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2004.04.05_TC_Minutes_RegularEsquire Deposition Services (561) 659-4155 • �j • 1 2 3 4 5 6 7 8 9 10 11 12 w9g] 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCES: COMMISSIONER MIRIAM SWICK COMMISSIONER RACHEL SCALA-PISTONE COMMISSIONER ROBERT L. LOWE MAYOR THOMAS J. REID VICE MAYOR JOSEPH J. ASSELTA THOMAS E. SLINEY, ESQUIRE TOWN MANAGER BEN SAAG LARRY CORMAN, ESQUIRE Esquire Deposition Services (561) 659-4155 Page 2 • • r� 2 BE IT REMEMBERED, that the following 3 proceedings were taken on Monday, the 5th day of 4 April, 2004, beginning at 1:00 p.m., to wit: 5 MR. REID: Good afternoon, public and the 6 Town of Highland Beach Town Commission. It's 7 Monday at April 5th, 1:00 p.m. 8 We are assembled for this special meeting 9 to review the procedures for the 10 attorney/client private session. 11 Would you call the roll, please. 12 (Roll Call.) 13 (Pledge of Allegiance.) 14 MR. SLINEY: Mr. Mayor, the only two 15 other things we do in the open sessions are we 16 announce the people that will be attending the 17 closed session, which are the entire members 18 of the Town Commission, which are here, and 19 which Doris has taken the roll call on, plus 20 Town Manager Ben Saag, Larry Corman, and 21 myself. 22 We are also supposed to estimate the 23 length of time, because once the closed 24 session is over, we then open the session up 25 and say -- and then Doris will come back and Esquire Deposition Services (561) 659-4155 Page 3 rA • • 1 conclude that we have concluded the private 2 session. I have no crystal ball; I would say 3 two hours or less, just for the purpose of 4 giving an estimate. just complying with the statute in that we 15 5 MR. LOWE: Well, what's going to happen 6 with two hours? Commissioner Scala-Pistone, Vice Mayor Joseph 20 7 MR. SLINEY: I'm just reading the 8 statute. The statute says you're supposed to 9 do that; you're supposed to give an estimate. 10 There's no magic; if it's 15 minutes or 20 11 minutes -- 12 MR. LOWE: Okay. 13 MR. SLINEY: -- that's okay, too. I'm 14 just complying with the statute in that we 15 have to give an estimate. 16 MR. LOWE: Okay. 17 MR. SLINEY: So I would give that. And 18 then to reiterate the -- Commissioner Zwick, 19 Commissioner Scala-Pistone, Vice Mayor Joseph 20 Asselta, Mayor Tom Reid and Commissioner Lowe 21 are the Commission members in attendance. 22 Doris, I think that concludes all we have 23 to do at the open meeting. So now we'll have 24 Doris -- we can adjourn that meeting and then 25 Doris will come back when we conclude the Esquire Deposition Services (561) 659-4155 Page 4 1 • 1 special meeting. We can just -- we say that 2 the pre -meeting is concluded and we will 3 recommence after the private session's over. 4 MR. REID: Whatever you say. All right. 5 The special meeting has now ended, and we will 6 go into the closed session. 7 MR. SLINEY: I've got a few remarks to 8 set the stage. The court reporter will -- 9 MR. REID: Do I have to go through the 10 whole -- 11 MR. SLINEY: No. 12 MR. REID: Okay. 13 MR. SLINEY: The court reporter will take 14 all the comments from now on. Just -- I know 15 some of you have been through private sessions 16 before. The entire session will be 17 transcribed by a court reporter, and the court 18 reporter is here from Esquire Deposition 19 Services. 20 The transcript is sealed until the 21 litigation is concluded, and then the 22 transcript will be public record, and the 23 press or anybody who might be interested in 24 seeing what happened here can look at it. 25 So I always tell people, remember that Esquire Deposition Services (561) 659-4155 Page 5 • • 1 whatever you say here could ultimately be on 2 the public record. 16 Trust Company case. We're here talking about 3 The discussions we have pursuant to the 4 statute that allows us to do this are confined basically saying that they had certain rights 5 to settlement negotiations or strategies As a result of that -- and I'm skipping 6 related to litigation expenditures. 24 7 I'm going to give a -- I know all of you 8 are familiar with the case, as you heard it at 9 the public hearing, both on the residents and 10 from Margaret Cooper. So I'm just going to 11 give just a very, very brief overview of the 12 case. 13 As you all know, originally, there was a 14 24 -acre RPUD. We had a 17.3 acres of that got 15 squared off and that was in the Resolution 16 Trust Company case. We're here talking about 17 the disposition of the remaining 7 acres. 18 In approximately 1999, there was -- 19 Ms. Cooper and her clients came to the Town, 20 basically saying that they had certain rights 21 that they wished to have the Town recognize. 22 As a result of that -- and I'm skipping 23 through a lot of things -- there was a 24 Planning Board hearing, I believe on March 25 28th, 2000, where the Planning Board looked at Esquire Deposition Services (561) 659-4155 Page 6 1"A • 1 this. 2 It became evident to us, as a result of 3 that meeting, that there was a conflict what 4 various rights that properties owners have. 5 Ms. Cooper -- actually, it was John Randolph; 6 Ms. Cooper was not there -- Mr. Randolph, the 7 attorney, made a presentation on behalf of 8 Ms. Hoffman. 9 The adjoining property owners' attorneys 10 got up and basically said that they disagreed 11 with that; that they did not agree that she 12 had any vested rights. 13 So looking at it from the Town's point of 14 view, the Town felt that the best thing to do 15 was to file a declaratory judgement action, 16 basically joining all the various parties, and 17 have the issues litigated, in order to try to 18 insulate the Town from any damages as there 19 had transpired in the RTC case. 20 So as a result of that, on May 1st, 2000, 21 the Town filed a declaratory judgement action. 22 Now, and we are here approximately four 23 years later and declared the public hearing. 24 Larry and I -- and Larry's going to give some 25 comments after I get through -- the main Esquire Deposition Services (561) 659-4155 Page 7 • • 1 issues here that Larry and I see are basically 2 two issues that really relate to the substance 3 of the case. 4 Now there's a statute of limitations 5 issue, and the claim of vested rights by 6 Hoffman. Now, Larry will expound on that a 7 little more. We think that the statute of 8 limitations issue is going to be a hard issue 9 for them to get over, for various reasons, 10 which I think have been in the record, and 11 which we may have discussed before. 12 If she can get over the statute of 13 limitations argument, then she has a shot at 14 the vested rights argument, but we think she 15 has a problem there. 16 We think she has a problem in the vested 17 rights argument because -- I don't know that 18 the record will ever show -- that unlike the 19 17 acres where they actually turned shovels, 20 put, you know, money in the project and 21 planning, I'm not sure there's going to be any 22 evidence to show that on 7 acres, that they 23 actually invested money and that they actually 24 relied on the Town to their detriment. 25 Now, in today's session, we are going to Esquire Deposition Services (561) 659-4155 Page 8 • • 1 have a discussion among the commissioners. 2 Larry and I will be here to answer questions. 3 We cannot vote today; I think that was 4 clear. We will have to vote on this at a 5 public session. Obviously, you could approve 6 it, you could disapprove it, you could table 7 it, you could counterpropose, you could 8 postpone it; there are various things you 9 could do on this. 10 I had written you a letter recently, I 11 think it was on April lst, saying that 12 although it's an agenda item tomorrow, I would 13 request that you not vote on it tomorrow, from 14 a procedural standpoint. Margaret Cooper has 15 told us that she is in trial and cannot come 16 tomorrow. 17 Now, our position is that the public 18 hearing is over, and we are not going to 19 reopen the public hearing for anybody. My 20 concern is that -- as I said in the letter -- 21 I don't want her to be able to go to 22 Judge Brunson and say, "Well, they didn't even 23 have a meeting when I could be here when they 24 were voting on it." 25 I think it's somewhat of a spurious thing Esquire Deposition Services (561) 659-4155 Page 9 • • • 1 by her, because she has had her shot at the 2 public hearing, and as much as we can, I would 3 like to accommodate her, and so that she will 4 be here when you actually take the vote on it. 5 I have called her office and talked to 6 her and I have said that "We're going to try 7 to accommodate you, but we need to know your 8 availability, as the Town commissioners have 9 their own schedules, and obviously, the Town 10 would like to have a full commission here 11 whenever the Town votes on it." 12 Again, it was because what we have tried 13 to do in this case is to wear the white hat, 14 which is the judge, not to be labeled the bad 15 party, as I think we were labeled the bad 16 party in the RTC case. And so that's all part 17 of what I consider the overall strategy. 18 I'm going to ask Larry to chime in now 19 with the comments that he has. 20 MR. CORMAN: Okay. As Tom stated, our 21 basic purpose here today is to make sure that 22 the Commission is aware of where the case is 23 posed, make sure that the settlement proposal 24 is fully understood, discuss what the various 25 options regarding responding to the settlement Esquire Deposition Services (561) 659-4155 Page 10 • r� 1 proposal, and if we don't settle, proceeding 2 with the litigation. 3 One of the key things to remember about 4 litigation is that nobody has a crystal ball 5 in terms of what the outcome of any given case 6 will be. 7 One thing that's particularly important 8 to recognize in the context of zoning is that 9 the case law regarding zoning issue and 10 government takings of private property owner 11 rights has been evolving, as in many other 12 areas of the law, over the course of time. 13 And the standards that get applied by the 14 courts change as pronouncements come down from 15 either the State or the Federal Supreme Court 16 regarding what circumstances property owners 17 are or are not entitled to obtain compensation 18 from governmental entities when the government 19 makes decisions that impact on their right to 20 use and develop their property. 21 So you just need to recognize that 22 whatever the case law is today may not be what 23 the case law is in six months or a year. The 24 composition of both the Federal and the State 25 Supreme Court changes from time to time, and Esquire Deposition Services (561) 659-4155 Page 11 1 'A rA- • 1 as different justices come onto the bench, the 2 analyses of different legal issues change, and 3 that could result in the playing field 4 changing. 5 Unfortunately, for people such as 6 yourselves who have to make decisions, the 7 bottom line is that you end up with a certain 8 degree of uncertainty regarding where the law 9 is going to end up at any particular given 10 point in time. 11 So just keep in mind that no lawyer can 12 guarantee any particular result in any 13 particular case, and there are lots of things 14 that can impact on how a lawsuit ultimately 15 gets resolved. 16 We can talk all we want about the fact 17 I18 that we don't have any information sitting here today that either would or would not 19 support a claim of vested rights by Hoffman, 20 but the reality is until you pursue discovery 21 and you get all the financial information 22 reflecting investments that they may have made 23 or may claim that they made in connection with 24 this property, we don't really know what 25 expenditures, if any, have been made by them Esquire Deposition Services (561) 659-4155 Page 12 ;7 • 1 in connection with their development. 2 As to the statute of limitations issue, 3 basically the concept -- very briefly -- of 4 vested rights is that if the government has 5 zoned a piece of property in a particular way, 6 and the property owner, relying on that 7 zoning, makes significant investments to 8 develop the property consistent with that 9 zoning, and the government then changes the 10 zoning after the investment's been made by the 11 property owner, the property owner, in some 12 situations, can go to court and say, "The 13 government doesn't have the right to change 14 this zoning. I was engaging in construction 15 activities based on the prior zoning; and 16 having made these substantial financial 17 investments, the government should not be 18 allowed to change the playing field." 19 That's what confronted the Town in the 20 RTC case, and as Margaret Cooper accurately 21 pointed out at the public hearing, the Town 22 Commission changed, the zoning was changed, 23 and litigation ensued, and a very significant 24 judgement was returned by a federal district 25 court jury against the Town. Esquire Deposition Services (561) 659-4155 Page 13 • • 1 Subsequently, facing a very substantial 2 judgement, which was initially affirmed by the 3 11th Circuit on appeal, the Town moved for a 4 rehearing, and requested that instead of a 5 three-judge panel, that the entire panel of 6 the 11th Circuit hear the case. 7 While that was pending, fortunately for 8 the Town, the RTC had taken over the savings 9 and loan association, and it essentially 10 inherited the developers rights and lawsuit. 11 The RTC negotiated a resolution for the 12 Town, and frankly, had it not been a 13 governmental entity negotiation with another 14 governmental entity, we don't know that such a 15 favorable result -- if you can call owing $5 16 million a favorable result -- we don't know 17 that such a favorable result would have been 18 attainable had the property not already -- had 19 the property not been in government hands as 20 compared to a private individual, who may have 21 pressed harder on the advantages that they had 22 at that point in the legal proceedings. 23 So what the Town ended up with, instead 24 of the original development that had been 25 proposed for the property, was the expanded Esquire Deposition Services (561) 659-4155 Page 14 • J 1 development, which I think many people would 2 say is denser than the project you otherwise 3 would have ended up with, plus a $5 million 4 liability. 