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HomeMy Public PortalAbout2016-12-16 AttorneyClient Bal Harbour Shops v BHV and Patricia Cohen CASE 16-18499CA091 2 3 4 5 6 7 8 9 10 11 12 13 14 Page 1 0 BAL HARBO UR VILLAGE AT TORNEY/CLIENT SESSION IN THE MATTER OF BAL HARBOUR SHOPS, LLC v. 15 BAL HARBOUR VILLAGE and PATRICIA COHEN 16 CASE NUMB ER: 16-18499 CA 09 17 18 19 20 21 22 23 24 25 BAL HARBO UR VILLAGE HALL 655 96th STREET BAL HARBOUR, FLORIDA 33154 FRIDAY, DECEMBER 16, 2016 8:49 a.rn. -9:25 a.m. Taken before Mary G. Stephenson, FPR, Notary Public for the State of Florida Veritext Legal Solutions 800-726-7007 305-376-8800 1 APPEARANCES: 2 CO UNCILMEM BERS: 3 GABRIEL GROISMAN, MAYOR SETH E. SALVER, ASSISTANT MAYOR 4 DAVID ALBAUM, COUNCILMAN PATRICIA COHEN, COUNCILWOMAN 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 JE fFREY FREIMARK, COUNCILMAN VILLAGE MANAGER: JORGE M. GONZAL EZ VILLAGE AT TORNEY: 800-726-7007 WEISS SEROTA HE LFM AN PASTORIZA COLE & BONISKE, P.A. BY: RICHARD JAY WEISS, ESQ. JOSEPH SEROTA, ESQ. SUSAN TREVARTHEN, ESQ. JUSTIN LUGER, ESQ. Veritext Legal So lutions Page 2 305-376-8800 ◄ I 1 2 3 4 5 6 7 8 9 10 11 12 4 I 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 3 Thereupon, the following proceedings were had: 800-726-7007 MAYOR GROISMAN: The door is open. There is nobody outside. order. I am going to now call the next meeting to The time is now 8:49 a.m. Let's do another roll call. MR. GONZALEZ: I'll do it. MAYOR GROISMAN: Go ahead. MR. GONZALEZ: Mayor Groisman. MAYOR GROI SMAN : Here. MR. GONZALEZ: Assistant Mayor Salver. ASSISTANT MAYOR SALVER: Here. MR. GONZALEZ: Councilwoman Cohen. COUNCILWOMAN COHEN: Here. MR. GONZALEZ: Councilman David Albaum. COUNCILMAN ALBAUM: Here. MR. GONZALEZ: Councilman Jeff Freimark. COUNCILMAN FREIMARK: Here. MR. GONZALEZ: Council is present. MAYOR GROISMAN: Thank you. The time, as I said, is 8:49 a.m. We are about to have -- MR. WEISS: Did you mention our names? MR. GONZALEZ: Not in roll call. MAYOR GROISMAN: We are about to have an Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 7 1 8 19 20 21 22 23 I I 24 25 l 800-726-7007 Page 4 attorney/client session in accordance with Florida Statute 286.011 regarding the litigation styled Bal Harbour Shops, LLC versus Bal Harbour Village and Patricia Cohen, Case Number 16-18499 CA 09. The session is estimated to last 30 minutes and the following people will be in attendance at this meeting: Myself, Mayor Groisman, Assistant Mayor Salver, Councilmember Freimark, Councilmember Albaum, Councilmember Cohen, Village Manager Jorge Gonzalez, Village Attorneys Richard Weiss, Joe Serota, Susan Trevarthen and Justin Luger. These proceedings be recorded by a certified court reporter and, at the conclusion of all litigation discussed, the transcript will be made part of the public record. All those individuals who I have not named should leave this room at this time. Since there is no one else in this room, we will close the door and start the meeting. So what I ask, let's not rehash things. Let's focus, please, on this specific case. MS. TREVARTH EN: Understood. Let me give a brief overview of what this second case is about. It's an action for declaratory injunctive relief Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 5 as well as mandamus relief, and it's asserted against Councilwoman Cohen as well as against the village. It asserts that Councilwoman Cohen should be precluded from voting on matters relating to the expansion of the shops because of an alleged conflict of interest that violates the Miami-Dade County Code of ethics. The complaint also asserts that then Mayor Packer and Councilmember Cohen violated the Sunshine law by engaging in alleged secret conversations while on the dais during the shops' hearing on its request to have the village hall sold to the shops as per their expansion claim. That was the vote back in April of 2016. The last thing that the complaint seeks is to compel the village to participate in the FLUEDRA proceedings. That is the Florida Land Use and Environmental Dispute Resolution Act. That is also part of the other case we talked about last week. They seek to compel our participation in the proceedings in connection with that decision not to sell village hall . They also seek to invalidate the votes of Veritext Legal Solutions 305 -376-8800 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 6 Councilmember Cohen and Mayor Packer at that meeting where we had the two two vote not to sell village hall. That is the shortest summary of what this case involves. In terms of where we are procedurally, there has been a little bit of depositions and discovery going on. There is a pending motion to dismiss that is set for hearing, I believe it is January 17th. MAYOR GROISMAN: Is that to dismiss everything? MS. TREVARTHEN: Yes. We filed a motion to dismiss. We have arguments that everything should be dismissed on various grounds. Also, Councilwoman Cohen's attorney filed something as it relates to the claims that were asserted against her personally. MAYOR GROISMAN: What depositions were taken? MS. TREVAR THEN: I am trying to remember. I didn't take a list with me. I just looked through the pleadings to see what we have done so far. COUNCILWOMAN COHEN: I didn't have a Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 7 deposition on that. MS. TREVARTHEN: No? Maybe not. MAYOR GROISMAN: Can we just get an update from Jorge because at the last meeting we asked MS. TREVARTHEN: Basically, it's holding. MAYOR GROISMAN: We asked Jorge to go speak to shops and see how, at least, the FLUEDRA portion of this -- MS. TREVARTHEN: It's the landscaper. I think that is what I saw. MAYOR GROISMAN: The FLUEDRA portion of this, which is the administrative action, which is garbage, really, to see if they would drop, to see if we can get them to drop. COUNCI LWOMAN COHEN: Excuse me. Can I just mention they harassed my landscape installer, who, unfortunately, had done work for Brooks over here in the gated community, my ex-home. Literally, this guy doesn't even want to work for me anymore. So at the end we are going to have to be dealing with the damage that this has done to my profession. He had nothing. He was a Cuban installer. For hours he was there trying to see what they can whip up against him. Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 8 MAYOR GROISMAN: Okay. Jorge. MR. GONZALEZ: So as you mentioned at the last meeting, you instructed me to go and reach out and see if there was an interest or willingness before we go forward in the process. Generally, the response was that at this time, they were not prepared to unilaterally settle something like that. They did not want to attach it to any actions that we would take. They are also apparently reviewing or reconsidering or revising the plan that they are working on for our consideration if they want to submit something, but they were not inclined to drop the cases just as a gesture of good faith or goodwill. COUNCILWOMAN COHEN: Correct, and they are so delusional that they sent us an e-mail yesterday, that I got to hear about last night, I was doing something else, where they want meetings with us. We have 50 people come to this council meeting and scream at our faces, not you two, but before. You should not be negotiating with this entity who are suing us, who are harassing us. COUNCILMAN ALBAUM: You are represented by the same firm on this case; is that correct? Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 9 COUNCILWOMAN COHEN: Yes. Now he has filed a motion. COUNC ILMAN ALBAUM: So we are not dealing with different attorneys? COUNCILWOMAN COHEN: No, no. MR. GONZALEZ: The same one. MAYOR GROISMAN: And the fees to date on this one? COUNCILMAN ALBAUM: It's 50,000? MR. GONZALEZ: No. On that one is 132. MAYOR GROISMAN: For how long? MR. GONZALEZ: Basically, I got bills in August. Maybe started in July sometim~ frame. July, August, September, October. COUNCILMAN ALBAUM: Five months? MAYOR GROISMAN: Four months. MR. GONZALEZ: Four months or so. That is how COUNCILMAN ALBAUM: There is a lot of production that is going to be involved in this case too? COU NC ILWOM AN COHEN: It's five months. COUNCILMAN ALBAUM: I mean going forward. MAYOR GRO I SMAN: There's no document production. Veritext Legal So lutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 10 COUNCILMAN ALBAUM: It's depositions? MR. GONZALEZ: Councilwoman Cohen was saying her concern about what else is corning down the line. That e-mail thing may be whittling down, only to have this part of it ramp up. MR. WEISS: I think they were only interested --in the public records case what we discussed, they are only allowed to get public records. So they are not allowed to get her private business records of her business. I think one of the reasons they filed the second case alleging a conflict of interest, because that allows them to go into her private business to see whether she has had s ome private business dealings with whoever they think is the -- COUNCILMAN ALBAUM: So you think the fees are going to escalate on this case too? Is that your feeling, Richard, or not? MR. WEISS: My feeling, I do talk to them from time to time, but, listen, I will go talk to them on both accounts. I don't feel that they are inclined just to --I think they are in this for the long haul. MR. GONZALEZ: Yes. Verite.xt Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 7 18 19 20 21 22 23 24 25 800-726-7007 Page 11 MR. WEISS: The shops. COUNCILMAN ALBAUM: So you think this could be another? MR. WEISS: Yes. MAYOR GRO I SMAN: Let rne just interject on this case just to give my comments on it. First of all, the lawsuit, what they are asking for I think is a huge overreach both on the personal stuff and on the FL UED RA stuff, which is really, really, I think, overreach and I think it will be dismissed on that issue of conflict. With Sunshine Law, they have other ave nu es if they really were genuinely concerned about it to go after instead of filing a lawsuit. COUNCILWOMAN COHEN: They should have gone to the ethics committee. MAYOR GROISMAN: The ethics committee, that is sort of the normal course of action. Whether it's right of wrong, they decide. It's quick. It's inexpensive. MS. T REVARTHE N : And our argument is it's the only one available and we think the law supports that. MAYOR GROISMAN: Okay. So that is great. So there is a chance this thing is going to get Veritext Legal Solutions 305-376-8800 800-726-7007 Page 12 dismissed early on with that. Lawyers, including me, hate giving percentages, but how do you view our chances on the motion to dismiss? MS. TREVARTHEN: I am not good on percentages, but I think we feel like we have strong arguments here. I mean, just as an example, FLUEDRA on its face says once you file litigation, you waive your rights under FLUEDRA. And it only deals with land development decisions. This is a legislative decision to sell property. These are large differences. So I think as compared to the wide range of litigation, our chances are better than -- MR. GONZALEZ: The city's chances, but they are not going to stop with -- MR. SEROTA: I believe Ms. Cohen's attorney has also filed a motion to dismiss. MS. TREVARTHEN: Yes, and it tracks our arguments. Part of what they were