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12-01-1998 VC SP-MMINUTES OF SPECIAL SESSION OF THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA HELD TUESDAY, DECEMBER 1, 1998 • Present: ROLL CALL David B. Norris, Mayor Charles O'Meilia, Vice Mayor Dr. Edward M. Eissey, President Pro Tem Gail H. Vastola, Councilman Joseph A. Tringali, Councilman Dennis W. Kelly, Village Manager George W. Baldwin, Village Attorney Kathleen F. Kelly, Village Clerk Mayor Norris called the meeting to order at 5:36 p.m. All members of Council were present. All members of staff were present. - RECESS FOR ATTORNEY-CLIENT SESSION Mayor Norris announced that the Village Council would recess and go to a closed Attorney-Client Session regarding Crystal's lawsuit, with an estimated time of 30 minutes. . Mayor Norris also announced that the Attorney-Client Session would be attended by Special Counsel Thomas Baird, Village Attorney George Baldwin, all Village Councilmen, and Village Manager Dennis Kelly. RECESS The Special Session of Council recessed at 5:38 p.m. The Special Session reconvened at 6:10 p.m. Mayor Norris announced that the Attomey- Client Session had terminated. BILL 637 -AMENDING BUDGET FOR RADIO SYSTEM UPGRADE FOR PUBLIC SAFETY FACILITY -PLACED ON FIRST READING President Pro Tem Eissey moved that Bill 937 entitled: AN ORDINANCE OF THE VILLAGE OF NORTH PALM BEACH, AMENDING THE NORTH PALM BEACH GENERAL FUND BUDGET FOR THE FISCAL YEAR 1998-99 TO APPROPRIATE FUNDS IN THE AMOUNT OF $75,000 FOR THE UPGRADE OF POLICE DEPARTMENT RADIO SYSTEM . be placed on first reading and read by title alone. Councilman Vastola seconded the motion. Minutes of Special Session held Tuesday, December 1, 1998 i As part of the discussion, the Council reviewed the summary of projected costs associated with the completion of the new facility. The consensus of Council was to transfer funds from Council Contingency at this time, but to replenish that account as soon as possible. Thereafter, the motion passed 5-0. BUDGET TRANSFER APPROVED FOR DISPATCH CONSOLE Vice Mayor O'Meilia moved to approve a budget transfer in the amount of $3,875 from A571 1-6641 5 (Computer Hardware & Software) to A5711-66440 (Audio-Visual Communications systems) for the purpose of covering cost increase for dispatch console at the new Public Safety facility; cost to be reimbursed by Palm Beach County. President Pro Tem Eissey seconded the motion, and all present voted aye. CONSTRUCTION PHASE AUTHORIZED FOR COUNTRY CLUB REMODELING Vice Mayor O'Meilia moved that authorization of the construction phase for remodeling of the Country Club be taken from the table. Councilman Vastola seconded the motion, and all present voted aye. Councilman Tringali moved to accept the schematic and design development phase for Country Club remodeling and authorize construction documents phase to be completed and submitted to Council in 60 days. President Pro Tem Eissey seconded the motion. Architect Stephen Boruff reviewed a revised schematic and design drawing to the Village Council. It was suggested to the Council that the storage area and new snack bar be modified to create room for the restauranteur's office. Further discussion included adding canvass awning on the north side of the building over the cart-staging area. Thereafter, the motion passed 5-0. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 7:25 p.m. K thleen F. Kelly, CMC, Villag clerk THE PALM BEACH POST Published Daily and Sunday West Palm Beach, Palm Beach County, Florida • PROOF OF PUBLICATION STATE OF FLORIDA COUNTY OF PALM BEACH Before the undersigned authority personally appeared Linda M. Francis who on oath says that she is Classified Suoervisor of The Palm Beach Post, a daily and Sunday newspaper published at Wesi Palm Beach in Palm Beach County, Florida; that the attached copy of advertising, being a N°tice in the matter of Public Meeting, Attorney -Client Session in the ---- Court, was published in said newspaper in the issues of November 26, ]998.