5 So that's the risk, that's the downside 6 of not settling. If they're successful, 7 rather than getting the 90 -plus unit 8 development that they're seeking through this 9 settlement process, if they're successful, 10 they could get the 138 units that they 11 originally requested, and this risk that there 12 could be a money damage award on top of that. 13 So that's the downside. And we can talk 14 about how the likelihood of them being 15 successful is relatively remote; if that 16 remote possibility rears its ugly head and 17 comes to fruition, the Town could be 18 confronted with a construction and financial 19 obligation that will be significantly worse 20 than the situation that's been proposed by 21 Hoffman and through her representatives. 22 Of course, on the plus side, if we're 23 successful, there's no damage award to them; 24 obviously, the Town will invest money in legal 25 fees that will not be ultimately recoverable Esquire Deposition Services (561) 659-4155 Page 15 • • • 1 from them, and you'll end up with a much less 2 dense project than we would have if we accept 3 their settlement proposal. 4 So those are basically the pros and the 5 cons of settling or not settling, and the 6 risks that the Town would have. 7 Now, based on the claims that have been 8 presented at this point in the case, we don't 9 have reason to believe that they have a 10 significant vested rights argument, and we 11 think the statute of limitations is going to 12 be very significant for them, primarily 13 because when the zoning ordinance was 14 previously changed, they actually commenced 15 litigation against the Town, and they've had a 16 separate lawsuit that was going on in state 17 court, as compared to federal court. 18 When the RTC case was on its verge of 19 going to trial, they filed a motion to 20 intervene in a federal action, and a federal 21 judged ruled -- and you know, we're not inside 22 the federal judge's head, so we only know what 23 he ruled and what reasons was placed in his 24 order denying the motion to intervene; but 25 they were getting closer to trial, he may not Esquire Deposition Services (561) 659-4155 Page 16 • �j �j 1 have wanted to disrupt the trial and the 2 discovery schedule by allowing another party 3 in. 4 I'm certain that there were arguments 5 regarding that the proof as to the vesting 6 rights issue was going to be different for the 7 two separate parties. But the bottom line is 8 the Hoffman group was told that they couldn't 9 get involved in the RTC lawsuit. 10 Rather than continuing to pursue their 11 case in state court, they took a voluntarily 12 dismissal, and certainly the position of the 13 Town today would be, if we fight on the 14 limitations issue, was that they were on full 15 notice as to the change in the ordinance and 16 the impact that it was going to have on their 17 development rights, as reflected by the fact 18 that they actually filed a lawsuit over it. 19 Then they took a voluntarily dismissal, 20 choosing -- we will argue -- to abandon their 21 rights, rather than to continue to pursue them 22 in state court. 23 Then we will argue that having clearly 24 been on notice to the change in the ordinance 25 and the impact on their alleged rights, they Esquire Deposition Services (561) 659-4155 Page 17 • FA r� 1 should now be barred by the passage of time 2 from asserting that claim any further. 3 Sitting here today, I believe that's 4 probably a very viable defense for the Town to 5 assert, and there would be certainly good 6 reason to be very optimistic that that defense 7 would be successful. 8 So maybe you're the thinking, well, that 9 should be the end of the ball game. Lawyers, 10 by nature, tend to be creative and stubborn 11 creatures who don't easily give up, 12 particularly when their clients are at risk of 13 losing substantial sums of potential property. 14 You can probably do a calculation as to 15 the amount of money that the developer stands 16 to lose if he can only go with the 40 -plus 17 units as compared to 90 -plus units. There's a 18 lot of money at stake for the developer. 19 So our guess is that even if we're 20 successful on this limitations versus vested 21 rights issue, that it's probably unrealistic 22 to assume that the developer will then give up 23 and just go away. 24 So one of the things I've been doing for 25 the last couple of weeks is trying to think of Esquire Deposition Services (561) 659-4155 Page 18 • is • Page 19 1 other legal theories, and that, frankly, is 2 one of the reasons why I'm glad we're in a 3 private session, so the public and therefore 4 the developer's representatives don't get to 5 hear our thoughts. 6 But I do want you to be aware of some 7 legal theories that if I was representing the 8 developer, I would assert on the developer's 9 behalf. 10 Probably the most significant of those 11 potential claims -- and in informal 12 communication, Marge Cooper has let us know -- 13 that if the limitations issue and the vested 14 right issues fail, she's not going to just 15 take her marbles and go home, but she's going 16 to try to come up with some other legal 17 theories to attack the Town. 18 The legal theory I would assert if I was 19 representing the developer is that there's 20 been so much high-rise development in the 21 Town, that to try to assert these limitations 22 at this point in time essentially constitutes 23 spot zoning. 24 Basically, there's a legal concept in 25 Florida law and other state zoning law that ........................................... Esquire Deposition Services (561) 659-4155 L-1 • 1 says if you have a zoning scheme and 2 circumstances evolve such that the zoning 3 scheme no longer makes any logical sense, it 4 can become unequitable for a municipality or 5 other governmental entity to continue to try 6 to enforce the zoning scheme as to a private 7 property owner of the fair use of their 8 property. 9 Unfortunately, as in many areas of the 10 law, it's not like there's some bright line 11 where you are foretold by these cases of any 12 degree of certainty what is and what is not 13 spot zoning and when spot zoning is applicable 14 and when it's not. 15 The basic theory in which this type of 16 case often comes up are situations where a 17 place has been zoned residential and there's 18 been creeping commercial development along a 19 piece of property, and soon the only piece of 20 residential property that's left in a 21 particular street or block becomes a couple of 22 lots and everything else has become 23 commercial, often retail or office space. 24 Then the residential property owner, 25 wanting to maximize the value of his property, Esquire Deposition Services (561) 659-4155 Page 20 r� • 1 will come to the municipality and say, "Look, 2 everybody surrounding me is commercial. It's 3 not fair for you to continue to insist that I 4 should be residential, when you've allowed 5 this other development to occur, and you're 6 basically depriving me of the fair use of my 7 property." 8 There have been cases in which Florida 9 courts have found that the creeping 10 development of a commercial nature has 11 resulted in the continued enforcement of a 12 residential zoning scheme as being unequitable 13 and improper; and in those cases, some 14 governmental entities have been told they need 15 to allow the commercial development, because 16 it's more consistent with what's been going 17 on, than trying to stick to your historic 18 zoning scheme. 19 Now driving up here, I was kind of taking 20 a look at what the surrounding property looks 21 like, and frankly, we have some pluses in the 22 sense that most of the stuff on the ocean 23 side, and certainly south of Town Hall, is 24 single- family, and there's a fair amount of 25 single- family home type developments to the Esquire Deposition Services (561) 659-4155 Page 21 • • is 1 south, even on the east side. 2 I really didn't see a lot of high-rise 3 development. There's a high-rise at Regency, 4 but there's also low-level housing there as 5 well. 6 So I'm not saying that they're going to 7 assert this, and I'm not saying that if they 8 did assert it, they would be successful, but 9 what I want everyone to understand is even if 10 we're successful asserting no vested rights, 11 the statute of limitations is applicable, it 12 doesn't necessarily mean that the litigation 13 ball game is over, because my belief is that 14 they will come up with some additional legal 15 theories to try to continue to pursue this 16 claim. 17 That's really all I have, in terms of 18 where the case stands, what the issues are 19 today, what the issues may be down the road. 20 Certainly, we're happy to discuss anything 21 that the Commission would like to discuss 22 regarding settlement possibilities. 23 As Tom pointed out, during the public 24 hearing, the settlement proposal that had been 25 made is not Tom's or my settlement proposal, Esquire Deposition Services (561) 659-4155 Page 22 • r� L • 1 it's only the fruits of a mediation process 2 that involved the other adjacent property 3 owners. 4 Essentially, it's the most concessions 5 that we've been able to drag out of the 6 developer, at least at this point in time, 7 through the mediation process. 8 We're not here recommending settlement; 9 we're not here not recommending settlement. 10 We're here to present your options, let you 11 know what the pros and cons of settlement 12 might be, let you have some appreciation for 13 the risks and costs of litigation, and then 14 our job is to implement the will of the 15 Commission. 16 As Tom said, we're not going to find out 17 what that will is today, but we're here to 18 make sure that you have the information that 19 you need to make sure that you cast your vote 20 in an appropriate and fully informed context. 21 MR. SLINEY: I think Larry and I are done 22 and we're open to whatever you wish to ask. 23 MR. ASSELTA: Why wasn't the land and 24 related costs from running taxes and legal 25 actions previously taken when constituting Esquire Deposition Services (561) 659-4155 Page 23 1 �j 1 this one? 2 MR. CORMAN: Well, I'm sure they're going 3 to assert that it does. But the case law 4 seems to suggest that you need to go beyond 5 that -- that you need to have plans drawn up, 6 frequently, ground will actually have been 7 broken, permits often will have issued -- 8 there are usually significant steps that a 9 developer can show have been taken for the 10 vested rights to accrue. 11 Now having said that, we don't know with 12 any certainty sitting here today what the 13 Hoffman group is going to claim was expended, 14 quote, unquote, "relying on the prior zoning 15 that the Town had." 16 Obviously, those investments are all 17 going to be prior to the change in the zoning, 18 and so it's going to be going back quite a 19 ways. They certainly can't claim that what 20 they've been doing since the change in zoning 21 has been reliant on old zoning, because the 22 old zoning hasn't been in place and they've 23 been on notice about that. 24 And I believe we had, as part of our 25 abatement, an agreement with them that any Esquire Deposition Services (561) 659-4155 Page 24 • • 1 expenditures that they made in connection with 2 trying to settle the case could not be relied 3 upon then as proof of additional investments 4 to try to bootstrap themselves into an 5 investment argument. 6 MR. SLINEY: Larry's correct on that. 7 One of the things I think is different between 8 this and the other cases, when we were in 9 Federal Court on the RTC case, we had a 10 problem of really not only a runaway jury but 11 kind of a runaway judge. 12 One of the conclusions that was reached 13 in the case, which is factually erroneous, is 14 that for a period of time the Town had no 15 zoning on the property. That is not true, and 16 I think that they will have a hard time 17 replicating that if we go to trial here. 18 We have always acknowledged that the 19 parties could come in tomorrow with a site 20 plan for 42 units and build the property. 21 There's been no allegations that they couldn't 22 do otherwise if they had a viable site plan. 23 That all relates to what I guess the 24 level of damage is, but I think they would 25 have a hard time, I think, hopefully getting a Esquire Deposition Services (561) 659-4155 Page 25 • r� • 1 judge and jury to be different than the 2 runaway jury that we encountered in Dade 3 County. 4 MR. REID: Commissioner Zwick? 5 MS. ZWICK: I have one question, but it 6 might be repetitious. Looking at it from the 7 point of view of the Hoffman property owners, 8 if they were to avail -- if we went and 9 refused this settlement and just said no to 10 the settlement without any further attempts at 11 mitigating the circumstances or changing the 12 settlement in some degree, but just working 13 with it as it stands and what was presented to 14 us, the end result of their winning the case, 15 of their approval by a judge, a jury, would it 16 then entail that they could be allowed to go 17 back to the 138 units under the RPUD? 18 MR. SLINEY: Well, I'm sure that is what 19 they would ask for. That's the issues of kind 20 of like the runaway issue in Dade County. 21 Certainly, if this litigation -- they can 22 do two things. Let's say that, 23 hypothetically, the Town says, "We reject your 24 proposal." We have existing litigation there; 25 they're got an existing counterclaim. And we Esquire Deposition Services (561) 659-4155 Page 26 1 • r� �j 1 have an existing dec action, which basically 2 asks the court to determine the zoning of the 3 property, and it takes the Town position from 4 the very get -go that it was 6 units an acre, 5 or 42 units, 35 feet, and no ACLF. 6 Okay. They can either litigate those 7 issues or fold their tent. Now, remember one 8 of the things in zoning cases is circumstances 9 change as time goes on. Mr. Siemens was not 10 here the other night. Ms. Cooper represented 11 to me that he is still ill and did not feel he 12 could stand the stress of the meeting. 