HomeMy WebLinkAboutAttorney/Client Session - Shade Session MINUTES OF ATTORNEY/CLIENT SESSION
DANIA BEACH CITY COMMISSION
TUESDAY, JUNE 22, 2010 - 6:00 P.M.
1. Call to Order/Call to Order
Mayor McElyea called the meeting to order at 6:00 p.m.
Present:
Mayor: C. K. "Mac" McElyea
Vice-Mayor: Anne Castro
Commissioners: Bob Anton
Walter Duke
Bobbie Grace
City Manager: Robert Baldwin
City Attorney: Thomas Ansbro
City Clerk: Louise Stilson
2. Attorney/Client Session
Mayor McElyea announced:
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"We are about to have an attomey/client session in accordance with Florida Statute 286.011(8)
regarding the litigation styled as follows:
IN THE CIRCUIT COURT OF THE 17`h JUDICIAL CIRCUIT IN AND FOR
BROWARD COUNTY, FLORIDA
CASE NO.: 09-051261 (04)
SVEN H. JUTZ,
Plaintiff,
V.
CITY OF DANIA BEACH, FLORIDA,
a municipal corporation under the laws of
the State of Florida,
Defendant,
CITY OF DANIA BEACH, FLORIDA,
a municipal corporation under the laws of
the State of Florida,
Counter-Plaintiff,
V.
SVEN H. JUTZ, a/k/a BEN R. GLUCK;
Counter-Defendants, and
ALLEGRIA ENTERTAINMENT,
INC., d/b/a BEACH WATCH RESTAURANT,
Third-Party Defendant.
The session is estimated to last One (1) hour and the following people will be in attendance at this
meeting:
(a) City Commission members: Mayor C. K. McElyea; Vice-Mayor Anne Castro;
Commissioner Bob Anton; Commissioner Walter Duke; and Commissioner Bobbie
Grace.
(b) City Attorney Tom Ansbro and Special Counsels, Jamie Cole and Dan Abbott.
(c) City Manager, Robert Baldwin.
These proceedings will be recorded by a certified court reporter and, at the conclusion of all
litigation,the transcript will be made part of the public record.
We will now temporarily adjourn this meeting and proceed to have an Attorney/Client session in the
City Manager's conference room on the second floor. At the conclusion of that meeting, we will
return to re-open the public meeting."
Mayor McElyea temporarily adjourned the meeting at 6:05 p.m.
Mayor McElyea re-opened the meeting at 7:01 p.m. He announced the attorney/client session
was terminated and members of the general public were now invited to return for any further
proceedings or matters.
3. Adjournment
Mayor McElyea adjourned the meeting at 7:01 p.m.
ATTEST: )'� CITY OF DANIA BEACH
RISE STILSON, CM Po ARD_S FIRST. d . MCELYE ?
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CITY CLERK = ` MAYOR—COMMISSIONER
Approved: July 27,2010 - 1
_ 7
Minutes of Attorney/Client Session .y `
Dania Beach City Commission RATED �vo°
Tuesday,June 22,2010—6:00 p.m.
DANIA BEACH CITY COMMISSION
ATTORNEY/CLIENT SESSION
SHADE SESSION
Date Taken : June 22 , 2010
Time : 6 : 04 p . m .
Place : Dania Beach, Florida
ORIGINAL
r
1 IN RE : Sven H . Jutz v . City of Dania Beach
Broward County Case No . : 09-051261 ( 04 )
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1 APPEARANCES :
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Mayor : CK "Mac" McElyea
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Vice-Mayor : Anne Castro
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Commissioners : Bob Anton
5 Walter Duke
Bobbie H . Grace
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City Manager : Robert Baldwin
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City Attorney: Thomas Ansbro
8
City Clerk: Louise Stilson
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Special Counsel : WEISS, SEROTA, HELFMAN, PASTORIZA,
10 COLE & BONISKE, P .A.
By : JAMIE COLE, ESQ . , and
11 DAN ABBOTT, ESQ .
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1 Thereupon, the following proceedings were had within the
public forum:
2
3 MAYOR McELYEA: Attorney-client session,
4 Mayor, I am calling this public meeting to
5 order .
6 Call the roll, please .
7 CITY CLERK STILSON : Mayor?
8 MAYOR McELYEA: Present .
9 CITY CLERK STILSON : Commissioner Anton?
10 COMMISSIONER ANTON: Here .
11 CITY CLERK STILSON : Commissioner Duke?
12 COMMISSIONER DUKE : Here .
13 CITY CLERK STILSON : Commissioner Grace?
14 COMMISSIONER GRACE : Here .
15 CITY CLERK STILSON : City Manager
16 Baldwin?
17 CITY MANAGER BALDWIN : Here .
18 CITY CLERK STILSON : City Attorney
19 Ansbro?
20 CITY ATTORNEY ANSBRO : Here .
21 MAYOR McELYEA: The time is now
22 approximately 6 : 04 . We are about to have an
23 attorney-client session in accordance with
24 Florida Statute 286 . 011 ( 8 ) regarding the
25 litigation styled as follows : Circuit Court of
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1 Broward, the 17th Judicial Circuit , in and for
2 Broward County, Florida .
3 Mr . City Attorney, it ' s your turn .
4 CITY ATTORNEY ANSBRO : Case number is
5 09-051261 ( 04 ) , Sven H . Jutz , Plaintiff, versus
6 City of Dania Beach, a municipal corporation
7 under the laws of the State of Florida,
8 Defendant ; and it ' s a countersuit : City of
9 Dania Beach Florida, a municipal corporation
10 under the laws of the State of Florida,
11 Counter-Plaintiff, versus Sven Jutz , also
12 known as Ben Gluck, Counter-Defendants , and
13 Allegria Entertainment , Inc . , also doing
14 business as Beach Watch Restaurant as
15 Third-Party Defendant .
16 The session is estimated to last one
17 hour . The following people will be in
18 attendance at this meeting : City Commission
19 Members , Mayor McElyea; we anticipate
20 Vice-Mayor Ann Castro to arrive shortly;
21 Commissioner Anton; Commissioner Walter Duke ;
22 Commissioner Bobbie Grace ; and myself, City
23 Attorney Tom Ansbro ; the special counsel is
24 Jamie Cole and Dan Abbott ; City Manager Bob
25 Baldwin .
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1 These proceedings will be recorded by a
2 certified court reporter, and at the
3 conclusion of all litigation, the transcript
4 will be a part of the public record.
5 We will now temporarily adjourn this
6 meeting and proceed to have an Attorney/Client
7 session in the City Manager ' s conference room
8 on the second floor . At the conclusion of
9 that meeting, we will return to re-open this
10 public meeting .
11 MAYOR McELYEA: Adjourned.
12 (The following proceedings were held outside
13 of the public forum, and the City Clerk was not in
14 attendance . )
15 CITY ATTORNEY ANSBRO : This is the
16 attorney-client session in the Sven Jutz case,
17 also known as Allegria Entertainment v. the
18 City; and Bobbie has not been here, Ms . Grace,
19 to live through the torture of this thing, but
20 it ' s been very difficult to deal with these
21 tenants since day one .
