- April 25, 2024
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The owners of Best Bagels Deli, the popular lunch destination that abruptly closed in Palm Coast earlier this month, have defaulted on the lease and owe $30,000 in rent, according to Property Manager Rob Robinson, of Commercial World Real Estate.
Adding to the intrigue, all of the equipment — warmers, counters, industrial oven — has been removed and possibly auctioned off, leaving the place gutted, with trash on the floor and half-used condiment bottles in the window.
Ed and Grace Tutak, who were planning to resurrect the place as Say Grace Bagels and Deli, are now left in a holding pattern, as of Dec. 20. Moreover, Robinson said he is unable to show the property in its current state, and the Phillipses' attorney informed him he would be trespassing if he did try to show the property.
And so, Robinson said, there is no way for the property owner to find someone to take over the lease. And, that means the lease holders, Alan and Karyn Phillips are still on the hook for the terms of the lease, which extends through 2017.
The Phillipses are currently about five months overdue, Robinson said, and have defaulted on the terms of the lease. The whole building, which is across Palm Coast Parkway from the Palm Coast Post Office, is owned by Palm Coast Properties LLC.
Karyn Phillips said the store was closed due to high overhead costs. Despite what anyone may say, she added, all employees were paid.
But the Palm Coast Observer has learned that more than one employee has gone to Ormond Beach, where the Phillipses are helping their son run another restaurant, to ask for their money.
Michael Dillon worked for Best Bagel for about the past 12 months, and he said he was not paid for the last 45 hours he worked for the deli.
“A day before they were closing down, they called the restaurant and told one of the waitresses, and she went around and told everyone,” Dillon said. “Some people have kids, and it’s just a horrible thing to do, especially around the holidays. No notice, not much of anything.”
Phillips maintains that she and her husband have done nothing wrong.
“Businesses close all the time,” she said. “We’re getting this condemnation from people, which is totally wrong. … We gave people jobs for four years. The only people who didn’t get paid in all that, was us. We donated bagels to every shelter around, and many, many other things. We were active in the community. We did something which we had no choice but to do.”
She added: “In New York, we lived in a small town of 17,000 people. Our bagel deli saw 500 people a day. Here, we live in Palm Coast, with 70,000 people, and we have 300 people coming in a day. … Our food is high quality and fresh, so our costs are high. The rent there was absolutely tremendous.”
For more, see the print edition of the Palm Coast Observer.