13 Ms. Hoffman, who I know personally 14 through many, many years, is going on and 15 getting on in years; I would imagine she is in 16 her eighties, maybe 85. 17 Sometimes the cases resolve themselves in 18 manners that you don't expect. For example, 19 one that you've probably very familiar with is 20 the Boca High RPUD. Originally, there was 21 going to be two more high-rises there on the 22 DUT sites. 23 Fortunately, the matter got dragged out 24 so long, the circumstances changed; the 25 developer decided to not fight anymore. As a Esquire Deposition Services (561) 659-4155 Page 27 • 1 result of that, we have an entirely different 2 development down there than you would have had 3 with the two high-rises. 4 So she would have to make an economic 5 decision, if the Town turns her down, as to 6 whether she wants to at this point in time go 7 full -bore, which she may well, or there's a 8 possibility the property could get sold, or 9 she could find another joint venturer. 10 I don't know whether Mr. Siemens is going 11 to be available to be her joint venturer, 12 which I understand he was more or less 13 historically her joint venture partner. It's 14 my understanding that they joint -ventured 15 Harbor's Edge up in Delray, for example. 16 Time often changes things; but if the 17 Town says no to the project, and unless she 18 decides to fold her tent, we would go ahead 19 with the existing litigation, or I guess she 20 could try to file some other action, I don't 21 know. 22 MS. ZWICK: Just one further question: 23 Again, looking at the all the possibilities 24 that might occur, if she is to prevail, if 25 Mr. Corman's presentation goes down with a Esquire Deposition Services (561) 659-4155 Page 28 1 • • • 1 judge like we had before with the RTC, would 2 they also sue for damages besides -- 3 MR. SLINEY: Well, is in the existing dec 4 action, there is an existing counterclaim, 5 which the counterclaim, as Larry basically 6 stated, we have put all the litigation in 7 advance so that nobody's legal fees are run up 8 inordinately until there's been a decision on 9 this. 10 Once a decision is made -- and then this 11 is hypothetically assuming that the 12 proposition is rejected -- then one of the 13 parties would give notice to the court that 14 the sort of mediation or settlement period is 15 over, and that the other parties to the 16 litigation would have, I believe, 20 days to 17 make responses. So that's how that would go. 18 MS. ZWICK: Thank you. 19 MR. REID: Commissioner Scala-Pistone? 20 MS. SCALA-PISTONE: Well, I'd like to 21 have the dates that she's been here, 22 Ms. Cooper. 23 MR. SLINEY: I don't have them yet. I 24 called her today and said, "Please give me 25 some dates," and I asked her to just fax me, Esquire Deposition Services (561) 659-4155 Page 29 • • • 1 and I haven't gotten those yet. 2 MS. SCALA-PISTONE: You know, I, for one, 3 am very disappointed about that; that she 4 doesn't have any dates and that -- 5 MR. SLINEY: She's in trial. I recognize 6 that. 14 afternoon, and I said, "Please give me your 7 MS. SCALA-PISTONE: It's known that we 8 were planning to make those decisions, but -- 9 MR. SLINEY: And I -- obviously the -- I 10 didn't see the -- my reasoning in my letter is 11 to try to give her the benefit of the doubt, 12 but I realize you -all have your schedules too. 13 I've told her we have a meeting tomorrow 14 afternoon, and I said, "Please give me your 15 schedule by tomorrow morning, so I will know 16 before I go to tomorrow's Commission meeting." 17 I had talked to her about quarter to twelve 18 today. 19 MS. SCALA-PISTONE: Now, again, I feel 20 very disenchanted by her reluctance to get a 21 firm date. As you said, we do have our own 22 schedules. 23 MR. SLINEY: Right. Everybody has -- we 24 run a full Commission, obviously. 25 MS. SCALA-PISTONE: I have a very Esquire Deposition Services (561) 659-4155 Page 30 • 1 important schedule this month and the 2 following months, because my two children are 3 expecting -- momentarily. I mean, I could 4 be -- 5 MR. SLINEY: No, I explained that to her. 6 I said, you know, the commissioners have their 7 own issues, so -- 8 MS. SCALA-PISTONE: Um-hmm. In lieu of 9 -- I mean, in deference to the fact that our 10 residents have spent almost two -and -a -half 11 years on this, trying to get schedules of open 12 meetings, public meetings and cancellations, 13 and the fact that they all took the time to 14 come last week to speak at this meeting, and 15 have signed petitions about their opinion 16 on -- 17 MR. SLINEY: I'm in agreement with you. 18 I agree with you. 19 MS. SCALA-PISTONE: I mean, who are we 20 representing here? Aren't -- 121 MR. SLINEY: No, it's not a matter -- 22 it's just -- 23 MS. SCALA-PISTONE: Are you representing 24 us? I25 MR. SLINEY: We're not a matter of -- no, Esquire Deposition Services (561) 659-4155 Page 31 • • 1 it's a matter of strategy, and my strategy -- 2 MS. SCALA-PISTONE: But that's -- 3 MR. SLINEY: My strategy with the court 4 is to try to win the fight. You can vote at 5 any time; whether you vote today or two weeks 6 from now, I doubt that you vote would be any 7 different. 8 MS. SCALA-PISTONE: No, but Tom -- and 9 not to interrupt you here but -- 10 MR. SLINEY: Sure. 11 MS. SCALA-PISTONE: -- we do have a 12 responsibility to the people of this Town. 13 I'm sure that they want to know our answer as 14 soon as possible. I mean, they did seek -- 15 they did sign petitions, they did give us all 16 sorts of clues and some signs as to what their 17 position is and how strongly they feel. 18 MR. SLINEY: I don't disagree with you. 19 I'm basically saying, as your counsel, and 20 just trying to look out for the Town's best 21 interest, that if we could accommodate that, I 22 would prefer to do it, so that she can't go to 23 the court and say, "Well, they wouldn't even 24 let me be -- they scheduled something when I 25 couldn't come." I just -- Esquire Deposition Services (561) 659-4155 Page 32 • • • 1 MS. SCALA-PISTONE: But we did 2 originally -- 3 MR. SLINEY: But we can't just -- 4 MS. SCALA-PISTONE: -- schedule it for 5 Tuesday -- tomorrow -- so she can't make that 6 claim; can she? 7 MR. SLINEY: Well -- 8 MS. SCALA-PISTONE: She did know. 9 MR. CORMAN: -- see, the thing is, people 10 can make any claim in court -- 11 MS. SCALA-PISTONE: Yes. 12 MR. CORMAN: -- and there's concept 13 called procedural due process. 14 MS. SCALA-PISTONE: Um-hmm. 15 MR. CORMAN: That means the developer 16 will claim that we deprived him of a fair 17 hearing to have his petition heard. 18 Our recommendation is: Don't create an 19 issue for the developer; allow them whatever 20 opportunities they want to speak. We've heard 21 the public, we know how they feel; the 22 commissioners will have their opportunity to 23 vote. Then she has nothing to go to court 24 with regarding the procedural due process. 25 Or we can schedule a vote when she's not Esquire Deposition Services (561) 659-4155 Page 33 1 • r� L • 1 available, and hand her an issue. And whether 2 it's successful or not, the lawyers are going 3 to have to spend time and the Town to spend 4 money rebutting whether or not she got 5 procedural due process. 6 So our attitude and our recommendation is 7 don't go giving the developer issues 8 unnecessarily. It doesn't really matter if we 9 vote to reject this or approve it next week or 10 in a month, as long as it's in abeyance, 11 nothing is being developed by the property. 12 In fact, the property's been in a natural 13 state for four years, and we suggest that 14 that's more advantageous to the residents than 15 whatever is ultimately going to be constructed 16 on that site. 17 The longer it's green space, all the 18 traffic concerns, all the density concerns are 19 on hold. Nothing's happening; there's no one 20 moving there. What better circumstances could 21 possibly exist? 22 Plus they can't claim damages during this 23 time period, because they've agreed to the 24 events. So every day that goes by, from my 25 perspective, is a plus to the residents, Esquire Deposition Services (561) 659-4155 Page 34 • • 1 because not only don't we have 90 units, we've 2 got zero units. So it's a plus. Just think, 3 four years, everybody's had the benefit of 4 green space there. 5 MS. SCALA-PISTONE: No. That isn't the 6 point, Larry. I think the point is which they 7 do own the property and we are permitting them 8 to build, and they can build on our terms -- 9 MR. CORMAN: Well, they -- 10 MS. SCALA-PISTONE: -- with our density 11 and our height. 12 MR. CORMAN: Well, they -- 13 MS. SCALA-PISTONE: And the people of the 14 Town of Highland Beach who came clearly stated 15 that, that they're -- you know, go to court, 16 take these people to court if they don't want 17 us -- to adhere to our zoning laws and 18 comprehensive planning, et cetera. 19 MR. CORMAN: Well, we were here when the 20 public wanted -- they quoted RTC, also -- 21 MS. SCALA-PISTONE: Well, I don't 22 understand why it's also -- 23 MR. CORMAN: With all due respect, 24 Commissioner, the public wanted to go to court 25 with RTC, and that ultimately didn't work out Esquire Deposition Services (561) 659-4155 Page 35 • • • 1 for the Town, and now we have a project that, 2 frankly, is less desirable than what could 3 have happened. 4 So our recommendation is: Proceed 5 cautiously and wisely, and don't give the 6 developer issues without legitimate reasons, 7 from a legal perspective, for doing that. 8 The developer's attorney has told us she 9 can't be at the hearing; she wants to be at 10 the hearing. Whether or not she has a right 11 to be at the hearing I'd rather not have a 12 judge decide. 13 The easiest thing to do -- and of course 14 it's no time to the Town residents; in fact, 15 they get the continued benefit of open green 16 space -- is to schedule it when the 17 developer's attorney is available, have the 18 meeting, vote accordingly to your conscience 19 and the recommendations of your counsel, and 20 the desires of the public, whatever you deem 21 should be the key motivating factors, and then 22 we'll be able to move on and not give them a 23 procedural due process issue. 24 Now, I have clients that don't listen to 25 my advice all the time; sometimes it works out Esquire Deposition Services (561) 659-4155 Page 36 1 r� L 1 for them and sometimes it doesn't. 2 The Commission is free if -- it's on 3 their agenda tomorrow - if the Commission 4 wants to vote tomorrow when Marge Cooper won't 5 be present, the Commission can do that. Your 6 legal counsel is saying don't give her an 7 issue that there's no need to give her. 8 MS. SCALA-PISTONE: If we feel it 9 necessary to do this -- I mean, if our counsel 10 decides that we will vote tomorrow -- 11 MR. CORMAN: Any commissioner can make a 12 motion, and if the other commissioners can 13 second it, you can have a vote. 14 MS. SCALA-PISTONE: Um-hmm. Okay. 15 Because I tend to just, you know, and that's 16 my opinion. I mean, I've been involved with 17 this for almost three years -- well, three 18 years -- it's come to three years already -- 19 and that's not a lot of time, because I'm sure 20 that Tom and our Mayor, and Bob Lowe have been 21 involved -- each of them has been involved for 22 many more years; I don't know how many, but -- 23 MR. CORMAN: Well, can I just say -- 24 MS. SCALA-PISTONE: I just want, you know 25 -- all of our soldiers are setup -- or Esquire Deposition Services (561) 659-4155 Page 37 • • 1 whatever mantra, however, you want to explain 2 it -- and I just feel this is the time. 3 We've heard the presentation and, you 4 know, we've had four delays and reschedulings, 5 and one was at our own rescheduling here at 6 Town Hall because we didn't have some sort of 7 a video coverage. 8 But you know, it's been a long time and 9 we have come to a conclusion here, especially 10 seeing this response; that so many people -- 11 people that appeared the other day. You were 12 there and saw that they did have an interest, 13 and we are saying, as policy, that they're 14 really interested and they do show up. 15 MR. CORMAN: Well, I have no doubt that 16 the public is very interested in what happens 17 to this property. I guess my point is that 18 the public has been well served -- 19 MS. SCALA -PISTONS: The public has 20 concerned me, because we represent the public, 21 the people, the citizens. 22 MR. CORMAN: We're representing the 23 entire town when we're in court, and our goal 24 is to make sure that the Town doesn't have to 25 pay a third party any money, and that the Town Esquire Deposition Services (561) 659-4155 Page 38 1 • • • 1 doesn't have a development that the Town 2 doesn't want. That's our only goal is to make 3 sure that's the result. 4 For the last four years, the Town has had 5 open green space instead of the development. 6 I think that's good for the Town and the 7 residents' advantage. If their concern is not 8 to have density, there's nothing less dense 9 than open green space. 10 The way which results in continuing open 11 green space for an additional duration of time 12 is to the benefit, in my opinion, of the Town. 13 Having said that, the Commission's free 14 to do whatever the Commission wants on this 15 issue at this time. 16 MS. SCALA-PISTONE: I'd like to talk 17 later, but I also do want to say one more 18 thing. Are you all aware of Judi Asselta's 19 presentation? How many of you -- 20 MR. ASSELTA: It's a brief. 21 MS. SCALA-PISTONE: Oh, it's a brief, 22 Yes. Judi Asselta's brief. 23 I'd like to ask our attorneys what they 24 think about that. I haven't had the 25 opportunity to hear your responses about the Esquire Deposition Services (561) 659-4155 Page 39 • • 1 brief that was submitted to you on the -- 2 MR. CORMAN: Well, it was submitted to 3 the Commission and I did take a glance at it. 4 It accurately recites many of the facts that 5 are pertinent to the development. 6 However, as I joked with Mr. Rabideau 7 (phonetic) after the meeting, none of us get 8 to be the judge; there's a third party that 9 gets to be the judge, and the judge ultimately 10 is the -- and after the judge in the appellate 11 court -- would be the decider as to which 12 analysis is correct and which analysis is 13 incorrect. 