Demolition underway Friday at Airport Mobil.
Mark Lovewell

Airport Commission Goes to Court Against Mobil Station

The Martha’s Vineyard Airport Commission has gone to court seeking to freeze the bank accounts of Michael Rotondo.

The Martha’s Vineyard Airport Commission has gone to court seeking to freeze the bank accounts of Airport Mobil gas station owner Michael Rotondo, in anticipation of claiming rent, costs of cleanup, attorney fees and damages “likely far exceeding $450,000,” according to court documents filed in Dukes County superior court.

Depot Corner Inc., the company which won a disputed bid to lease the airport property where Mr. Rotondo has operated a gas station, car wash, and convenience store for the past 20 years, filed a memorandum in support of the airport commission’s legal action, saying it intends to seek additional damages totaling $577,500.

Airport Mobil convenience station now empty of goods.
Mark Lovewell
Airport Mobil convenience station now empty of goods.
Mark Lovewell

Answering the claims of the airport commission, an attorney for Airport Mobil said despite a court ruling that Mr. Rotondo had breached his lease by operating the business beyond the expiration date, the airport commission has not suffered damages and has made no attempt to mitigate the damages it claims. Mr. Rotondo’s attorney said his client is owed damages because the airport commission interfered with his attempts to negotiate with Depot Corner for sale of the infrastructure.

A hearing on the motions was held July 18 in Boston before the Hon. Mitchell Kaplan, an associate justice of the superior court. Judge Kaplan took the matter under advisement, and the parties are expected back in court for another hearing next week.

The claims and counterclaims stem from an ongoing legal dispute which began this past winter when the airport awarded the lease to Depot Corner, which outbid Airport Mobil (formally known as Airport Fuel Services, or AFS in court documents) in an open bidding process. Mr. Rotondo was unsuccessful in a court challenge claiming the airport commission erred in multiple aspects of the bid process. The airport agreed to let him continue operating the business until May 15, but he is now under a court eviction order to remove all of the buildings and other infrastructure from the lot by July 31. Mr. Rotondo closed the business and began taking down the station on Monday this week, including demolition of the buildings.

Demolition underway at Airport Mobil
Mark Lovewell
Demolition underway at Airport Mobil
Mark Lovewell

“The Martha’s Vineyard Airport Commission (MVAC) is seeking significant monetary damages,” commission attorney David Mackey wrote in the court motion, “likely far exceeding $450,000, from Airport fuel Services (AFS) as a result of AFS’s refusal to cease its business and vacate leased premises controlled by the MVAC despite the fact that its lease has unequivocally expired, and as a result of AFS’s refusal to timely remove the improvements it constructed on the property despite the clear requirement that it do so at the end of its lease.”

In the motion filed July 11 in Dukes County superior court, the airport commission cited four separate incidences where it anticipates seeking monetary damages.

The commission claims it is owed fair rental value of the lot from the time an extension of Mr. Rotondo’s lease expired on May 15, to July 31, a total of $26,325, minus $5,256 that Mr. Rotondo has already paid in rent. The commission based its calculation of fair rental value on the winning bid from the bidding process, $3.49 per square foot, which amounts to $10,530 per month.

Further, the airport commission said it is owed the cost of removing the fuel station infrastructure, estimated at $197,000. The motion was filed before Mr. Rotondo began to decommission the gas station himself.

The airport commission said that according to the terms of the lease it is also entitled to recover attorney fees in the protracted legal dispute.

Mobil station says goodbye and thanks to loyal customers.
Mark Lovewell
Mobil station says goodbye and thanks to loyal customers.
Mark Lovewell

“In total, the attorneys’ fees and costs the MVAC will incur in enforcing the lease in the summary process [eviction] matter in the district court and the counterclaim in [superior court] will likely exceed $50,000,” Mr. Mackey wrote.

Finally, the commission also asserts a claim of unjust enrichment against Airport Mobil, claiming that Mr. Rotondo made significant profits from the property when he had no legal right to be there. The attorney based the damages on Airport Mobil financial statements.

“Even a conservative estimate is that AFS will generate $175,000 in net profit from May 16 to July 31,” Mr. Mackey wrote in the court document.

In its memorandum in support of the airport commission, Depot Corner used strong language in its attempt to convince the court to freeze Airport Mobil’s bank accounts.

“It’s almost certain,” wrote Depot Corner attorney Marilyn Vukota in her memorandum, “that any AFS assets will disappear when AFS closes its doors and terminates its operations. Because AFS has demonstrated a remarkable capacity to deliberately obstruct the transfer of property it has no legal right to possess, AFS cannot be trusted to retain assets that may be needed to satisfy a future judgment.”

Station closed for business at the end of the day on July 17.
Mark Lovewell
Station closed for business at the end of the day on July 17.
Mark Lovewell

Depot Corner is asking the court to attach $557,500, representing earnings of $7,500 per day for the period when Mr. Rotondo’s lease extension ended on May 15, to July 31.