22 The reason we are in court -- I have
23 given you litigation notices before to give
24 you an idea -- you may recall about a year
25 ago, we found out that somebody else was
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1 operating the restaurant , completely different
2 people than Mr . Jutz and his wife . We did not
3 know what that was about , but we asked the
4 people to come in .
5 About a month after somebody had -- we
6 thought other people were running this thing,
7 we brought them in to discuss several
8 operational things . At the end of a meeting
9 in late August of last year -- attended by the
10 manager, myself and Colin Donnelly -- we
11 asked, did you sublease this property .
12 They looked us in the eye and said, no .
13 Well , it looks like there is somebody
14 else is down there .
15 They said, there is not .
16 We didn ' t know what that meant, but all
17 of a sudden we saw, three or four days later,
18 what we thought . About a week later, Colin
19 has somebody come downstairs in the atrium and
20 says , the restaurant people are here and they
21 want to talk to us .
22 I went, okay, bring them up .
23 Three people come up here that I have
24 never seen before, and they say, we are the
25 new operators and owners .
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1 Do tell .
2 We met about two hours . I had BSO take a
3 police report , and that ' s where it unraveled a
4 that they had essentially -- if they had not
5 subleased it, they had transferred complete
6 management and operation of the restaurant
7 over to a guy with no restaurant experience .
8 The only experience he has got is he has eaten
9 in restaurants . He is an engineer, but he was
10 a patron there .
11 They had met and somehow struck up a
12 conversation in spring of 109 and ended up
13 striking an arrangement whereby he -- the
14 man ' s name is Francis Cesar -- would pay them
15 $50 , 000 . He would take over the management
16 and operation of the premises and then pay
17 them, monthly -- they owe us 8 , 000 a month,
18 they pay us . They were going to pay him 9 , 000
19 and not tell us about it .
20 When I saw that , I moved to talked to the
21 Weiss Serota people and put together a
22 complaint to evict them. That ' s usually done
23 in county court with just a judge .
24 Right before going to go into court and
25 seek the order, three days before , they
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1 countersued us for everything they could
2 possibly think of : You didn ' t build us a
3 two-story restaurant like you promised you
4 would . The AC doesn ' t work . The bathrooms
5 are not taken care of . It floods out there .
6 You never helped us with the parking, 15
7 counts of different things to countersue .
8 They have gone through three lawyers .
9 They are on their third lawyer . We are coming
10 up close to a jury trial to July, and at this
11 point I will let Jamie and Dan take over as to
12 where we should go and what we should do .
13 MR. COLE : Thank you, Tom.
14 This is the -- I have people on both
15 sides .
16 This is a very interesting case when it
17 comes to -- from a litigation standpoint .
18 It ' s interesting because it ' s in front of a
19 jury and you have got two totally different
20 views of the world when you look at the case .
21 I mean, on their side , they are claiming
22 that the City did a whole slew of different
23 things , most of which, I have got to tell you,
24 I -- I don ' t want to say that they are
25 frivolous , but they are close to it , things
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1 like that we built a one-story building
2 instead of a two-story building .
3 Yes , it is true there were some talks
4 about having a two-story building, but the
5 building was built , and they took possession,
6 and they clearly knew it was one story . It ' s
7 not like it was a hidden defect that it was
8 only one story instead of two stories ; a lot
9 of the claims , things like they say we should
10 be keeping the bathrooms -- the public
11 bathrooms open at different times ; all these
12 things , none of which are in the lease .
13 So a lot of their claims , we think, have
14 very little merit . They even have a
15 defamation claim. They are claiming that one
16 of you said some bad things in the press about
17 them and things that are -- that we think, at
18 the end of the day, don ' t have much merit ; but
19 a jury is going to hear all of these things .
20 Then, on our side , what we are saying
21 they did wrong is -- you know, we are going to
22 pretty much paint them in a very negative
23 light -- they went and they did a sublease ,
24 even though the lease says they can ' t do a
25 sublease .
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1 Now, they were very tricky about it
2 because what they said was they have an
3 agreement and the agreement -- it ' s all
4 spelled out, and it ' s spelled out and it says
5 that they are going to do a sublease; but
6 until the City consents to the sublease , they
7 are going to do a, quote, management
8 agreement, but the terms of the management
9 agreement are exactly the same as the terms of
10 a sublease , the financial terms .
11 It was really kind of a trick way for
12 them to try to get around the provision about
13 a sublease , and there is also a
14 confidentiality provision, so they are not
15 supposed to tell the City about it .
16 We -- our -- what our goal is in the
17 trial , assuming we have a trial , will be to
18 convince the jury that these are really bad
19 people and that the things that they have done
20 were sneaky and -- you know, although we are
21 not suing them for fraud, basically it was bad
22 faith and close to fraudulent behavior .
23 You know, how a jury is going to react to
24 this is a very interesting question . We have
25 not done a formal mock jury, which is
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1 something we sometimes do where we hire people
2 and we present the themes to them to see how
3 they react ; but we have done some informal ,
4 what I would call , focus-group type of
5 exercises where we talk to people, lay people ,
6 non-lawyers , and just give them the facts . I
7 have got to tell you, it comes out both ways .
8 I mean, the problem we have is it was
9 only six weeks of time when they were not in
10 possession . There were six weeks when these
11 other people were in possession, and once we
12 gave them the notice -- and there is a cure
13 period in the lease, so we gave them a notice
14 and told them that they were not allowed to do
15 this . They are in breach, and they have a
16 certain amount of days to cure it, they did .
17 They kicked the people out .
18 Our argument is that it ' s either
19 non-curable, because you still had the
20 six-week period, or there is some doctrine in
21 the law -- although Florida courts haven ' t --
22 it ' s more of out of state , but we would argue
23 it anyway that there is a fraud exception to
24 cure periods . If someone acted in bad faith
25 or fraudulently, that they shouldn ' t be
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1 entitled to the cure period . We will argue
2 that .
3 This judge, apparently, is just letting
4 everything go to the jury, so , you know, some
5 people react differently to that .
6 COMMISSIONER DUKE : Who is this judge?
7 MR . COLE : It ' s Judge Eileen O ' Connor,
8 who, you know, we know . We have been in front
9 of her before , actually sat with her in League
10 of Cities dinner recently, and she is up for
11 reelection right now .
12 CITY ATTORNEY ANSBRO : Her background is
13 in family mediation, I think, in federal
14 court . She has virtually no civil experience ,
15 especially landlord/tenant .
16 MR . COLE : Right . She is new to civil
17 and certainly new to landlord/tenant, but she
18 is not really -- she denied all the motions
19 for summary judgment on both sides . It ' s
20 pretty clear that she is going to let this go
21 to trial . My guess is she is going to let
22 almost everything go to the jury, and let the
23 jury hear it all and decide what the jury
24 thinks is fair .