14 I never take it upon myself to predict 15 what the outcome shall be of any given case, 16 because judges and juries vary; every judge 17 and every jury is different, and every fact 18 setting is different. 19 I know very few lawyers that will 20 accurately or competently predict results, 21 because anybody who's been to court knows 22 that, that you can't predict what the outcome 23 of a case is going to be, because you don't 24 know how witnesses are going to behave on the 25 stand. You don't know what evidence is Esquire Deposition Services (561) 659-4155 Page 40 • 1 necessarily going to come in, or what evidence 2 the court deems might or should come in. 3 At this point, we don't even know what 4 other legal theories the developer might 5 assert. So I'm just not conceited enough to 6 claim that I have a crystal ball and I can 7 guarantee an outcome for the Town. 8 I can tell you that the Town has some 9 very viable defenses for the legal theories 10 that have been asserted by the developer, but 11 I am not going to guarantee that the Town is 12 going to prevail. 13 MS. SCALA-PISTONE: I didn't ask for a 14 guarantee of anything. I just feel that, as 15 our attorney, you have to weigh all this 16 information -- get all these accurate -- 17 MR. CORMAN: Right. And I -- 18 MS. SCALA-PISTONE: -- and get cases that 19 can substantiate your -- 20 MR. CORMAN: There are no cases in 21 Florida on statutes of limitations and zoning 22 situations like the one we're confronted with. 23 So don't -- 24 MS. SCALA-PISTONE: No. I'm talking 25 about the particular brief that was given to Esquire Deposition Services (561) 659-4155 Page 41 • • 1 all of us from Judi Asselta -- 7 2 MR. CORMAN: Well, I don't remember -- 3 MS. SCALA-PISTONE: -- on the law. 4 MR. CORMAN: I don't remember reading -- 5 MS. SCALA-PISTONE: -- of the objection 6 from Toscana to -- 7 MR. CORMAN: Excuse me? 8 MS. SCALA-PISTONE: Do you know of the 9 objection from Toscana? 10 MR. CORMAN: Yes. 11 MS. SCALA-PISTONE: Um-hmm. 12 MR. CORMAN: Well, Toscana's a party in 13 the lawsuit. They've asserted that they don't 14 want this development to the south of them. 15 My guess is the developer's going to 16 point to the Toscana development as a reason 17 why the zoning is being unfairly applied to 18 their plot of land, because the zoning is so 19 much more dense than what the town's willing 20 to let them do. 21 So Toscana, to me, is not a favorable 22 fact that they raised the spot zoning issue, 23 because the zoning is so much more intense. 24 MS. SCALA-PISTONE: But Hoffman, at the 25 RTC case, had -- Hoffman had no rights on Esquire Deposition Services (561) 659-4155 Page 42 • • 1 that, that she can assert. 2 MR. CORMAN: That's -- just definition; 3 that's the rights. 4 MS. SCALA-PISTONE: Right. But I'm 5 talking about why -- why are you talking about 6 Toscana's not, you know, being -- 7 MR. CORMAN: Toscana's a party in the 8 case because they're an adjacent property 9 owner. They objected to the application by 10 Hoffman. Their goal, frankly, was they want 11 unobstructed views for their unit overlooking 12 the Intracoastal. 13 MS. SCALA-PISTONE: Yes, um-hmm. I agree 14 with that. 15 MR. CORMAN: Right. That's what their 16 goal is. Their goal is to make sure that 17 their unit sales don't get adversely affected 18 by a large development going up immediately to 19 the south that will block the views partially 20 or in whole of being people that are buying 21 units in Toscana. 22 If I'm Hoffman, I point to the Toscana 23 unit and development as proof that it's unfair 24 to hold me to this more restrictive zoning 25 because it's so much more intense than what Esquire Deposition Services (561) 659-4155 Page 43 • • 1 the Town will let me do. 2 I don't look at Toscana as being 3 particularly helpful to the Town in terms of 4 an overall case strategy. Their reasons for 5 opposing the development are not altruistic; 6 they're for financial gain -- which is fine; 7 we're in a capitalist system, there's nothing 8 wrong if people want to maximize their 9 property value. 10 But a judge and jury is not going to be 11 impressed that Toscana, having gotten to 12 develop all these units, doesn't want an 13 adjacent property owner to have equivalent 14 rights. 15 At the same time, Hoffman's lawyers are 16 likely to point to Toscana as an element of 17 proof as to why it's unfair for the Town to 18 try to stick the adjacent property owner with 19 much lower density, when this much more 20 intense project has gone up. 21 I'm not saying that's the main argument. 22 MR. ASSELTA: Excuse me. Are we 23 discussing the settlement and negotiation 24 strategy now, or are we trying to run the 25 case? Esquire Deposition Services (561) 659-4155 Page 44 • • • 1 MR. CORMAN: Well, we're discussing 2 likely issues to come up, which either suggest 3 settlement is or isn't appropriate. 4 MR. ASSELTA: Okay. 5 MR. CORMAN: No. I think we're safely 6 within the zone of what we're allowed to 7 discuss. 8 MR. ASSELTA: Okay. 9 MR. CORMAN: But my point is that the 10 developer will be able to point to certain 11 facts -- 12 MS. SCALA-PISTONE: Wait a minute. Could 13 I just interject before I forget? 14 MR. CORMAN: Sure. 15 MS. SCALA-PISTONE: You'll remember 16 everything that I might not. Why I mentioned 17 the Toscana property and the judgement -- you 18 know, the actual settlement -- was to 19 differentiate, and by the law, which they do 20 themselves, that Hoffman had no rights under 21 this agreement. 22 MR. CORMAN: That's true. 23 MS. SCALA-PISTONE: And not only that, 24 but they clearly were excluded from -- 25 MR. CORMAN: Yes. When we negotiated Esquire Deposition Services (561) 659-4155 Page 45 1 IFA �7 1 that, we made sure it was in there. 2 MS. SCALA-PISTONE: So that's a given, 3 that's a given. Toscana is -- 4 MR. CORMAN: You're not talking about the 5 agreement is a given? 6 MS. SCALA-PISTONE: Huh-uh. And Toscana 7 went on and built their three buildings -- 8 MR. CORMAN: Yes, they did. 9 MS. SCALA-PISTONE: -- because the judge 10 agreed with there -- you know, a judge agreed 11 they could do it. 12 MR. CORMAN: Well, no -- 13 MS. SCALA-PISTONE: And -- 14 MR. CORMAN: Well, that's not quite 15 accurate. The judge approved the settlement 16 agreement -- 17 MS. SCALA-PISTONE: Yes. 18 MR. CORMAN: -- between the parties. 19 MS. SCALA -PISTONS: The judge approved 20 the settlement agreement. 21 MR. CORMAN: Judges will approve -- 22 MS. SCALA-PISTONE: I'm not using the 23 right words, Larry. 24 MR. CORMAN: Unless it's a class action 25 lawsuit, judges will approve just about any Esquire Deposition Services (561) 659-4155 Page 46 • • 1 settlement agreement that's presented to them 2 so they're done with it. 3 So you know, I don't think that they -- 4 look, Hoffman cannot point to the settlement 5 agreement for anything. They're excluded from 6 the settlement agreement. 7 MS. SCALA-PISTONE: Exactly. 8 MR. CORMAN: It gives them no legal 9 document. 10 MS. SCALA-PISTONE: And it was not 11 enforced and they did not appeal the decision. 12 MR. CORMAN: They couldn't appeal the 13 decision. 14 MS. SCALA-PISTONE: They did not go to 15 court. 16 MR. CORMAN: They didn't go to court. 17 MS. SCALA-PISTONE: They did not go to 18 court; right? Am I correct? 19 MR. CORMAN: They dismissed their rights. 20 MS. SCALA-PISTONE: Exactly. That is 21 where, you know, we would have had trouble if 22 they had gone to court. 23 MR. CORMAN: Well, maybe yes and maybe 24 no; depending on what the -- 25 MS. SCALA-PISTONE: -- to respond to Esquire Deposition Services (561) 659-4155 Page 47 • • • 1 that. But it just seems to me that Hoffman, 2 if we can inject a declaratory judgement, so 3 that we were able to give them an alternate 4 door, which they didn't have in the court, and 5 they at this particular period of time are 6 using that ability, because we opened a door. 7 I'd like you to talk about that, because 8 I feel very strongly about us having to -- the 9 Town -- giving them this opportunity to bring 10 their case to court. 11 MR. CORMAN: Well, we didn't give them 12 any opportunity that didn't already exist. 13 They had the ability to file a lawsuit if they 14 were so inclined. 15 What we did do -- I16 MS. SCALA-PISTONE: But what I'm saying 17 is are we litigable, or colorable in this 18 case? 19 MR. CORMAN: They've got the same case -- 20 MS. SCALA-PISTONE: -- counterclaim. 21 MR. CORMAN: -- whether it's a 22 counterclaim or an original lawsuit, they have 23 the same case. The case is the same -- 24 MS. SCALA-PISTONE: Right. 25 MR. CORMAN: -- regardless of whether Esquire Deposition Services (561) 659-4155 Page 48 • r� 1 it's a counterclaim or an affirmative lawsuit. 2 What we did was we tried to preempt the damage 3 claim against the Town by asserting to the 4 court that because there was a conflicting 5 position being asserted by different property 6 owners, the Town is uncertain as to the 7 developer's right, and asked the court to 8 decide whether or not the developer had any 9 vested rights. 10 That avoided a damage claim so that if 11 the Town had just rejected the application and 12 asserted the benefit of the judicial input, 13 that they had no rights and that the Town was 14 wrong, then the Town can be exposed to 15 damages. Instead, we created a scenario where 16 the Town isn't exposed to damages -- and these 17 things you'll hear a lot about today -- 18 because all we've asked the judge to do is 19 tell us which zoning is applicable. 20 MS. SCALA-PISTONE: You know, Larry, to 21 me -- I'm sorry that I feel this -- I mean, 22 that you feel this way, because to me -- it 23 seems to me like you're always protecting the 24 Town from -- I mean, we're creating a reason 25 to protect the Town instead of making a Esquire Deposition Services (561) 659-4155 Page 49 • • 1 decision as to whether we have followed the 2 correct path -- legal path -- and then 3 standing with our petition. It seems to me 4 like you're in telling us, in essence, that 5 anybody can go, you know, anybody can go to 6 court. But -- 7 MR. CORMAN: That's right. 8 MS. SCALA-PISTONE: -- it has to be a 9 colorable, litigable case; doesn't it? 10 MR. CORMAN: No. 11 MS. SCALA-PISTONE: It has to be -- I 12 mean, in order for the judge to deny it. 13 MR. CORMAN: If you're asking me if the 14 people are allowed to win frivolous lawsuits, 15 the answer's yes. People stage slip -and -falls 16 at McDonald's and get hundreds of thousands of 17 dollars for illegitimate claims. 18 So your premise that only colorable 19 claims get filed, in my opinion, is faulty. 20 People file lawsuits all the time; sometimes 21 they're meritorious, sometimes they're not. 22 If you're asking me can this developer assert 23 any potential claim against the Town that will 24 withstand a motion to dismiss, my answer to 25 you is yes. Esquire Deposition Services (561) 659-4155 Page 50 • 1 MS. SCALA-PISTONE: You're answer's yes? 2 MR. CORMAN: Yeah. I think they could 3 come with a -- first of all, they can assert 4 this claim on vested rights, and the only way 5 we're going to defeat it is by going through 6 the discovery process and filing a motion for 7 summary judgement, asserting either that they 8 lack vested rights or the limitation's period 9 is wrong. 10 We're going to have to have discovery 11 that favors very factually that 12 representations were made by representatives 13 of the Town upon which they were laws. Tom 14 and I don't believe that's a meritorious 15 claim, but it's in their lawsuit, and we can't 16 just get rid of it just by going to the court 17 and saying, "Judge, consuming and it's this isn't so." 18 We're going to have to prove the defense. 19 So we're going to have to engage in 20 interrogatories and depositions to flush out 21 the factual basis for their case, and assuming 22 they can't substantiate the allegations in 23 their complaint, we can file a motion for 24 summary judgement. That's going to be time - 25 consuming and it's going to have some expense Esquire Deposition Services (561) 659-4155 Page 51 • • 1 appended to it. 2 In addition, if I was representing the 3 developer, I would assert the spot zoning 4 claim, and that's something we won't be able 5 to dispose of, in all likelihood, unless we 6 have an actual fraud. 7 We'll have our expert witnesses and 8 they'll have their expert witnesses as to the 9 conditions that exist in the Town, and a jury, 10 who probably knows nothing about zoning, or 11 the judge, depending on whether or not a jury 12 demand is made, will decide whether or not the 13 conditions in the Town are such that the Town 14 should be entitled to enforce its zoning code 15 against this property owner, or whether the 16 conditions have changed such that some other 17 result is appropriate. 18 Now, they haven't even asserted a 19 spot -zoning claim yet; I don't know that it's 20 going to be asserted. I'm assuming 21 Marge Cooper -- 22 MS. SCALA-PISTONE: I believe within 23 Toscana's case it's spot -zoning, but -- 24 MR. CORMAN: I don't believe so, but -- 25 MS. SCALA-PISTONE: No? Esquire Deposition Services (561) 659-4155 Page 52 • • 1 MR. CORMAN: -- it is purely a vested 2 rights issue. But my guess is, having heard 3 Marge Cooper promise us that even if we're 4 successful on the vested rights and the 5 statute of limitations issues that they're not 6 going to just go away, my guess is we're going 7 to see spot -zoning, or something similar to 8 spot -zoning, as a legal theory asserted by the 9 developer. 10 I'm not sitting here telling you that 11 we're going to lose that claim. I'm sure we 12 have a lot of viable defenses, and there's 13 lots of things that we and our experts will be 14 able to assert, including the observations I 15 made by driving here; that there's plenty of 16 low-level property which is going to make a 17 spot -zoning claim hard for them to win. 18 But if you're asking me if it's going to 19 be done in a few months, because what they're 20 saying isn't colorable, that's not the way the 21 legal system works, and it's going to be a lot 22 more than a few months before this thing is 23 resolved. 