On Thursday afternoon an excavator was knocking down the cinder block car wash building. The convenience store building interior appeared completely gutted. The lot is surrounded by chain link fence, with large dumpsters either full of or awaiting building debris. Various crews were working on underground infrastructure.

“Excuse me, can I get gas here?” a motorist asked a bystander just outside the fence. When informed the station was closed, she swore and asked where the next nearest station is located.

On one of the fences hangs banner about eight feet long. It says: “Dear customers and friends, we regret the closing of Airport Mobil. Thank you for your business and support these past 20 years.” Mr. Rotondo could not be reached for comment.

Comments

Submitted by Anonymous (not verified) on Thu, 07/20/2017 - 22:18

Permalink

Interesting

So Mr.Rotondo hired a company owned by one of the airport commissioners he is suing to move his stuff out ?

Soup OB

Rotondo sued the Airport Commission and not the individual commissioners or their families. How else can he do this work if not with the retention of island contractors?

Rose Willett

Just to be clear Barnes Moving was hired by Shepard Provision's to transport a cooler they purchased from Mr. Rotondo. Barnes was not providing any services for Mr. Rotondo.

Rose Willett
Barnes Moving and Storage

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 03:16

Permalink

Cindy Tisbury, MA

I sure hope that when Depot Corner starts it's business where Mike Rotondo had his business for twenty years that everyone will boycott them! This whole thing was done so badly! And why does Mr. Rotondo have to demolish a good building and car wash????? Totally insane!

BS OB

He didn't have to tear down the building. He made that decision on his own. Why boycott the new owners? They have done nothing wrong. They offered a better bid. They won, he lost. Mr. Rotondo seems to have made some very bad business decisions and now he is paying the price.

S OB

You can't have it both ways. Someone either buys it or he gets to remove it. It's his stuff and if he wants to take it away that's his right. And btw, that's what the Airport wanted him to do. If the airport wanted a different result they should have worked it out with Rotondo before the bid was issued.

Dollars and Sense

How much higher was the highest bidder over Depot Corner ? I remember hearing someone saying like a million dollars over the 20 years of the lease ?

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 06:47

Permalink

charlie callahan so boston/edgartown

They are really out to get this guy. The state should INVESTIGATE this airport commission.

Willam Barrows Boston/Edgartown

And after the lawsuit settles the MVC will get a chance to look at the building plans of the new leaseholder. That journey, to build a new gas station, will take months, if not longer. The airport will have rental cars and no place for customers to refuel them upon return. This is a real mess.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 07:24

Permalink

John Chivers Edgartown

People need to realize that the airport commission has allowed three businesses at the airport to adjust their bids to continue staying in business. It is patently unfair that they did not give the same opportunity to Michael Rotundo.

Concerned Islander VH

That is exactly the question I've been wondering about these last months. Since he established his business out in the boonies all those years back when there was nothing there he should have been given the opportunity to match the higher bid. Not sure if the MVAC has a mechanism in place to allow for that to happen. He ran a good business and the only car wash with the free wash incentive. It's very sad. Down the road my guess Depot Corner will charge higher prices like they do in Edgartown and not build a new car wash. Time will tell. Islanders are losing out on this one all around.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 08:07

Permalink

WashAbhored Edgartown

Well, the question about who makes a fortune on the high gas prices is now pretty much answered. Owning a gas station on the Island allows you to charge $1/gallon premium and make upwards of a $1 million a year. Islanders gouging Islanders.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 18:22

Permalink

RC West Tisbury

What the Commission has done here to the businessman is inexcusable. I hope he asks the Attorney General's office to review this entire thing. I think much less of the MV Commission and this smells to be polical in nature. I will NEVER buy gas with the new owner and I won't buy gas at his current location either.

Facts

The only control the County Comission should have over the Airport is appointing the commissioners. These Airport people are puppets for the county, whenever the country gets involved things get screwed up. Time to restart the county charter and abolish county government.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 19:16

Permalink

Ken Edg.

This is a loss for the island. This guy sold gas for your car, did oil changes, washed the car, and you were able to vacuum the sand. Air was also free for tires. The airport comission should be ashamed of themselves. They need to be replaced.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 19:38

Permalink

Paul Harvey MV

So what if the new gas station can't bury tanks on that site (let's just say it's prohibited) and therefor can not have a gas station on that site? What happens then? We're in the 3rd inning of an overtime thriller.
Now you know the rest of the story.

Submitted by Anonymous (not verified) on Fri, 07/21/2017 - 20:29

Permalink

Ted Jochsberger West Tisbury

Anyone who thinks that Mike Rotondo was treated fairly in this matter is crazy. The bidding process was rigged, the Airport Commission's process was full of errors (which somehow the judge missed) and Depot Corner offered him pennies on the dollar for the equipment. Now that they've destroyed Mike's life, they come after him for his bones. This is disgraceful. Hopefully it will take years, if ever for another business to open on the site. There is a special place in Hell for these people!!

Submitted by Anonymous (not verified) on Sat, 07/22/2017 - 06:18

Permalink

William Edg.

