Lake Worth is planning to give REG Architects and The Morganti Group a fourth extension to find a solution to fix the pesky drainage and leaking issues at the Lake Worth Casino ballroom.
Commissioners are expected to vote on the extension — called a tolling agreement — at Tuesday’s meeting. The agreement would give the companies until June 1 to remedy the problem.
If a workable solution can’t be found, the city has said it will file a lawsuit. But that’s the last thing it wants.
“An agreement is in everybody’s best interests,” City Attorney Glen Torcivia, said. “Once you file, the city has to spend more money. You’re then spending money on lawyers and not a solution. Then everybody gets their feelings hurt and gets a little more entrenched in their position and it gets harder to resolve a case.”
The city hired REG in 2010 to design the new casino building and The Morganti Group to build it. The building cost $6 million and opened in 2013.
Since then, the ballroom has been riddled with issues, including water intrusion, bad drainage, leaking and rusting.
In November, REG and The Morganti Group made presentations to the city at a three-hour meeting on how the problems could be solved, which included sealing the doors to prevent leaks and altering the interior floors to help with drainage.
“That meeting made a big difference” Torcivia said. “It was a sea change. All of sudden, everyone could see there were some viable solutions everybody could agree to.”
The city is amenable to another extension so its engineering expert can test the new floors to determine if they work, Torcivia said.
The item is listed under the consent agenda for Tuesday’s meeting, meaning a commissioner would have to pull it for discussion.
“There may be questions on it, but the commissioners got the presentation and we all agreed on the solution,” Torcivia said. “I don’t see how it’s controversial at this point. We’re moving forward on a solution and we just need more time to have the floor tested.”
Since May 2015, the city has entered into a tolling agreement with REG and The Morganti Group, that, in other words, essentially stops the clock on when the city can file a lawsuit.
Vice Mayor Scott Maxwell has long been in favor of taking legal action.
“Can we end this charade of a discussion and bring this to a conclusion?” Maxwell asked at a June meeting. “We’re putting our vendors at risk … and it’s added cost for staff. That’s not how you run a business or behave as a landlord.”
In October, Michael Olenick, vice president and chief compliance officer for The Morganti Group, told The Palm Beach Post, he’s confident a solution will be found.
“There have been some challenges and a lot of issues we’ve dealt with,” he said. “We’ve never walked away from a challenge and we’re not about to start now.”
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