24 MS. SCALA-PISTONE: Um-hmm. Well, I, for 25 one, would take my chances in the court. Esquire Deposition Services (561) 659-4155 Page 53 1 • • • 1 MR. CORMAN: Well, and that -- 2 MS. SCALA-PISTONE: That's how I feel. 3 MR. CORMAN: And that's the beauty of 4 this system is you will get to cast your own 5 vote. 6 MS. SCALA-PISTONE: I have to move to 7 something else. It seems strange to me, but 8 on our, privileged and confidential document, 9 May 3rd, 2002, I'd like to know why, Tom -- I 10 guess I'm speaking to you at this point -- why 11 -- this is your opinion letter, and gives an 12 opinion as to -- or a recommendation of how 13 the Town should go forward. 14 I'm very confused and very disappointed 15 that you took this position, and I -- 16 MR. ASSELTA: I'm not aware of this. Can 17 I see what this says? 18 MS. SCALA-PISTONE: Oh, yes. I thought 19 that all of my colleagues would have it all -- 20 they -- 21 MR. SAAG: Well, of course, anything that 22 was confidential prior to the two people 23 coming on to the Commission -- 24 MS. SCALA-PISTONE: But you've been on 25 the Commission for a while. Esquire Deposition Services (561) 659-4155 Page 54 1 LA • 1 MR. SAAG: They just got on -- 2 MS. SCALA-PISTONE: Yes. 3 MS. ZWICK: We haven't seen that. 4 MR. SAAG: I don't -- 5 MR. SLINEY: Well, let me -- while the 6 Vice Mayor and Commissioner Zwick will be 7 reading that -- that letter was a risk 8 management letter, and basically went through 9 and gave you what the background was, what the 10 issues were. 11 It basically said that if you want to 12 dispose of all of this, then you should take 13 the settlement offer that resolves the damage 14 issue, that resolves the zoning issue, etc. 15 That's a risk management letter. 16 You'll notice at the end of the letter, I 17 basically say that, as a caveat, this relates, 18 as a risk management, to prevent what happened 19 in the RTC case where you basically had a 20 runaway jury and a runaway judge. 21 So it's my obligation to basically give 22 you a risk management letter. Now obviously, 23 you've heard Larry and I say here today that 24 we've taken the issues that we think are the 25 most likely to cause trouble for the town -- Esquire Deposition Services (561) 659-4155 Page 55 • • • 1 the vested rights issue, statute of 2 limitations and spot -zoning -- and tell you 3 that we feel that the Town has a viable 4 position in all of those issues. MS. SCALA-PISTONE: Um-hmm. 5 MS. SCALA-PISTONE: Okay. But Tom, you 6 specifically recommended that we, as a 7 Commission -- SLINEY: I agree with you. Okay? 22 MS. 8 MR. SLINEY: If you want -- 24 9 MS. SCALA-PISTONE: -- as a Commission, 10 agree -- 11 MR. SLINEY: If you want to do it as a 12 risk management -- 13 MS. SCALA-PISTONE: -- agree -- 14 MR. SLINEY: -- as a risk management 15 letter. A risk management letter -- I did 16 state that; the letter speaks for itself. 17 MS. SCALA-PISTONE: Um-hmm. 18 MR. SLINEY: I agree with you. 19 MS. SCALA-PISTONE: Oh, I just wanted you 20 to say. 21 MR. SLINEY: I agree with you. Okay? 22 MS. SCALA-PISTONE: Yes. 23 MR. SLINEY: What I'm telling you is, if 24 you -- when I wrote that letter -- 25 MS. SCALA-PISTONE: Tom, you represent Esquire Deposition Services (561) 659-4155 Page 56 • • • 1 us. You know, we need legal advice from you. 2 16 MR. SLINEY: And we can't just -- 3 19 MS. SCALA-PISTONE: You are our counsel. 4 22 MR. SLINEY: And we can't -- 5 25 MS. SCALA-PISTONE: So -- 6 MR. SLINEY: We have to give you not only 7 the rosy side of things; we have to give you 8 the unrosy side. 9 MS. SCALA-PISTONE: But why would any of 10 us go beyond that, if you say, you know -- 11 MR. SLINEY: Because -- actually, because 12 legal -- 13 MS. SCALA-PISTONE: "I recommend that you 14 approve it." 15 MR. SLINEY: Because we don't -get a vote. 16 MS. SCALA-PISTONE: You know, we don't 17 want you to -- 18 MR. SLINEY: You do this -- 19 MS. SCALA-PISTONE: -- or we just have to 20 get additional information elsewhere, from 21 outside -- 22 MR. SLINEY: No. You use your own 23 judgement. This is -- we're giving you -- 24 that letter was from a legal perspective, 25 reviewing the legal perspective at the time, Esquire Deposition Services (561) 659-4155 Page 57 r� 1 which was about two years ago. 2 MS. SCALA-PISTONE: Now, I'm totally 3 shocked by, you know, this, and I'm also 4 disappointed that you would even make a 5 statement like this, because there are many 6 avenues in which to go, and not just 7 immediately to -- and this was prior to our 8 meeting, to our -- 9 MR. SLINEY: It was written almost two 10 years ago. 11 MS. SCALA-PISTONE: -- May 2002 meeting. 12 It was scheduled; we never seemed to have it. 13 MR. SLINEY: That was correct. 14 MS. SCALA-PISTONE: But you know, that 15 could have been 1, 2, 3 on it and we're ... 16 It's over; you know, we're accepting it and 17 whatever they say goes. 18 I mean, within the petition for 19 settlement, it was written -- it was -- these 20 terms that were put in with that -- the 21 statements that were put in with that 22 particular petition, or you know, approval for 23 petition of settlement, that we, you know, did 24 this -- or we should make decisions for the 25 best interest of the Town or the people. Esquire Deposition Services (561) 659-4155 Page 58 1 LA • -A 1 I didn't agree that this was -- would be 2 in the best interest of the Town and people. 3 The reason I -- that red flags were flying, in 4 my estimation, was this is a barrier island, 5 and this is a coastal area. This is an 6 important, very sacred, serious area that we 7 live in. We have two egress areas -- two 8 egress bridges that we share with two other 9 towns. 10 Why would anyone want to accept -- and 11 this was done, by the way, with Siemens giving 12 us a proposal for an assisted living facility; 13 this was at that time -- 14 MR. SLINEY: I responded to your 15 question, and I also responded about a year 16 later and gave you -- you had to know not only 17 the rosy, because I understand your point of 18 view on the thing. There was a case in Monroe 19 County -- which I brought to the Town 20 Commission's attention about a year ago -- in 21 which Monroe County lost $6 million in a 22 similar thing. 23 Okay. It's a risk management situation. 24 If you wanted to dispose of all -- 25 MS. SCALA-PISTONE: Risk management? I'm Esquire Deposition Services (561) 659-4155 Page 59 1 • • • 1 talking about people's lives here. 2 MR. SLINEY: Now, at one time when I 3 wrote the letter -- 4 MS. SCALA-PISTONE: People's lives are at 5 risk -- 6 MR. SLINEY: I understand. 7 MS. SCALA-PISTONE: -- are at risk for 8 maybe an evacuation or a storm. Don't you 9 think? 10 MR. SLINEY: It's my obligation to give 11 you a risk management letter, and that's what 12 I did. As I said before, if you wanted to 13 dispose of all the issues, considering that 14 what happened with the other 17 acres would be 15 a possibility -- and as Larry said, we can't 16 guarantee the result -- that would have taken 17 care of it. Okay. 18 I specifically gave you -- when this 19 issue came up about a year ago, I presented to 20 you a copy of the Monroe County decision of $6 21 million where they lost that because of they 22 were denied the use of the property. 23 So, I can't always necessarily tell 24 clients what they want to hear. I give them 25 information that you as a governing body Esquire Deposition Services (561) 659-4155 Page 60 • 1 digest and make your own decisions, because 2 neither Larry nor I have a vote. 3 MS. SCALA-PISTONE: All right. Well, I'm 4 going to stop speaking for a few moments, and 5 let whoever -- Bob continue, with the -- 6 MR. LOWE: I would vote for the -- 7 MS. SCALA-PISTONE: -- the ability to 8 come back later. 9 MR. LOWE: I would vote for lunch, and 10 we'll take care of it. We've been sitting 11 here for an hour already, and I believe you've 12 used 25 minutes of that hour. Commissioner? 13 MS. SCALA-PISTONE: I thought we could 14 talk for as long as we wanted. That was the 15 statement -- 16 MR. ASSELTA: We can talk all day long. 17 MS. SCALA-PISTONE: -- didn't he -- when 18 we first convened, without any risk? 19 MR. LOWE: Again, I think we've heard 20 from Ms. Cooper that no matter what, if we 21 vote it down, she's going to take a loss. So 22 that -- we already know that this is it. So I 23 mean, let's just forget about the RTC as to 24 what happened. I'd like to go back to the 25 RTC. The RTC, they had applied for a permit, Esquire Deposition Services (561) 659-4155 Page 61 IA r� • 1 and they changed that zoning after they had 2 applied for the permit. That was one of the 3 cases -- that's really one of the things that 4 gave the RTC the advantage. 5 Here there has not been any permits 6 applied for to build. So I mean, we have a 7 risk here. We have a risk we know of. We 8 don't know what they're going to show us or 9 what they're going to state, spot -zoning or 10 whatever. 11 You've given us your information as to, 12 yes, it's a possible reason we're going to go 13 to court, and I'm 99 percent sure we're going 14 to go to court. 15 The main thing is we wanted to talk about 16 what is our strategy and what -- and my 17 understanding is, do we announce -- do we vote 18 on it tomorrow, do we propose to postpone the 19 vote until some other future date. 20 Other than that, I know it's going to go 21 to court and I know -- that's my feelings -- 22 so they can hear all the risk management and 23 so on and so forth. It's up to us to make our 24 decision whether we want to -- that when do we 25 want to go for it -- vote for or against. Esquire Deposition Services (561) 659-4155 Page 62 • • • 1 MR. REID: Wait a minute. I happen to be 2 the Chairman. Are you finished? 3 MR. LOWE: No, I didn't know that we were 4 going through the Chairman. I mean, I thought 5 we had an opportunity to speak all we want to 6 in an executive session. 7 MR. ASSELTA: As a matter of fact, I 8 agree with what you said. I was going to say, 9 whatever's happened in the past is done with. 10 You know and I know that we've agreed to 11 disagree, so let's put that behind the 12 procedures that existed before today. 13 What we do have, as Bob said, is a 14 settlement proposal and a strategy that we're 15 going to work off of. 16 Part of that strategy and part of the 17 response to the resolution -- and I have to 18 say this -- that I'm extremely disappointed in 19 you to say that you just glanced at that brief 20 that was prepared -- 21 MR. CORMAN: Well, because then -- 22 MR. ASSELTA: I'll tell you, there was 23 over 2,000 lawsuits of experience put into 24 that and I doubt you have that. So let's get 25 beyond that. Esquire Deposition Services (561) 659-4155 Page 63 J 1 Strategy -wise -- 2 MR. CORMAN: Well, I'm here now, and I've 3 been scheduled to do other things the last 4 couple of days. 5 MR. ASSELTA: All right. 6 MR. CORMAN: I'll look at it more 7 carefully. 8 MR. ASSELTA: One of the things that I do 9 know -- you know, I know you can't predict, 10 but one thing you can predict -- in a lawsuit 11 -- but one thing you can predict, and I -- 12 that Highland Beach is easy; threaten a 13 lawsuit and they'll settle. And I'm telling 14 you that if we just keep settling, settling, 15 settling, you're going to keep getting 16 lawsuits and lawsuits and lawsuits. 17 The only way that'll be stopped -- but 18 I've already heard that there are people -- 19 there are pieces of property, that there are 20 offers have been made to buy out condos, and 21 the whole purpose is, we'll just sue the Town; 22 we don't care what the zoning is. 23 That's the one reason that we've got to 24 take a stand, and I'm saying this to all my 25 co -Commission members here. Esquire Deposition Services (561) 659-4155 Page 64 • • �A 1 MS. SCALA-PISTONE: I agree. 2 MR. ASSELTA: Now, as to the strategy, I 3 think that one of the things that you do, a 4 trial lawyer does, when he evaluates a case, 5 he puts percentages of possibility and 6 probabilities on it. We all know that the 7 fate -- we don't know how the case is going to 8 come out. But we do know that there's a 50 9 percent chance of winning, there's an 80 10 percent chance of winning, there's a 90 11 percent chance of winning, and those are what 12 I expected to hear, not that there's a chance 13 and we don't know what it is. 14 MR. CORMAN: Well, I think we have a very 15 strong case in the statute of limitations and 16 the vested rights issue. 17 MR. ASSELTA: Actually, you have a very 18 strong case on every issue. 19 MR. CORMAN: I don't know about 20 spot -zoning to tell you that's not a case as I 21 haven't seen an actual analysis on it. 22 MR. ASSELTA: Now, one of the things 23 about, that I -- you know, Tom and -- I 24 discussed this postponement, or adjournment, 25 with Tom, and I did say I wanted -- that Esquire Deposition Services (561) 659-4155 Page 65 • • 1 before I'd agree to anything -- I wanted a 2 date certain, the date had to be in April, and 3 the date had to be one that every Commission 4 member could be present. 5 Now, she has her chance to give you that, 6 and I'm telling you, come tomorrow, if that is 7 not an acceptable position, that we all agreed 8 on a date -- and all of us have to agree -- 9 I'm making a motion, and you can tell her 10 that. 11 MR. SLINEY: No, we -- you're right; we 12 discuss it lawyer -to -lawyer. 13 MR. ASSELTA: Right. But the point 14 being, "Okay. I understand your position. I 15 didn't want to put you in a bad position with 16 the judge." And I've got to agree with you. 17 I mean, I really don't agree, but I would 18 prefer to let you have that position. 19 But I -- she does not have any standing 20 at a meeting to vote. She had her standing, 21 and it was the other night, and the worst part 22 -- and the reason I'm so upset about it, she 23 was not truthful. 24 I was just going through my notes, and 25 the point that she was making, she was either Esquire Deposition Services (561) 659-4155 Page 66 7 • • 1 faking the facts, misstating them, or 2 deliberately avoiding them. That, to me -- an 3 attorney that's like that -- somebody might 4 have made the comment, well, you're -- an 5 advocate puts his best position forward -- but 6 where I come from, a lawyer's position has to 7 be truthful. 