25 VICE-MAYOR CASTRO : Jamie, how much of
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1 the previous relationship is admissible? For
2 instance, we have tons of records , you know,
3 commission meetings ; letters , I ' m sure , from
4 the finance department back and forth, where,
5 for instance, we finally decided to conduct an
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6 audit . We brought an external auditor, and
7 everything, just getting records from them,
8 was pulling teeth . You can demonstrate that
9 they were not cooperative at any stage in the
10 game .
11 I have employees -- and I think I have
12 even emailed about them. If you want me to
13 try to get my emails out, I ' ll be happy to
14 find them. I don ' t -- I have to, you know,
15 delete because your email box, after 3 , 000 ,
16 takes forever to load, but I am sure the
17 server can get it .
18 There is stuff where they -- you know,
19 employees were telling me they were washing
20 dishes in the bathrooms and, you know, stuff
21 like that . There have been other things where
22 I know public works had to go out and fix
23 things that they had jerry-rigged or rigged .
24 We have all the records .
25 We were constantly having to deal with
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1 them and correct them. It just -- it ' s a
2 constant pattern they have . So, when they
3 finally do this thing with the sublease , I
4 mean, to be honest with you, I don ' t think it
5 surprised any of us , because they were
6 constantly going outside of the boundary of
7 the agreement and pushing the envelope doing
8 stuff . You know, sometimes they come at the
9 last minute and save it, even the payments .
10 It was just very, very strange, but how much
11 of that is admissible .
12 MR. COLE : I think the answer to the
13 question -- there is two answers . The first
14 answer, a lot of that should not be
15 admissible . The second answer is , I think
16 almost everything will be admitted . I think
17 this judge is going to let most of it in .
18 The way that the cases come up, we have
19 kind of left a lot of their claims -- some the
20 claims , I will tell you, probably shouldn ' t
21 even get to a jury, they are so ridiculous ;
22 but by leaving them in, we can get evidence
23 related to those , which kind of gets some of
24 the things you are talking about in . So , in
25 some ways , having them make the claims against
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1 us actually helps us as a litigation strategy .
2 COMMISSIONER DUKE : Do you guys remember
3 the Facebook parties that they were having,
4 the two parties?
5 CITY ATTORNEY ANSBRO : There is
6 actually -- there is a count in there called
7 parties . You may recall that what I did at
8 the end, we tried to say maybe there is a way
9 to get this to something that the commission
10 could approve .
11 As we got closer to the parties
12 themselves , we saw there was no way we could
13 possibly control this . It is out on the
14 internet, and thousands of people could
15 descend on these two different parties ,
16 July 3rd and July 4th last year; and I pulled
17 the plug on it . I said, if you do it, you are
18 in breach and I will have the cops down there
19 and there will be no way for people to get in
20 here . We will have cops far down on the beach
21 so they won ' t walk the beach to get there .
22 These parties will not happen .
23 They sued that we interrupted their quiet
24 enjoyment and they do parties all the time and
25 they sustained damages for those parties .
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1 COMMISSIONER DUKE : That ' s when the
2 promoters came into the city hall that night .
3 There were two who were promoting this , and
4 the two guys came up . It was a couple
5 provocative -- very provocative things .
6 VICE-MAYOR CASTRO : They were talking
7 South Beach style, which means hundreds of
8 thousands of people . They were Facebooking
9 it, Twittering it . It was going to be a flash
10 party . It was going to be a flash . Everybody
11 shows up, flash crowd, and everybody has a
12 party .
13 That was the whole problem because you
14 can ' t predict that . All we envisioned is what
15 would happen if two- or three-thousand people
16 show up . It ' s going to be a huge public
17 safety issue . Even though it ' s in the middle
18 of the night, I mean, our beach isn ' t set up
19 to all of a sudden have 3 , 000 people show up
20 to it . It just isn ' t .
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21 This is the kind of stuff they did on a
22 regular basis that made everything very
23 difficult .
24 MR . COLE : Information like that normally
25 should not get into this trial , but they sued
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1 us based on the party . We left that claim in
2 there so that will get it there .
3 They sued this ridiculous claim for
4 defamation, but truth is the defense to a
5 defamation claim; so by suing us for
6 defamation, pretty much the door is open to
7 anything that relates to any of those --
8 COMMISSIONER DUKE : I saw those claims .
9 Tom sent those to me . I would love to get
10 into court and sit on the stand and tell my
11 story . I would love that opportunity .
12 These guys have been bad operators all
13 the way down the line . We inherited them.
14 They are terrible . They have dealt this bad
15 faith, and I would love to tell that story .
16 COMMISSIONER GRACE : They were never
17 really open . I wasn ' t on the commission, but
18 from the first time that they had the opening
19 ceremony, which really didn ' t go that great
20 because the service was horrible, no matter
21 when I took someone down there to take them
22 for lunch, the restaurant was never in
23 operation . Nobody was there . The doors were
24 always locked .
25 So, when they signed this agreement with
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1 the people that they did, then were they not
2 in default at that point that we could have
3 just yanked everything from them?
4 VICE-MAYOR CASTRO : That ' s kind of what
5 we are trying to do . We are trying to evict
6 them, but their allegation is they didn ' t
7 sublet it to them. They let them manage it
8 for it, which is different . That ' s almost
9 like they are hiring them like an employee,
10 which is their counter, their response to our
11 complaint for why we shouldn ' t be able to
12 evict them.
13 CITY ATTORNEY ANSBRO : You know, in the
14 lease -- as the other lawyer who is helping us
15 from Weiss Serota has pointed out , which is
16 true -- in the entire lease, there is only one
17 time we refer to something that if you do
18 something, this is material to the lease, that
19 you, the operator and your wife -- it ' s really
20 him -- it ' s material that you manage and
21 operate this business . That ' s the word that
22 was used in there . It is never used anyplace
23 else . So, I have hung a large hat on that ,
24 that when you did that, it ' s a betrayal , and
25 it ' s so deep, to me, it ' s like a marriage
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1 that ' s irretrievably broken where you cheated
2 on me and you lied and it ' s over, baby, it ' s
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3 over .
4 Jamie ' s point -- and he needs to get this
5 in -- is that I hear that ; now let ' s look at
6 the other side . I ' ll let him speak .
7 He says , you are going to find someone
8 who is claiming they spent $850 , 000 to do all
9 these things . They have worked it out . They
10 have their so-called -- they are going to say
11 that they have established a reputation and --
12 MAYOR McELYEA: They have got a
13 reputation .
14 CITY ATTORNEY ANSBRO : Well , they are not
15 going to want to talk about the ones that you
16 are talking about .
