Wasaga Beach pulls open letter, asks media organizations to do same

By Ian Adams Wasaga Sun October 7 2016

The Town of Wasaga Beach has pulled an open letter addressing allegations from a beachfront bar operators from its website, and has asked local media organizations to do the same.The letter, signed by Mayor Brian Smith and posted to the municipal website, refuted several allegations by Phoenix Hospitality owners Larry Pevato and Enzo Grossi.

Pevato and Grossi claim the mayor offered a deal to Phoenix that would allow the company to operate two of the town-owned beachfront bars, Bananas Beach Club and The Dard, for $136,000.

Phoenix had already agreed to lease Bananas for $85,000 for the season, prior to the March 9 meeting between Pevato, Grossi, Smith, and the town’s chief administrative officer George Vadeboncoeur.

Details of the meeting were revealed through a request under the Municipal Freedom of Information and Privacy Act by Simcoe.com.

Smith declined to address the allegations when initially contacted by Simcoe.com. The open letter was sent in response, and was posted on Simcoe.com as part of our coverage of the issue.

The letter is now the subject of a defamation claim by Pevato and Grossi, along with a claims of “breach of contract, breach of the duty of fairness in the tender process, breach of duty of good faith in the tendering process, unfair bidding practices, collusion, deceit and/or misfeasance of public office and/or abuse of authority.”

The total amount of the claim, which names the town and Smith separately, is $5.4 million. The town has filed a statement of defence.

The request, sent by the town’s communications officer Jenny Legget on Thursday, asked that Simcoe.com “consider removing any reference to the open letter” as it was now the subject of litigation.

“As the matter is now before the courts, the town feels that it is appropriate that the open letter be removed from any website or other means of public online posting methods (corporate twitter and facebook accounts, etc.),” she wrote. “The matter will be dealt with through the litigation process, and neither Mayor Smith nor the town will be commenting further on this matter until the litigation process has run its course.”

The letter will remain on Simcoe.com’s website.

“Simcoe.com doesn’t intend to remove the open letter from its website,” said editor-in-chief Lori Martin. “It is part of the public record and helps to inform members of the public.”

Wasaga Beach mayor issues open letter to counter bar operators’ claims

By Ian Adams Wasaga Sun August 17 2016

The Town of Wasaga Beach has circulated an open letter from the mayor to counter comments made by operators of a town-owned bar alleging he and the CAO held a secret meeting to negotiate leases for two bars.

On Tuesday morning, the town issued the letter in response to an article by Simcoe.com, which included comments by beachfront bar tenants Enzo Grossi and Larry Pevato alleging the mayor and CAO negotiated a deal for a combined lease amount for the Dard and Bananas during a private meeting.

Simcoe.com did reach out to the mayor and CAO for the original article, but both declined to comment on the matter. The CAO later provided a statement saying he was not trying to keep the meeting secret (see story on page 3).

In the letter, Mayor Brian Smith claims the meeting was not secret and did not involve negotiations for both bars.

“The purpose of the March 9 meeting was to discuss the Bananas’ lease rate and remind one of the principles of a commitment he made in 2015,” said Smith in the letter. “There was no deal negotiated or promises made of that nature.”

Phoenix (led by principals Grossi and Pevato) had been confirmed as the operator for Bananas in January, pending negotiations on a lease rate for 2016.

In an interview last week with Simcoe.com, Phoenix owners Grossi and Pevato claimed Smith contacted them to meet and discuss a deal for both Bananas and the Dard.

The day after Smith met with Grossi and Pevato, he presented a recommendation to council’s coordinated committee to accept a lease for Bananas at $102,000 in 2016. That recommendation was approved.

Smith told Simcoe.com he was limiting his comments on the situation to the letter.

“I’ve done nothing wrong, and there was never a deal made,” he said in a brief interview, adding he meets with individuals “like this” on a regular basis, and will continue to do so.

According to the notes from a meeting on April 22 between Smith, Pevato and Grossi, obtained by Simcoe.com in a request under the Municipal Freedom of Information and Protection of Privacy Act, Smith insisted the March 9 meeting and its details should have been kept confidential.

In his recent letter, Smith claimed Grossi made a commitment in 2015 to pay more for Bananas if he was successful in securing a future longer-term lease. Smith said in light of this discussion, it was his suggestion to keep the March 9 meeting confidential, “with the intention of sparing (Phoenix) any embarrassment.”

“This confidentiality was breached,” stated Smith in the letter.

