The future of several large Broward County hotel projects seemed up in the air on Wednesday after the violent death of Gus Boulis.
Best known for building the Miami Subs fast-food chain and the SunCruz Casino fleet, Boulis had made hotel development the focus of his business in the past year.
His biggest pending projects were both in Hollywood, the 450-room Diamond on the Beach project on a prime city-owned site and a $25 million renovation of the Howard Johnson hotel.
"He had a lot of faith in Hollywood, and believed we were going to be the next Miami Beach," Hollywood Mayor Mara Giulianti said Wednesday. "He had a grand design, I assume."
Boulis proposed the Diamond on the Beach project in 1997 and sold a part interest to developer R. Donohue Peebles in 1998 after legal troubles made it difficult for him to get financing alone.
The city later revoked the developers' lease on the site, only to have that action overturned by a judge last year.
A new hotel agreement was in the works until last week when new revelations again soured city commissioners on doing business with Boulis.
First, Adam Kidan, who with two partners bought 90 percent of SunCruz, said Boulis threatened to kill him after Kidan fired Boulis' employees. The U.S. Attorney's Office then charged Boulis had violated a sealed settlement that required him to divest all ownership in SunCruz, leading Giulianti to call for his ouster from the Diamond project.
On Wednesday, Giulianti said the city has "to put things on hold for awhile" to figure out how Boulis' death will affect the Diamond on the Beach partnership.
Peebles said it was the wrong time to discuss the fate of the $68 million project. "Instead we would like to offer our condolences to his family, children and friends," he said.
Boulis was also a partner in two hotels proposed by Boca Raton businessman Nick Economos. In July, they bought the 242-room Howard Johnson Hollywood Beach. They told the city they planned to spend $25 million to $30 million to refurbish it and change it to a Courtyard by Marriott.
In November, another partnership, led by Economos and including Boulis, filed plans with Fort Lauderdale to build a 275-room Courtyard by Marriott opposite the Broward County Convention Center. Economos declined to comment on Wednesday.
Boulis had renewed his interest in hotels after selling SunCruz to a Washington, D.C., business group in September for $147 million.
The day-cruise operation was Florida's largest gambling cruise firm, with 10 ships in the state and one in South Carolina.
The second-largest ship, the 600-passenger Sun Cruz VI, was berthed at Martha's restaurant along the Intracoastal Waterway in Hollywood, where it was a constant source of irritation to neighbors. On Wednesday, the new owners of SunCruz said they were shocked and saddened.
"None of our more than 1,150 employees would be here without the hard work and vision of Gus Boulis," chief executive officer David Hughes said in a press statement.
SunCruz was founded in 1994 after Boulis stepped down as president of Miami Subs, a fast-food restaurant chain he built out of the ashes of a failed Mexican chain. Miami Subs grew quickly after Boulis became chairman of QSR Inc., the holding company for Taco Viva, in 1990.
By the time he sold Miami Subs to Nathan's Famous Inc. for $14 million in 1999, there were 192 Miami Subs restaurants.
Boulis had owned about 200 Mr. Submarine sandwich shops in Canada before moving to the Florida Keys in 1977. He moved to Hollywood in 1985.
Staff Writer Kai Hill contributed to this report. Tom Stieghorst can be reached at
tstieghorst@sun-sentinel.com or 305-810-5008.
Miami Subs, SunCruz founder gunned down; $100,000 reward posted
By SHANNON O'BOYE, Sun-Sentinel, and sun-sentinel.com
Web-posted: 12:14 a.m. Feb. 7, 2001
Updated 4 p.m. on Wednesday
FORT LAUDERDALE -- Gus Boulis, founder of the Miami Subs restaurant chain and the SunCruz casino cruise empire, was ambushed and killed while driving on an isolated road Tuesday night in what police said looked like a professional killing.
"They probably knew who he was," police spokesman Detective Mike Reed said of the gunmen and ambush-style shooting. "They were probably waiting. This victim was set up."
Police said they are investigating whether the shooting death of Boulis was connected to some bitter business disputes, including one where he allegedly threatened one of SunCruz's new owners.
The Broward County Medical Examiner's Office Wednesday afternoon reported that Boulis died from several gun shot wounds to the upper torso.
The are still no suspects or a motive in the murder, and the investigation is continuing, Reed said.
Also Wednesday afternoon, Boulis' Atlantia Holdings announced it was posting a $100,000 reward in the case.
"We are shocked and horrified at Gus Boulis’ apparent murder. This act was not only a heinous crime but also a terrible tragedy for all of us," company spokesman Charles Wells said in a prepared statement. "Our sympathies and prayers are with Gus’ family and those close to him.
"Our top priority is to assist police in finding the individual or individuals responsible for Gus’ death, and we pledge to concentrate all of our resources in this effort. A $100,000 reward has been established with the Crime Stoppers of Broward County for any information leading to apprehension and conviction of those responsible," the statement said.