8 You cannot make an argument -- like on 9 any subject; you can't make a closing 10 argument, you can't make an opening argument, 11 you can't make a presentation -- without it 12 being truthful. And if it's not truthful, 13 there are consequences. 14 Maybe they do it different here in the 15 State of Florida, but she was not truthful in 16 her presentation, and I'm very disappointed in 17 that. And that, I wanted to let the people 18 know, and we had -- well, fortunately, we did 19 have two people come up that did make a note 20 that first of all, her history of the 21 litigation is wrong, and good thing Rabideau 22 was there to correct that. 23 And if you read the brief that was 24 presented, we outlined every point that she 25 made in her counterclaim, and every point that Esquire Deposition Services (561) 659-4155 Page 67 �j • 1 she's made in the resolution for settlement 2 has been countered. 3 This is not something that -- all I can 4 say is it's not that close. I understand 5 risks, but these risks we're talking about are 6 a very small percent risk considering what we 7 have exposed to us. Exposed to us is many 8 more litigations like this if we cave in. 9 That's my position, and I'm really 10 disappointed that I don't have a date that we 11 can agree with, but if she doesn't have a 12 date, we're going to resolve this tomorrow. 13 Okay? 14 MR. SLINEY: Let me respond to a couple 15 of things, if I could. 16 One, the litigations in the history of 17 the Town have primarily been for down -zonings. 18 The history of the Town was basically the Town 19 filed to zone the property at 40 to 50 units. 20 Through the years, starting in the 1970s, the 21 Town down -zoned properties, which got the Town 22 and the property owners in a series of vested 23 rights arguments. 24 That's why you have all the zoning 25 litigation. If the Town had originally been Esquire Deposition Services (561) 659-4155 Page 68 • • 1 zoned like Gulfstream or Ocean Ridge or one of 2 those towns, at low density, you wouldn't have 3 had that. That's number one. 4 Number two, the Town has been very 5 successful in a number of litigations that we 6 have done in the past. I just gave one to 7 Commissioner Zwick, who knows well about the 8 B&C sites; we completely won that one. They 9 tried to bust the zoning at Verda Beach and 10 put condominiums up in Verda Beach; we won 11 that one. They tried to put a high-rise up 12 where Ocean Place Estates is; we won that one. 13 So there's been a lot of successes, so I 14 didn't want to give you the idea that we 15 haven't been successful in certain.cases. But 16 it's been a conflict between the down -zoning 17 and what people felt were vested property 18 rights to spawn all the litigation. 19 I've heard the same rumors you have, that 20 so-and-so wants to buy a condominium on the 21 ocean and build 19 stories. Well, they don't 22 have any vested rights; it's not a vested 23 rights deal. 24 MR. ASSELTA: I aware. 25 MR. SLINEY: We're not down -zoning them. Esquire Deposition Services (561) 659-4155 Page 69 • • 1 MR. ASSELTA: Wait. But I'm just saying 2 the soft atmosphere, the soft arena is choicy 3 to these buildings. Developers come in and 4 say, "Hey, look" -- 5 MS. SCALA-PISTONE: A precedent. 6 MR. ASSELTA: I mean, look, they'll 7 settle, and we answer twice as much -- 8 MR. SLINEY: But I would respectfully say 9 it's a different situation. But it's not a 10 matter of somebody coming in and buying it and 11 then we down -zone it on them. That was the 12 vested rights claim. If Mr. Jones goes ahead 13 and buys ABC Condominium, he's buying it and 14 it's not being down -zoned, he has no rights to 15 come in and ask for something past the zoning. 16 Okay? 17 MR. LOWE: I'd like to -- one thing. As 18 Joe said, I've heard the same thing. The 19 residents are saying, "We have to stand firm 20 on this -- on" -- 21 MR. SLINEY: I'm not arguing that. I 22 just want to get it -- 23 MR. LOWE: -- "that we had to make sure 24 that we're -- that residents and builders, 25 contractors and everything else, understand Esquire Deposition Services (561) 659-4155 Page 70 • • 1 that there is our zoning and this is what 2 we're going to live to, and that's it." If -- 3 court cases, well, we'll have to go to court 4 and fight that. 5 MR. SLINEY: And all I want to do is -- 6 MR. LOWE: I know that we have to make 7 the stand, go up to someplace and say, "This 8 is it, and that's that." 9 MS. SCALA-PISTONE: Hallelujah, Bob. 10 MR. SLINEY: But I wanted to give a 11 little history on it, and I also wanted to say 12 that in addition to Mr. Rabideau, I was one of 13 the speakers who gave corrections to her 14 presentation, so -- 15 MR. REID: I heard you. 16 MR. ASSELTA: I mean, I know that, you 17 know that, and but... My phone has been 18 ringing off the hook all morning. Now I don't 19 how this note of yours to Ben got around, but 20 it certainly got all over town. 21 MR. SLINEY: Well, it shouldn't have. 22 MR. ASSELTA: But it did. 23 MR. SLINEY: That's what I had -- 24 MR. ASSELTA: I had at least 20 calls, 25 all of them saying, "What is this idea? What Esquire Deposition Services (561) 659-4155 Page 71 • • • 1 2 3 4 5 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is this idea? You're going to postpone the vote?" MR. SLINEY: Well, that's very disturbing to me, because one of the things that I hear -- MR. ASSELTA: I mean, of all people, our --- who are Commission members -- MR. SLINEY: I have every right to do -- and I think it's important to communicate with the Town, and basically say this is not to be disclosed. So if somebody is passing this around -- MR. ASSELTA: I'm just saying it came back to -- and that's why I got all those calls this morning. MR. SLINEY: Well, that's disturbing to me. MR. ASSELTA: MR. SLINEY: communicate -- MR. ASSELTA: It has to be. I mean, how can I then I don't know. No, I didn't blame you. MR. SLINEY: No, no. I'm saying -- MR. ASSELTA: No, I'm not blaming you. I'm just -- Esquire Deposition Services (561) 659-4155 Page 72 1 • 1 MR. SLINEY: I appreciate -- I'm just 2 MR. ASSELTA: What my point is -- 3 MR. SLINEY: I appreciate you letting me 4 know that. already 19 5 MR. ASSELTA: -- that the people that -- 6 and I got calls, and you can believe -- and 7 what they said weren't very kind, that they -- 8 MR. SLINEY: But they just -- but they 9 don't understand the legal issue, and you 10 understand the legal issue. the Town, and I -- you 11 MR. ASSELTA: I tried to explain as best 12 I could. Okay? 13 MS. SCALA-PISTONE: But they don't have 14 to. 15 MR. REID: Well, I mean, but -- I'm just 16 saying -- 17 MS. SCALA-PISTONE: They don't want to 18 understand the legal issues. They've already 19 directed us in the legal vein. 20 MR. REID: We're trying to -- 21 MS. SCALA-PISTONE: They said they want 22 to go to court. 23 MR. SLINEY: Commissioner, we're trying 24 to represent the Town, and I -- you know, 25 whether you vote today or a week from now Esquire Deposition Services (561) 659-4155 Page 73 • • • 1 isn't the issue. We are trying to put the 2 best foot forward vis-a-vis the Town and 3 Judge Brunson. 4 Now, I've been through umpteen zoning 5 hearings; I have some idea of how people come 6 to zoning hearings and what they want. People 7 are uniformly against this project. That's 8 fine. 9 One of the problems in the Town is, is 10 that, you know, people who live in existing 11 condominiums sometimes forget that other 12 people may have property rights. Those 13 property need to be adjudicated in the court, 14 not necessarily adjudicated by having a public 15 hearing. That's all we're trying to tell you. 16 MR. LOWE: I've thought of one other 17 thing. One of the things that -- and I'm 18 talking about strategy; this is what I feel is 19 very important is the wording of the motion 20 that's going to be made, whenever it's made, 21 on the vote, and I think we all know how it's 22 going to go -- the resolution that's going to 23 happen -- the wording is very important, so 24 that the judge will understand. I mentioned 25 to you earlier that I have a very good idea Esquire Deposition Services (561) 659-4155 Page 74 • • • 1 how the outline should be and I suggested that 2 you review with your -- the appellate section 3 of your firm -- because we want to make sure 4 we cover those factors that will stand out as 5 to why we're rejecting the settlement 6 proposal. 7 I think that would -- because that 8 becomes part of the record. If we go on -- 9 that if -- we're talking about a judicial 10 process, and I think one of the things that 11 we'll do is we'll anticipate in the 12 resolution, or the motion. 13 What we were talking about -- I haven't 14 heard -- you know, I've gone through the 15 history and briefly given our reasons why we 16 should vote against it. 17 MR. SLINEY: Well, as you and I 18 discussed, I agree with you; I think that's 19 good advice. No question about that. And as 20 we discussed also, lawyer -to -lawyer, 21 procedural due process in the court -- 22 MR. LOWE: Oh, yeah, I know. 23 MR. SLINEY: -- again, and so I agree 24 with that. That's something that -- 25 MR. ASSELTA: But like I said, if she Esquire Deposition Services (561) 659-4155 Page 75 • 1 doesn't have a date, she's blown her 2 position; her right to procedural due process. 3 MR. SLINEY: All right. Okay. 4 MR. ASSELTA: Because you came and you 5 made the offer; you may have said, "Give me a 6 date." She knew we were going to have a 7 meeting and you know she knows she'll never 8 get the approval of the people. And I don't 9 know how to vote. I have no idea. Maybe I'm 10 the only one who will go along with you two 11 postponing. Maybe the other four people want 12 to vote. If there's a vote tomorrow, there's 13 a vote tomorrow. 14 MR. SLINEY: I hear you. 15 MS. ZWICK: One question please. May I? 16 MR. REID: Yes. 17 MS. ZWICK: Did I understand you 18 correctly that she can't come back to you like 19 12:00 tomorrow with a date? 20 MR. SLINEY: I told her I wanted the 21 answer tomorrow morning because I had the 22 Commission meeting tomorrow afternoon -- 23 MS. ZWICK: Okay. 24 MR. SLINEY: -- and I needed to let 25 you -all know, because you -all have your own Esquire Deposition Services (561) 659-4155 Page 76 �j r� 1 schedules. 13 So that means that you'd have to call a 2 MS. ZWICK: Yeah. Okay. 3 MR. SLINEY: So, I mean, I want to be 4 fair; I can only be so fair, you know, with 5 her. 21 is small. And then we wanted it in April; 6 MS. ZWICK: Yeah. MR. REID: I was under the impression at 7 MR. LOWE: I don't know how the rest of 8 you people feel, but I -- with regards to this 9 -- the delaying it, I don't mind delaying it, 10 but I would rather say that it must be done 11 within the next two weeks if you're going to 12 postpone the vote. 13 So that means that you'd have to call a 14 special meeting and vote on it. I don't know 15 how the rest are, but I have no problem with 16 extending the time. 17 MR. ASSELTA: Now, as I had mentioned, 18 I'm out of town for seven days commencing 19 tomorrow night. You know, seven days. But 20 then, like I said -- and that's why the window 21 is small. And then we wanted it in April; 22 it's got to be in April, let's do it in April. 23 MR. REID: I was under the impression at 24 the next regular meeting is when the vote can 25 be taken, or that that was the date that was Esquire Deposition Services (561) 659-4155 Page 77 r� L r� 1 being offered to her to accept or reject. If 2 she rejects it, she's had it. 3 MR. LOWE: Which day is that? 4 MR. ASSELTA: That's tomorrow. 5 MS. SCALA-PISTONE: Tomorrow. 6 MR. REID: Next -- no. In May. 7 MS. SCALA-PISTONE: May. No, no. We 8 want to go that far. 9 MR. ASSELTA: It's got to be in April. 10 MR. SLINEY: We will -- First -- I 11 understand, because -- let me clarify what the 12 Mayor is saying because -- 13 MS. SCALA-PISTONE: No. 14 MR. SLINEY: -- I'm not sure all of you 15 heard this at the end of the public hearing. 16 She came up to where we were sitting and 17 said she was in trial tomorrow and she was 18 suggesting that it be held over to the May 19 meeting. Okay. That's not what I'm 20 suggesting; that was her suggestion. 21 MR. REID: That's good. 22 MR. SLINEY: That's where the Mayor got 23 that from. 24 MR. REID: That's good. That's fine. 25 MS. SCALA-PISTONE: Yeah, the Mayor came Esquire Deposition Services (561) 659-4155 Page 78 1 • • 1 to me and I said no, I couldn't do it then. 2 MR. SLINEY: I understand, but I'm saying 3 that that was her response, and I'm saying -- 4 and I agree with the rest of you -- it needs 5 to be much sooner. I agree. 16 6 MR. REID: But I also said every 7 condition has to be first met. 19 8 MR. SLINEY: That's true. I agree with 9 it. 10 MR. LOWE: If you can't get a date, 11 then... 12 MR. SLINEY: All right. 13 MR. LOWE: But I feel that it definitely 14 should be done I April, and I think that the 15 sooner we can get it accomplished -- because 16 you said you were going out of town for like a 17 week? 18 MR. ASSELTA: Seven days, yeah. 19 MR. REID: You're going out, what? 20 MR. LOWE: So that means that we have 21 Another window of time. Another window there 22 of a week, sometime the following week, we 23 should have this -- 24 MR. ASSELTA: Next week, it's Thursday 25 and Friday. Esquire Deposition Services (561) 659-4155 Page 79 • • 1 MR. LOWE: I haven't got my calendar with 2 me, but I'm saying I think we have to get it 3 accomplished, and at least tomorrow at our 4 regular meeting, we should have -- everyone 5 should have their calendar and ask what's a 6 good date in April. 7 MS. SCALA-PISTONE: My daughter is 8 expecting a baby, my grandbaby. 9 MR. LOWE: There's only one guy who -- 10 MS. SCALA-PISTONE: She's been trying for 11 eight years. 12 MR. LOWE: There's only one -- 13 MS. SCALA-PISTONE: I want to be there 14 for her. 15 MR. LOWE: There's only one person who 16 can say about that. 17 MS. SCALA-PISTONE: And though that's 18 just the point. I mean, you know, I have 19 free time, and I abide by the laws and the 20 rules that we set down and all of a sudden, in 21 the blink of an eye, we change the rules. I 22 don't think that's right. 