Smith denied an agreement was reached on the Dard, acknowledging there was a “brief discussion” during the March 9 meeting on the request for proposal for the bar.

“I indicated that I would support their proposal, again as an individual member of council,” Smith stated.

Phoenix had submitted a bid for the Dard on Feb. 25.

“At council, I voted in support of not awarding the lease to Phoenix Hospitality due to the breach of confidentiality,” said the mayor in his open letter.

Grossi and Pevato refused to comment on the mayor’s open letter at this time.

Grossi and Pevato told Simcoe.com previously they consented to pay a higher lease for Bananas on the condition they also secure a lease for the Dard.

“I did not interfere in the RFP process for Bananas as it was already complete and the lease rate was before council for consideration,” Smith stated in the letter. “Furthermore, I also did not interfere with the RFP process for the Dardanella as I had no contact with the evaluation team during the process, or as they completed their evaluation of the proposals.

“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.”

August 16 2016: Open Letter from Mayor Smith Regarding Comments Made About an Alleged Secret Meeting and a “Deal” Pertaining to Lease Agreements for Bananas and the Dardanella

In a recent edition of the Wasaga Sun, and on-line at Simcoe.com, the tenants of Bananas made accusations against the Mayor and the CAO regarding a secret meeting and a deal being struck. In response, the Mayor has decided to issue the following statement:

“The March 9th meeting was not secret. During the March 10th General Government Committee meeting, I advised Committee Members about the meeting that took place with the Tenants of Bananas on March 9th, when I proposed a motion to increase the rent for Bananas to $102,000. My comments made during the meeting are reflected in the minutes of the March 10th General Government Committee meeting.

The purpose of the March 9th meeting was to discuss the Bananas’ lease rate and remind one of the principles of a commitment he made in 2015. Council had already approved that the Tenants be awarded Bananas, subject to negotiating terms. The commitment was that if the individual was successful in securing a future longer term lease for Bananas, he would increase his lease rate over the rate that was paid during 2015. It was this commitment that led me to suggest that the contents of the meeting be kept confidential, with the intention of sparing the individual any embarrassment. This confidentiality was breached.

There was no deal negotiated or promises made of that nature. At the March 9th meeting with the Tenants, I advised them that I, as an individual member of Council, would support their lease of Bananas if they increased their lease rate beyond what they paid in 2015. After much discussion, they agreed to increase the lease rate for 2016 and beyond.

There was also a brief discussion about the Dardanella Request for Proposals (RFP.) I indicated that I would support their proposal, again as an individual member of Council, when it came before Council for consideration.

At the March 10th General Government Committee meeting, the recommendation to increase the lease rate for Bananas was approved by Committee and subsequently approved by Council later in the month.
The staff report on the Dardanella Lease RFP went to Committee of the Whole for consideration on March 15th, with a recommendation that Phoenix Hospitality be approved as tenants, subject to negotiating a satisfactory lease rate. It was deferred to the next meeting of Committee of the Whole, which took place on April 12th.

On March 18th, the CAO received an executed lease agreement for the Dardanella from Phoenix Hospitality. The lease agreement was sent back to the sender as the CAO did not understand why the executed lease agreement was sent to the Town, as Committee of the Whole had not dealt with the staff recommendation. At the April 12th Committee of the Whole meeting, Committee defeated the staff recommendation that Phoenix Hospitality be awarded the lease for the Dardanella, subject to negotiating terms. I supported staff’s recommendation at the April 12th Committee of the Whole meeting. The recommendation not to award the lease was upheld by Council at the April 19th meeting. At Council, I voted in support of not awarding the lease to Phoenix Hospitality due to the breach of confidentiality.

I met with the principles on April 22nd to explain why I voted against them receiving the lease for the Dardanella. During this meeting, the principles voiced their dissatisfaction with my explanation.

I did not interfere in the RFP process for Bananas as it was already complete and the lease rate was before Council for consideration. Furthermore, I also did not interfere with the RFP process for the Dardanella as I had no contact with the evaluation team during the process, or as they completed their evaluation of the proposals.

In summary, all I indicated at the March 9th meeting is that I would support the RFP proposal for Bananas if the rent was increased beyond the amount paid in 2015, and that I would support Phoenix Hospitality’s RFP submission for leasing the Dardanella. 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.

It now appears that the Town may be served a statement of claim on this matter. I look forward to vigorously defending my conduct, if it should come to that.”