arguing is that we didn't have a role in that, that we didn't have standing. Yet, the target of that case is her official action in voting. So we were found to have the standing to defend that claim as well. Veritext Legal Solutions 305-376-8800 1 2 I 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 7 Page 13 MR. GONZALEZ: I was trying to highlight it's the action, but it's also the alleged violation of Sunshine and the alleged bias and all that other stuff that will remain and they are going to keep --I would expect, as Richard, I agree with Richard. They are going to keep trying to do whatever they want. MS. TREVARTHEN: I agree with the motivation. It's January 17th, I believe. ASSISTANT MAYOR SALVER: How quick does the judge rule on those? MS. TREVARTHEN: On the motion to dismiss, we hope so, but he could hold it in advisement and he could wait. It's Judge Gerald Bagley I believe. COUNCILMAN ALBAUM: I would like to just go on the record. MR. WEISS: I really think just to go out on a limb here, all of this needs to be resolved holistically, all of it. MS. TREVARTHEN: I agree. COUNCILMAN FREIMARK: That was going to be my question, and I want to be sure I ask that question at the right point in time in the discussion. Veritex.t Legal Solutions 305-3 76-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I 1_ 800-726 -7007 Page 14 MR. WEISS: You did. COUNCILMAN FREIMARK: In that given the various matters that are in action at this point in time, how do we approach this from a holistic perspective without compromising any of the individual discussions. MAYOR GROISMAN : Just to interject, Ms. Cohen, you said you don't want to sit down with them, negotiating with terrorists or whatever. I understand the feeling of it, but there is no need to make deals with people you agree with, or people you disagree with because those are people you have conflicts with. I think it does do all of us and you personally probably more than anybody to sit down and reach a resolution. Not one in which you recuse yourself. I think that is ridiculous. COUNCILWOMAN COHEN: But reach a resolution by going to the meeting? Is that what you are saying? MAYOR GROISMAN: Going to what meeting? To have a private meeting, settlement meeting? COUNCILWOMAN COHEN: Yes. MAYOR GRO ISMAN: Yes. Why not? COUNCILWOMAN COHEN: That is not what they Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 15 wrote. I thought it was about to talk about their project. It doesn't say resolution at all on the e-mail, not at all. It says, we would like to meet with each of you individually. I did not read into i t that it was anything litigation related. Not at all. I thought it was to talk about the future. MR. GONZALEZ: I think you are probably right. It's the shops. COUNCILWOMAN COHEN: Of course, of course. I don't think they would do that. They would say, bring an attorney, whatever. They didn't mention any of that. MR. WEISS: Ultimately, they are not into random sparring here. They are trying to get their project approved. That is what this is about. COUNCILMAN ALBAUM: And I would like to say, as long as Patricia or anybody here is on the council, you have a right to vote on everything. COUNCILWOMAN COHEN: Obviously, but -- COUNCILMAN ALBAUM: No, no, but I mean that is just where I stand. You are a member. You are here, and you are going to vote. COUNCILWOMAN COHEN: Let's go back to what Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 16 they are trying -- COUNCILMAN ALBAUM: I just want to say that. COUNC I LWOMAN COHEN: The platform here is we are the legislators. We have a right to vote the way we want to. They are disputing my vote. This is what is at hand here. In the meantime, they still want to meet with us before next council meeting. That is what I read last night. None of you got it? COUNCILMAN ALBAUM: On the 20th? We are talking about Tuesday? COUNCILWOMAN COHEN: Yes. MAYOR GROISMAN: Maybe they sent you an e-mail. COUNCILWOMAN COHEN: So you think it's old that e-mail? COUNCILMAN FREIMARK: I didn't get an e-mail but they did reach out. MAYOR GROISMAN: Let's focus the discussion. The Ball Harbour Village was sued here not just by name specifically as was Ms. Cohen. My question to Susan is: Are the interests, legally speaking, with Bal Harbour Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 17 Village and Patricia Cohen aligned here or is there a conflict? MS. TR EVART HE N: I don't think there is a conflict per se. I think the issues that we have raised go to the jurisdiction to even bring this claim, which is not something where there is going to be a conflict of interest. There is the factual matter of whether there was, in fact, a violation of the Sunshine Law, but we have also addressed that in our motion to dismiss, that the available evidence that they cite in their complaint falls far short of even trying to establish. It's one way communication. MR. WEISS: The answer to your question really is what your perspective is on this project, I hate to say. If the council, its members are in favor of approving some form of a big shop expansion, then the truth is that then you want their lawsuits to succeed. You want the Sunshine --I mean, there is an issue here because the council has not made any kind of formal declaration as to how it feels on any plan, but that is what this is all about. MAYOR GRO I SMAN: I disagree with you. The reason I disagree with you, Richard, if there is Veritext Legal Solutions 305-376-8800 1 2 3 q ,. 