Ex-Lake Worth mayor sues city over 2 property sales
By Tanya Wragg

Read the full story in the Palm Beach Post Friday, July 15, 2005 edition.

LAKE WORTH — City officials violated the Sunshine Law and did not follow city code when they sold a downtown parking lot and the former site of the First Union Bank building to a developer, according to a lawsuit filed in circuit court Thursday.

The suit claims city officials illegally sold a parking lot at 601 Lucerne Ave. and the First Union property at 114 J St., by hosting "closed door" sessions with JLS reps.

Exline is asking the court to void the sales and order the developer to turn ownership of the properties back to the city. If the city wants to sell the property, it's going to have to go to referendum, said Exline's attorney, Frank Kreidler.

Kreidler also said his client is not alleging JLS or LPLW did anything wrong. They were mentioned in the suit because they hold title to the property.

City Manager Paul Boyer would not comment Thursday afternoon. Neither would Evans, who said he hadn't looked at the lawsuit. But, he said: "I think Mr. Exline knows... what the damages could be for a frivolous lawsuit."

The suit alleges Boyer, then-CRA Director Corey O'Gorman — and for awhile, former Mayor Rodney Romano — met for six hours before the city commission's Aug. 3 meeting and drafted a "motion" that directed staff to negotiate with JLS for the sale of the First Union property with the mayor's input and language modifications.

Then, Boyer called each city commissioner individually for their comments and refinement. No one took minutes of the meeting, nor was the public properly notified.

Also, the meeting was not open to the public, and later that evening, the motion was added to the agenda without proper notice, the suit claims.

"If I conferred with other members of the commission outside a meeting, that's how you break the Sunshine Law," said Romano, who is an attorney. "I'm fairly confident that all the commissioners I served with have always done what's legally and morally right.

"The city manager, of course, briefs every member of the commission as to agenda items and he may have some sense of what a commission or how commissioners are leaning. But he's never acted as a conduit."

O'Gorman, who no longer works for the city, said all CRA business was conducted "aboveboard."

"That doesn't mean anybody can't sue for anything at anytime," he said.

The suit also claims that on Aug. 7, Boyer polled each commissioner about calling a special meeting for Aug. 10 regarding the sale of the First Union property after Commissioner Joe Egly asked to reconsider the sale.

The decision not to hold the special meeting was made in private and therefore, violated Sunshine Laws, the suit says.

As for the parking lot, the city entered into a contract March 3 and signed a warranty deed March 7 — the day before voters overwhelmingly voted for a charter amendment that prohibits the sale of parks, downtown and waterfront property without a referendum.

By law, the city has to wait 30 days before executing a contract, the suit contends.

Romano said he's never heard of the law.

Additionally, the suit says the city commission never legally declared either property surplus — which is required to sell city-owned property — nor did it receive a recommendation from the Planning and Zoning Board, or collect the 5 percent deposit required by city law.

Lawrence McNamara, a spokesman for Save the Town and Waterfront of Lake Worth, the activist group that fought both sales, said: "It's gratifying because the business decisions were really very poor in my estimation."

However, Maryanne Webber of The Lake Worth Alliance, said both of Evans' projects will be an asset to the community and she was sorry to hear about the lawsuit.

"I hope things can get worked out," she said. "It only serves to drain the resources that we can be utilizing elsewhere for positive steps for our future."

The commission voted to sell Evans the First Union property last August for $1.47 million.

Evans planned to build 36 three-story townhomes there. In March, he closed a deal for the parking lot at 601 Lucerne Ave. for $564,000, where he planned to build nine loft apartments and 7,000 square feet of retail space.

Construction has yet to begin on either of the projects, but Evans has already torn down the First Union Bank building.

Read the full story in the Palm Beach Post Friday, July 15, 2005 edition.