- Af£ant further says that the said The Post is a newspaper published at West Palm Beach, in said Palm Beach County, Florida, and that the said newspaper has heretofore been continuously published in said Palm Beach County, Florida, daily and Sunday and has been entered as second class mail matter at the post office in West Palm Beach, in said Palm Beach County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that she has neither paid nor promised any person, fain or corporation any discount rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Sworn to and subscribed before me this day of November A.D. 1998 11~~~ Personally known X~C or Produced Identification Type of Identification Produced j 7~ 7 7 7 77 / 7 7 7 7 7 8 7 A7 N! 7 7 N 7 7 7 7 7 7 7 7 7 7 7 7 777 A l7 A7 7 i; ~ O1pRY PUB Kazen IvicLinton < s ° Mowry Public, State of Florida ; ` CoLT.missian No. CC 597337 >' ;~'kor Flop My Commission &%p.lUt572011Q; LBC9.}.NOTARY Fla Nolsry Servi¢ k Bo'd'wQ Co. ~ S)») s))NA))11)))))))N))1)))U))))))))))))))U)U ' 'Y- NO, $$92]1 VILLAGE OF N.OP'RI.PALM BEACH -- PUBLIC NOTICE ~]IEClTr1ENS AND PROPERTY `aWNEH3 OF THE VILLAGE OF -)(ORTN PALM BEACH AND. , 9NTERESTED CFRSnue ~ I WuHGILMEN GAIL M. 'VASTOL~ AND JOGEPH A. INGALI, MILL CONVENE AN pPEN MEETING OF THE NORTH PALM BEACH VILLAGE COUNCIL ON TUESDAY, DE-~ CEM9ER 1, 1983 AT 5:30_ P.M., AT WHICN TIME THE VIL-- LADE COUHCIL WILL AN- NOUNCE ITS INTENTION TO MEET IN A PRIVATE PTTOR-- NEYCLIENT SESSION WITH ITS WLLAGE ATTOPNEY GEORGE W. BALDWIN, AND RS LITIGATION ATTOPNEY TXOMAS J. BgIPD, TO DI& CUSS PENDING LITIGATION STYLED WLLAGE OF NORTH PALM BEACH V. 421 HOPTH- LAKE BLVD CORP.. O/B/A CPYSTAL'S BAR AND GRILL SION WILOLRBE YHELIDNPUPSU- ANT TO FLA. - STAT. 238.011(9) ON DECEMBER 1, te99, AT APPRO%IMATELY 5:30 P.M.. AT TXE VILLAGE HALL, E01 US. HIGHWAY 1, NORTH PALM BEACX, FLORI- DA. TXE PRIVATE ATTOPNEY- CLIENT SESSION IS ANTICI- PATED TO LAST FOR APPRO%IMATELY 30 MIN- UTES. ALSO, BE ADVISED THAT AT THE CONCLUSION SESSION AT PP O%IMATELY 990 P.N., OR AS SOON TNEPEAFTER AS POSSIBLE. THE VILLAGE COUNCIL WILL MEEOT NGENI'O OISCUSSU ANY 'MATTEPS WHICH REMAIN ON 'ITS AGENDA.. ~'RnlM1ban F. KAlly, CMC 2 3 4 5 6 7 8 9 10 11 12 13 14 15 M 16 co T O 17 N O O O Co Q 18 U C'3 2 19 06 Cc III a 20 a Ir 21 Q 0- I 22 Ir W Co 23 0 0 24 2 CC Q 25 1 VILLAGE OF NORTH PALM BEACH TOWN COUNCIL SPECIAL SESSION December 1, 1998 5:40 p.m. - 6:05 p.m. ATTENDEES: ORIGINAL MAYOR NORRIS COUNCILOR O'MEILA COUNCILOR BALDWIN COUNCILOR EISSEY COUNCILOR VASTOLA CONCILOR TRINGALI TOWN MANAGER KELLEY TOWN ATTORNEY BAIRD LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M Cl) O N O O O 00 0 U U LL 06 Cr W ILCLQ U) W 0 (L W ir rr W U) 0 O 2 Cc 0 LL 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 Vj P R O C E E D I N G S MAYOR NORRIS: We are now in our special session, attorney/client session. We are all present here. Village council is here, Village attorney, Village manager. We will turn it over to Mr. Baird. MR. BAIRD: Thank you, Mayor. I asked for this session in part to update you and also in case there were any settlement discussions that needed to take place, as we are in the trial docket period of the Crystals lawsuit. There have been not been any offers to settle the case made by Crystals or their attorneys, and we have not made any settlement offers or overtures to them. However, a couple of critical motions in limine were ruled upon two weeks ago, approximately two weeks ago, and I wanted to update you on -that and let you know what we anticipate in terms of both the trial docket and the issues as they have crystallized --,'no pun intended -- in this case. The motions in limine were brought by Crystals attorneys, and they sought to do two LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co M O O N O O O O 0 U C'3 W 2 06 Cc W a. Q a. U oC W ir 0 a W M cc W U) J O O U cc 0 IL 3 1 things in terms of evidence. 2 First I should explain that motions in 3 limine are motions that are brought prior to or 4 concurrent with a trial and they are intended to 5 limit the testimony and/or evidence that is 6 presented to the court. 7 As such, we were faced with two motions 8 which could have severely constrained the case 9 that we propose to put before the court. 10 The first motion had to do with the 11 prevention of any amendments to the Village 12 code. 13 You will recall that you amended your -- 14 you adopted two ordinances which had the effect 15 of liberalizing the adult entertainment 16 regulation so as to provide additional 17 opportunities for the location of adult 18 entertainment businesses within the village. 