Naples City Council rejected an outdoor dining proposal for the historic Olde Naples Building on Third Street South.

The Feb. 5 unanimous decision to deny a magistrate’s settlement opinion came as a complete surprise to prolific restaurateur Rick Doody, a seasonal resident of North Naples who signed a lease three years ago to create a high-end classic American grill in the 1921 building that the Camalier family has owned for more than 40 years. When landlord Chris Camalier told him the vote was unanimous, Doody congratulated Camalier, thinking that the outdoor dining issue was unanimously approved. Then, Camalier told him it was unanimously opposed.

“Needless to say, I was flabbergasted. I don’t know what to say,” Doody said. “The bottom line: I don’t understand. I don’t get this City Council. We are building a restaurant that would stand the test of time and last a couple of generations just like Lindey’s, our restaurant in Columbus, Ohio. We can do that here.”

Because many Naples restaurants have the majority of their seating outside, Doody isn’t sure a restaurant there can compete without al fresco dining.

“It wouldn’t be as successful. Every other restaurant down there has outdoor dining,” he said. “It would be like competing with one hand tied behind my back.”

Doody, who was co-creator of Bravo Brio Restaurant Group and now operates restaurants in Chagrin Falls, Ohio, loves Florida and is trying to grow his hospitality business in the Sunshine State, where he already has venues in Sarasota and Winter Park. When he signed the Naples lease in January 2022, he had hoped to launch it first but, hours after the recent City Council meeting, he was shocked by the outcome.

“I’m just trying to understand the legal thought. I don’t get it,” Doody said. “The magistrate ruled in our favor for outdoor dining. Why hire a magistrate if you‘re not going to listen to him?”

In June 2023, City Council voted to deny an outdoor dining application for the Olde Naples Building because it failed to meet the city’s parking requirements in its land development code. Olde Naples Building LLC challenged the denial and initiated a state proceeding known as the Florida Land Use and Environmental Dispute Resolution Act, or FLUEDRA, where a special magistrate reviews the facts and issues a report and recommendations.

On Dec. 27, Special Magistrate Derek Rooney issued a report concluding that the city’s 2023 denial of the outdoor dining application “was unreasonable and unfairly burdens Olde Naples Building LLC’s use of their real property,” and recommended a compromise to avoid further litigation. The compromise involved reducing the outdoor dining area and demolishing the building’s mezzanine to decrease parking requirements.

Because the building was constructed prior to the city’s incorporation and before the adoption of regulations requiring property owners to provide off-street parking, there are no physical parking spaces on the site. The building is considered a legal nonconforming structure, according to the city planning department.

“In September of 2011, former Planning Director Robin Singer issued an administrative determination that the last permitted use of the property operated with a parking deficit of 76 parking spaces and that the building was established as a lawful nonconformity. She determined that while there are no spaces provided for this building, it was functional with a 76-space parking deficit. The building is a nonconformity due to its noncompliant parking,” the city planning department reports.

During the City Council meeting Feb. 5, council member Ray Christman said Council made the correct decision in June 2023 to deny the outdoor dining permit.

“I think the FLUEDRA magistrate’s proposal of sort of, figuratively speaking, splitting the baby in half sounds good on the surface — we all like compromises — but it really doesn’t reconcile itself from a legal standpoint with what our code requires,” Christman said. “So, I remain holding the same position that I held in June of 2023, and I think we should reject the magistrate’s proposal and continue to require the petitioner to provide the parking for the outdoor dining, if they wish to move in that direction.”

After about 90 minutes of discussion, Christman made a motion to reject the magistrate’s recommendation. The motion was seconded by council member Beth Petrunoff and a roll call revealed a unanimous decision to deny the outdoor dining request and compromise.

Built in 1921, the Olde Naples Building on the corner of Third Street and Broad Avenue South, has been vacant since 2006, when Fantozzi’s of Olde Naples closed after operating a deli/wine and cheese shop there for 20 years. That historic building at 1148 Third St. S. is notable for being home to Naples’ first movie theater, playhouse, doctor’s office, library, church and real estate office while also hosting the city’s first Council meetings and high school graduation. The property has been approved for an upscale restaurant next to the future Old Naples Hotel under construction.

Joel Grant, a seasonal resident from Ohio who has a home in the Vineyards community of Naples, loves Lindey’s in Columbus and hopes Doody can still bring a similar concept to Naples. Grant and his family have good memories of the restaurant and have been there many times, including for their son’s rehearsal dinner. “I hope they work it out. It’s a great restaurant,” he said. “It would be a real loss if it doesn’t happen.”

The future, though, of Doody’s restaurant in downtown Naples remains unknown.

“With no outdoor dining, it makes it hard,” Doody said. “I wish I could tell you more. I really don’t have any answers. It’s unfortunate because it’s a great corner, a great building and great potential.”