HomeMy WebLinkAboutR-86-0696J-86-740
9/4/86
A RESOLUTION AUTHORIZING THE CITY MANAGER
AND THE CITY ATTORNEY TO COMMENCE
APPROPRIATE PROCEEDINGS FOR THE REMOVAL
OF BETTE & BERT BAYFRONT 66 MARINA, INC.,
A/K/A MARTIN TRITT, FROM CITY OWNED
PROPERTY ON WATSON ISLAND; AND
AUTHORIZING LEGAL ACTION FOR THE RECOVERY
OF MONIES DUE THE CITY OF MIAMI FOR THE
USE OF SAID PROPERTY IN CONNECTION WITH
CONCESSION ACTIVITY THEREON.
WHEREAS, on October 15, 1968, the City of Miami entered into
a concession agreement with Phillips Petroleum Company in
connection with certain City -owned property on Watson Island; and
WHEREAS, by Resolution 76-921, permission was granted to
Bert Tumpson d/b/a Bette & Bert Bayfront 66 Marina, Inc. to
operate said concession under the prior existing terms and
conditions; and
WHEREAS, Martin Tritt purchased outstanding shares of stock
in said concessionaire's corporation in 1978; and
WHEREAS, an attorney for Martin Tritt appeared before the
City Commission on May 11, 1982, to contest the terms and.
conditions applicable to the concession operation; and
WHEREAS, by Motion 82-377, adopted May 11, 1982, the City
Commission accepted the recommendation for proposed modifications
of the concession operation; and
WHEREAS, Motion 82-500 was adopted June 17, 1982, approving i
said modified terms and conditions; and
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WHEREAS, Motion 82-500 was interpreted as requiring payment
to. the City as follows: 3.5% of gross sales of petroleum
products; or $1,200 per month, whichever is greater; plus
7.0% of gross sales of accessory items; and
WHEREAS, audits of sales were made of the concession
operation for 1982, 1983, 1984, 1985, and $25,864.58 was
considered as being payable to the City; and
WHEREAS, Mr. Tritt contested the interpretation of Motion
82-500 as it relates to the audits; and
WHEREAS, a legal opinion was rendered to the effect that Mr. 4
Tritt's interpretation was correct based on new evidence,
resulting in the audit amount being reduced to $14,419.03; and
WHEREAS, after due demand, payment of the monies due the
City, as reflected by said audit, has not been made;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
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ciTy or MIAMI. r-LO IDA
INTER -OFFICE MEMOf AN93UM
TO: Honorable Mayor and GATE: S EP 3 1986 FILE:
Members of the City
Commission SUBJECT: Bette & Bert Bayfront
66 Marina, Inc. a/k/a
Martin Tritt
FROM: REFERENCES:
Cesar H. Cdio
City Manager
ENCLOSURES:
A resolution authorizing the City Manager
and the City Attorney to commence
appropriate proceedings for the removal
of Bette & Bert Bayfront 66 Marina, Inc.,
a/k/a Martin Tritt, from City owned
property on Watson Island; and
authorizing legal action for the recovery
of monies due the City of Miami for the
use of said property in connection with
concession activity thereon.
On June 17, 1982 Motion 82-500 was passed effectively amending
the terms and conditions of the agreement in place between the
City and Bette & Bert Bayfront 66 Marina, a/k/a Martin Tritt,
based on a memorandum dated June 9, 1982.
The Department of Internal Audits and Reviews performed audits on
the basis of this in -place agreement, a month -to -month tenancy,
which resulted from a concession agreement expiring on July 13,
1976, prior to modifications resulting from Motion 82-500.
Former City Manager, Sergio Pereira, per memorandum dated
September 6, 1985, instructed the Department of Internal Audits
and Reviews to base all applicable audit periods on the terms and
conditions established by Motion 82-500.
