Coffee Shop Opened Without Permit, Borough Says

The future of the retail space within Hatboro Lofts is largely dependent upon the property owner's compliance with the borough, an official told Patch.

Following Monday's announcement that the struggling Maine Star Coffee had abruptly closed, Hatboro Borough Manager Fred Zollers told Patch that the business opened in January without a certificate of occupancy permit.

"We didn’t close them down," Zollers said, adding that the borough certainly had that authority. "But they were never issued a final CO."

Zollers said a permit for the business' opening, and more recently, to grant permission to add signs to the exterior of the 237 Jacksonville Road site could not be had because the owner of Hatboro Lofts failed to pay required escrow money to Hatboro and carry out specific tasks. 

"There’s an escrow amount they owe for parking," Zollers said. "Some additional parking was needed."

The escrow fund, according to Zollers, was "our guarantee that they do it." Instead, Zollers said the owner "never put money in and didn’t do it."

Zollers said the owner also did not upgrade intersections as he had agreed to do.

"All those things are still outstanding with the project," Zollers said. 

Maine Star Coffee owner Dexter Watson shared concern over limited parking two days before closing the 4-month-old business. Watson told Patch late Tuesday night that closing was "certainly not my intention" and said he cleared out the business after being served with a notice to vacate.

"I wasn’t evicted," Watson said. "I actually left early because I wasn’t going to pay the additional fees."

The extra fees most likely stem from Watson's failure to pay rent from January to May. He told Patch that he began paying rent in July, while the $500,000 renovations were underway and made his last rent payment for the month of December, after being notified that the Hatboro Lofts owner had failed to carry out upgrades and pay escrow fees. 

"This all really lays at the feet of the Hatboro Lofts," Watson said. "They have not done what they’re supposed to do. I’m being punished."

Watson said he notified his employees Friday afternoon that Saturday would be Maine Star's last day of business. 

"It was very painful," Watson said, adding that he has since found jobs for two of the eight employees and is looking for jobs for two other workers. "I have people who were dependent upon me for a paycheck."

The 160-unit Hatboro Lofts were built about four years ago, officials said previously. Last year, an attorney representing Hatboro Lofts presented plans to the Hatboro Borough Council for various site improvements, including the addition of a reserve parking lot, painting of the nearby rusty water tower and other upgrades.

But, more than a year later, Zollers said that while "things are in motion," he did not know how quickly outstanding issues would be rectified. 

Patch was unsuccessful in reaching David Kilcoyne, the point person for the Hatboro Lofts project, for comment.

One of the difficulties that Watson shared with Patch involved the inability to add additional signage to the building's exterior, which he said had a direct impact on his ultimate decision to leave the premises and seek a new location, possibly in Richboro.

"When customers come looking for me they can’t find me," Watson said. "I was not going to continue paying rent when I realized I was not going to get my signs and I was not getting my parking."

Hatboro Main Street Manager Stephen Barth said additional signs were needed to make the business more visible. 

"There’s a line of driveby traffic in the morning," Barth said. "I don’t hink a lot of people were as fully aware that they were there."

But, Zollers said that signs for Maine Star, or any other business planning to open at the Hatboro Lofts would be prohibited until outstanding issues are handled. 

"We can’t issue any more permits for things until all those other things are cleaned up," Zollers said. "We can’t issue permits and let things go."

And, in terms of opening a new business there anytime soon, Zollers said nothing could open without a certificate of occupancy. Like the signs, Zollers said an occupancy permit would not be issued until Kilcoyne complies with agreed upon actions.

"If they rent it to somebody else, that somebody else needs a certificate of occupancy or use of occupancy permit to open," Zollers said. "We can’t issue one until things are completed."