JIMMIE “CYA” TATE...IN HIS OWN WORDS “I never met a man who was good at making excuses, who was good at anything else.” Benjamin Franklin The City Auditor, in a December 4th letter to the Commissioners, quoted the “CYA” letter from the Lessee, Jimmie Tate, who wrote: “Again, this report is a (sic) based upon multiple future projections and assumptions, many of which we can’t control and many that we can control. Hence, the assumptions are subject to change once the development commences. Additionally, we make no representation that these forward looking projections and assumptions are accurate or binding.” This is the kind of pitch a junk bond salesman makes. This is not a statement that should be made by someone who has an contractual Duty of Good Faith and Fair Dealing to the Citizens of Fort Lauderdale. The Citizens of Fort Lauderdale have a right to expect the Lessee to act in good faith and deal fairly without the Lessee breaking its word, using shifty means to avoid obligations, or denying what was obviously understood and contemplated when the Lease was signed (which was not 651 rental apartments) Moreover, Tate is admitting they don’t have a clue what they’re doing and they are guessing about their projections and assumptions. Tate is attempting to waive the Lessee’s liability, and accountability for its performance. Whether intentional or not, the City Auditor’s letter to the Mayor and City Commissioners on December 4, 2017, the day before the Bahia Mar Public Hearing, was a huge red flag. The Auditor’s letter revealed the Lessee’s: 1. lack of “technical business skill and ability”, 2. its failure to “provide a Business Plan” or any Information that could be audited, and; 3. numerous inappropriate “caveats” and disclaimers. All of these revelations point to violations of Article 1.0 of the Bahia Mar Lease. The Auditor requested information from the Lessee in order to form the basis of a monumental decision by the City Commissioners that affects generations of Citizens and Taxpayers. Yet, the Lessee cavalierly disclaimed his own representations and information as not being “accurate or binding”! When the Lessee entered into the Bahia Mar Lease, It represented and warranted, in Article 1.0, Sections 6 and 7, that it had the “technical and business skill...to perform all obligations”. And, it further warranted there were “no other representations or conditions”. The Lessee’s own written statements admit their lack of of “technical and business skill” and violate the Lessee’s “warranty and representations” clause in Article 1.0 of the Lease (See footnotes below). In light of the City Auditor’s warning letter, the Commissioners were negligent in granting their consent to approve the Lessee’ Proposal without demanding “accurate and binding” information BEFORE issuing their consent. Without “accurate and binding” information there is no criteria for holding the Lessee accountable. The Commissioners were also negligent in not disclosing the contents of the City Auditor’s letter to the Public at the Hearing. No Commissioner who approved the Proposal even questioned the Lessee about his statements and disclaimers. Bahia Mar is a rare Public Asset, probably worth in excess of $300,000,000, and far more than the 2-year old appraisal that the Commissioners have never had updated (another act of negligence). The Commissioners have a fiduciary duty to preserve this asset. The Lessee now has approval to destroy the asset by tearing it down AND THEY DON’T EVEN HAVE A BUSINESS PLAN! As Elected Officials, the Commissioners are to be held to the highest fiduciary standard. They have failed miserably to uphold that standard. (In the next installment we will reveal more reasons why these Commissioners and their City Attorney were negligent in approving the Bahia Mar Proposal). FOOTNOTES: The Bahia Mar Lease, in ARTICLE 1.0 Section 6 and 7. MUTUAL REPRESENTATIONS AND WARRANTIES, states: Section 6. The LESSEE represents and warrants unto the LESSOR that it has adequate financial capacity and technical and business skill and ability to perform all obligations herein imposed upon the LESSEE to diligently, skillfully and successfully operate the lease premises in order that the same may be operated in its greatest potential revenue producing capacity. Section 7. The parties hereto mutually represent and warrant unto each other that this indenture constitutes the final repository of all agreements of the parties relating hereto, and that there are no other verbal representations, warranties or agreements or conditions.