99 Page Lawsuit Click Here:
http://media.miamiherald.com/smedia/2012/05/09/17/51/Lj29m.So.56.pdf
La Ley Sports, the company that rents Homestead’s city-owned baseball stadium, says it is suing the city.
By Christina Veiga
cveiga@MiamiHerald.com
It started with outstanding insurance premiums and over-billed utilities, escalated with allegations of kids living in locker rooms and now, the tussle between the city of Homestead and the tenant of its baseball stadium has come down this: lawsuits.
John H. Ruiz — whose company, La Ley Sports, rents the city-owned ballpark — told the City Council Tuesday that he had filed a class-action lawsuit, claiming that Homestead is overbilling utilities. He said he also filed a separate suit claiming fraud and breach of contract stemming from issues between La Ley and the city involving the company’s rental agreement.
“Things have escalated to the point that there may not be a return,” Ruiz told Homestead City Council members at a meeting Tuesday.
The city in April admitted it had billed La Ley $22,000 for a dumpster that wasn’t on the property and credited the company’s account. But city officials denied Ruiz’s claim that his company also has been overbilled by $36,000 for water.
Ruiz’s class action, filed on behalf of business owners, claims the city has overbilled its customers more than $100 million in the last five years.
The second lawsuit, also filed late Tuesday, is the latest move in a tug-of-war with the city over lease issues and whether each side has defaulted under the terms of the rental agreement. Ruiz is asking for $4 million in damages, which is the amount of money he says he has put into renovating the stadium.
The issue began with Ruiz trying to get out of paying property insurance on the stadium, as required by the lease he signed with the city in July 2011. Ruiz at first failed to carry the insurance, and the city granted him a six-month waiver — leaving taxpayers to foot the $60,000 bill. Then Ruiz failed to reimburse the city for $41,000 for premiums after the waiver expired, which he held off on paying as he tried to convince council members to waive the property insurance requirement altogether or let him start paying it after the fourth year of the lease.
The City Council on Tuesday decided — for the third time — not to do either, and to instead require Ruiz to pay the premiums every month.
During the city’s review of the insurance issue, one councilwoman pointed out La Ley hadn’t been paying its utility bills on time. The company hasn’t paid its bills on time since it took over the stadium in July, racking up $26,000 in past-due charges as of Tuesday, according to a letter from City Manager George Gretsas to La Ley.
Ruiz has argued the bills were never past due because he was overbilled, and much of what he owes shouldn’t have been due in the first place. Regardless, he said he has sent the city payment while he continues to contest the bills.
The discontent between the city and La Ley escalated this month after the city discovered an unrelated issue: that La Ley had allowed another company to use the stadium’s locker rooms to house underage aspiring baseball stars.
The city sent code and building officials to the stadium to look into the situation, and police, fire and Department of Children and Families officials also investigated.
Homestead police spokesman Detective Fernando Morales has said the department didn’t find any mistreatment of the young athletes.
Ruiz said law enforcement “invaded and raided” the facility unnecessarily.
Countered Gretsas: “When it comes to allegations about juveniles, there is no discussion, there is no debate. We turn it over to staff and they do what they’re obligated to by law to ensure that children are not in jeopardy.”
The stadium, Gretsas continued, is “not a habitable space. It’s not some place where kids are supposed to live.” The City Hall audience, full of parents, applauded.
Ruiz’s lawsuit also claims the city made misrepresentations about a road on the stadium property. Ruiz has complained of near collisions and other safety issues on the road, and claims that the city rented out the road twice: both to him and to a neighboring charter school.
The private road is included in La Ley’s lease, not the school’s, Gretsas said in a letter to Ruiz.
Homestead Mayor Steve Bateman said news of the lawsuits made him “sick to my stomach,” but during the meeting, he continued to try to convince the council to work with Ruiz on the property insurance issue.
“I don’t agree with you housing children out there. That’s not a dorm. I think your reputation is damaged,” Bateman told Ruiz. “But I think we can handle it, and save what we have here now.”
Follow @Cveiga on Twitter.
John H. Ruiz — whose company, La Ley Sports, rents the city-owned ballpark — told the City Council Tuesday that he had filed a class-action lawsuit, claiming that Homestead is overbilling utilities. He said he also filed a separate suit claiming fraud and breach of contract stemming from issues between La Ley and the city involving the company’s rental agreement.
“Things have escalated to the point that there may not be a return,” Ruiz told Homestead City Council members at a meeting Tuesday.
The city in April admitted it had billed La Ley $22,000 for a dumpster that wasn’t on the property and credited the company’s account. But city officials denied Ruiz’s claim that his company also has been overbilled by $36,000 for water.
Ruiz’s class action, filed on behalf of business owners, claims the city has overbilled its customers more than $100 million in the last five years.
The second lawsuit, also filed late Tuesday, is the latest move in a tug-of-war with the city over lease issues and whether each side has defaulted under the terms of the rental agreement. Ruiz is asking for $4 million in damages, which is the amount of money he says he has put into renovating the stadium.
The issue began with Ruiz trying to get out of paying property insurance on the stadium, as required by the lease he signed with the city in July 2011. Ruiz at first failed to carry the insurance, and the city granted him a six-month waiver — leaving taxpayers to foot the $60,000 bill. Then Ruiz failed to reimburse the city for $41,000 for premiums after the waiver expired, which he held off on paying as he tried to convince council members to waive the property insurance requirement altogether or let him start paying it after the fourth year of the lease.
The City Council on Tuesday decided — for the third time — not to do either, and to instead require Ruiz to pay the premiums every month.
During the city’s review of the insurance issue, one councilwoman pointed out La Ley hadn’t been paying its utility bills on time. The company hasn’t paid its bills on time since it took over the stadium in July, racking up $26,000 in past-due charges as of Tuesday, according to a letter from City Manager George Gretsas to La Ley.
Ruiz has argued the bills were never past due because he was overbilled, and much of what he owes shouldn’t have been due in the first place. Regardless, he said he has sent the city payment while he continues to contest the bills.
The discontent between the city and La Ley escalated this month after the city discovered an unrelated issue: that La Ley had allowed another company to use the stadium’s locker rooms to house underage aspiring baseball stars.
The city sent code and building officials to the stadium to look into the situation, and police, fire and Department of Children and Families officials also investigated.
Homestead police spokesman Detective Fernando Morales has said the department didn’t find any mistreatment of the young athletes.
Ruiz said law enforcement “invaded and raided” the facility unnecessarily.
Countered Gretsas: “When it comes to allegations about juveniles, there is no discussion, there is no debate. We turn it over to staff and they do what they’re obligated to by law to ensure that children are not in jeopardy.”
The stadium, Gretsas continued, is “not a habitable space. It’s not some place where kids are supposed to live.” The City Hall audience, full of parents, applauded.
Ruiz’s lawsuit also claims the city made misrepresentations about a road on the stadium property. Ruiz has complained of near collisions and other safety issues on the road, and claims that the city rented out the road twice: both to him and to a neighboring charter school.
The private road is included in La Ley’s lease, not the school’s, Gretsas said in a letter to Ruiz.
Homestead Mayor Steve Bateman said news of the lawsuits made him “sick to my stomach,” but during the meeting, he continued to try to convince the council to work with Ruiz on the property insurance issue.
“I don’t agree with you housing children out there. That’s not a dorm. I think your reputation is damaged,” Bateman told Ruiz. “But I think we can handle it, and save what we have here now.”
Follow @Cveiga on Twitter.
Read more here: http://www.miamiherald.com/2012/05/09/2791550/homestead-stadium-disputes-headed.html#storylink=cpy
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