19 That motion was argued and it was denied 20 by Judge Cook, which of course is very 21 beneficial to the Village because, obviously, if 22 the amendments were not going to be considered 23 by the court, then the court could not consider 24 the two alternative sites that we had previously 25 intended to demonstrate to the court makes the LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 _M M O N O O O co 0 U C'3 LL 2 06 Cr W a W 0 CL LU CC Cc W U) Q J O O U Cc 0 LL 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 4 ordinances constitutional. The second motion was to prevent the Village from presenting any testimony in regards to sites outside of the Village. And as you may recall from our prior discussions, this is an evolving area of the law. We recently had a very positive opinion in Jupiter regarding the relevance of considering sites outside of the Town of Jupiter, where Judge Middlebrooks in that case held that that was relevant for largely residential, small communities. That motion, too, was denied. Consequently, we are going to be able to put on evidence that shows that not only are there sites available in North Palm, but there are approximately seven sites within a two-mile radius outside of the Village that are available, and anywhere up to eighteen sites within a ten -mile radius. Now, the court may make some rulings when we get into trial as to how far away from the Village you can go. But that ruling is critical in terms of us presenting our case, and in terms of really making some new law in this area that LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M O O N O O O O 0 U (3 U_ 2 06 ir W CL Q U) CC W 0 CL W M Ir W U) Q J O O cc 0 5 1 would benefit not only this Village, but other 2 small communities that are faced with this 3 situation. 4 I attended calendar call last Wednesday. 5 The court made us number one on the docket and 6 said that we would start trial Monday, this past 7 Monday at 1:30. 8 We did not start trial at 1:30 on Monday 9 because after the court made that statement, 10 Judge Cook announced that he would not be trying 11 the cases that he was setting for Monday and 12 Tuesday of his docket; that Judge Carlisle would 13 be substituting for him. 14 At that point, having just gone through 15 the arguments on the motions in limine and 16 several other arguments regarding evidentiary 17 matters and having had Judge Cook involved in 18 this for two years, we asked the court if there 19 were another day that we could try the case 20 because we want Judge Cook to hear the case. 21 We did not want to be in a position of 22 turning a one -day case into a two or three-day 23 case because we would have to go through all of 24 the same arguments that we have previously made 25 to the court, the court has understood them and LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M Cl) T C0 N O O O O 0 U 6 LL 2 06 W Q w 0 w Cr Cr W 0 O U cc 0 H- 6 1 the court has ruled upon them, and we were quite 2 confident that if we had a new judge brought 3 into the case, we were going to be revisiting 4 two years of litigation. 5 Consequently, Judge Cook agreed to put us 6 on his jury trial docket which begins the week 7 of December 7th. It's a two-week docket. And 8 we would be the first case to go to trial in the 9 event one of the jury trial cases settled that 10 week. 11 There are a couple of cases that look like 12 they may settle or that may not take as long as 13 they estimate that they will take, including one 14 case which my co -counsel's partner is involved 15 in, which is estimated to be a one to three-day 16 case, which he believes may settle. 17 So while I am not willing to say that I am 18 confident we will go one of those two weeks, I 19 think chances are pretty good, because this is 20 the time of year where cases for damages often 21 settle before the end of the year; many people 22 would like to have whatever income may be coming 23 to them before the end of the year. 24 So we are on call, which basically means 25 that beginning December 7th I can receive a call LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 Cl) Cl) O N O O O O 0 U C3 LL 2 od W Q U) W cc 0 (L W W U) Q J O O U 0 LL 7 1 from the judge at any time saying, "Be here at 2 1:30," or, "Be here at 9:30" to start trial in 3 this case. 4 If we do not go on this docket, we will 5 not go until a February docket. But, again, my 6 feeling, at least, is that I would rather be in 7 front of Judge Cook and try this case because we 8 have had some, I think, good rulings for us and 9 I think he has a very good handle on the issues 10 of law that we are going to be arguing. 