0 7 3 :, ) l 3 ) 800-726-7007 Page 18 someone on the council that is generally not against a type of shop expansion, that doesn't have to be at the expense of an improper lawsuit or the crucifixion, to use a terrible word -- COUNCILWOMAN COHEN: It is crucifixion. MAYOR GROISMAN: of a specific person. Maybe that is how the shops or the people from the outside should look at it, but I urge all of us not to look at it like that no matter what our position. They should be separate things. COUNCILMAN ALBAUM: Exactly. MAYOR GROISMAN: If you are for the type of expansion, whatever, they don't have an application now. So we don't even know what they would be offering. Even if you are for what they are offering, it shouldn't be at the expense of another member of the council. COUNCILWOMAN COHEN: I think most people would tend to agree with you. It's been a year or more and we haven't had one person come up here to this dais and I agree with the shops, I think that Mrs. Cohen has erred. There is not one single person. How come? MAYOR GROISMAN: So what I was trying to focus in discussion -- Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I 17 18 19 20 21 22 23 24 25 800-726-7007 Page 19 COUNCILWOMAN COHEN: I think that is pretty much understood. MAYO R GROISMAN: What I am trying to focus the discussion on is have we been working with Kent, the attorney's name MS. TREVARTHEN: Yes. MAYOR GROISMAN: --on this matter? MR. WEISS: Yes. MAYOR GROISMAN: Have we been coordinating our efforts? MR. WEISS: Yes. MAYOR GROISMAN: Because what I don't want to happen is -- MR. WEISS: We have been doing the work. COUNCILWOMAN COHEN: It's litigation, redundancy. MS. TREVAR THEN: On this one, we went first and then they filed one that was along the lines of what we filed. MAYOR GROISMAN: If all he has done is file a motion to dismiss, how have we been billed 100,000? ASSISTANT MAYOR SALVER: That is what I'm trying to figure out. MAYOR GROISMAN: Because a motion to Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 9 20 21 22 23 24 25 800-726-7007 Page 20 dismiss in state court shouldn't cost more than -- COUNCILWOMAN COHEN: He has been doing most of the work. MAYOR GROISMAN: They just said the opposite. That is what I'm trying to understand. MS. TREVARTHEN: Well, we filed the motion to dismiss first, but there was this, and I personally wasn't involved, so I don't have all the details, but the deposition of your landscape person and some fighting over that, that I think your attorney has taken the lead on. MAYOR GROISMAN: So without going backwards, I would like to hear from staff. I don 1 t want to direct Richard on this at all, but to the extent that Richard is going to speak with Kent on the fee issue, which I think should also be a whole discussion about this, but as far as direction goes, like we said on the other one, the direction was let's focus on settlement. This one, the focus, I think, should be on allowing for him to piggyback on the work of Weiss Serota. Anything he needs to interject for you, Patricia, he should do it and he knows how to do it. He can file a motion if he disagrees with the other motions that were filed and then you just Veritext Lega] Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 21 add your arguments. There is ways to do that, so that way we are not paying twice for the same thing. Can I hear thoughts on that? COUNCILWOMAN COHEN: Well, nobody is advocating for redundancy in fees . I think you should take the time to read the time sheets and see what they did and what he did. I doubt that there is redundancy. MAYOR GROISMAN: I'm not looking backwards, but what I am saying is we are agreeing on the same thing, but lawyers work at the direction of their clients. So if the client doesn't say anything and they want to bill the time, they are doing all the work, and they are getting paid anyway. If the client tells you, I want you to just try as much as possible to piggyback on this defendant's work, he will do it. Of course, he still has a legal obligation to defend you a hundred percent. So it's not that you are going to lose anywhere on that subject. I don't think you are disagreeing. I don't want to focus on what he did before because it doesn't do anything for us. Let's just focus on moving forward. Veritex.t Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800· 726-7007 Page 22 Does anyone else want to say anything? COUNCILMAN FREIMARK: So we had the fees before and this is for Patricia's attorney, correct? MAYOR GROISMAN: Yes. COUNCILMAN FREIMARK: What are our arrangements with Weiss Serota? MR. WEISS: We get paid hourly. I think 235 an hour. COUNCILWOMAN COHEN: For all of them. For all the specialists that you use. MS. TREVART HEN: It's a blended rate for all the work we do for the village. MR. WEISS: It's a blended rate. We don't charge for phone calls. We don't charge for attendance for any of the council meetings. COUNCILMAN FREIMARK: So the costs that we heard are increased by a factor X, whatever that X is. MAYOR GROISMAN: Correct. COUNCILMAN FREIMARK: How do we bring this to an overall solution? MR. WEI SS: That is really where I was sort of going. I mean, the shops want some application heard. They want the item on the ballot so the Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 I 9 10 1 1 12 13 14 15 16 1 7 18 19 20 21 22 23 24 25 800-726-7007 Page 23 voters can vote on selling. I don't even know if the village hall is involved any more. Whatever it is they want to do, and I think that as part of the development agreement, you settle all this stuff and say, go away, we are going to put your, you know, and that was sort of where we were going last time, and you thought that you didn't really want to make a deal like that. So Jorge asked would they do it unilaterally, but that didn't work. COUNCILMAN