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♦' A
Cesar H. Odio
City Manager
Page 2
11
Bette & Bert Bayfront 66
Marina, Inc., a/k/a
Martin Tritt
Based on this interpretation and the ensuing audits, the result
was to reduce the amount due from past operations in 1982 and
1983 by $33,385.76, to $16,710.01. Continuing with this
interpretation, the amounts due from operations for 1984 and 1985
were $4,657.30 and $4,497.28 respectively, for a total of
$25,864.58.
On April 7, 1986, in a meeting with Albert J. Armada, Property &
Lease Manager, Martin Tritt refused to make payments based on the
Department of Internal Audits and Reviews' interpretation of
Motion 82-500, alleging that this was not the intent of the City
Commission. His interpretation of Motion 82-500 can be
summarized as follows:
3.5% of gross receipts of petroleum product; AND
7% of gross receipts of accessories; OR
$1,200 per month, whichever is greater.
Consequently, a legal opinion was requested and issued to
resolve the dispute. The opinion supported Internal Audits and
Reviews' interpretation of Motion 82-500. Martin Tritt was
informed of the Law Department's position and advised in a
meeting that he had until June 19, 1986 to pay the $25,864.59.
This meeting was followed up by a letter to him dated June 12,
1986.
After further consultations with the Law Department, it was
agreed that proceedings to evict Martin Tritt from the premises
would begin, if he did not pay the $25,864.59 by the deadline
noted above. The deadline passed and the City did not receive
payment, therefore a Notice of Termination was duly served to
Martin Tritt on June 27, 1986.
Subsequent to this, the Law Department issued a revised legal
opinion, based on new evidence submitted to them. This revised
opinion supported Martin Tritt's interpretation of Motion 82-5001
and as a result, this department requested a re -audit of Bette &
Bert Bayfront 66 Marina, Inc. The re -audit effectively reduced
the $25,864.59 to $14,419.03 for the four-year period.
Besides the effective amendment to the terms and conditions of
the in -place agreement prior to June 17, 1982, there is also a
secondary issue regarding Motion 82-500.
71
Cesar H. Odio Bette & Bert Bayfront 66
City Manager Marina, Inc., a/k/a
Page 3 Martin Tritt
Motion 82-500 established the conditions for settlement of
arrearages based on a memorandum dated June 9, 1982. The total
arrearages were $107,982.50, to be paid at $1,000 per month over
the next three years, with the unpaid balance to be due and
payable at the end of the three-year period. This included
$22,371 which was due from Bert Tumpson, the former operator, and
which was to be recovered through legal action.
The three-year period ended in June 1985. At that time the
balance on the arrearages was approximately $71,982.50. Martin
Tritt has diligently made payments against these arrearages.
Beyond June 1985, he was allowed to continue payments at $1,000
per month against the arrearages, until the issue of the rent
structure dispute would be satisfied conclusively. As of the
most recent audit, approximately $55,434.27 is due and payable on
the arrearages, including the $22,371 due from Bert Tumpson. It
should be noted that this figure of $55,434.27 is separate and
apart from the previously established $14,419.03 owed from the
1982-1985 operations.
RECOMMENDATION
Martin Tritt insists that he cannot make full payment to the City
on the balance of the arrearages as stipulated in Motion 82-500.
He maintains that he would like to continue the $1,000 monthly
payments until such time as the arrearages are paid in full; this
may take nearly five years. Furthermore, he wishes to add the
14 419.03 to the arrearages, to be paid off as well, at the rate
o $1,000 per month. This would add another year to full
satisfaction of the debt. This was made evident in a meeting on
August 12, 1986 between Martin Tritt and members of my staff.
It is therefore recommended that the City Manager and the City
Attorney be authorized to commence eviction and/or other
appropriate proceedings to remove Bette & Bert Bayfront 66
Marina, Inc., a/k/a Martin Tritt, from City -owned property on
Watson Island. Additionally, it is requested that authority be
given to pursue legal action against Martin Tritt and Bert
Tumpson respectively, to collect the monies due the City of
Miami.
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