23 MR. REID: Somehow or another along the 24 line, I have to make a discernment between our 25 own attempts at adjudicating the matter at Esquire Deposition Services (561) 659-4155 Page 80 • I"A IA 1 hand -- these fellows are our attorneys, and I 2 would be much more comfortable if in 3 exchanging views and ideas, one was not so 4 disappointed as to mention it, but rather to 5 speak and say, "This is what I believe, rather 6 than what you're saying." 7 My concern is that we drift away from the 8 fact that we have one legal counsel, and they 9 represent the Town at the behest of ourselves, 10 and that we will -- or have -- given them our 11 thoughts, and should it occur to us something 12 different later on, maybe a letter to'the 13 counsel would be helpful. 14 But I don't think we are going to succeed 15 if in fact we wind up with two legal 16 departments. We can't afford that; that, I 17 don't think is correct. 18 I always start from the point of view of 19 ownership. That seems to have been a problem 20 on occasion of understanding why certain 21 things happen. There is ownership here, no 22 different than I own my condominium or any of 23 us own our condominiums. And if I were to 24 come before the Board and ask for a certain 25 allowance or the humble begging of an Esquire Deposition Services (561) 659-4155 Page 81 r� L 1 extension, that if it's reasonable, I should 2 find no reason to reject it. 3 I don't think a month makes a difference, 4 but if it's two weeks, that's fine, too. I 5 constantly have the feeling that there's a 6 presumed way the vote is going to go, and I 7 think I agree with such -and -such, and that you 8 did not know who else was going to vote which 9 way. 10 But I have the intense feeling that 11 repeatedly it has been assumed that this would 12 be a negative vote. It may well be, but that, 13 I don't think, is an appropriate thing for us 14 to guess at right now. 15 The briefs that are submitted I think 16 should be submitted to the attorneys. Let 17 them make their abstracts of them, and what 18 they feel is useful is useful; what they feel 19 is not useful can be disregarded. 20 As to the correct path, I have no idea 21 what a correct path would be than if someone 22 walks into my office and says to me, "Do my 23 tax return," I don't even know what the man's 24 doing. I don't know if it's a proprietor, 25 corporate, partnership, I don't know if he's Esquire Deposition Services (561) 659-4155 Page 82 r� 1 got dividends, interest or not. 2 So then to sit down beforehand and say 3 what the path of success is, is kind of a bit 4 much. But what I do -- and I think is being 5 done -- is to view all prospects of it, all 6 the ideas. And if someone puts something 7 before me that says, "Well, this is an idea of 8 risk management, that if we do A, B and C, you 9 can avoid D, E and F," I think that's a 10 perfectly legitimate piece of legal advice; I 11 have no trouble with it and I appreciate it, 12 that someone is willing to take the time and 13 sit down and say to me that "You're doing A 14 and B; maybe you ought to be doing C and D." 15 But to be disappointed -- to repeat that 16 thought -- I don't think that's something we 17 ought to get involved in. If I don't think 18 something's right, I'll either keep my mouth 19 shut, or I'll inquire why. 20 I was sitting here in the forum and the 21 two attorneys were talking to each other and 22 for about three minutes, I didn't have a clue 23 what was being said to each other. 24 But I assume that by virtue of the way 25 they ended the conversation, that between the Esquire Deposition Services (561) 659-4155 Page 83 • • 1 two of them, they understood what was being 2 said legally. Since I'm not a lawyer, that's 3 my business. I don't want to go into the law 4 business; talk to me about taxes and I'll talk 5 to you. 6 Other than that, I think of the fact that 7 they are vested. I'd like to understand how 8 they can get past -- or not have some sort of 9 investment in this thing. 10 Spot -zoning sounds to me to be a real 11 serious problem; that they can get in on that 12 one. Probably with an attorney, and I think I 13 know the incentives rather well; I could argue 14 that one rather nicely. 15 We are involved. There's no way in the 16 world we can avoid involvement, and Miss -- I 17 think Mrs. Cooper is extremely sharp. She's a 18 very aggressive attorney; she's demonstrated 19 it before, and I'm certain she will 20 demonstrate it again. She may say and do 21 things that we don't care for as a Commission, 22 but I don't think that we should think of her 23 as being half-witted or stupid. 24 I think, in my opinion, that, having 25 discussed all the ideas that we have from a Esquire Deposition Services (561) 659-4155 Page 84 • r� 1 legal point of view, with the attorney here, 2 and obviously Commissioner Scala-Pistone has 3 had some legal assistance in the stuff that 4 she presents. But I would prefer for you 5 fellows to come up with the way, the approach 6 and the light of how we're going to present 7 ourselves. 8 Now, out of this, have I discerned -- or 9 do I discern -- a procedure that we're going 10 to follow in doing this, in going to court to 11 try to resolve this and come out with the best 12 deal we could have going to court? 13 MR. CORMAN: Well, the way things are 14 structured is, we either come -- well, 115 tomorrow, they're deciding the agenda, and the 16 Commission will vote either to delay the vote 17 or to have the vote tomorrow, as the 18 Commission deems fit. 19 If the settlement is rejected, my 20 speculative guess is that either the developer 21 will come up with another settlement proposal 122 -- which my guess is unlikely -- or they will 23 go to court and announce to the court that the 24 attempt at mediation has failed, and the 25 litigation will become reactivated. Esquire Deposition Services (561) 659-4155 Page 85 1 • 1 I want to point out that, as your 2 counsel, we'll have a lot more work to do, and 3 there'll be more expense for the Town and more 4 revenue for the firm if we litigate than if we 5 settle. 6 So it's certainly in my firm's interest 7 for you guys to want to fight. And if you 8 want to fight, I do promise you that we will 9 fight vigorously. As Tom has pointed out, 10 we've had a lot of success litigating for the 11 Town in the past. I think we have a very 12 strong position on the vested rights and 13 statute of limitation issues, based on what we 14 know sitting here today. 15 Case law on the statute of limitations is 16 nonexistent in our state regarding this vested 17 rights and zoning issue. I did take a quick 18 look at the brief that was presented to the 19 Commission and there aren't any case citations 20 in there to support the facts that are 21 asserted regarding the sequence of events that 22 transpired. There's not a section saying 23 given these facts, here's Florida Case Law 24 that says the Town wins hands down, slam dunk, 25 no need to worry. Esquire Deposition Services (561) 659-4155 Page 86 • • • 1 My guess is that -- particularly if we 2 develop in discovery that the limitations 3 defense will be viable -- and we'll have to 4 decide whether we want to proceed by asking 5 what lawyers call a request for admissions, or 6 if we want to issue interrogatories to take a 7 deposition or even ask the court to take a 8 position on a prior lawsuit, and then move for 9 summary judgement on the limitations issue. 10 At that point, my guess is, if the 11 developer's counsel believes that we're going 12 to be successful, they're going to have to 13 look at amending their counterclaim to assert 14 some other legal theory to enable them to stay 15 in court. 16 It's not impossible that if we reject the 17 settlement and we start pursuing the 18 limitations defense that they'll go away and 19 give up and agree to develop based on the 20 existing zoning. 21 My guess is that the developer is not 22 going to voluntarily walk away from earning 23 twice what they can on the project and twice 24 the density, and that they'll come up some 25 legal theory that's going to keep us in court. Esquire Deposition Services (561) 659-4155 Page 87 • FA 1 So, you know, my guess is that if the 2 proposal's rejected, litigation will become 3 activated for the first time, really, in a 4 serious way, and we will vigorously pursue 5 discovery on the Town's behalf, and get the 6 case properly framed so we can move for 7 summary judgement, and try to dispose of the 8 lawsuit, as is presently planned. 9 MR. REID: I think in specifics, numeric 10 specifics. 11 Now, if I was to say to you, "What is the 12 strategy in my business?" I would simply say, 13 "Well, how will I handle this item? Schedule 14 A, Schedule C." It's a factual answer. 15 You're saying to us that the strategy is to 16 walk through the meeting, yes or no; the 17 probability is it's going to be turned down. 18 MR. CORMAN: No, I'm not going to make 19 predictions on what the Commission's going to 20 do on that. 21 MR. REID: No -- no, no, no, no. I'm -- 22 that's -- that was the type of words that you 23 used in legal terms, "possibility and suppose" 24 and the like -- 25 MR. CORMAN: Sure. Esquire Deposition Services (561) 659-4155 Page 88 1 0 • • 1 MR. REID: -- if it's turned down -- 2 suppose it is. Then the next step is, in the 3 strategy sense, of almost waiting for them to 4 make a move. 5 MR. CORMAN: Not necessarily. We can 6 decide at that point that we're going to have 7 to litigate, and we can just, you know, notify 8 the court that the mediation is terminated, 9 because the way we structured this, any of the 10 parties in the case has the right to terminate 11 mediation by giving written notice to the 12 other parties. 13 So we would issue our written notice that 14 the settlement sessions are over. We would 15 then prepare discovery materials and get them 16 to admit that they previously filed another 17 lawsuit against the Town; get them to admit 18 that it was voluntarily dismissed without 19 prejudice; and then file a motion with the 20 court asserting that based on these dates, 21 their time to challenge the legal 22 effectiveness of the revised ordinance is 23 wrong. Keeping in mind that I don't have any 24 cases to cite to the court; we'll just be 25 relying on the plain language of the statute. Esquire Deposition Services (561) 659-4155 Page 89 • • • 1 Then the judge will decide either that based 2 on the plain language of the statute. It 3 won't be contested. I mean, they can't 4 contest that there was a prior lawsuit and 5 that they took a dismissal. So she'll decide 6 whether or not that by itself results in their 7 not having the ability to be in court on that. 8 MR. REID: So if there is a separate 9 fluidity in the legal -- 10 MR. CORMAN: Yeah, I mean -- 11 MR. REID: -- strategies -- 12 MR. CORMAN: I have ideas in mind in 13 terms of how I would attempt to quickly 14 dispose of the case. 15 MR. REID: Thank you. 16 MS. SCALA-PISTONE: Okay. 17 MR. LOWE: I understand tomorrow we have 18 two options. We're either going to table the 19 vote to some other date, or we're going to 20 vote tomorrow. 21 MR. CORMAN: That's correct. 22 MR. REID: Can you have ready, as -- 23 because Joe had mentioned before -- to have 24 the correct statement made and prepared, so 25 that when we do vote, if it's a vote negative, Esquire Deposition Services (561) 659-4155 Page 90 1 �j �j • 1 that we put the right words in place and have 2 that accomplished by before maybe tomorrow? 3 MR. CORMAN: Well, any commissioner that 4 wants assistance of counsel in framing the 5 proper motion can certainly contact us, and we 6 will be happy to assist them in framing an 7 appropriate motion consistent with whatever 8 motion they might want to bring before the 9 Commission. 10 I will, however, point out that today is 11 Passover, and I am having a Seder at my house 12 and I have to go pick up my 88 -year-old dad 13 and my son and I'm not going to be returning 14 to the office today. 15 Tom, I believe, will be available to work 16 with the Commission -- or commissioner, any 17 particular commissioner that might want to 18 call and request guidance on framing the 19 proper motion. 20 I am also not going to be available 21 tomorrow morning because I have meetings at 22 8:30 and 1:00, so basically you'll be relying 23 on Tom. 24 Tom, what's your schedule like? I mean, 25 can you accommodate any Commissioner or at Esquire Deposition Services (561) 659-4155 Page 91 • • • 1 least be able to get him some help? 2 MR. SLINEY: Of course. 3 MR. REID: This -- is this so complicated 4 that it couldn't be almost decided? 5 MR. SLINEY: No. It's good to -- it's 6 actually -- it can be decided. It's using 7 the -- 8 MR. CORMAN: The strength -- the issue -- 9 you take and you -- you take a proposal, and 10 you then say, "The reasons we're not settling 11 it is that" -- they made a statement that they 12 had invested a lot, but it was that -- well -- 13 the position is not well taken. And you know, 14 she makes those statements in her settlement 15 proposal that there is liability on the part 16 of the Town; you reject those. 17 It's there, it's just a matter of your 18 putting it in order and -- 19 MR. SLINEY: I'm available to discuss it 20 with anybody. 21 MS. SCALA-PISTONE: Speak there "whereas 22 ifs" that you talk. 23 MR. SLINEY: I'm good at the "whereas 24 ifs." 25 MS. SCALA-PISTONE: The "whereas ifs." Esquire Deposition Services (561) 659-4155 Page 92 r] • 1 You know, I mean, the -- 2 MR. REID: Why is this law, then, a 3 simple vote, because you want to put on the 4 record our objections? 5 MR. SLINEY: Well, I think the Vice Mayor 6 has a good point. I think that, for the 7 record -- and everything in your zoning cases 8 is for the record -- if you want to have some 9 documentation in the sense of the reasoning -- 10 and a part of this goes to -- Judge Brunson 11 really doesn't know anything about this case, 12 other than it's been on her docket, and this 13 is part of the education of a judge. 