The iconic Blue Moon restaurant and bar in Rehoboth Beach, Del., has been sold to new owners who have pledged to keep it an LGBTQ-affirming space, according to longtime owner Tim Ragan.

Ragan and his partner Randy Haney sold the Blue Moon to Dale Lomas and Mike Subrick, owners of Atlantic Liquors on Route 1. 

“They don’t want to change a thing,” Ragan said. “They’re local people, they live here. Dale worked his first job at Dolle’s.”

Ragan and Haney did not sell the business, only the real estate. The deal includes a 10-year lease with renewal options under which Ragan and Haney will continue to operate the Moon. He noted that the couple could opt to sell the business at any time.

“It’s going really well so I’m not in any hurry,” Ragan told the Blade. “It’s hard to run a business and manage a property that’s 120 years old — now someone else has to fix the air conditioning. Our responsibility will be to run the business.”

Ragan offered reassurances that the Moon will continue to be a gay-friendly destination.

“Dale’s comment was that Rehoboth has been good to us and we just want to give back. The Moon is part of Rehoboth’s history and we want to preserve that.”

He said there are no immediate changes planned for the structure, apart from a new roof in the atrium that was damaged in a hail storm. Ragan noted that the property comes with several apartment rental licenses that they have never exercised and the new owners may decide to rent those out.

The Blue Moon business, at 35 Baltimore Ave., dates to 1981 and is an integral part of Rehoboth’s LGBTQ community, hosting countless entertainment events, drag shows, and more over 45 years. Local residents have celebrated birthdays, anniversaries, weddings, and other special occasions in the acclaimed restaurant. 

The two buildings associated with the sale were listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They were listed for $4.5 million. The bar and restaurant business were being sold separately. 

But then, earlier this year, the Blue Moon real estate listing turned up on the Sussex County Sheriff’s Office auction site. The auction was slated for Tuesday, April 21 but hours before the sale, the listing changed to “active under contract” indicating that a buyer had been found but the sale was not yet final.

Ragan said the issue was the parties couldn’t resolve how much was owed due to a disagreement with the bank. “We didn’t owe $3 million,” he said. “We said we’re not paying any more until we sell.” 

The sale contract was written five months ago. It took three attorneys to get a payoff amount agreed to by the bank, he added.

“No one wanted to buy both things. We now have a longterm lease. We couldn’t be happier.”

The Washington Blade’s 19th annual Summer Kickoff Party is scheduled for Friday, May 15 in Rehoboth Beach, Del.

Ashley Biden, daughter of President Joe Biden, has joined the list of speakers, the Blade announced. She will accept an award on behalf of her brother Beau Biden for his LGBTQ advocacy work as Delaware attorney general. (Her appearance was rescheduled from last year.)

The event, to be held this year at Diego’s (37298 Rehoboth Ave. Ext.) from 5-7 p.m., is a fundraiser for the Blade Foundation’s Steve Elkins Memorial Fellowship in Journalism, which funds a summer position reporting on LGBTQ news in Delaware. This year’s recipient will be introduced at the event.

The event will also feature remarks from state Rep. Claire Snyder-Hall. New CAMP Rehoboth Executive Director Dr. Robin Brennan and Blade editor Kevin Naff will also speak. The event is generously sponsored by Realtor Justin Noble, The Avenue Inn & Spa, and Diego’s.

A suggested donation of $25 is partially tax deductible and includes a drink ticket and light appetizers. Tickets are available in advance at bladefoundation.org/rehoboth or at the door. 

The Blue Moon in Rehoboth Beach, Del., has been an iconic presence in the local LGBTQ community for four decades but its status remains murky after a sheriff’s auction of the property was abruptly called off on Tuesday.

The property was listed for sale in December. At that time, owner Tim Ragan told the Blade that he is committed to preserving its legacy as a gay-friendly space.

“We had no idea the interest this would create,” Ragan said in December. “I guess I was a little naive about that.”

Ragan explained that he and longtime partner Randy Haney were separating the real estate from the business. The two buildings associated with the sale were listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They were listed for $4.5 million. 

The bar and restaurant business is being sold separately; the price was not publicly disclosed. 

But then, earlier this year, the Blue Moon real estate listing turned up on the Sussex County Sheriff’s Office auction site. The auction was slated for Tuesday, April 21 but hours before the sale, the listing changed to “active under contract” indicating that a buyer has been found but the sale is not yet final. As of Wednesday morning, the listing has been removed from the sheriff’s auction site.

Ragan didn’t respond to Blade inquiries about the auction. Back in December, he told the Blade, “It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” noting that he turns 70 this year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.” 

The identity of the buyer was not disclosed, nor was the sale price.