17 VICE-MAYOR CASTRO : But, Tom, to your
18 point , really quick, to interrupt you, the
19 reason that language was possibly in that
20 agreement -- this was pretty much right before
21 my time as far as who they were ; I think I
22 voted on the actual end agreement because we
23 didn ' t have a lot of choices at that point --
24 but the whole thing was the reputation .
25 They were supposed to be "the draw, " and
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1 from the get-go, as a newly elected official ,
2 I was getting complaints right and left that
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3 they were rude . They were having people towed
4 in the parking lot ; and I am thinking, this is
5 the reputation we just banked on in this lease
6 agreement . This is what we, you know, were
7 told . They were the best , and they had this
8 great reputation in Fort Lauderdale . That ' s
9 why they were the item, and they were failing
10 on all counts . Even the food wasn ' t that
11 great, for God ' s sake .
12 COMMISSIONER GRACE : It was horrible .
13 VICE-MAYOR CASTRO : I mean, forget all
14 that . Buyer beware , we booked them, but they
15 broke the agreement .
16 COMMISSIONER ANTON : They came from a
17 restaurant called La Tavernetta up in Oakland
18 Park, which had an excellent reputation . You
19 know, the -- on paper they looked very good;
20 but from day one, you know, they are
21 absolutely right , not only have we had the
22 issues with the complaints , the parking
23 issues , the violations , the parties ; but we
24 have also had numerous code violations there
25 where they have put things in, they did not
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1 follow the city code, did not call for proper
2 inspections .
3 You know, this is -- you know, after all ,
4 it is a city building and a city pier, you
5 know . They are just leasing it, you know,
6 through an agreement . They violated a number
7 of those issues , as well , which I think are
8 pertinent and -- you know, obviously I am not
9 a lawyer, but I think they are very pertinent
10 to this case .
11 MR. COLE : I think what ' s interesting is
12 because of the posture, I think all this is
13 going to come out ; and I think you understand
14 your side very well , so I just want to go over
15 the other side . As lawyers , we like to be
16 prepared and see what the other side is going
17 to argue .
18 They are going to say that -- their main
19 argument is going to be that they invested a
20 lot of money, and yes , they, you know, did
21 this agreement . It was six weeks . The City
22 wasn ' t hurt during the six weeks . They are
23 back . They have been paying rent . They have
24 paid every single dollar of their rent . They
25 have never missed a rent payment .
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1 Yes , for six weeks somebody else operated
2 it . Maybe they made a mistake and they
3 shouldn ' t have done it, but they cured it .
4 The City sent them the notice . Within 48
5 hours , they kicked them out ; so why should
6 they forfeit their business , their 800 , 000
7 that they invested just because for six weeks
8 someone else was operating it .
9 We could try to argue that , well , those
10 six weeks , you hurt the reputation of the
11 restaurant ; these people weren ' t as good
12 operators , but hearing what you are saying, it
13 sounds like these people may have been better
14 operators , so I 'm not --
15 COMMISSIONER ANTON : I ' m sure they were .
16 MR. COLE : Right .
17 So, you know, when you ask the question,
18 how is the City harmed by six weeks of someone
19 else operating this restaurant in the middle
20 of -- I think it was in the summer, probably
21 not that many people there anyway, you know, a
22 jury could think of themselves as more
23 tenants . Our jury --
24 COMMISSIONER DUKE : Does this come down
25 to just those six weeks? Is that the only
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1 issue here?
2 MR . COLE : Well , the only --
3 COMMISSIONER DUKE : We have a pattern
4 from the second they have taken occupancy,
5 just bad faith .
6 CITY ATTORNEY ANSBRO : But the default is
7 that you did that and it was an irreversible,
8 uncurable , irretrievable breach of the lease .
9 That ' s how I treated it, and that ' s when I
10 sent; and we sent a subsequent letter saying,
11 you can ' t possibly cure what you did . You
12 broke it . It ' s like you cheated on the
13 marriage ; I 'm done with you . You have got to
14 go .
15 VICE-MAYOR CASTRO : Yeah, it ' s like you
16 had the affair . You had sex . You can ' t take
17 it back .
18 CITY ATTORNEY ANSBRO : Exactly .
19 VICE-MAYOR CASTRO : You can ' t close the
20 barn door after the horse is gone . It ' s done .
21 CITY ATTORNEY ANSBRO : Exactly .
22 Now, as they are pointing out , all the
23 other fifteen allegations that they raise will
24 be the vehicle so we can get all the other
25 stuff in we want to .
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1 I talked to Dan, who would be the
2 litigator, if there is a way to paint, stroke
z
3 by stroke , how bad and nasty these people have
4 been to the City and to the public, whether
5 that is going to work or not , I don ' t know .
6 Let ' s look at the real world of these
7 people . They sought -- as you remember, since
8 you were the mayor, you found somewhere on a
9 listing that they were trying to sell the
10 restaurant for $199 , 000 . Subsequent to that
11 time, when the wife denied it, he wrote to you
12 saying in all my 30 years of marriage, that ' s
13 the only thing I never told her, that I put
14 the restaurant up for sale, I didn ' t tell her .
15 Okay . We ' ll believe that, too .
16 Whatever happened is that whether she
17 knew it or not doesn ' t matter, they had listed
18 it and they tried and finally got somebody . I
19 don ' t care if they had any experience . We can
20 paint that case . They put people at risk of
21 cooking food when we don ' t even know if they
22 know how to cook food . You can make it and
23 paint the strokes there .
24 The risk is going to be , let ' s look at
25 the real world, as Jamie is trying to point
,e
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1 out to me, they wanted to sell the restaurant .
2 They still don ' t want the restaurant . What
3 they do want , and somehow they make good money
4 at it , is the bait shop .
5 VICE-MAYOR CASTRO : No . They want to
6 operate the pier . That ' s the one thing we
7 can ' t account for and absolutely not .
8 These are people who write me an email
9 saying the only people who should be allowed
10 on that pier are European tourist visitors .
11 They didn ' t like the blue-collar trash,
12 basically, that came from the City of Dania
13 Beach; and I had to write him a nasty note
14 back, which is one of the few times in my time
15 as an elected official I got nasty with
16 someone and said, you know what , those
17 people ' s taxes are what build and maintain
18 that pier, you need to kind of rein it in .
19 So, absolutely not, I would rather go for
20 broke , and let the clips fall where they may .
21 I think worst-case scenario, the judge can
22 enforce the agreement , probably fine us for
23 some damages ; I don ' t know what damage they
24 would fine us on . I think most of their
25 counterclaims will fail , so I don ' t even know
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1 what we would owe them. I don ' t think we
2 would owe them anything, except maybe legal
3 fees , but since they are washing through
4 lawyers , their legal bills can ' t be going up
5 that high, I ' m sure, but you know lawyers .
6 CITY ATTORNEY ANSBRO : There are seven
7 lawyers since I have dealt with them.
8 VICE-MAYOR CASTRO : Seven lawyers , great .
9 I don ' t know . They are not getting
10 operation of the pier . That has been the
11 angle the whole time, was that pier operation .
