Legal battle over proposed Mallory Square restaurant finally over

 

BY PRU SOWERS

KONK LIFE STAFF WRITER

The almost decade-long battle between Key West City officials and local businessman Joe Walsh to build a restaurant in Mallory Square is over, with Walsh finally prevailing.

The legal maneuvering has been extensive. First, the city Historic Architectural Review Commission (HARC) asked for substantial changes in the development plan in 2016, which Walsh accommodated. Then HARC denied the revamped project in 2017. Walsh appealed the decision to a special magistrate, who overturned the HARC veto in 2017 and upheld his veto on appeal in 2018. The city then appealed that decision to the 16th Judicial Circuit Court. And on March 5, Circuit Court Judge Timothy Koenig upheld the special magistrate’s decision overturning HARC.

“So, the city did not prevail in that case,” City Attorney Shawn Smith reported to city commissioners at their last meeting. “I would recommend the city does not appeal the case any further and respect the decision.”

In between all the legal wrangling with the city, Walsh also had to appease the next-door Westin Hotel, now the Margaritaville Key West Resort & Marina, which sued over Walsh’s first design that called for a two-story building hotel owners feared would block the water view of its guests. Although Walsh won in court, the city commission rejected the two-story building plan in 2013. Walsh then presented a smaller, one-story design which won city Planning Board approval in 2016 but was ultimately denied by HARC.

The Circuit Court ruling now frees Walsh to get his major development plan for the 156-seat, 2,344 square foot restaurant and museum, which will restore the historic cable huts on the edge of Mallory Square next to the aquarium, in front of city commissioners for a final vote and if they approve, the project will begin construction this summer.

“It’s been right about nine years from when we first submitted the application to the city in response to their request for proposal,” Walsh said in a telephone interview with Konk Life. “The last year and a half has been nothing but the city delaying it.”

While city commissioners could still vote to deny the project, at least one official believes the project should move ahead.

“I think it’s time to move forward,” said Mayor Teri Johnston. “Mallory Square is in a dismal state and it’s time to improve it.”

Walsh said he has a lease contract with the city to build the open-air pavilion bar and restaurant that would involve rehabilitating one of the two cable huts along the west side of Mallory Square and adding landscaping. He also plans to build a Mallory Square historical museum in the adjacent “hospitality hut.” However, Smith previously told commissioners Walsh does not have a signed contract and it is unclear whether a new agreement with the city will have to be negotiated. Under the previous deal, Walsh said he was going to pay the city approximately $300,000 in rent each year.

“One of the upsides of a year and a half delay is the final drawings are finished. We can apply for a building permit almost immediately,” if the project wins city commission approval, Walsh said.

Walsh is the president of local development company Tropical Soup, which operates several other restaurants in Key West, including Jack Flats, Caroline’s and Red Fish Blue Fish. He is hoping the Mallory Square restaurant can be open by the end of this year.

“We’re going to be shooting for opening in December. Of course, we don’t have development plan approval yet,” he said.

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