11 The issue of law as it's shaping up at 12 this point comes down to this: 13 We have now amended our ordinance. You 14 have now amended your ordinance. You have done 15 what you can to.make that ordinance as 16 constitutional as possible, given the 17 constraints that the Village code imposes on the 18 separation of adult businesses from various 19 other uses. 20 The issue that the court is going to look 21 at and that we are going to argue is: Are those 22 sites, specifically the Mobil Lube site;and the 23 Ed Morse Chevrolet sites, really available in 24 the real estate market for either acquisition or 25 subdivision or to be made use of by an adult LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co M O N O O O O 0 U 0 LL 2 06 cr W CL X W 0 n W X cc W U) Q J O O U Cc 0 LL 8 1 entertainment establishment? 2 And that's a question that is unsettled in 3 the law. Because we have supreme court opinions 4 that say that proprietors of adult entertainment 5 fend for themselves in the marketplace, and then 6 we have other opinions that discuss issues about 7 whether the site is suitable in term of its 8 geography, its size and other criteria that the 9 courts will apply. 10 My best evaluation of what we have at this 11 point is that the -Mobil Lube site probably is a 12 site that the court can find as commercially 13 available in the real estate market. 14 The Ed Morse site, because of its size, 15 because of the cost to acquire that site, I 16 think is a less -- legally a less available 17 site. 18 But nevertheless, if the court finds that 19 one site is the present site where Adult Video 20 Warehouse is, and the second site is the Mobil 21 Lube site, then under the law as it has been 22 evolving and as we have discussed here holds, 23 there would be two sites per 12,000 population, 24 which would put us in that constitutional range. 25 And I think you have done at this point LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M O N O O O O 0 U 6 LL W Q U) W F- ir 0 (L W W U) Q J O O U 0 LL 9 1 the best that you can to make the best case that 2 the ordinance is constitutional. 3 Another development and an important one 4 as I reported to you last time is that following 5 the filing of our second amended complaint, 6 which was filed simply to include the amendments 7 that you made to your code into the complaint, 8 the Defendants filed an answer to that second 9 amended complaint and affirmative defenses; for 10 the first time they did not file a counterclaim. 11 I believe that was an oversight. 12 In this case, instead of Mr. Wilson, who 13 is the lead counsel in this case, filing the 14 responsive pleadings, Mr. Kaplan filed the 15 responsive pleadings. 16 We don't know whether they are aware of 17 the omission, and we certainly are not going to 18 -- "we" being Mr. Hendricks and I -- we 19 certainly are not going to point that out to 20 them. 21 MR. EISSEY: Can they change that later? 22 Excuse me for interrupting. 23 MR. BAIRD: Yes, sir, they can seek to 24 amend their answer to file that counterclaim, or 25 they might during the course of the trial seek LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 Cl) M O O N O O O W 0 0 6 LL 2 06 Cc W ILQ U) ir W 0 W cc cc W Q J O O U cc 0 LL 10 1 to have the judge conform their answer and 2 affirmative defenses and counterclaim to the 3 evidence that has come into evidence. 4 But unless they raise it, certainly we are 5 not going to raise it. 6 The most significant aspect of that really 7 has to do with attorney's fees, because under a 8 Section 1983 claim, which was what their 9 counterclaim was previously, if you prevail, 10 then under Section 1988 of the federal code you 11 may be awarded attorney fees. 12 And the attorney fees in this case could 13 be significant because of the length of the 14 litigation and because they have two lawyers 15 involved in the case, one of whom in the 16 marketplace probably commands an hourly fee of 17 $200 to $250 an hour because he has litigated 18 these cases nationally. 19 But the other significance of the attorney 20 fee aspect is that we had a change in parties in 21 the summer, where Co & Co Enterprises, the 22 previous counterplaintiff, was essentially 23 dismissed or left the case, and 421 Northlake 24 Corporation, a new party counterplaintiff, came 25 in. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 Cl) M O O N O O O O 0 U C`3 W 2 od W Q a Ir W cc 0 a W cc ir W Q J O O cc 0 11 1 So in the event that there is an issue 2 with respect to attorney fees, we would be 3 seeking to measure those fees, in the event we 4 did not prevail from the time 421 Northlake 5 became a party, and not going all the way back 6 to the beginning of the case, because Co & Co is 7 no longer a party. 8 That's really the extent of what I have to 9 tell you about the status of the case. 10 I think it's certainly significant that we 11 are going to be able to put on that evidence 12 outside of the Village. Whether the court 13 ultimately is going to accept that or not is 14 open to debate, certainly, given the case law, 15 but I think it gives us the best opportunity to 16 present our case in the best light, which is: 17 You should not look at the Village of 18 North Palm Beach in a vacuum. You should look 19 at the Village within the context of what it is, 20 which is a metropolitan area, and evaluate the 21 opportunities for expression of your first 22 amendment rights within that context and not a 23 vacuum. 24 So if you have any questions, I would be 25 happy to address them. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co co O N O O O co 0 U U LL 2 06 cc w a U) cc W 0 a W cr W U) Q J O O 0 1 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 12 MAYOR NORRIS: So we are on the December 7th docket? MR. BAIRD: We are in the docket now. MAYOR NORRIS: How long of a docket is that? MR. BAIRD: It goes through, I think the last day is Christmas day, the 25th, although obviously the courts aren't open that day. MAYOR NORRIS: It's on like half a day call or something? MR. BAIRD: Yes. There are only four cases that are on that docket, but one of them is a seven or a ten-day case, which has already started. MR. TRINGALI: Which is starting? MR. BAIRD: Has started. MR. TRINGALI: Has started. MR. KELLEY: Could I just for clarification purposes: We initially argued for temporary injunctions on three issues, and we were awarded two of those temporary injunctions by Judge Cook. And Chris has corrected those, and those -- of course the third injunction was the zoning issue. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M Cl) O O N O O O W 0 U d a 06 cc W Q a cr w Cc 0 a w cc W J O O U Ir 0 LL 13 1 Now, are we still arguing the injunctive 2 relief.or are we still arguing the ability to 3 shut them down if he rules in favor of a -- I 4 mean, we are not asking for a permanent 5 injunction; is that correct? 6 MR. BAIRD: That's correct. 7 MR. KELLEY: As opposed to a temporary at 8 this stage? 9 MR. BAIRD: What we are arguing is that 10 under the Village code as amended the Crystals 11 establishment cannot be located where it is 12 located as an adult entertainment establishment 13 because it's within 2,000 feet of Adult Video 14 Warehouse. 15 And the reason, again, that the amendments 16 were necessary is because without the 17 amendments, the Village's ordinance would likely 18 have been found unconstitutional because there 19 would not have been any locations other than 20 where Adult Video Warehouse is where you could 21 locate a facility. 22 MR. KELLEY: Now, if we prevail, do we 23 have to go through a separate.action to get some 24 kind of injunction order to shut them down or 25 would they have the opportunity to apply for an LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co co O N O O O co 0 U U 06 ir W a.Q cr W 0 n W Cc fr W J _O U cc 0 W 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 14 appeal and continue operating until they get to their appeal? MR. BAIRD: Well, in our -- what we would wind up with if we prevail is a final judgment with a permanent injunction enjoining them from operating their facility. They could ask for a stay of that judgment pending appeal. MR. KELLEY: I see. MR. BAIRD: Whether the court would grant that, I can't say. It could be an evidentiary hearing, I suppose, as to the damages or the prejudice that they would incur by having to close while they are litigating on appeal. And considering that they have been an operating business in the Village for approximately two and a half years, you know, the court might take that into consideration as to whether or not they should be closed pending the appeal. MR. TRINGALI: Then the court would also have to consider the likelihood of success on appeal. MR. BAIRD: Sure. MR. TRINGALI: That's one of the factors. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M Cl) O N O O O O 0 U U W 06 Er W Q Cc W Ir 0 n W M W Q J O _O U Cc 0 15 1 MR. BAIRD: And in this case Judge Cook 2 has already acknowledged that he believes that 3 this case is going up on appeal. I think that's 4 one reason that he has let into -- is going to 5 let into evidence these issues about whether it 6 is outside, the sites outside of the community 7 are available or not, because he recognizes that 8 this law is evolving and has changed, in some 9 cases dramatically, since 1986. 10 MS. VASTOLA: Let me ask you, John: 11 The owner there, is it still John Tauff 12 (phonetic); does he still own that building? 13 MR. BAIRD: My understanding is that he 14 sold that building. 15 MS. VASTOLA: Oh, did he sell that 16 building? 17 Do we know who bought it? 18 MR. BAIRD: Easy enough to find out, but 19 I don't have the name. 20 MS. VASTOLA: We haven't heard from the 21 owners about trying to get them out? 22 MR. KELLEY: I don't know the owner's 23 name. The only thing I know about the owner is 24 he is a Korean or Asian of some type. 25 MS. VASTOLA: When did it sell; do you LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co co O co N co(D O O 0 U C'3 LL 2 06 cc W Cra a W cc 0 CL W Ir W Q J O O U 0 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 16 know? MR. KELLEY: Six, eight months ago. MR. BAIRD: After we cited Mr. Tauff for code violations. MR. BALDWIN: Do we know what kind of lease they have over there? Has that come out in the pleadings or in the depositions? MR. BAIRD:. Yes, I have a copy of the lease. And I want to say it's a five-year term, but I am not positive. MAYOR NORRIS: Any other questions? MR. EISSEY: How many years do they have to go on the lease? MAYOR NORRIS: I am sure thev have renewal options. MR. BALDWIN: They have options; they could have options in the lease, I guess so. MR. BAIRD: If the lease was assigned by Co & Co to 421 Northlake, Co & Co began operation in, I believe it was April of 196, so if it was a five-year term that was assigned, then it was through 2001. But there is`five- year options, I am sure, that are part of that. MR. O'MEILIA: What is the status of their liquor license; do you know? LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M O O N CO O O O 0 U C'3 W 2 o6 Er W Q U) ir W 0 a - W W Q J O O 0 17 1 MR. BAIRD: The liquor license was 2 transferred from Co & Co to 421 Northlake. 3 Carmona had, Mr. Carmona -- Mr. Carmona to me -- 4 had to transfer that -license as part of his 5 consent decree with Alcohol, Beverages and 6 Tobacco. 7 MR. O'MEILIA: That's what amazes me, 8 still amazes me, is the fact that they are 9 sitting over there for all these years with a 10 temporary license, with a temporary liquor 11 license. That's beyond my belief that that 12 could happen. 13 I mean, there is no way we could get it, 14 any one of us could get a temporary liquor 15 license and keep it for all these years, keep 16 transferring. And that's just beyond me. I 17 just don't understand how that can happen. 18 MS. VASTOLA: Do we have any control over 19 that? 20 MR. BAIRD: The best control that we would 21 have would be to ask ABT to conduct the same 22 kind of investigations they conducted 23 previously. And assuming they have enough 24 undercover agents left to conduct those 25 operations, the same violations or infractions LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M O N O O O co 0 U 6 LL 2 06 cc W a a (L U) Ir W cr 0 a w rr W U) a J O O U cc 0 LL 18 1 of state law would probably be discovered and we 2 would be back in the situation of 421 Northlake 3 having to reach some kind of consent decree with 4 the department. 5 That's probably not -- you know, it's not 6 a bad idea to ask them to look at it. 7 MS. VASTOLA: Why not? Why don't we have 8 them look into it? What the heck? What have we 9 got to lose? 10 MAYOR NORRIS: Definitely. 11 MS. VASTOLA: I would have them look into 12 it. 13 MR. O'MEILIA: My point is: There was a 14 guy that had the first license there years ago, 15 I mean, he had a permanent liquor license. And 16 then when he sold that place, he transferred the 17 license on a temporary basis, as I understood 18 it. It must have changed hands ten times. 