12 That ' s the moneymaker .
13 CITY ATTORNEY ANSBRO : And that ' s what
14 Jamie wanted to broach .
15 I have mediation next Monday . I am going
16 to be there, and I have to mediate in good
17 faith . I don ' t have to deal with them. I can
18 just go quickly to say, like you do in
19 collective bargaining, this isn ' t work, we are
20 going to what ' s called impasse and it ' s over
21 with, but you have to be polite about it .
22 We are here to really see what your
23 resolve is because the risk is -- I think
24 Jamie has evaluated it . He thinks there is a
25 thirty percent chance of winning it . That ' s
I I 1J
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1 the numbers he has worked out .
2 MR . COLE : I would say somewhere in the
3 thirty to thirty-five percent chance that we
4 will win .
5 CITY ATTORNEY ANSBRO : Evict them.
6 MR . COLE : By win means we will kick them
7 out and not have to pay them any damages .
8 There is , I think, only maybe a ten or fifteen
9 percent chance that we are going to lose, as
10 in they get to stay and we have to pay them
11 damages ; and the difference , which is fifty,
12 fifty-five percent, is that the jury will just
13 say, you know, let them stay but no one is
14 getting any damages , in which case , also, that
15 just ends it .
16 CITY ATTORNEY ANSBRO : That ' s the
17 problem. It is a jury case now . At one point
18 it was a judge case until they came in there
19 and did this --
20 COMMISSIONER ANTON : All these games with
21 the audits , the fact that we can ' t get a true
22 accounting for any of the funding that goes
23 through, this is all meaningless in court?
24 MR . COLE : I don ' t think it ' s
25 meaningless . I think --
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1 COMMISSIONER ANTON : Because if that ' s
2 the case, what the hell do we have a lease for
3 because , you know, they violated everything in
4 the goddamn thing -- if you will pardon my
5 French -- but, you know, that is ridiculous
6 when we have a thirty-five percent chance of
7 winning something when these people have
8 from -- not -- you know .
9 From day one , they violated . They
10 refused to obey the code . They have put
11 things in there that did not meet code . They
12 failed health inspections in there . They
13 installed equipment in there that was
14 installed improperly . There were fire issues .
15 We have all these records . The City
16 Manager ' s office has all these records , or one
17 of your staff does . All of those records are
18 there .
19 We hired an auditor to go in and look at
20 their books . They still have not provided an
21 accurate set of books to provide us with --
22 with an accurate audit . That ' s part of the
23 lease agreement . That ' s a violation . I mean,
24 Jesus , what do we have to do?
25 COMMISSIONER GRACE : What ' s the longevity
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1 of that lease?
2 MR . COLE : It ' s ten years with two
3 five-year options .
4 The only problem, and I will tell you --
5 to answer that is , in your lease , you have --
6 the major provision of the lease is you have
7 to pay rent . Other than paying rent, you have
8 got a whole bunch of what are called technical
9 provisions , other provisions that you have to
10 do .
11 If you don ' t pay rent, it ' s easy to get
12 someone out . If someone is paying their rent
13 every single month and they are not abiding by
14 all these what are called technical
15 provisions , the only way to get them out is
16 you have to give them a notice, and they have
17 a 30-day cure period . It ' s right in the
18 lease, and the statute has a 15-day period,
19 even if --
20 COMMISSIONER ANTON : But they are not
21 paying the true rent . It ' s $ 8 , 000 a month or
22 a percentage , what is it eight percent , Tom,
23 or nine?
24 MAYOR McELYEA: Eight .
25 VICE-MAYOR CASTRO : Whichever is
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1 greatest .
2 COMMISSIONER ANTON : And we tried to
3 audit to find out if they are doing this , and
4 they have blocked us at every turn .
5 CITY ATTORNEY ANSBRO : Let me remind you,
6 just on that issue, because I know it is a hot
7 button, we did send in the city auditor who
8 went and spent three days with these
9 characters . He found -- and he wrote a four-
10 or five-page letter back to us saying, based
11 on the records they have got, I can tell you
12 based on my experience as a CPA, that they
13 could not have hit the 1 . 2 million you needed
14 to get the eight percent . Even if they were
15 taking cash at the points of sale, the system
16 they use for the computer, they would not have
17 hit it .
18 So, that ' s why we never really pursued :
19 You are making your 1 . 2 and you are skimming
20 it . That ' s --
21 COMMISSIONER DUKE : I thought it was more
22 like, I can ' t really tell here . If you guys
23 want to spend a lot more money on a more
24 intensive audit , I might be able to tell .
25 COMMISSIONER ANTON : That ' s the way I
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1 read it , too .
2 VICE-MAYOR CASTRO : I also understand
3 there is a lot of skimming at the bait shop
4 side , which was very difficult to audit
5 because there were no receipts . There was
6 nothing to go on, not a darn thing to go on .
7 Your answer to the question of what the
8 City lost , you know, because their reputation
9 was the thing that was supposed to be the
10 draw, we lost that , and they never had any
11 consideration for that . Plus , we lost our
12 reputation over the few years they were there,
13 not because of their cooking or food or
14 whatever but just their customer service .
15 So, when you can ' t -- you know, when you
16 start having them do things like not letting
17 employees go to the bathroom; washing dishes
18 in the sinks in the bathroom, not in the
19 kitchen; failing a health inspection, which
20 they also did, that is on the City ' s
21 reputation .
22 That ' s our reputation . That ' s what we
23 are losing, and that ' s what we can ' t afford to
24 lose . We are a public entity, supported by
25 the taxpayers and we shouldn ' t be giving that
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1 up .
2 To Bob ' s point, again, there is no way to
3 tell the money they are making or not making
4 and validate their numbers because they don ' t
5 have any records , and they do it on purpose .
6 MAYOR McELYEA: Why wouldn ' t you?
7 MR . COLE : And we are going to make all
8 those arguments . The only -- I like to give
9 you both sides . Just because I am giving you
10 that side , doesn ' t mean I feel that -- you
11 know, I really -- you know, I am not saying
12 you shouldn ' t go forward with the case .
13 I think you have a better chance of
14 winning than they do of getting damages ;
15 although I think there is a good chance a jury
16 is just going to say, let them stay and then
17 you just start basically -- you know, if they
18 keep not doing things , you can go and default
19 them on other things .
20 At that point you can ask for an audit of
21 the records . If you are going to have an
22 ongoing relationship, you are going to have to
23 deal with all these issues in the future .
24 So, the options at this point , one option
25 is we can just go to the mediation on Monday
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1 and not settle it, not offer them anything and
2 just, you know, tell them we are ready to go
3 to trial . Another option is to try to settle
E'.
4 this . So, we do need to get some guidance
5 from you as to whether or not you would have
6 any interest . Now --
7 COMMISSIONER ANTON : What ' s your
8 recommendation?
9 MR . COLE : Well --
10 COMMISSIONER ANTON : I mean, you are the
11 ones we hired to do this .