FREIMARK: Okay. Also then in the context of all this, how does the petition potentially impact on this? MR. WEISS: Well, that is a good question. COUNCILMAN FR E IM ARK: And is this the appropriate time to ask that question? MR. WEISS: There is two separate petitions. COUNCILMAN FREIMARK: Right. I'm questioning the 60 percent. Go ahead. Sorry. MR. WEISS: The 60 percent, and then there is one that deals with retail and commercial. The petitions that were filed, we sent it to the Dade County supervisor of elections and he noticed that in one of the petitions, the Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 24 commercial and retail, that their different -- same petition had different wording. Some used retail, some used retail and commercial. So that sort of ran around. In the meantime, I had to wait. I think he forwarded it. In the meantime, Shubin has --I wrote a letter saying he has legal concerns about the substance of the petitions, one, and also the procedure that was used, number two. We sent the letter to J.C. Planas, who represents the petitioners, for his comment, and I was hoping he would send us back a letter saying, I disagree with John for this reason, but he didn't. So our recommendation is going to be on those petitions, so either way MR. GONZALEZ: He has this item on the agenda as a discussion. MR. WEISS: Either way, this item is getting settled in court. If we put it on the ballot, the shops are going to sue us. If it doesn't go on the ballot, J.C. Planas will sue us. So our strategy we are going to recommend to you is that we have these two parties fighting over language in the petition, whether it's even legal, the petition, the format they have used. Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 25 We think the least expensive way for the village to sort of get out of this is to file a declaratory judgment and then just back off of it. Basically saying to the court, we have lawyers here that say it's good, and we have lawyers there that say it's not properly done. One of the things that has happened here in the past is that the residents expect the village to end up being a judge like the ownership of the residential area. It's not a great scenario for us. So that is the least expensive way, and then let John Shubin and J .C. Planas go fight this thing out in circuit court. At some point, some judge will say, J.C. Planas, you are correct and the issue go into ballot or some mixture of that. That is our thoughts. MR. SEROTA: This is all tied into this other lawsuit. That is really what we are talking about. COUNCILWOMAN COHEN: Correct. MR. SEROTA: It is all related. ASSISTANT MAY OR SALVER: One at a time. MAYOR GROISMAN: Let's let Jeff finish his comments. Veritext Legal Solutions 305-376-8800 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 26 COUNCILMAN FREIMARK: So bringing us back to this, looking at it from the perspective of trying to get to a holistic settlement, the shops have got to be thinking that this is a risk element to the extent that village hall may be involved in a potential expansion and transaction. This is a risk element and potentially raising the risk from 50 percent to 60 percent. MR. WEISS: Yes. COUNCILMAN FREIMARK: So does that help in your view relative to getting, and plus time has just flown by on this. MR. WEISS: We have gotten different indications that they may be redoing their plan. I don't know what the plan is. I don't know whether it includes village hall or doesn't include village hall. MR. GONZALEZ: But to your question, in their minds and, of course, it creates a difficult, a higher threshold by which any plan that they want to do might be applied. MAYOR GRO I SMAN: Seth wanted to say something. ASSISTANT MAYOR SALVER: Richard, your comments, I only understood you were referring to Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 27 the case about the commercial MR. WEISS: There's two petitions. ASSISTANT MAYOR SALVER: So are we going to do declaratory judgment for both? MR. WEISS: Both, because they have both been challenged. ASSISTANT MAYOR SALVER: Oh, they have. COUNCILWOMAN COHEN: But in the meantime, where does that put us? We can go ahead and ignore this and go ahead and proceed towards MR. WEISS: Until the court decides. We are going to end up in court on this anyway. COUNCILWOMAN COHEN: Talking about holistic -- ASSISTANT MAYOR SALVER: Are we able to just throw a hot potato to circuit court? MR. GONZALEZ: Hold on. One at a time. COUNCILWOMAN COHEN: A reassessment of the market conditions and realized perhaps what they have in mind, the wishful thinking that they have, it's not that valuable given today's commercial. I'm praying and hoping that they will reassess, they will regroup. You know, we all need to evolve with the times. MAYOR GROISMAN: Seth, were you -- - -_________________ ___, Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 28 COUNCILWOMAN COHEN: The market has changed. MAYOR GROISMAN: Seth, go ahead. ASSISTANT MAYOR SALVER: So we can just lob the hot potato to the court and then not have any more fees or anything like that? MR. WEISS: We are going to draft language, which, according Joe, the speech or effort is not going to be a lot. Nothing to distract the complaint. We are going to attach these two letters. I drafted an e-mail for Dwight to send to J .C. Planas saying, we got your letter, but we are very interested in your substantive thoughts about the issue you raised. I want to attach that to our lawsuit, so we have both letters and then we will have to do a little bit ASSISTANT MAYOR SALVER: What is the style of the case? Bal Harbour Shops versus? MR. WEISS: