05-05-87SpMtg MAY 5, 1987
A Special Meeting of the City Commission of the City of Delray
Beach, Florida, was called to order by Mayor Doak S. Campbell in the
Commission Chambers at City Hall at 7:03 P.M., Tuesday, May 5, 1987.
Roll call showed:
Present - Commissioner Richard J. Dougherty
Commissioner Marie Horenburger
Commissioner Jimmy Weatherspoon
Mayor Doak S. Campbell
Absent - Commissioner Mary McCarty
Also present were - City Manager James L. Pennington and
City Attorney Herbert W.A. Thiele.
Mayor Campbell called the meeting to order and announced that
this meeting has been called for the purpose of considering (1) Assign-
ment of existing restaurant lease from the Brezes to Gerald Miller.
1. Mayor Campbell reported the Commission has been furnished
copies of an application on the part of Gerald Miller to take over the
remainder of the license for the operation of the restaurant at the golf
course. The first paper that has been presented is a strict assignment
of that license agreement wherein the City consents to and agrees to the
assignment which has about two years to run under the current contract.
Attached to the allowance of the assumption is Alternate A and Alternate
B; one would recognize the right of the City to terminate the contract
within 60 days with a price not to exceed $45,000 in the event the City
does terminate prior to the end of the contract. The other alternate is
the same contract with a different figure, but with five additional
years to what now exists.
Mr. Dougherty stated he felt this discussion was untimely and
that it was inappropriate to bring this before the Commission at the
last moment. He felt that neither alternative is to the advantage of
the City.
Mayor Campbell declared a recess, the time being 7:10 P.M. The
meeting reconvened at 7:15 P.M.
Mayor Campbell advised it is his understanding that the City
has received, of record, objections from Mr. Code House stating his
position would be legally in opposition to any contract assumption that
went beyond the current term.
David Schmidt, attorney for Mr. House, stated "beyond the
current term and the current contract". For the record, he advised that
this is the second time this matter has been called on special meeting
without any notice to his client. He fails to see the urgency of this
matter and why Mr. House's contractual rights at the golf course are not
given any consideration by notice of these meetings. His client is
opposed to an assignment that provides for any extension of the term or
any modification of the term.
Mr. Dougherty advised there has never been a time when they got
the three parties together (golf course, restaurant and City) and sat
down to see how they could work out an arrangement that would be satis-
factory to all three. He stated it seemed to him if he were Mr. Miller
he would need at least a five year contract to do all the things he has
said he wants to do at the restaurant. Mr. Dougherty stated he is ready
to make a commitment to give a contract to Mr. Miller; however, he would
like to get the three parties together so that everyone benefits.
Mr. Weatherspoon stated he has no problem with this; we have a
party who wants to get out of their lease and someone who is willing to
assume it. He feels it is good business sense for a person to want to
recover their initial output to a certain degree.
Mrs. Horenburger stated she is more concerned with what has
gone on there in the past and the dissatisfaction and problems of having
two lessees sharing one facility. She believed the second option of
granting the transfer for two years with some protection for the person
taking over the contract is a good one; it gives the City a better
opportunity to look at the entire operation two years from now and
determine what they want to do. Her concern is more for the protection
of the City and its residents as far as the actual operation and how
accountable this person is to the City and the people he will serve.
Mrs. Horenburger stated she felt the idea of the two years and
the option of cancelling is a good one. She made reference to a portion
of the contract with regard to inventory at termination; she would like
language included that the City would be able to monitor any ordering or
purchasing from the day of notice.
Mayor Campbell asked that the City Attorney include "inventory
ordered subsequent to the notice of termination shall be reasonable and
in consideration of the business being conducted".
Mayor Campbell advised he is in favor of option #2; he would
agree that they need to sit down and look at the entire golf course and
restaurant situation for a long term prospective. By adding this
"divorce clause" it puts us in, for at least the remainder of the term,
a more advantageous situation than we are now.
Mr. Dougherty reiterated that he felt this is untimely and is
pushing the Commission to make a decision this evening.
Mrs. Horenburger moved to approve the assignment with the
Exhibit per Page Number Six with the addition of the language provided
by Mayor Campbell with regard to the inventory; also Item 2 be changed
to read "The licensee shall have the right to terminate the license
without cause or compensation upon 90 days written notice in advance to
the City", seconded by Mr. Weatherspoon. Upon roll call the Commission
voted as follows: Mr. Dougherty - No; Mrs. Horenburger - Yes; Mr.
Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 3
to 1 vote.
Before roll call the following discussion was had:
Mr. Weatherspoon asked what the $45,000 figure was predicated
on.
Roger Saberson, attorney for Mr. Miller, advised that was a
figure they came up with; the City staff had nothing to do with it.
That is the figure Mrs. Brez is asking for - the remainder of the
unexpired term.
At this point the roll was called to the motion.
Mayor Campbell declared the meeting adjourned at 7:40 P.M.
ATTEST:
The undersigned is the City Clerk of the City of Delray Beach
and that the information provided herein is the minutes of the meeting
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of said City Commission of May 5, 1987, which minutes were formally
approved and adopted by the City Commission on ~.~ ~t/F/7.
City 'Clerk
NOTE TO READER:
If the minutes that you have received are not completed as indicated
above, then this means that these are not the official minutes of City
Commission. They will become the official minutes only after they have
been reviewed and approved which may involve some amendments, additions,
or deletions to the minutes as set forth above.
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