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Sunset Lounge–Starting Over!


Below are excepts from a newly released story on the Sunset Lounge and the ignominious failure the City made in their attempt to find an operator.  My comments in Italic, entire story can be read below, and it contains links to stories on Channel 5 which makes for interesting reading.

FOX 29 WFLX

“Both potential operators of Sunset Lounge disqualified by city”

“It’s back to the drawing board to find an operator for a signature West Palm Beach redevelopment project.”

The latest twist comes after the city disqualified both of its bidders over alleged lobbying violations.

The city said Vita Lounge LLC, the minority group first selected, “blatantly violated” an ordinance against lobbying for the contract through Facebook posts and e-mails.

Vita denied the accusation and filed a lawsuit.

“The city then disqualified Mad Room Hospitality for allegedly making “courtesy contact with the mayor and a commissioner during the prohibited contact period.” Commissioner Peduzzi was the lone vote to approve Mad Room Hospitality along with Mayor James. Can we presume he was the Commissioner contacted?

In a statement to Contact 5 Thursday afternoon, the co-owner of Mad Room Hospitality said they were “improperly disqualified by a technicality.”
As a result of all of this, the city canceled the request for a proposal meant to find an operator to run the Sunset Lounge.

“The city’s community redevelopment agency said it costs about $26,000 a month to maintain the empty building.” $26,000 a month maintenance for an empty building. A PRR (Public Records Request) needs to be made. Readers were sent the Internal Auditors report on the CRA where millions were unaccounted for, what’s a few more thousand? Think about that when your trying to buy gas, food, money for the parking meters.

“A city spokesperson told Contact 5 that the CRA board will meet in the coming weeks to discuss the next steps and future operations of the Sunset Lounge.” Will meet in the coming weeks, not in a hurry to do what needs to be done, and give the contract to Vita who 4 Commissioners originally voted on before Commissioners Lambert and Ward changed course. Commissioners Fox and Warren stuck to their convictions to stay with Vita.

“Mad Room Hospitality was improperly disqualified by a technicality and the city, in my opinion, realized its error which is why they changed their course in posting the letter it did to DemandStar.”   DemandStar, a company that handles Government Contract Bids, RFPs & Procurement. A PRR needs to be made to view the letter the city sent to DemandStar.

“We have requested from the City a letter rescinding their improper cancellation and we expect this to be forthcoming.”

“The city of West Palm Beach allows a responder to communicate with the city at the execution of a contract/agreement or once the solicitation stage has ended. It was clear then and remains clear now that the solicitation stage had ended.” Contract not signed.

“Ultimately, the City has to do what they feel is best for the community and we only want the best for the Sunset Lounge and the Historic Northwest District. Mad Room is not interested in pursuing this project further at this time.” 

“For what it is worth, which we also made abundantly clear to the City–(which seemed to ruffle some feathers)-Mad Room does not feel Vita was treated fairly by the City of West Palm Beach.” Wow!

We certainly wish the City the very, very best in moving this project forward as the Community deserves and needs this project to flourish.”
https://www.wflx.com/2022/08/11/both-potential-operators-sunset-lounge-disqualified-by-city/

In closing the CRA has spent in the Downtown City Center a total of $174,271,223. Northwood/ Pleasant City $19,101,585. for a total of $ 193 million, 372 thousand, 808 dollars. I recently received part 2 of the Internal Auditors Report on the CRA, and that story will be coming shortly. Here are a few lines from the audit released.

Opportunities for Improvement
1. Inadequate Controls and Oversight of CRA Expenditures.
2. Insufficient Oversight of the Incentive Grant Program.
3. Fixed Assets Variances.
4. Lack of Tracking and Monitoring of CRA Properties.

In my opinion the city should seriously consider disbanding the CRA and stop wasting taxpayers dollars.

The end!