12 MR . COLE : It depends on how much you
13 dislike them. I mean, if you really --
14 MAYOR McELYEA: A hundred percent .
15 MR . COLE : If you really don ' t like them
16 and want to give it a shot to get rid of them,
17 we ' ll give it our best and we ' ll get rid of
18 them. If you don ' t like them but could live
19 with them, then you could let them stay for
20 some period of time --
21 COMMISSIONER ANTON : You have heard all
22 the comments .
23 MR . COLE : It sounds like you don ' t like
24 them too much .
25 COMMISSIONER ANTON : It ' s not a matter of
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1 like or dislike . It ' s a matter of reputation .
2 We are trying to the improve our marina down
3 there . We are trying to improve our beach
4 area down there .
5 These people were brought in based on a
6 reputation that they had the La Tavernetta, or
7 however you pronounce it, up in Oakland Park,
8 which I know was -- you know, was a very
9 strong reputation . They were written up in
10 many books . They were a little richer than we
11 actually -- that some of us thought should
12 have been in there, as far as the expense of
13 it, because I don ' t think, you know, the
14 demographics are right for that . That ' s what
15 killed Martha ' s .
16 That aside, they were brought in . These
17 people had an excellent reputation, and they
18 haven ' t lived up to any of it . I mean, and
19 it ' s not a matter of, you know, well , things
20 didn ' t go the way they expected .
21 This started day one . They started by
22 putting in illegal piping in there . They
23 started putting in all kinds of different --
24 you know, different issues inside , different
25 cooking materials and other -- you know, other
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1 equipment inside there without the proper
2 inspections . Fire people weren ' t allowed to
3 get in there to inspect when they were doing
4 this until they went in and did -- you know,
5 forced their inspections . Then they found all
6 these violations .
7 There is a track record from day one, and
8 the worst-case scenario is we have no way of
9 knowing, even if the auditor stands up and
10 says , I don ' t think they made -- how the hell
11 can you tell? They don ' t have the books .
12 COMMISSIONER DUKE : They have
13 demonstrated a consistent pattern of bad faith
14 from the very beginning .
15 If the jury sees the wife on the stand,
16 they are going to be sympathetic, in my
17 opinion . If they see the husband, they won ' t
18 as sympathetic . So do you think they are not
19 going to put them up there --
20 MR . COLE : Then we will .
21 COMMISSIONER DUKE : You will , okay .
22 He is kind of -- you know, to the average
23 person, he is a very unique individual , and
24 you couple that with a consistent pattern of
25 bad faith and health violations and code
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1 violations and then on and on and on and on,
2 to me it tells a story and it tells a pattern;
3 and you know, to me, I think there is some
4 leverage there .
5 MR . COLE : If I was on their side, I
6 would drop most of the -- most of their claims
7 and just defend the case , because then we
8 would be extremely limited in what we could
9 do; but as long as they keep all these claims
10 in there, which they have no -- it sounds like
11 they are going to, you know, I think we will
12 be able to get pretty much that entire story
13 in . Then the jury is going to have to hear
14 all this and decide what to do .
15 COMMISSIONER ANTON : What ' s this
16 defamation they are talking about? Because
17 that idiot sent me an email once and accused
18 one of my sons of going in there and demanding
19 a free meal .
20 COMMISSIONER DUKE : That ' s mainly me ,
21 Bob . That ' s mainly me . That ' s just me saying
22 we need to get this tenant out of there and
23 the bad faith . It ' s me saying what we have
24 been saying all along .
25 COMMISSIONER ANTON : You know, neither
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1 one of my sons have ever been in there .
2 Nobody in my -- I am the only person that ' s
3 ever eaten there and that was for --
4 VICE-MAYOR CASTRO : Bob, I 'm thinking you
5 should countersue for defamation and slander .
6 COMMISSIONER ANTON : I have the emails
7 where they actually made those accusations ,
8 which I thought, you know, were a little
9 outlandish, and, of course, I was upset by it .
10 VICE-MAYOR CASTRO : They told the public
11 about it, and it took everybody like , you
12 know, calling Bob and saying, what ' s going on,
13 your kids were talking to Bill over there the
14 other night .
15 His kids weren ' t even in town . He is
16 like, no .
17 COMMISSIONER DUKE : Although, I do
18 remember you telling them there is one
19 commissioner in particular, which was me -- I
20 wasn ' t happy about that ; I felt like you threw
21 me under the bus on that . That ' s what they
22 are talking about, Bob . They are talking
23 about comments that I made at a public
24 hearing .
25 CITY ATTORNEY ANSBRO : Well , they have
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1 quotes . They took quotes out of the
g
2 commission meetings when you would speak,
3 Walt , under your comments --
4 MR . COLE : This is what they said . They
5 said that at a commission meeting on May 26th,
6 2009 , various city commissioners made
7 derogatory statements , including the
8 following : As soon as we put those people out
9 of there, we are going to get smart; those
10 people need to go; I think we need to do
11 something; please be very vigilant in watching
12 that tenant as to whether they get into
13 default at all ; we are economically challenged
14 with that tenant ; that is a tremendous asset
15 that the City is absolutely wasting right now .
16 Then they say in the Commissioners
17 Corner, Spring 110 edition, Cahoots Quarterly,
18 they say -- Commissioner Duke , they say that
19 you addressed messes that the City of Dania
20 Beach has gotten itself into . One of these
21 messes is claimed to be bad pier restaurant
22 operator lease . Now, Commissioner Duke goes
23 on to say the City is seeking to have the
24 current tenant evicted and that the tenant was
25 a terrible selection by the prior commission .
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1 To avoid repeating the same mistake , we need
2 to put politics aside this time and pursue the
3 best possible operator for our pier and beach
4 restaurant that will provide a service to
5 residents and visitors and will produce the
6 financial return that our taxpayers deserve .
7 What ' s so nice about that is that opens
8 the door to us explaining what -- you know,
9 the truth of all those , because the truth is
10 the different --
11 CITY ATTORNEY ANSBRO : The good news to
12 those of us who are lawyers , who have been
13 trained for it, that is not defamation . So we
14 sent what ' s called a 57 . 105 letter that says
15 you have absolutely pled something that under
16 law cannot be supported . Take it back .
17 Remove it, or we will sue you for fees , you,
18 lawyer, personally, and your little dogs , too,
19 so we will probably prevail on that .
20 MR . COLE : Or they may withdraw .
21 CITY ATTORNEY ANSBRO : Again, I get the
22 sense -- because I have sort of lived with it,
23 as you have , that we should fight these
24 people .
25 They know that -- this is like being in a
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1 bad marriage , and they just know to try to
2 come to you, as a collective body, to get
3 consent for a sublease is a slim-or-none deal .
4 They are trying to get out, and they are
5 trying to sell it .