Bal Harbour Shops versus both of them. MR. GON ZALEZ: Bal Harbour Village. MR. WEISS: Bal Harbour Village versus both of them. MAYOR GROISMAN: So on this case, it Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 29 doesn't sound like there is anything to talk about as far as holistic approaches other than if their position is Patricia needs to recuse herself, and that is not changing. There is not much to discuss. If their position is anything other than that, that is not on the table. If they take that off the table, then we should always be open to have another discussion as to what it is they are looking for to resolve it, but it shouldn't include a recusal of any member of the council. COUNCILMAN FREIMARK: But that is a relief they seek. MAYOR GROISMAN: We are talking about just focusing for a moment on the resolution. So the only other topic is fees, right? COUNCILMAN ALBAUM: Exactly. MAYOR GROISMAN: If it's fees, I would like to just have a discussion on fees, not on other issues. My proposal is just when Richard speaks to the attorney to just try to direct him to try to piggyback his time on Weiss Serota's. COUNCILWOMAN COHEN: Haven't you been doing that? Haven't you guys been controlling all Veritext Legal Solutions 305-3 76-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 30 along. MAYOR GROISMAN: It se ems like it has shifted to that. So let's do that, and make the discussion. When we are talking about, the overall fee structure, it should involve everything. MR. GONZALEZ: Just to give you good clearance, their guidance is, is this notion of a cap to be for both cases or just the cap discussion about the first one? ASSISTANT MAYOR SALVER: Specially if this case is a public records case, we don't want to resolve that one and then all of a sudden -- COUNCILMAN ALBAUM: That is why I was treating them separate. MR. GONZALEZ: You need clearance. MS. TREVARTHEN: We get it. MR. SEROTA: So you are seeking a cap on both cases. This case, by the way, to answer the mayor's question early on, we are not in conflict. We have different interests, but we are not in conflict. In other words, I mean -- MAYOR GROISMAN: So we can work together and Kent should focus on Patricia's specific Veritext Legal Solutions 305-376•8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 31 issues to make sure she is one hundred percent covered, and the issues that are for both, he can make sure that he is content with what Weiss Serota is doing and supplement where he feels necessary, but I would rather have -- MR. WEISS: I think that is what we need to do. COUNCILWOMAN COHEN: Yes. MAYOR GRO I SMAN: That is good. So maybe the only direction is when you talk about fees, it should be about both cases. It's pretty simple. ASSISTANT MAYOR SALVER: Before we adjourn this, back to what Councilman Freimark was saying with approaching this holistically and seeing kind of like looking at trying to see what is going to happen in the future and see what the shops' interest might be changing in light of this petition, if we can kind of make them an offer where we would hear this new application within a certain timeline, maybe they would be more inclined to drop something. COUNCI LMAN ALBAUM: They can just apply anytime, right, Jorge? MR. GONZALEZ: Yes, they can apply anytime. My expectation is they are reaching out to Veritext Legal Solutions 305-376-8800 I- I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 32 you guys, I don't know how many of you maybe have scheduled meetings or not meetings. MAYOR GROISMAN: Next week, I have a meeting with them. MR. GONZALEZ: All of these things, I think, is in advance of them coming and saying something on Tuesday. COUNCILWOMAN COHEN: About what? Not about the lawsuit? MR. GONZAL EZ: No, no, no, no, no. COUNCILWOMAN COHEN: This is a slap in the face. You guys continue to give them, oh, yes, yes, you are a valid applicant. It should be, no, we don't talk to you until we resolve our legal issues. In the private sector, you do that. MAYOR GROISMAN: I know, but we are not in the private sector. I think if that is our position as a village, and we have to be careful now, because this is another thing, but just to say specifically or carefully if that is our position, it needs to be our official position as a resolution or ordinance across the board. We can't deal with specific applicants in Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 33 one way. If we have a blanket ban on considering applications because they are in lawsuits, that is one thing, but to say specific applicants have different issues, we can't do it. MR. WEISS: I will defer to Susan on this, but I don't think you can do ·that. People have a right to file zoning applications. MS. TREVARTHEN: Specifically, we said no to a particular applicant. They are currently banned from coming back for a year for exactly the same thing. That was the application that excluded village hall what was heard in October and denied. That is factually where we are, but I do agree with what Richard is saying that there is background law here that people have a right to petition their government. MAYOR GROISMAN: No one here is advocating a special favor anyway is what you are saying. COUNCILWOMAN COHEN: Correct. MR. GONZALEZ: You don't have to give them what they are asking for. COUNCILWOMAN COHEN: Exactly. MR. GONZALEZ: But they have a right to Ve ritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 34 come and ask. MS. TREVARTHEN: Councilman Salver is just talking about timing. MAYOR GROISMAN: Let's go one at a time. That is what I am saying. For what they said to Jorge in the last meeting, which