Konstantinos "Gus" Boulis, 51, had been at the center of controversy recently after being forced to give up majority ownership in the SunCruz gambling ships spread throughout South Florida.
After meeting late with a business associate, police said Boulis left his office on the 900 block of Southeast 17th Street around 9:10 p.m. Tuesday and was believed headed to his home in Hollywood. One of the exits from the parking lot exits directly onto South Miami Road.
He drove south in his newer model BMW and reached the 2000 block of Miami Road about 9:15 p.m. when a vehicle in front of him slowed, then stopped for no reason, witnesses told police.
One or two men in a dark-colored Ford Mustang, which was headed north on the two-lane street, then pulled alongside Boulis' car so the drivers were face to face. The driver of the Mustang pulled out a gun and fired at least four shots at Boulis.
"It sounds like it was well-planned," said Reed. "This was no road rage."
After the shooting, the Mustang, which had a temporary paper tag, continued north, while the other car sped off south. Police had no description of the car that stopped in front of the BMW.
Boulis made it a few blocks before crashing into a tree on Federal Highway/U.S. 1 near Southeast 17th Street. The smashed-up vehicle sat in the southbound lanes of Federal facing north late Tuesday night.
The car, ironically, came to rest in front of a Miami Subs, the restaurant chain he founded and is now controlled by Nathan's Famous, the hot-dog vendor.
Police and rescue workers found Boulis slumped in the driver's seat of the BMW. He was bleeding profusely, Reed said. He was taken to Broward General Medical Center, where he was pronounced dead.
Police were poring over the two crime scenes looking for clues, Reed said, one at Miami Road and Southeast 20th Street and one at Federal/U.S. 1 and Southeast 17th Street.
Witnesses are asked to call Crime Stoppers at 954-493-8477 or Fort Lauderdale Police at 954-828-5700.
Boulis' American dream began in 1968 when, as a young fisherman, he jumped ship in Canada and took a job in a Mr. Submarine sandwich shop in Toronto. Soon, the owners offered him control of one of their stores and, eventually, a share in the company.
The company was sold in the late 1970s and Boulis moved to the Keys. Bored with early retirement, he opened a Mr. Submarine in Key West in 1983 and, in 1989, began Miami Subs, which gained local fame for offering $99 bottles of Dom Perignon champagne along with its sandwiches.
He often sold franchises to friends and other Greek immigrants without requiring a down payment.
"We're all just deeply saddened," said Jerry Woda, Miami Subs' senior vice president. "We knew he was a controversial figure, but a lot of the good things he did did not show up in the media. He was a guy that gave you the shirt off his back.
Nathan's Famous, the New York hot dog chain, purchased Miami Subs in 1999. Boulis received $4.2 million. The chain now has 150 restaurants in 12 states and three foreign countries.
In 1994, he started SunCruz in 1994 and made it into the state's largest casino ship business.
SunCruz's gambling voyages to nowhere has operations in Hollywood, Key Largo, Hollywood, Port Canaveral, Daytona Beach, Fort Myers and Tampa.
SunCruz' 10 boats are part of the growing "cruise to nowhere" industry in which boats sail from U.S. ports out three miles into international waters, where no laws exist against gambling.
Federal prosecutors forced Boulis to sell his lucrative SunCruz Casino last year and wanted him punished recently for violating his promise to stay out of the "cruise to nowhere" industry forever, according to documents filed in U.S. District Court in Miami.
The U.S. Attorney's Office accused Boulis of flouting the deal he made last year with the government -- previously under court seal -- in which prosecutors dropped civil charges against Boulis' companies, Dream USA Inc. and Dream Boat Inc.
The companies admitted concealing Boulis' ownership in six SunCruz Casino boats because Boulis was not a U.S. citizen at the time and could not legally own such an operation.
In return, Boulis agreed to sell all of his interests in SunCruz Casino and related companies within three years and pay a $500,000 fine.
Boulis sold SunCruz in September to a group of investors headed by Adam Kidan, the founder of Dial-A-Mattress. As part of the sale, Boulis retained 10 percent of SunCruz through his company, Shake Consulting, and the new owners agreed to pay Shake $250,000 a year so he would not open a competing business.
In a Jan. 19 motion to hold Boulis in contempt of court, the government said Boulis defrauded both the government and Kidan by failing to get out of the gambling boat business as he agreed to do in his divestiture agreement with prosecutors.
Boulis' new troubles with the federal government added to a daunting list of problems for the Greek immigrant. Boulis' deal with Kidan has descended into at least four lawsuits and a Dec. 5 altercation in which Kidan accused Boulis of punching and kicking him and trying to stab him with a pen. Boulis was forbidden by a restraining order from going within 500 feet of Kidan or SunCruz property.
Anyone who's had a past with Mr. Boulis ... we'll be talking to," Detective Reed said. He said the FBI and other federal law enforcement agencies are being asked for assistance in identifying Boulis' enemies.