6 My feeling is -- I have met with people
7 who have come to me from that business
8 listing . I met on two or three occasions with
9 different people , but none of them ever had
10 any experience . Because I would have worked
11 to say, if they want to sell to you and get a
12 sublease approved, you go work with them and
13 get permission to -- you know, go learn the
14 business there, spend a year .
15 VICE-MAYOR CASTRO : Tom, if we are going
16 to do that, we are getting the pier back
17 because we should have never put the pier in .
18 This happened prior to the prior
19 commission, by the way, Commissioner Duke .
20 This happened 20 years ago with this whole
21 agreement .
22 I have never seen an agreement where the
23 construction of a building was a one-line
24 sentence that committed us to a
25 three-million-dollar project , and there was no
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1 choice, unless we want to be in breach of
2 contract .
3 Having said that , their whole game with
4 the loop net thing is sell the restaurant and
5 keep the pier . That ' s what they want . We are
6 not going to do that . Any future agreements ,
7 we should get the pier back . The pier is the
8 cash cow . It ' s the asset . Whether the
9 restaurant is there or not becomes irrelevant
10 in the end .
11 So, I am not going to let them go sublet
12 to anybody . Their reputation --
13 COMMISSIONER ANTON : The right kind of
14 restaurant would be a gold mine in there .
15 VICE-MAYOR CASTRO : -- is what this whole
16 20-year contract was that they bought in ten
17 years ago, so get them out if they can ' t do
18 it .
19 MR. COLE : It sounds as if there is a
20 consensus not to settle under terms that let
21 them stay?
22 COMMISSIONER ANTON : That ' s correct .
23 VICE-MAYOR CASTRO : Correct .
24 MR . COLE : Okay . Is there any feeling
25 that we should try to settle under terms under
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1 which they leave completely and you pay them
2 some dollar amount? Then, I assume you would
3 find someone else to take over the restaurant .
4 CITY ATTORNEY ANSBRO : One of the reasons
5 you are --
6 MR . COLE : Let me finish, Tom.
7 Basically, the thought is that they did
8 put a lot of money into this . You could say
9 to them, look, you leave, we ' ll give a certain
10 amount of money . Then you find a new operator
11 to take over the restaurant, and that operator
12 would give you that money as , say, their key
13 money to come in, and then you get someone
14 else in .
15 COMMISSIONER DUKE : That sounds good in
16 theory, but unfortunately, we are putting this
17 back in service in one of the worst real
18 estate in a generation . Not only are we not
19 going to get key money from a restaurant, we
20 are going to have to pay to modify this
21 building because the best thing about this
22 restaurant is the location, but the scariest
23 thing about the restaurant is the location,
24 and that ' s just a fact .
25 So, I wouldn ' t count on getting key
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1 money . I wouldn ' t count on getting that money
2 back . If we want to settle and pay them out,
3 that ' s one thing; but in addition to that , we
4 are going to have to pay --
5 COMMISSIONER ANTON : How much money are
6 you talking about?
7 CITY ATTORNEY ANSBRO : I thought about
8 this because Jamie and I talked about it .
9 They have something in there that is of
10 value . They put in a kitchen hood and cooking
11 equipment that they cannot remove, things that
12 are fixtures , attached or nailed to the wall .
13 COMMISSIONER ANTON : We are not even sure
14 they are installed properly .
15 CITY ATTORNEY ANSBRO : No, I do know that
16 whatever is there has been permitted . When we
17 caught them, finally, and got them in
18 violation, everything is permitted and has
19 been code-inspected, and I just had the place
20 inventoried to make sure they don ' t start
21 taking stuff out of there . There is
22 photographs of everything in there . We will
23 know what chairs and tables can go and
24 cutlery, but the lamps and everything else has
25 to stay .
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1 So, there are things in there that are of
2 value for us , as the owner, and then to
3 subsequently get to a subsequent operator,
4 that if we could negotiate for, whatever it
5 is , 200 or whatever it is , or we pay over
6 time . You leave . It gives us an
7 opportunity -- I have had overtures from the
8 Big Fat Greek Restaurant operator . He wants
9 to come in and --
10 COMMISSIONER DUKE : We have to be so
11 careful about that --
12 CITY ATTORNEY ANSBRO : Well , we do . It
13 wouldn ' t have to be an RFP . That ' s cart way
14 before the horse .
15 They don ' t want to -- as Anne says , they
16 don ' t want to let the pier go, but I told
17 them, those things are yoked together . You
18 are not going to be able to separate that .
19 Don ' t even bother to ask .
20 VICE-MAYOR CASTRO : As a matter of fact ,
21 the next time we RFP the restaurant , the pier,
22 I think, should come out .
23 CITY ATTORNEY ANSBRO : You should take
24 that back, just take it back .
25 VICE-MAYOR CASTRO : It comes back to the
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1 city like the marina did and we don ' t screw
2 with that anymore .
3 CITY ATTORNEY ANSBRO : But at this point,
4 as Jamie was trying to say --
5 VICE-MAYOR CASTRO : No, a couple
6 hundred-thousand dollars to say for your hood
7 and your whatever -- 850 , that they alleged
8 they put in it, no way; but if you are saying
9 a couple hundred grand, I would sign up for
10 that just to get them ready and move this
11 thing along, get our pier back and move along .
12 CITY ATTORNEY ANSBRO : If I go to
13 mediation Monday -- I am going to ; I have
14 to -- we could agree to say, you appraise it
15 with your restaurant people . We will get
16 somebody, and we will mutually agree on what
17 the value is . I am not paying you for your
18 going concern . I am going to offer : You get
19 to leave and we buy you out .
20 COMMISSIONER ANTON : That ' s too
21 open-ended . We need a dollar figure .
22 CITY ATTORNEY ANSBRO : If you want to
23 give me a number not to exceed -- you don ' t
24 even have to give me a number --
25 COMMISSIONER DUKE : What is it they said
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1 they put in there?
2 VICE-MAYOR CASTRO : $850 , 000 .
3 COMMISSIONER DUKE : To do the interior?
4 CITY ATTORNEY ANSBRO : Again, they have
5 played dumb because the way this thing was
6 designed was we would build it to shell
7 construction . They have never understood what
8 that means . It just meant, you have to put
9 the ceiling, the walls , all the other stuff
10 in, everything else had to go in .
11 They have disputed, that they had to go
12 in and finish it , that ' s what cost 850 .
13 Probably 650 of that is stuff they had to do
14 anyhow to make it a restaurant . They had to
15 buy tables , chairs , cutlery, liquor .
16 COMMISSIONER ANTON : We don ' t want the
17 tables , chairs and cutlery .
18 CITY ATTORNEY ANSBRO : No, but the stuff
19 that ' s going to stay in there --
20 COMMISSIONER ANTON : Put it out at the
21 end of the pier for a reef .
