Clearwater Gazette and Beach Views

Judge "Validates" Beach Walk Bonds

Garris/Boschen Suit Settled in Mediation

By Carl Wagenfohr

CLEARWATER - In a brief and uneventful trial on November 8, Judge Nelly Khouzam validated the City of Clearwater's planned issuance of $15-million in revenue bonds to fund the construction of Beach Walk. The validation was necessary to protect the future bondholders from the risk of default should the City later be found to be without the authority to issue the bonds.

Although it was consolidated into the City's suit and scheduled to be heard at the same time, a suit by Anne Garris and Suzanne Boschen was settled in mediation on October 28; Garris and Boschen alleged that certain terms of the City's agreement with the Hyatt developers involving Beach Walk were in violation of the City Charter.

The mediated settlement appears to have resolved some of the concerns that Garris had expressed earlier this year about the apparent "privatization" of that portion of Clearwater Beach fronting the planned Hyatt Hotel. But per the terms of the agreement, Garris declined to comment on the outcome. The terms of the settlement include:

A limitation on the size of the beach concession in front of the Hyatt to 1-story and 1200 square feet
A prohibition on the display of the Hyatt brand on the concession, its chairs, tables and umbrellas, and its employees
A limitation that the concession offer its beach rental chairs etc. only on that area of the beach directly in front of the Hyatt hotel
A reduction in the term of the concession agreement from fifty to five years
The provision of a temporary pedestrian access easement at the north end of the Hotel until a new Second Street is open
A 'good faith" effort by the City to acquire a permanent 10 foot public access easement immediately to the south of the hotel, running from Coronado to South Gulfview

The only responder present at the November 8th trial was the State of Florida, represented by Assistant State Attorney C. Marie King. She argued against the bond validation, claiming that:

Vacating a portion of Gulfview Blvd for private use without a referendum violates the City Charter
Third Street terminates at the water's edge and its vacation violates the City Charter
Bonds issued on the basis of industrial development must be repaid using revenue from that development; Clearwater's proposed bonds will be repaid from public service tax revenue

The City was represented by Robert C. Reid, of the law firm Bryant, Miller & Olive P.A. Reid called three "expert" witnesses to support the City's case, Charlie Siemon, a land development consultant who participated in the City's adoption of Beach by Design, Mahshid Arasteh, Clearwater's Public Works Administrator, and Margie Simmons, the City's Director of Finance.

Arasteh's testimony was substantial. She cited many aspects of the Beach Walk Project that will benefit public health and safety, including eliminating back-out parking on Coronado, improving pedestrian facilities on Gulfview and Coronado, and improving storm water, sewer and water utilities in the immediate area.

Arasteh's testimony also disputed claims that the vacation of Third Street violated the City Charter because it provides access to or terminates at the waterfront. Asked where Third Street terminates, she responded Hamden and South Gulfview; "It does not terminate at the Beach," she said. Asked what Third Street provided access to, she replied South Gulfview; "It does not provide access to the water's edge," she said.

After two hours of testimony and arguments, Judge Khouzam said that the City had met its burden, and agreed with the City that the Beach Walk project is needed for public safety, and that the bond proceeds will be used for a "paramount public purpose".

Despite notice of the trial having twice been advertised in the St. Petersburg Times, and despite an article in last week's Gazette in advance of the trial, no members of the public were present to observe or testify.

Return to Home Page

Return to Current Edition