The Airport Commission did the residents of Edgartown no favors in this new lease. Of the three gas stations in town there is now just one owner, a mini monopoly. Yuck! A bad deal for residents who will pay who knows how much extra for gas now. The MVC is probably happy since they don't want you to drive a car in the first place!

WashAbhored Edgartown

Yep, it's really hard to drive to Mid Island or any of the stations in OB or VH. The sad part is all of them have gouging us for years. How about one owner who is willing to only make three times the national average .50/gallon? That's someone I would root for.

Submitted by Anonymous (not verified) on Sat, 07/22/2017 - 09:02

Permalink

Elowe West Tisbury

The airport commission has had so many missteps and caused so many lawsuits that it a wonder anyone of them are still allowed to make decisions. The one group that really likes the commission are the lawyers that continue to find work because of all their bad decisions

Submitted by Anonymous (not verified) on Sat, 07/22/2017 - 10:24

Permalink

Torey Edgartown

Thanks to the corrupt Airport Commission, we the people will have to pay up for this monopoly they created. It is such a disgrace!

Submitted by Anonymous (not verified) on Sat, 07/22/2017 - 14:55

Permalink

Pat W. W. Tisbury

What a waste!! I may not understand the entire background story but....to demolish functioning structures and equipment in these times seems appalling. The station always appeared to be a fine, friendly, well functioning enterprise to me. Good location convenient to many drivers, functioning car wash, available basic services for vehicles, good coffee, snacks, even a clean rest room. staff was friendly and helpful. Sorry to see it go, esp. amidst all this drama.

Submitted by Anonymous (not verified) on Mon, 07/24/2017 - 08:32

Permalink

Three strikes edg

1. Foolishly sign a lease without a renewal provision then become a squatter at expiration.(and now face 2 lawsuits of potential $1million exposure= $577K plus $450K)

2. Refuse a reported offer of $250,000 for depreciated building and end-of-life tanks.

3. Waste a reported $100k + demolishing structures out of spite (which will inconvenience many!) Three strikes. You're out.

Ballgames OB

I don't think Mike was playing baseball, but let's work your metaphor. And yes, no matter what he's out of business. MVC and New Owner were playing hardball and trying to gift his assets to the New Owner on the cheap. I'm glad Mike leveled the playing field and left the New Owner with a clean slate. It will be interesting to see how much investment the New Owner puts in and how long it takes.

You're out Chilmark

I can't get passed the flawed bidding process. Even if it is true that the owner signed that lease he would have reasonably trusted that the AIRPORT would have followed the laws regarding the bidding and that he would have had a fair chance at being given the lot again. There is clearly something that is being hidden here and needs to be uncovered and people need to be held accountable. The AIRPORT is clearly been heading in a very poor direction.

Clarify Edgartown

1. The lawsuit math is appalling and a sick money grab from the MVAC. 2. You don't take depreciated value for structures. There is a thing called market value. The town assessed those buildings alone at $588,000, so market value would be even higher. 3. I, like many others, believe Mr. Rotondo was treated unfairly and the MVAC and new owner did not operate in good faith to keep an operating business or structures at that site.

MD OB

If you or anyone else here would take an offer of 40% of your house's assessed tax value - which at even at 100% would be significantly less than it is worth - let me know...I'm buying!!

Submitted by Anonymous (not verified) on Mon, 07/24/2017 - 12:30

Permalink

Downislander

I wonder how many of the commenters have actually read the lease agreement between Mr Rotundo and the landlord? A lot of assumptions being made here

Dollars and Sense

He isn't in the right and the airport is not in the right either in terms of the award of the land. Have you read the bid packet or the proposals ? The highest bidder should have gotten it. His letter says he wanted to run a gas station and he wanted to buy the asset from Rotundo.

Upislander West Tisbury

Even if it is assumed that all is true about the lease what is known is that the decisions that are made by our public official need to be absolutely in the public s interest and that clearly is NOT the case. Not only are they not, they also hide from the public behind their Boston attorney. We need to demand that all of the decisions made by this board need to be thoroughly reviewed by an unbiased knowledgeable third party.

Submitted by Anonymous (not verified) on Mon, 07/24/2017 - 22:02

Permalink

Gw west tisbury

Between the corruption at the airport and that of the mvhospital, it's a toss up. Both boards need overhaul.

Submitted by Anonymous (not verified) on Tue, 07/25/2017 - 06:54

Permalink

Arnold Plotkin County of Dukes County

In the end it will be difficult to prove any of these decisions were made in the best interest of the Martha's Vineyard Airport or the people of Martha's Vineyard. The Airport Commission & its Management are running amok and should be fully investigated.

Submitted by Anonymous (not verified) on Sat, 07/29/2017 - 09:09

Permalink

John Chivers Edgartown

An investigation is necessary! The airport commission didn't even follow their own rules in the bidding process for the gas station lot.

Add new comment

Plain text

  • No HTML tags allowed.
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.