Kelly confirms it: Deal in the works to sell restaurant property
By Russ Lay on August 30, 2016
Mike Kelly often socializes with customers. (Kelly’s, Facebook)
Mike Kelly officially ended months of speculation and rumors this week by going public on the status of his iconic and eponymously named Kelly’s Restaurant.
Kelly has told local media that he has entered an agreement with a potential buyer to purchase his 5-acre property in Nags Head.
But he cautioned that the deal, while it may close in the fall or early winter, was far from a sure thing.
The buyers, Kelly said, are still in a “due diligence” process that would include developing a site plan and obtaining permitting from the Town of Nags Head.
As of Tuesday, there was no public record of any submissions to the town, and Kelly described the potential buyers as “partly through their process.” He did not indicate if they had approached town officials.
Tuesday’s “news” isn’t really a revelation.
As far back as 2013, rumors circulated that Kelly was going to sell one or more of his businesses.
When approached by the Voice at that time, he said, “Last year, on my 62nd birthday, I realized my children had pursued other careers and I had some pretty complicated properties to sell, since I am obviously not going to do this forever.”
At that time, Kelly had casually informed some local Realtors that he was open to suggestions and offers.
One Realtor apparently thought the site where Pamlico Jack’s now sits might be large enough to accommodate a grocery store, a super-drugstore or even a hotel or condominium building.
The Realtor apparently spoke to town planning officials and others, and from there “word leaked out that I was looking to put my properties up for sale,”
Kelly said. He explained that there had been no concrete offers, and he specifically knocked down the large grocery store rumor.
But by July 4, 2016, Kelly said, things began to move in a more deliberate direction.
“I told the staff that day there was a serious buyer interested in buying the land where Kelly’s sits. I told them it was very early in the process and much needed to be done. I also assured them my other two restaurants, Pamlico Jack’s and Mako Mike’s, would remain open, as would my catering business, so job opportunities for most Kelly’s employees would be there,” Kelly told the Voice.
Word leaked out, and soon local media were asking Kelly about the rumors.
In late July, he spoke to local media and told us the potential buyer was moving forward at a faster pace than he had expected.
At the same time, rumors began to surface that purported to identify the suitor — with German grocery store chain Aldi’s, which also owns Trader Joe’s, leading the speculation, and another German chain, Lidl’s, also being mentioned.
Other rumors speculated on a small strip shopping center or a pharmacy/drug store chain.
In early August, we approached Kelly again and he said he could not provide any details about the buyer. All he would confirm was that the buyer would not be a chain restaurant.
He also said the potential buyer had not approached the Town of Nags Head with a site plan, nor had they started the permit process with the town, so there was still nothing concrete to report.
“They continue the due diligence process” Kelly said.
Until that process becomes public record, he asked the media to remain quiet, promising to tell everyone at the same time once the deal was solidified.
This week the rumor mill began to churn even faster, with many locals speaking with confidence that Kelly’s was closing in November.
Those rumors began to affect business at Kelly’s as well as with his catering business, so he decided to go public and asked that the story be held until Aug. 31 so that his Tuesday night staff could be told before they heard it on the news.
But another media source broke the story online Aug. 30, so Kelly did not object to the Voice posting the story as well.
Kelly wanted to make sure one thing was clear:
“The sale has not closed, and there is no closing date set. A lot needs to happen still and it is not yet a sure thing. It could happen before the end of the year, or it might take longer.”
Kelly also reiterated the restaurant is booked through New Year’s Eve, so rumors currently circulating about their closing or refusing to book entertainment during the holiday season are not true.
More importantly, Kelly wanted his catering clients to know he was not shutting down or selling that business. It will continue to operate.
And that means all of us will still get to enjoy those sweet potato ham biscuits. It’s too early to write the obituary on Kelly’s, so we’ll save the full story of Kelly’s for a time when a sale is consummated.