19 And the judges out here three times told 20 him they were in violation of the adult 21 entertainment license; they had to get their 22 license or close down. 23 They changed it over. They just swapped 24 it to some other guy and changed the license 25 with it. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M M to N (D O O M 0 U C7 LL 2 06 rr w a a C* cr W 0 a W UJ J O O U Cc 0 LL 19 1 MR. VASTOLA: Can we look into that, 2 Dennis, the license? 3 MAYOR NORRIS: Look into that. 4 MR. KELLEY: Yes. 5 MS. VASTOLA: I think we ought to make 6 life as unpleasant as possible. 7 MAYOR NORRIS: Sure, sure. 8 MR. O'MEILIA: Sooner or later I think we 9 need to, like I said, we need to look at that 10 ordinance and do away with the alcohol part of 11 it. 12 MR. TRINGALI: That's the ultimate 13 solution. 14 MR. O'MEILIA: I think we ought to go 15 ahead with it anyway. 16 MS. VASTOLA: Can we go ahead and do that? 17 Can we create an ordinance now? 18 MR. BAIRD: Well, West Palm just adopted 19 one last night. 20 MS. VASTOLA: Then I ask that we put it on 21 the next workshop; not that we will get to it, 22 but... 23 MR. O'MEILIA: I already asked. 24 MR. TRINGALI: Before we do that, is that 25 going to impact on the lawsuit here? LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 Cl) M O N O O O W 0 U U LL 2 W Q cr W F - Ir 0 CL W cc W U) Q J O O 0 LL 20 1 MAYOR NORRIS: The trial? 2 MR. TRINGALI: Is it going to look like we 3 are somehow -- we know that we are in a weak 4 position so we are trying to bolster... 5 MS. VASTOLA: Is going to affect you in 6 any way if we go ahead and create an ordinance 7 that they can't have liquor in an adult 8 enterainment establishment? 9 MR. BAIRD: I don't think for purposes of 10 the trial, that hopefully will be occurring in 11 December, it's going to have an effect. 12 If we are rolled over to the February 13 docket and you adopt the ordinance in the 14 meantime, it might be that they seek to amend 15 their counterclaim, assuming they discover they 16 don't have a counterclaim, to incorporate a 17 challenge to that ordinance as well. 18 MS. VASTOLA: Yeah, but we can workshop 19 it. We can workshop it and have one reading, 20 can't we; just hold off on the second reading? 21 MR. EISSEY: Still do the same thing. 22 MR. BALDWIN: I kind of think we would be 23 better off -- 24 MS. VASTOLA: Well, that's what I thought 25 we were doing, was holding out. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 m co O CD CV T O O co 0 0 C7 U- 2 06 cc W a W Ir 0 a W cc Ir W Q 0 0 U cr 0 W 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 21 MR. TRINGALI: Let sleeping dogs lie. MR. O'MEILIA: We are so close to the trial date, but I -- we need to get rid of that. We need to unscrew that regulation somehow. MAYOR NORRIS: What we were doing is waiting until we got through this to deal with those things. MS. VASTOLA: That's what I thought, but it's taking forever. MAYOR NORRIS: -- take another shot at it. Okay. Is that it? MR. O'MEILIA: So we just keep our fingers crossed and hope everybody settles out and we get to trial on December 7th. MAYOR NORRIS: And you will let us know, obviously, so whoever wants to be there can be there? MR. BAIRD: Right. MAYOR NORRIS: Somehow we need to get the word out, because people in the community are going to want to be there, as well. I don't know how you will do that. MR. TRINGALI: Don't worry about it. We can take care of that. MR. KELLEY: I've got a phone list in my LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 M M O N O O O O U C3 LL 2 06 Cr W ILQ U) cc W ir 0 CL w cc, W U) Q J O O U cc 0 LL 22 1 file. We will just call them and let them know. 2 MAYOR NORRIS: All right. 3 Are we done? 4 MR. BAIRD: Yes, sir. 5 MAYOR NORRIS: Over six owe five p.m 6 - - - 7 (Thereupon, at 6:05 o'clock a.m., the 8 special session was adjourned.) 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401 co co O O N O O O O 0 U C3 06 w a a U) CC W ir F- O CL W oG Cc W U) Q J O O U cc O 1 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 23 C E R T I F I C A T E THE STATE OF FLORIDA,) COUNTY OF PALM BEACH.) I, Jane Pastore, Registered Professional Reporter, do hereby certify that I was authorized to and did report the above meeting at'the time and place herein stated, and that it is a true and correct transcription of my stenotype notes taken during said meeting. Dated this 4th day of January, 1998. Jane Pastore, RPR LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500-B WEST PALM BEACH, FLORIDA 33401