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Couple Purchase IGA Grocery Franchise for Padre Island

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Couple Purchase IGA Grocery Franchise for Padre Island Inside the Moon First Friday A2 Scouts A2 Traveling Moon A9 Fishing A11 Live Music A18 Issue 695 The Island The voiceMoon of The Island since 1996 August 10, 2017 Weekly www.islandmoon.com FREE Around The Dispute Island Between By Dale Rankin We played chicken with Tropical Storm/Hurricane Franklin this week Schlitterbahn and came away clean. As of this writing Wednesday afternoon it Partners appears Franklin is Veracruz bound with the possibility of some good Revealed in surfing along our shores but not much else. Court Filings An item on the agenda of the Tuesday city council meeting mentioning Released this the proposed water exchange bridge on The Island, started the phones ringing. Here is what we know. Week Park Road 22/SPID Water Cost of park Exchange Bridge A decision on the future of the Park escalated from Road 22/SPID Water Exchange original $28 million Bridge seems to be coming down to the wire. The $11.5 million project, 2017 Port Aransas lifeguards! to $58 million first approved by voters at $1.2 million in 2004, is the lynchpin in a By Dale Rankin planned 3200 foot-long Beach Walk The veil around the details of the which is at the heart of the $550 Couple Purchase IGA Grocery dispute between partners in the million project which includes the Schlitterbahn Waterpark & Resort on water park, a marina on Lake Padre, The Island was lifted this week with and the retail and commercial space Franchise for Padre Island the release of a cache of documents that would line the canal. The Beach from a Chapter 11 bankruptcy filing Walk would be the signature feature By Dale Rankin in the United States Bankruptcy on the Island if/when it is completed, When Mohsin and Lori Rasheed Court in the Western District of Texas but will not happen without the bridge moved to Padre Island three years in San Antonio. The filings reveal to link the existing Island canals to ago their plan was to retire and take a deep-seated acrimony between Lake Padre. things easy. But that plan has taken the partners and a park with costs Previously the council had a detour as last week Lori purchased which increased during construction earmarked $7.5 million in money left a franchise from the Independent from an original construction price over from 2008 bond projects to fund Grocers’ Alliance (IGA) and are of $28.5 million to a final cost of the bridge, which when combined moving forward to have a grocery $58,026,983. Responsibility of with up to $4 million from the Island store open on Padre Island in the next covering the cost those overruns is at Tax Re-Investment Zone, would fund nine months. the heart of the dispute. the bridge. However, city staff is now “Every time we asked people what The involuntary bankruptcy filing under orders from the council to find we should put in the shopping center was done on behalf of companies funds for pre-design work on projects we are building they always said, owned by the Henry family, owners to be included in an anticipated bond a grocery store,” Mohsin said this of the Schlitterbahn parks across election in 2018 and according to week. “We are part of the Island the state and two-thirds owners of the agenda item for last Tuesday’s community now and Padre Island the Island park, who seek to push meeting $5 million in funds for the wants and needs a grocery store, so the local park into involuntary bridge is on their radar. we are going to build one.” bankruptcy in an apparent attempt The money for the bridge has been to sell off some of the 270 acres of The Rasheeds have been married for undeveloped land surrounding the in place for several months and the 39 years with three kids and during bid to build the bridge was opened park to pay for cost overruns on the that time have built, owned, and park and adjacent building. in March and remains in effect. What operated restaurants and shopping Mohsin and Lori Rasheed, owners of Padre Island IGA Grocery has been lacking is the political will malls in Sacramento, where they franchise. See their plans on page A4. to pull the trigger on the project, owned 38 restaurants, and Houston “Judges will eat which would require council action to where in the last fourteen years “Everything in the grocery business Plans call for 32 parking spaces turn the money lose. However, based they have built 18 shopping centers, just came to a stop after that,” Mohsin along the south edge of the center’s you both” on the item on the Tuesday agenda it three of which they still own. The said. “There is no movement in that parking lot for parents picking up The lenders on the land, Axys appears the staff may be moving to let center they are building on Padre business right now. So Lori just kids at the middle school. Capital Credit Fund, filed a the bid on the bridge expire and use Island is located adjacent to Seashore decided to buy an IGA franchise and “I know there has been talk of a brief saying the 500 acre, $552 $5 million of the bridge money to pay Middle School along SPID, where we will do it ourselves.” grocery store on Padre Island for a development surrounding and for pre-design work on the projects the earthwork is currently underway. Each IGA store is its own franchise long time,” Mohsin said. “But this is including the park is saddled with a in the 2018 bond package, including As designed it will have a total of and the local owner decides what to going to happen.” “dysfunctional management (that) is $52 million for “improvements to 33,500 square feet, with the grocery stock. incapable of effective operations.” North Beach related to the new store occupying 18,000 square feet With permitting and funding in Axys is owed about $18 million on Harbor Bridge.” and another 6000 square feet to be “With 18,000 square feet we won’t place, it looks like after decades of the land, which they say is now worth Two problems a restaurant, with a tenant yet to be have ten kinds of ketchup,” Lori said. wishing, Islanders are about to have a between $11.8 million and $15.8 determined. There are also eight retail “We will only have a few and we want place to buy groceries without having million, and the firm’s attempt to As we have reported before the spaces. to know from Island residents what to go OTB. holdup on the bridge project stems brands and items we should stock. They were nearing a final agreement “This is going to be a first-class To read a complete set of the from two sources: First, the situation We will stick strictly to groceries, with the Sprouts chain until a few operation,” Mohsin said. “We are surrounding the financial problems we won’t be competing with CVS court filings in the case see weeks ago when Amazon announced going to do this in a way that Padre at the Schlitterbahn waterpark (see or other existing stores, we are only its purchase of the Austin-based Island will be proud of.” islandmoon.com the story in this issue) and; Second, going to sell groceries.” Whole Foods Chain. the last 300 feet of the canal on the Schlitterbahn cont. on A4 west side of SPID which needs to be dredged to connect the canals A little Island history dug three years ago around the Schlitterbahn site to the salt water Island canals. Those two problems have understandably made the The Ranch House on Packery Channel political class weary of funding a By Greg Smith beach provided for lumber to build “bridge to nowhere” and as it is an the house and when asked why he Around the turn of the century unalienable political truth that money built a two story he replied “not a Patrick built a headquarters house does not stand idle for very long in single saw washed in with the lumber for the Dunn Ranch at the head of city accounts without someone trying and I had no saw to cut it shorter.” the Island. The location was just to take a bite out of it. west of the Packery Channel Bridge As time went on he built a new Developer Paul Schexnailder has said where folk’s park and fish today and kitchen and dining hall on the back of for several years that his permit with discarded plastic bags decorate the the house and added a separate bunk the U.S. Army Corps of Engineers nearby dunes. house on the bay side. Patrick and Requires him to dig the canals on both family never used this house as their The house was not a fancy structure, sides of the roadway leading to the residence, living in Corpus Christi, when originally built it was two bridge site and construct bulkheads, but did spend several months of the story, with the kitchen and dining but a lack of a formal Memorandum year there. area on the first floor and sleeping of Understanding to that effect has quarters above. It had a three sided yet to be forged with the city and the Crossing the Laguna porch running the full length of the guarantee in the corps permit does not Gulf, Island and Packery side of At that time getting to the Island was provide the council with the certainty the house.
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