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Town and Wasaga Beach mayor listed as defendants in statement of claim

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In Council Watch
Aug 25th, 2016
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Mayor Brian Smith -Examiner photo

By Jessica Owen QMI Agency

WASAGA BEACH – The owners of Phoenix Hospitality, operators of Bananas, a beachfront bar in Wasaga Beach, have filed a statement of claim against the Town of Wasaga Beach and Mayor Brian Smith.

The statement of claim indicates that Brian Smith overstepped the responsibilities of office and breached a deal for leasing two of the beachfront bars, Bananas and The Dardanella, following a March 2016 meeting between Phoenix Hospitality’s principals, Enzo Grossi and Larry Penito, Smith and town chief administrative officer George Vadeboncoeur.

The plaintiffs are requesting damages in the amount of $2.4 million from the Town of Wasaga Beach and include allegations of breach of contract, breach of duty of fairness in the tender process, unfair bidding practices, collusion, deceit/malfeasance of public office and abuse of authority. They are also requesting an additional $1 million for punitive and exemplary damages.

Against Mayor Brian Smith personally, the plaintiffs are requesting damages of $1 million for misfeasance of public office and abuse of authority including breach of contract, wrongful interference with economic interests, collusion and breach of fiduciary duty.

They are also requesting an additional $500,000 for defamation and libel, and $500,000 for punitive and exemplary damages.

The statement was filed Aug. 19.

None of the allegations have been proven in court.

Recent documents released through a Freedom of Information Act request show that at a March meeting, with Smith, Vadeboncoeur and Phoenix Hospitality Inc. partners Enzo Grossi and Larry Pevato, that Phoenix Hospitality would be awarded The Dard beachfront bar at a rate of $34,000 if they, the lease-holders for Bananas beachfront bar, increased the rent on Bananas from $85,000 to $102,000.

At the March 22 council meeting, the lease for Bananas by Phoenix for $102,000 was passed.

But at the April 19 council meeting, the motion to award the lease of The Dard to Phoenix Hospitality was defeated.

In a public letter released by Mayor Smith, he states that he met with Phoenix principals on April 22 to explain why he voted against them at the April 19 council meeting.

“There was no deal made. I am very much aware that even as mayor, I only have one vote and do not have the ability to make deals; only council as a whole has this ability.”

Mr. Grossi would not comment when contacted by Postmedia Network.

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