22 CITY ATTORNEY ANSBRO : They bought
23 coolers that they are literally able to take
24 out of there because they are on wheels . They
25 didn ' t even get built-in coolers in that
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1 place . They bought a lot --
2 VICE-MAYOR CASTRO : The point is they
3 probably don ' t care about any of this stuff
4 anyways . If they are getting out , they are
5 getting out . They just want money, and it ' s
6 how much money are we willing to give them is
7 where are we --
8 CITY ATTORNEY ANSBRO : They haven ' t
9 asked .
10 Here is where we are, by the way -- we
11 have to go in a few seconds .
12 COMMISSIONER ANTON : What really this
13 comes down to, it comes down to two things .
14 We have got , according to our attorneys ,
15 best guess , we are looking at a thirty-five
16 percent chance of winning this and getting
17 them evicted, maybe -- and he is probably
18 erring conservatively, so let ' s say a forty to
19 fifty percent chance we are going to get them
20 out of there . It ' s a 50/50 shot .
21 Or we go in and make them an offer that
22 we come up with a dollar figure in here to get
23 them out of there . Now, I don ' t know how
24 admissible that would be in court to show --
25 CITY ATTORNEY ANSBRO : It ' s not
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1 admissible .
2 MR . COLE : Whatever we do at mediation is
3 not admissible .
4 COMMISSIONER ANTON : And to give them the
5 opportunity to get out of there, and then we
6 are sure we have them out there --
7 CITY ATTORNEY ANSBRO : Correct .
8 COMMISSIONER ANTON : -- and we can do
9 whatever we need to do from there .
10 The pier is going to turn a profit . They
11 wouldn ' t be fighting so hard to keep the pier
12 if they weren ' t making big money on that pier .
13 MAYOR McELYEA: The pier was
14 originally -- I was there day one . My cousin
15 ran it day one .
16 The pier was separate from the
17 restaurant . Don Molton (phonetic) ran the
18 restaurant . Frank Hill ran the pier . It was
19 that way when Streeter had it . Streeter had
20 the pier, and I remember Molton had the
21 restaurant , until we built the new one .
22 COMMISSIONER GRACE : Right .
23 MAYOR McELYEA: When they come in here, I
24 said to Pato -- they were talking about all
25 the money they were going to do . I said, a
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1 Fouble set of books . She says , I never heard
2 of a double set of books . I said, I haven ' t
3 heard of a person in a restaurant didn ' t have
4 three or four sets . I am not a dummy in
5 business ; I have been there , too .
6 Then they come along . I said, they will
7 get rental purchases on this equipment and
8 they will never pay for it .
9 Oh, you can ' t do that .
10 I said, don ' t tell me , I do it everyday
11 in the towing business and all the equipment I
12 buy, I buy it -- hell , I am not going to pay
13 for it when I get it for a dollar a month and
14 buy it out for nothing later .
15 CITY ATTORNEY ANSBRO : There is a number
16 of things that are built in, like I said,
17 let ' s call it the ovens , those things . There
18 are fixtures .
19 MAYOR McELYEA: If they can unbolt them,
20 they can take them.
21 CITY ATTORNEY ANSBRO : No, they can ' t --
22 well , not without a cop in their way .
23 VICE-MAYOR CASTRO : Is there a dollar
24 amount --
25 COMMISSIONER GRACE : 200 , 000 , no more .
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1 COMMISSIONER DUKE : I don ' t agree on a
2 settlement at all . I agree on pressing
3 forward . I 'm just --
4 COMMISSIONER ANTON : What happens if we
5 lose and we are stuck with them?
6 CITY ATTORNEY ANSBRO : No, you are not
7 necessarily . You can still negotiate later .
8 You are never precluded .
9 MR. COLE : Also --
10 COMMISSIONER DUKE : I am not saying we
11 can ' t settle . I wouldn ' t settle right now . I
12 would keep my foot on the accelerator right
13 now .
14 CITY ATTORNEY ANSBRO : I want to say
15 something .
16 They are seeking a continuance . This is
17 set for jury trial in July . I was talking to
18 Dan and Jamie said, maybe the strategy would
19 be to agree to a continuance for three months .
20 Let them twist in the wind in the summertime
21 out there for another three months of no
22 revenue, air-conditioning is crap, according
23 to them.
24 COMMISSIONER GRACE : Are they in
25 operation now?
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1 CITY ATTORNEY ANSBRO : Yeah, they are
2 back .
3 COMMISSIONER ANTON : They were doing some
e
4 movie or something out there .
5 CITY ATTORNEY ANSBRO : They close up on
6 Mondays , but otherwise they are open .
7 So, I would suggest let ' s continue for
8 three months . It gives me and the lawyers
9 much more time to get the case where I talked
10 about Dan can do brush strokes of all the crap
11 that they have done, Bob, each of these little
12 things , we find a way to get it in . It will
13 help you paint the painting, and you get
14 jurors mad .
15 That gives you three months to come back
16 in the fall , and then, even if we lose, they
17 still don ' t want to stay because they are not
18 making money there, and we still have a way to
19 negotiate our way out of it .
20 COMMISSIONER ANTON : Weren ' t you saying
21 the other day you enjoy a good fight? Let ' s
22 go . Walter made sense, you know, what he
23 said . Let ' s --
24 VICE-MAYOR CASTRO : Go to the wall .
25 COMMISSIONER ANTON : Let ' s not throw any
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1 money into it at this point .
2 MAYOR McELYEA: It ' s do or don ' t .
3 COMMISSIONER ANTON : Let ' s keep going
4 after them and -- you know, you have ways that
5 you -- you know, when this gets down to the
6 wire, that you can dangle , you know, something
7 out there and see if we get any bites . You
8 know, throw a little bait out there and see if
9 we get a bite, and we call another shade
10 meeting at that time and you come back .
11 CITY ATTORNEY ANSBRO : So I am not going
12 to offer anything at mediation --
13 COMMISSIONER ANTON : No, right .
14 CITY ATTORNEY ANSBRO : -- but continuance
15 is okay?
16 COMMISSIONER ANTON : Nope, we want you
17 out and goodbye . You are going . We are
18 taking you to court .
19 MR. COLE : Okay .
20 CITY ATTORNEY ANSBRO : All right .
21 VICE-MAYOR CASTRO : We have two minutes
22 to get downstairs .
23 (The following proceedings were held within
24 the public forum: )
25 MAYOR McELYEA: I will now reopen this
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1 public meeting . Attorney-client session will
2 be terminated by members , and the general
3 public are now invited to return for any
4 further proceedings or matters . Meeting is
5 adjourned .
6 (Whereupon, the meeting was adjourned at
7 7 : 01 p . m. )
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1
2 C E R T I F I C A T E
3
4 THE STATE OF FLORIDA)
COUNTY OF BROWARD)
5
6
7 I , EMILY SCOTT , certify that I was
8 authorized to and did stenographically report the
9 foregoing proceedings and that the transcript is a
10 true and complete record of my stenographic notes .
11 Dated this 9th day of August, 2010 .
12
13
14
15
16 -- -----------
EMILY SCOTT
17
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