NSBNEWS.net photo by Sera King. New Smyrna Beach City Attorney Frank Gummey told the City Commission it is his opinion that the city's 99-year lease with the Angler's Club is legally binding, regardless of whether it once had discriminatory membership policies and is not paying current fair-market value to use the municipal waterfront property.
NEW SMYRNA BEACH -- City Attorney Frank Gummey was instructed by the City Commission earlier tonight to meet with the attorney for the Angler's Club to review the private boating entity's lease with the city to ensure it meets all legal requirements and does not discriminate.
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he commission he has reviewed the provisions of the 99-year lease signed with the city decades ago to use the municipally-owned waterfront property on the North Causeway for $25 annually, a deal that some have questioned as possibly discriminating against minorities.
"My conclusion is no different than I have previously advised you," he said. "If you are not satisfied with the lease agreement, see if there is an opportunity to discuss your concerns."
And that is exactly what he will do, the commission decided.
Critics of the Angler's Club also have questioned whether it is paying its fair share of taxes, especially in current economic times where the city couls use additional revenue.
The lease has been criticized by several residents in recent meetings, especially its membership provisions, which decades ago allowed only white men, 21 or older.
Gummey was quick to point out that even though the discrimination provision has been deleted from the lease, "the club, which operates as a social membership organization and does not have any female or black members, does not appear to be in violation of nondiscrimination provisions of federal tax law or state law." That's because it has fewer than 400 members, a pre-requisite for stricter scrutiny.
City Commissioner Lynne Plaskett, who has questioned the legitimacy of the lease, said she's hopeful Gummey's further review will prove fruitful and avoid potential litigation. The commissioners had planned to review proposals by various outside attorneys to investigate the legalities of the lease at an initial expense of $20,000, but after speaking with their own attorney again, decided to let him report back his findings.
"Mr. Gummey will sit down and have discussions with the club through their attorney," Plaskett said after tonight's 90-minute workshop in the Utilities Commission building. Commissioners were initially reluctant to stay in-house with Gummey because he had initially said he believed the lease was legal and binding, a position he has not strayed from.
Commissioner Randy Richenberg said he was unhappy that Angler's Club representatives have not clarified such issues. Richenberg did not return a telephone call for comment after the meeting.
In other action, the commission agreed with Interim City Manager Khalid Resheidat's request to hold off on serious budget cut discussions among the various departments so he can query various supervisors about their needs and ways they believe spending cuts can be made.
Mayor Sally Mackay had asked former City Manager John Hagood to provide prosed cuts in department spending of up to 5 and 10 percent and the impact of those potential cuts on public services for the upcoming fiscal year budget. Hagood was ousted last month by the commission.