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JENNIFER FARRELLThe City Council unanimously agrees to let two brothers of council member Hoyt Hamilton continue to operate the South Beach Pavilion when their father's lease expires June 30.
CLEARWATER - With competing bidders and city protocols cast aside, the politically connected family of City Council member Hoyt Hamilton was granted a 90-day lease Thursday to run a lucrative beach concession.
The City Council voted 4-0 to let Ken and Wade Hamilton take on the South Beach Pavilion through the end of September when their father's three-decade lease on the property runs out June 30.
Hoyt Hamilton, Ken and Wade's brother, did not discuss the matter publicly and abstained from the vote.
The council wanted the Hamiltons to commit on the spot to the terms of the current lease, which is held by their father, and provides a flat rent, plus a percentage of profits from umbrella rentals. The Hamiltons had offered a month-to-month deal to pay $10,000 a month.
Ken Hamilton refused to bargain Thursday night.
"I will do whatever you want," he said. "You are in this position because of me. But I am not going to stand here and negotiate this lease."
Instead, the council asked staff members to negotiate the finances with the Hamiltons, then put the long-term lease out to bid again later this year.
Hoyt Hamilton's father, Howard, has leased the beachfront pavilion off S Gulfview Boulevard since it was built in 1969. For much of the past decade, Wade Hamilton has run the lucrative fast food and umbrella concession.
Last month he and his brother, Ken, filed a bid to take over the business for three years while the city decides how to proceed with a planned redesign of the area that could eliminate the pavilion entirely.
But the Hamiltons goofed on the numbers, then refused to stand by their flubbed offer.
The city, meanwhile, had sent its request for bids out late, giving just 19 days' response time, instead of the typical 30-day minimum.
Unlike the Pier 60 concession, which drew more than two dozen bidders, the South Beach Pavilion drew just two besides the Hamiltons.
Because of high startup costs, the short-term lease represented substantial risks for anyone who didn't already run the business.
After the Hamiltons refused to stand by their mistaken offer, the city rejected them. Saying the other two bids were unrealistic, City Manager Bill Horne threw them out too.
On Monday, the city announced it would close the pavilion indefinitely, a decision that angered many, coming just before the busy July Fourth holiday.
But two days later, Hoyt Hamilton's brothers, through their lawyer, submitted a new proposal to run the concession, paying the city $10,000 monthly on a month-to-month basis.
Another beach resident, Steve Chandler, who runs the Pier 60 pavilion, had offered to rent umbrellas and beach chairs, then split the profits 50-50 with the city.
One of the other rejected bidders submitted a similar offer late Thursday.
The council complained Thursday that the process had been ugly and that members were in a difficult position.
Mayor Brian Aungst said the council had tried to make the best of a bad situation.
"I just think it's in the interest of fairness to everyone," he said.
- Jennifer Farrell can be reached at 445-4160 or farrell@sptimes.com