is as long as Patricia doesn't recuse herself, there is no resolution. If that is the case, there is not really a discussion to have from my perspective because nobody should be recusing on the basis of the allegations they have made. That is not a position. MR. GONZALEZ: Let me make sure I relay it clearly. With respect to the settlement, I asked them, will you drop the cases that are pending. They said, absent that recusal, we are not dropping. With respect to any future application, they felt they are entitled to submit an application. MR. WEISS: I think aside from that issue if we made a proposal to them, aside from that issue, which is a nonstarter, I understand, I am just putting this effort, if we made a proposal to Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 35 them that said, you dismiss your lawsuits, we will schedule whatever application you want for MAYOR GROISMAN: For the summer. MR. WEISS: --for a certain amount of time or something like that. I would throw in there the fact that we are not going to pay their attorneys fees for these public records lawsuits. MR. GONZALEZ: And you sent us to go and negotiate. MR. WEISS: But for the issue with the conflict, I think that is something that they would look at. COUNCILMAN FREIMARK: Coming back to what Assistant Mayor Salver was saying, and I completely agree, absent the discussion of the conflict that I am not minimizing that at all, I happen to agree with what is being said around the table, I think the potential ripening and the threat of a petition from a business perspective has got to stir them to want a timeline to be accelerated to the extent that it can. So I completely agree with that. COUNCILMAN ALBAUM: But then in the back of their minds, Richard, they know they can apply anytime anyway. Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 36 ASSISTANT MAYOR SALVER: The last time they applied, how long did it take for us to hear their application? MAYOR GROISMAN: Last council, last time this came around to have a hearing, it was pushed out probably an additional, just going by memory, six months. COUNCILWOMAN COHEN: Six months. MS. TREVARTHEN: July, they requested. COUNCILMAN ALBAUM: Wait a minute. So, Richard, you are saying if we propose that to them and they agree, we would schedule it within 30, 60 days. That would give them something. MAYOR GROISMAN: Thirty, 60 days wouldn't give us -- MS. TREVARTHEN: There is advertising. COUNCILMAN ALBAUM: I am trying to think what their incentive is to do that. MR. GONZALEZ: Let me kind of lay this out for you. Our work and the time that it would take for us depends on what they submit to us. We don't know that the plan is. We don•t know anything. If it is similar to what was the April plan, then it won't take as much. If it's varying I Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 37 that, then, you know. We don't know that. They do, though, I think recognize that there is an urgency which is that pending petition requirement. They are not going to want something that is going to take eight, 10, 12 months to evaluate and review and be heard. So whatever willingness there is to hear an application, it behooves them to keep the application as close to what we have already seen and as quickly as they can make i t happen and then you all scheduling it for a hearing as diligently as possible. I suspect that on Tuesday, they are going to, or if not on Tuesday, when they meet with you all, they are going to tell you what their thinking is as relates to their plans. COUNCILMAN ALBAUM: What do you mean when they meet with us? MR. GONZALEZ: They are trying to meet with all of you. They are reaching out. COUNCILMAN ALBAUM: In a session like this, you mean? MR. GONZALEZ: No, no, no. MS. TREVARTHEN: Individually. COUNCILMAN FR EI MARK: For the record, I met with them already. Yeritext Legal Solutions 305-376-8800 l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 38 COUNCILMAN ALBAUM: Oh. MAYOR GROISMAN: Did they give you a new plan. COUNCILMAN FREIMARK: They are talking about a new plan, yes. COUNCILMAN ALBAUM: Oh, okay. Well, I got a call to meet with them. Oh, okay. I didn't know why. MR. GONZALEZ: They want a private explanation. COUNCILMAN ALBAUM: There is no ethic, there is nothing MR. SEROTA: You can meet with them privately. We should be careful about how --I think this is still settlement discussions. This is still settlement discussion. COUNCILWOMAN COHEN: It is. MS. TREVARTHEN: We will talk to you offline about that. COUNCILMAN ALBAUM: Okay. MAYOR GROISMAN: Just focusing on this lawsuit because of the privilege issues. So there is nothing on the table from them right now for us to know how long it would take or not take. So to the extent that it is conveyed to Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 39 them that Patricia being recused isn't on the table by way of settlement. MR. GONZALEZ: I told them that. MAYOR GROISMAN: Okay. That is one. Two, as far as scheduling goes, first of all, we can't and we can't do it, in fact, where we seem to be pushing one way or the other because of a petition. Things need to happen in their ordinary course, but that being said, we can agree not unreasonably delay things. Anyway, we are in a vacuum is the point today because we don't have their plan, if their plan is totally different. We also want to hear once they have a plan, I think it's fair to hear from the new members. They are going to want to have their time, if it's the same as they are planning on, to get their hands dirty or into the plans. There's a lot of details in the plans, which you guys will go through and you will