU SOWERS

KONK LIFE STAFF WRITER

One step forward. Two steps back.

That seems to be the decade-long formula for discussions about Admiral’s Cut, a 45-foot-wide gap in the pedestrian walkway between Mallory Square and Truman Waterfront Park. Key West City officials have been talking to the owners of the area – initially the Westin Hotel; now, Margaritaville Key West Resort & Marina – about building a bridge over the water span to allow an uninterrupted flow of foot traffic along the waterfront. The Westin owners dragged their feet, voicing concerns about cruise passenger traffic, then worrying how the new waterfront park would be developed. Each time, according to City Manager Greg Veliz, the city met the owner’s concerns.

Now, Margaritaville Resort, which purchased the property and adjacent walkway from the Westin corporation, has thrown a new wrench into the mix. Veliz said he met recently with Margaritaville representatives and they indicated they were “very interested” in opening up Admiral’s Cut. However, they wanted to know what was happening with the city’s plan to build a new restaurant in Mallory Square, which would compete with Margaritaville’s waterfront restaurant, Bistro 245. Bistro 245 currently enjoys a monopoly on waterfront eating options along that side of Mallory Square.

“They asked a lot of questions as to how we were progressing with plans for Mallory Square [restaurant]; that they were very interested in opening Admiral’s Cut and felt very comfortable with the park situation and the type of transportation we’ve set up for the cruise ships. But they’d like to see where we’re going with our plans for Mallory Square,” Veliz told city commissioners at their Oct. 2 meeting.

Margaritaville, and the Westin before it, have strenuously objected to adding a restaurant to Mallory Square for years. First, when the Westin owned the property, the concern was the restaurant would block water views from some of the hotel rooms. As a result, Tropical Soup, Inc., the development company that had won the bid to develop the restaurant, revised the plans. Then, after Margaritaville had purchased the property, its attorneys sent a letter outlining several objections to the restaurant just hours before commissioners were set to vote on Tropical Soup’s plan. Despite an attempt to send the proposal for the 156-seat restaurant back to the planning board, commissioners voted it down and directed then-City Manager Jim Scholl to begin contract negotiations with Tropical Soup.

Now, it seems that Margaritaville may be tying the opening of Admiral’s Cut to a new effort to control the proposed Mallory Square restaurant, said several commissioners and Mayor Teri Johnson.

“It doesn’t seem like we have a partner negotiating in good faith if they’re basically saying, ‘we’re going to wait to see the outcome’ on a contract that really has nothing to do with them,” said Commissioner Sam Kaufman.

“I’m sure everybody realizes this is the same conversation we’ve had since the inception of the Truman Waterfront Park,” said Johnston. “So, pardon me if I don’t put much credence in the conversation but we’ve got to move on somehow.”

Margaritaville representatives did not return multiple calls from Konk Life for comment. 

Veliz said the only reason he has ever heard in the nine years of negotiations over Admiral’s Cut is the owners were concerned about an increase in foot traffic in front of their expensive lodgings and swimming pool.

“But it seems to me it’s actually double the traffic because people walk down there and have to turn around instead of passing through,” Veliz said, adding, “We keep meeting a hurdle and a new hurdle gets placed.”

No one is quite sure how Admiral’s Cut got its name. Key West Port & Marina Services Director Doug Bradshaw hypothesized that the short inlet was used for visiting dignitaries to dock their tenders while visiting the military base that used to occupy that area. Currently, the cut is used for jet ski storage on floating skids.

If Margaritaville owners won’t budge, or tie the Cut opening somehow to the development of the Mallory Square restaurant, the city is left with trying to take the property or an easement through it by eminent domain. But nobody wants to do that yet.

“Eminent domain gets messy and uncomfortable for everyone. I’d hate to see that,” said Commissioner Jimmy Weekley. Commissioner Clayton Lopez pointed out that eminent domain court procedures are expensive. That was backed up by City Attorney Sean Smith.

“Not only are you paying for those costs, but you’re also paying for the attorneys’ fees of the other side, as well,” Smith said, pointing out that Margaritaville is likely to hire eminent domain experts to testify in court, which the city would have to pay for. 

Commissioners directed city staff to continue searching for a solution. While a floating bridge was briefly discussed in the past, there may be other alternatives.

“It’s important to the community to have that, the ability to walk around the island,” Weekley said.

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