Downtown business closes after 30 years; serves as placeholder for third hotel

March 19, 2019 | 3:15 am

Updated March 18, 2019 | 10:52 pm

Downtown Muffler & Brake has been in its current location for 30 years, but owners Tim and Janie Cecil will be closing up shop on Friday without plans to reopen in a different location. | Photo by Ashley Sorce

According to one downtown business, the landlords of their 500 W. Second St. building have served an eviction notice, requiring them to vacate by the end of the month.

Downtown Muffler & Brake has been in its current location for 30 years, but owners Tim and Janie Cecil will be closing up shop on Friday without plans to reopen in a different location.

“We hate to lose our customers because we have had them for years,” Janie said. “But it’s hard to find another spot. Owensboro is not small-business friendly.”

The City of Owensboro bought the property for $295,000 in June 2017 and then sold it to Riverfront Brio, LLC, one of Matt Hayden and Jack Wells’ companies, three months later in a grouping of consolidated lots.

“The City assembled the block and sold it to the developer for what we had in it,” said City Manager Nate Pagan. “It was a wash for the City.”

According to Ed Ray, chief operating officer of Gulfstream Enterprises, by consolidating the block into one purchase, it was more appealing to the developer.

While there is no announcement at this time, Ray said the block where Downtown Muffler & Brake sits is a placeholder for a third hotel. He said Gulfstream is in the process of evaluating all of the buildings on that lot, the remainder of which are vacant, with the goal of eventual demolition.

“Things have to come down in order to build up,” Ray said.

There are no plans to resurface the property to add parking at this time and the parking arrangement on the south side of the lot for Alorica employees will remain in place, Ray said.

The Cecils have known this eviction was coming, but didn’t know when. Janie said, with the talk of a third downtown hotel and the highly publicized need for additional parking, the eviction was inevitable.

“So many people thought we were gone already,” Janie said, noting that maps and renderings of the third hotel and parking possibilities lead customers to believe the shop had already closed.

Janie said the lease was up at the end of February, but the lease had never been updated once Hayden and Wells purchased the building in 2017. She sent a letter with her rent payment the last three months, asking the landlords when she would be evicted. She received no response in return.

According to Janie, Gulfstream Commercial Services Broker Jay Velotta, hand-delivered the eviction notice on March 5, but the letter was postmarked March 1.

“They gave us 26 days to get out,” Janie said.

Ray said the eviction shouldn’t have come as a surprise.

“They knew the date the lease expired and they had three years to make arrangements,” Ray said, adding that he was unaware of any attempt the Cecils made at contacting Gulfstream about an eviction date. “Our real estate group has tried to find a place for them to relocate, but they haven’t made any progress to my knowledge.”

Janie said, when Downtown Muffler & Brake opened in 1989, the City of Owensboro offered TIF (tax increment financing) money for small businesses to locate in Owensboro’s downtown region.

“It’s ironic that TIF money helped us get started and now it’s running us out,” Janie said of Downtown TIF projects like the anticipated third hotel.

When asked about the direction Downtown Owensboro is moving, Janie said she has seen a lot come and a lot go in 30 years.

“I hope they [city officials] have a better insight than what I think they do,” Janie said. “More places are closing in this town than opening.”

March 19, 2019 | 3:15 am

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