understand and you have comments on. You will want to negotiate yourselves. You want that opportunity. But the point is I think we are still in a vacuum today. I don't know why we are here to talk about what settlement terms we have with them Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 40 because we don't even know what the plan will be. MR. WEISS: Just to set expectations, I will reach out to Kent today. I will reach out to the shops advising the chances of having something by Tuesday. MS. TREVARTHEN: That is not happening. COUNCILMAN FREIMARK: It's Friday. COUNCILMAN ALBAUM: Then maybe we shouldn't even have the discussion on the agenda. MAYOR GROISMAN: It's up to you separately. It's your right if you want. Don't bring it up now because that is something we vote on or whatever. That comes before the council, but that is you prerogative . COUNCILMAN ALBAUM: I would just say at this point if something happens before Tuesday, if there is some kind of an arrangement with fees, if that would happen, then I would say we could discuss it and vote. If it doesn't, then I would drop it. MS. TREVARTHEN: At the beginning of the meeting, you can move to amend the agenda. MAYOR GROISMAN: You will have an opportunity to move to withdraw it. COUNCILMAN ALBAUM: But there is something ---------------------' Veritex.t Lega.l Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 41 on the table. MAYOR GROISMAN: You can speak to Richard before the meeting starts since it 1 s your item. COUNCILMAN ALBA UM: Yes, exactly. MAYOR GROISMAN: When we ask for withdrawals, that is up to you. COUNCILMAN ALBAUM: Would it be proper that you, when you discuss it with them, that it could be on the agenda for a vote or is that something you wouldn't necessarily do? MS. TR EVARTH EN: It's already on the agenda. MAYOR GROISMAN: It's on the agenda. COUNCILMAN ALBAUM: I assume they will attend the meeting. MS. TREVARTHEN: That is their choice. MAYOR GROISMAN: They always do. Specifically on this lawsuit, does anyone else on the council who are -- ASSISTANT MAYOR SALVER: I don't know if this is an offline question for the attorneys or it's appropriate here, but when we do meet with them individually, should we be trying to advocate or even talk about settling anything or no? Actually advocate like how you would like to see Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 42 these cases, you know. MR. SEROTA: You mean when you talk individually to them? ASSISTANT MAYOR SALVER: Yes. MR. SEROTA: We should talk outside of this. MAYOR GROISMAN: Let's talk outside of this. We don't want to waive the privilege. ASSISTANT MAYOR SALVER: Okay. COUNCILWOMAN COH EN : We can't really talk outside of this meeting. MAYOR GROISMAN: You can separately. COUNCILWOMAN COHEN: But I want to say as a blanket that if I were in your shoes and I was being called, I would say, you know something, I have no love lost for you. Your behavior is simply antagonistic and it's really not in the spirit of cooperation. MAYOR GROISMAN: I just want to cut you off because I don't disagree with what you are saying, but we have to talk about just this lawsuit. COUNCILWOMAN COHEN: It is. MAYOR GROISMAN: No, it's not. I think we are crossing the line. I don•t want to waive this important discussion's privilege. Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 800-726-7007 Page 43 COUNCILWOMAN COHEN: We are talking about negotiations with Bal Harbour Shops. That is exactly what we are talking about. MAYOR GROISMAN: But we can't talk about negotiations with Bal Harbour Shops for their application exclusively. COUNCILWOMAN COHEN: Let's not talk about the application. Let's talk about the spirit, the optics thing that Jeff was saying. MAYOR GROIS~AN: The lawsuit. COUNCILWOMAN COHEN: Yes. If we as a council in unison collectively, the spirit was we stand up for each other, we respect each other, and you won't harass us, believe me, you start getting a different reaction on their part. MAYOR GROISMAN: I don't disagree with your thought. Okay. Anyone else? The attorney/client session has now been terminated and the meeting is now open. The public is now invited to return for any further proceedings, although there are none. We are off the record. (Thereupon, the proceedings were concluded at 9:25 a.m.) Veritext Legal Solutions 305-376-8800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 44 C E R T I F I C A T E I, Mary G. Stephenson, FPR, State of Florida at Large, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true and complete record of my stenographic notes. Dated this 3rd day of January, 2017. Mary G. Stephenson, FPR Veritext Legal Solutions 800-726-7007 305-376-8800 [& -available) _a ___ --1-I 3 1:22 35:23 36:10 a.m. 1:20,203:6,22 36:1737:16,40 I& & 2 :12 I 43:25 38:1,6,} },20 40:8 ____ ______c able 27:15 40:15,25 41:4,7,14 0 09 1:164:4 --------absent 34:17 35:15 aligned 17:l 1 accelerated 35:21 allegations 34: 11 10 37:5 accounts 10:22 alleged 5:6,11 13:2 100,000 19:22 act 5:19 13:3 J2 37:5 action 4:2S 7:ll alleging 10:13 132 9:10 11:1812:24l3:2 allowed 10:9,10 16 1:19 14 :3 16-18499 J: 16 4 :4 actions 8 :9 17th 6:10 13:9 add 21:1 allowing 20:20 allows 10:14 amend 40:22 Page 45 1 approaching 31: 14 appropriate 23:16 41:22 approved 15: 16 approving 17:18 april 5:1536:24 area 25: 10 arguing 12:21 argument 11:21 arguments 6:14 12:7,21 21:1 arrangement 40: 17 arrangements 22:7 2 additional 36:6 amount 35:4 aside. 34:22-,23 ------- 2016 1:19 5:15 addressed 17:10 2@17 44:11 adjourn 31 :12 20th J 6: J 1 administrative 235 22:9 7: 12 286.01_1 _4 ~:2 __ -------il advance 32 :6 3 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