14 MR. ASSELTA: This sounds like a defense. 15 MR. SLINEY: No. No, the Vice Mayor's 16 correct. I mean, it's about three -- 17 MR. REID: If I heard the conversation, 18 you're the one most capable to do it, one of 19 the -- 20 MR. CORMAN: Well, the yeah. I mean, any 21 commissioner that wants to have assistance in 22 framing a motion can contact Tom. 23 MR. REID: Separately. 24 MR. CORMAN: And we can't have consensus 25 to that. Esquire Deposition Services (561) 659-4155 Page 93 1 • • 1 MR. REID: Okay. Let me explain it to 2 you. If a second or third or four or fifth 3 Commissioner wants it, then they have to do it 4 separately. 5 MR. CORMAN: Yes. Each Commissioner 6 needs to remember that outside of the scope of 7 properly noticed meetings, the Commissioners 8 are not supposed to talk to each other about 9 anything that relates to Town business, 10 without running afoul of the Sunshine Law. 11 MR. REID: Okay. 12 MR. CORMAN: So there shouldn't be any 13 discussions between the Commissioners 14 regarding anything between the Township or the 15 town, including scheduling matters, unless 16 it's during the course of a properly noticed 17 public meeting. 18 MR. REID: Any further discussion before 19 we Doris back? 20 MS. SCALA-PISTONE: No. 21 MR. REID: No? Would you bring Doris 22 back? If there's any formal words that close 23 this -- 24 MR. SAAG: You can come back and close 25 this thing up. No, you just say that the Town Esquire Deposition Services (561) 659-4155 Page 94 1 • • 1 commissioners agreed that there's no further 2 reason to continue this session. 3 MR. REID: The Town Commission agrees 4 that there's no further reason for discussion 5 -- or no further discussion necessary. 6 Then we called Ms. Trinley, the Town 7 Clerk. 8 MS. SCALA-PISTONE: May I ask something? 9 MR. REID: Sure. 10 MS. SCALA-PISTONE: I have the letter -- 11 THE COURT REPORTER: This is not on the 12 record, unless you want this on the record 13 now. 14 MS. SCALA-PISTONE: No. It has to be on 15 the record. I just wanted to make 16 arrangements with counsel. You know, that 17 letter that I was discussing -- 18 MR. REID: Hang on one second. Doris, 19 wait. Doris, wait outside for a second. 20 MS. SCALA-PISTONE: Rusty Roberts. I 21 would like to get copies to my father. 22 MR. SLINEY: That's fine. That's a 23 privileged letter -- 24 MS. SCALA-PISTONE: I don't know that I 25 have the -- Esquire Deposition Services (561) 659-4155 Page 95 1 �j • 01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. SLINEY: That's a privileged letter, but it's certainly available to any of the commissioners; that's correct. MS. SCALA-PISTONE: And his opinions, and then his letter -- MR. SLINEY: Yes, I know. MS. SCALA-PISTONE: -- that he wrote. MR. SLINEY: Yes. MS. SCALA-PISTONE: And he wrote it in 1996 -- MR. SLINEY: I understand. MS. SCALA-PISTONE: -- after the Toscana deal, you know, after the -- MR. SLINEY: I'm well aware of the letter. MS. SCALA-PISTONE: Okay. I wanted -- MR. SLINEY: That's fine. MS. SCALA-PISTONE: -- it should be on record -- MR. SLINEY: Sure. MS. SCALA-PISTONE: saying, to be on -- I have no problem. -- that's what I'm MR. CORMAN: We've never disagreed with this letter. We've always agreed that the Town has a very strong statute of limitations Esquire Deposition Services (561) 659-4155 Page 96 • • • 1 defense. 2 MS. SCALA-PISTONE: Right. So why 3 then -- 4 MR. CORMAN: Because -- 5 MS. SCALA-PISTONE: Why didn't he take a 6 stand, then? He specifically said -- and he 7 was the lawyer for the RTC -- I mean, our 8 lawyer for the RTC case. 9 MR. CORMAN: The composition of the 10 Commission was different and our marching 11 orders -- 12 MS. SCALA-PISTONE: The Commission of 13 the -- 14 MR. CORMAN: There were different 15 Commissioners sitting, that gave us different 16 marching orders, and our job is to follow the 17 direction of the people that are the elected 18 officials of this Town. 19 MS. SCALA-PISTONE: Another -- Larry, 20 precisely; that's correct, what you're saying 21 is correct. 22 MR. CORMAN: Right. And when we get 23 afoul of this Commission's directions -- 24 MS. SCALA-PISTONE: That is why we want 25 to make our decisions now, when we are all Esquire Deposition Services (561) 659-4155 Page 97 • • • 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 here and we, you know, we have all the information and the people want an answer. we were to wait -- you never know -- there could be another person in here. You never know. MR. REID: Wait a minute. One second. MS. SCALA-PISTONE: What did you say, Mayor? MR. REID: If another person, who would be the other person in mind? MS. SCALA-PISTONE: Well, who knows? I mean, this has taken, what a year and a half -- If MR. REID: Oh, I see. It might go on for years. MS. SCALA-PISTONE: MR. REID: Oh, okay. MS. SCALA-PISTONE: -- two years? That, I can -- We've been mediating, we've been -- you know. MR. REID: May I make a suggestion? I've heard the question of it being public conversation, the most recent memo that you sent, and I have heard back some information out of a prior closed session come back to me that is really disturbing. Esquire Deposition Services (561) 659-4155 Page 98 r LA • 1 Maybe somehow or another if we were to 2 address all of these letters and leave them in 3 sealed envelopes, so that then the 4 commissioners themselves know the content and 5 nobody else does. 6 MR. SLINEY: Well, I guess we could do 7 that. I didn't know I was going to have to 8 resort to that, but if I do, I will. 9 MR. REID: Well, I've heard it twice 10 now -- 11 MR. SLINEY: All right. 12 MR. REID: -- this being the second time. 13 MR. SLINEY: Okay. I'm glad you -- I'm 14 glad the issue was brought up because I -- 15 I'll resort to sealed envelopes in the future. 16 MR. REID: Okay. Thank you. 17 MR. CORMAN: Well, you know, the problem 18 with attorney-client privilege is it's 19 privileged only as long as everyone keeps the 20 confidence. I can assure you that Tom and I 21 don't talk with anybody else about what 22 happens in these meetings. It's up to each 23 commissioner to adhere to the privilege or it 24 gets lost. So we can't be with you every 25 second of the day and warn you and -- Esquire Deposition Services (561) 659-4155 Page 99 • • 1 2 3 4 5 6 7 8 9 10 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. SCALA-PISTONE: And I would like to take an oath that I have never -- MR. CORMAN: Well, we're not asking for oaths. We're just pointing out to you that -- MS. SCALA-PISTONE: May I take an oath? MR. REID: It shouldn't happen administratively. It usually happens in the copying; somebody sees -- somebody walks by and sees something. That's what we run into. MR. CORMAN: Well, the point is that it's up to each of us to the maintain privilege. MR. REID: Okay. Whatever we said before, say it again, and it's closed. Esquire Deposition Services (561) 659-4155 Page 100 [A �j • 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 C E R T I F I C A T E THE STATE OF FLORIDA) COUNTY OF PALM BEACH) I, Dianna BeDilion, Notary Public for the 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 Date day of Mo , 200 Dianna BeDilion, Court Reporter Esquire Deposition Services (561) 659-4155 Page 101 • • • abandon 17:20 abatement 24:25 ABC 70:13 abeyance 34:10 abide 80:19 ability 48:6,13 61:7 90:7 able 9:2123:5 36:22 45:10 48:3 52:4 53:14 92:1 abstracts 82:17 accept 16:2 59:10 78:1 acceptable 66:7 accepting 58:16 accommodate 10:3,7 32:2191:25 accomplished 79:15 80:3 91:2 accrue 24:10 accurate 41:16 46:15 accurately 13:20 40:4 40:20 acknowledged 25:18 ACLF 27:5 acre 27:4 acres 6:14,17 8:19,22 60:14 action 7:15,2116:20 27:128:20 29:4 46:24 actions 23:25 activated 88:3 activities 13:15 actual 45:18 52:6 65:21 addition 52:2 71:12 additional 22:14 25:3 39:1157:20 address 99:2 adhere 35:17 99:23 adjacent 23:2 43:8 44:13,18 adjoining 7:9 adjourn 4:24 adjournment 65:24 adjudicated 74:13,14 adjudicating 80:25 administratively 100:7 admissions 87:5 admit 89:16,17 advance 29:7 advantage 39:7 62:4 advantageous 34:14 advantages 14:21 adversely 43:17 advice 36:25 57:1 75:19 83:10 advocate 67:5 affirmative 49:1 affirmed 14:2 afford 81:16 afoul 94:10 97:23 afternoon 3:5 30:14 76:22 agenda 9:12 37:3 85:15 aggressive 84:18 ago 58:1,10 59:20 60:19 agree 7:1131:18 43:13 56:10,13,18,2159:1 63:8 65:166:1,8,16 66:17 68:1175:18,23 79:4,5,8 82:7 87:19 agreed 34:23 46:10,10 63:10 66:7 95:1 96:24 agreement 24:25 31:17 45:2146:5,16,20 47:1,5,6 agrees 95:3 ahead 28:18 70:12 allegations 25:2151:22 alleged 17:25 Allegiance 3:13 allow 21:15 33:19 allowance 81:25 allowed 13:18 21:4 26:16 45:6 50:14 allowing 17:2 allows 6:4 alternate 48:3 altruistic 44:5 amending 87:13 amount 18:15 21:24 analyses 12:2 analysis 40:12,12 65:21 announce 3:16 62:17 85:23 answer 9:2 32:13 50:24 70:7 76:2188:14 98:2 answer's 50:15 51:1 anticipate 75:11 anybody 5:23 9:19 40:2150:5,5 92:20 99:21 anymore 27:25 appeal 14:3 47:11,12 APPEARANCES 2:2 appeared 38:11 appellate 40:10 75:2 appended 52:1 applicable 20:13 22:11 49:19 application 43:9 49:11 applied 11:13 42:17 61:25 62:2,6 appreciate 73:1,3 83:11 appreciation 23:12 approach 85:5 appropriate 23:20 45:3 52:17 82:13 91:7 approval 26:15 58:22 76:8 approve 9:5 34:9 46:21 46:25 57:14 approved 46:15,19 approximately 6:18 7:22 April 1:13 3:4,7 9:11 66:2 77:21,22,22 78:9 79:14 80:6 area 59:5,6 areas 11:12 20:9 59:7 arena 70:2 argue 17:20,23 84:13 arguing 70:21 argument 8:13,14,17 16:10 25:5 44:21 67:8,10,10 arguments 17:4 68:23 arrangements 95:16 asked 29:25 49:7,18 asking 50:13,22 53:18 87:4 100:3 asks 27:2 Asselta 2:7 4:20 23:23 39:20 42:144:22 45:4,8 54:16 61:16 63:7,22 64:5,8 65:2 65:17,22 66:13 69:24 70:1,6 71:16,22,24 72:6,13,18,21,24 73:2,5,1175:25 76:4 77:17 78:4,9 79:18 79:24 93:14 Asselta's 39:18,22 assembled 3:8 assert 18:5 19:8,18,21 22:7,8 24:3 41:5 43:1 50:22 51:3 52:3 53:14 87:13 asserted 41:10 42:13 49:5,12 52:18,20 53:8 86:21 asserting 18:2 22:10 49:3 51:7 89:20 assist 91:6 assistance 85:3 91:4 93:21 assisted 59:12 association 14:9 assume 18:22 83:24 assumed 82:11 assuming 29:1151:21 52:20 assure 99:20 atmosphere 70:2 attack 19:17 attainable 14:18 attempt 85:24 90:13 attempts 26:10 80:25 attendance 4:21 attending 3:16 attention 59:20 attitude 34:6 attorney 7:7 36:8,17 41:15 67:3 84:12,18 85:1 attorneys 7:9 39:23 81:182:16 83:21 attorney-client 99:18 attorney/client 3:10 authorized 101:9 avail 26:8 availability 10:8 available 28:1134:1 36:17 91:15,20 92:19 96:2 avenues 58:6 avoid 83:9 84:16 avoided 49:10 avoiding 67:2 award 15:12,23 aware 10:22 19:6 39:18 54:16 69:24 96:14 B B 83:8,14 baby 80:8 back 3:25 4:25 24:18 26:17 61:8,24 72:14 76:18 94:19,22,24 98:23,24 background 55:9 bad 10:14,15 66:15 ball 4:2 11:4 18:9 22:13 41:6 barred 18:1 barrier 59:4 based 13:15 16:7 86:13 87:19 89:20 90:1 basic 10:2120:15 basically 6:20 7:10,16 8:113:3 16:4 19:24 21:6 27:129:5 32:19 55:8,11,17,19,21 68:18 72:10 91:22 basis 51:21 Beach 1:6,12,213:6 35:14 64:12 69:9,10 101:4 beauty 54:3 BeDilion 1:20 101:7,17 begging 81:25 beginning 3:4 behalf 7:7 19:9 88:5 behave 40:24 behest 81:9 Esquire Deposition Services (561) 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capable 93:18 capitalist 44:7 care 60:17 61:10 64:22 84:21 carefully 64:7 case 6:8,12,16 7:19 8:3 10:13,16,22 11:5,9 11:22,23 12:13 13:20 14:6 16:8,18 17:11 20:16 22:18 24:3 25:2,9,13 26:14 40:15,23 42:25 43:8 44:4,25 48:10,18,19 48:23,23 50:9 51:21 52:23 55:19 59:18 65:4,7,15,18,20 86:15,19,23 88:6 89:10 90:14 93:11 97:8 cases 20:1121:8,13 25:8 27:8,17 41:18 41:20 62:3 69:15 71:3 89:24 93:7 cast 23:19 54:4 cause 55:25 cautiously 36:5 cave 68:8 caveat 55:17 certain 6:20 12:7 17:4 45:10 66:2 69:15 81:20,24 84:19 certainly 17:1218:5 21:23 22:20 24:19 26:2171:20 86:6 91:5 96:2 certainty 20:12 24:12 certify 101:8 cetera 35:18 Chairman 63:2,4 challenge 89:21 chance 65:9,10,11,12 66:5 chances 53:25 change 11:14 12:2 13:13,18 17:15,24 24:17,20 27:9 80:21 changed 13:22,22 16:14 27:24 52:16 62:1 changes 11:25 13:9 28:16 changing 12:4 26:11 children 31:2 chime 10:18 choicy 70:2 choosing 17:20 Circuit 14:3,6 circumstances 11:16 20:2 26:1127:8,24 34:20 citations 86:19 cite 89:24 citizens 38:21 claim 8:5 12:19,23 18:2 22:16 24:13,19 33:6 33:10,16 34:22 41:6 49:3,10 50:23 51:4 51:15 52:4,19 53:11 53:17 70:12 claims 16:7 19:11 50:17,19 clarify 78:11 class 46:24 clear 9:4 clearly 17:23 35:14 45:24 Clerk 95:7 clients 6:19 18:12 36:24 60:24 close 68:4 94:22,24 closed 3:17,23 5:6 98:24 100:13 closer 16:25 closing 67:9 clue 83:22 clues 32:16 coastal 59:5 code 52:14 colleagues 54:19 colorable 48:17 50:9 50:18 53:20 come 3:25 4:25 9:15 11:14 12:119:16 21:122:14 25:19 31:14 32:25 37:18 38:9 41:1,2 45:2 51:3 61:8 65:8 66:6 67:6 67:19 70:3,15 74:5 76:18 81:24 85:5,11 85:14,2187:24 94:24 98:24 comes 15:17 20:16 comfortable 81:2 coming 54:23 70:10 commenced 16:14 commencing 77:18 comment 67:4 comments 5:14 7:25 10:19 commercial 20:18,23 21:2,10,15 commission 3:6,18 4:2110:10,22 13:22 22:2123:15 30:16,24 37:2,3,5 39:14 40:3 54:23,25 56:7,9 66:3 72:7 76:22 84:21 85:16,18 86:19 91:9 91:16 95:3 97:10,12 commissioner 2:3,4,5 4:18,19,20 26:4 29:19 35:24 37:11 55:6 61:12 69:7 73:23 85:2 91:3,16 91:17,25 93:2194:3 94:5 99:23 commissioners 9:1 10:8 31:6 33:22 37:12 94:7,13 95:1 96:3 97:15 99:4 Commission's 39:13 59:20 88:19 97:23 communicate 72:9,20 communication 19:12 Company 6:16 compared 14:20 16:17 18:17 compensation 11:17 competently 40:20 complaint 51:23 complete 101:11 completely 69:8 complicated 92:3 complying 4:14 composition 11:24 97:9 comprehensive 35:18 conceited 41:5 concept 13:3 19:24 33:12 concern 9:20 39:7 81:7 concerned 38:20 concerns 34:18,18 concessions 23:4 conclude 4:1,25 concluded 4:15:2,21 concludes 4:22 conclusion 38:9 conclusions 25:12 condition 79:7 conditions 52:9,13,16 condominium 69:20 70:13 81:22 condominiums 69:10 74:1181:23 condos 64:20 confidence 99:20 confidential 54:8,22 confined 6:4 conflict 7:3 69:16 conflicting 49:4 confronted 13:19 15:18 41:22 confused 54:14 connection 12:23 13:1 25:1 cons 16:5 23:11 conscience 36:18 consensus 93:24 consequences 67:13 consider 10:17 considering 60:13 68:6 consistent 13:8 21:16 91:7 constantly 82:5 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