2004 0506 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting May 6, 2004 City of Sunny Isles Beach, Florida Dr. Robert Cornfeld, owner of the Newport Hotel, reported that in March, Pier Park was used to allow commercial vehicles to park there because a commercial was being shot there on their pier. He understands that this was against the regulations and was unaware that this was being done, but apologized to the City Commission. He stated that in November of 1999 the City Commission granted them a 99-year permit agreement and in that agreement on page 6, paragraph 16, it says that they have the property for 99-years and they have to obey all the regulations, and they have always done that except this one time, and now the City has seen fit to terminate the 99-year agreement, under the termination paragraph it says "not withstanding the foregoing and anything in this agreement to the contrary, it is the intention of the parties that permittee shall have unimpeded access to the pier and adjacent hotel property at all times." He said this was because they have always had ingress and egress capabilities for 20-years, first it was with Dade County. He said that they are in agreement with this Ingress Egress Agreement and he feels that there should be a penalty. He said not only did the City terminate their 99-year permit of the property, but they took away from them almost $100,000.00 a year in parking revenue that they received from running Pier Park, which they were allowed to do under the permit agreement. He said now the City will be running the Park and deriving this revenue. He said he feels there should be a fine but to ask for $450,000.00 is not right, and he offered to pay the City $100,000.00. City Manager Russo clarified for the record saying that he agreed with what Dr. Cornfeld is saying about what this agreement is, and that there is a section in that agreement that provided for immediate termination, which is what was evoked and the City took over the Park. He said at that point in our legal opinion the agreement was null and void, therefore we went forward to negotiate a totally new agreement with a new entity on a new parcel of land that was being subdivided and sold to La Perla, so he approached it as though they were negotiating an arrangement and his initial approach was, that the access in perpetuity that he would like the lifeguards paid in perpetuity at least, but said that was unreasonable to a degree and he went to a proposal of lO-years and polled the Commission and when he got through three Commissioners he had a clear direction to get a five-year budget from this. He said they presented a competent agreement and backed it up with every analysis and every question that has been asked by this Commission to come up with a budget which was substantially higher than the $450,000.00 that is in this proposal, and it is not a fine or a mitigation fee, it was part of negotiations on a new agreement to get something in return for what we were giving. Mayor Edelcup said that was a reduced number, and City Manager Russo said from the $728,000.00 which is an actual budget that the City will pay, based on the City benefits, expenses, equipment, and other items that make up the entire operation of the lifeguard service at that one tower. Dr. Cornfeld said that the payment of the lifeguard has nothing to do with their infraction of the rule, they broke the rule and they are sorry for it and there should be a fine, but what has the lifeguard service have to do with it? Commissioner Brezin asked Dr. Cornfeld what are you giving to us? Dr. Cornfeld said you are getting $100,000.00 a year and Mr. Price said that the City is also getting the 29 15