" Wellington Mayor Took Payments " Says Publisher of Dressage-News

WELLINGTON MAYOR TOOK PAYMENTS FROM OPPONENTS OF DRESSAGE SHOW GROUND IN “APPARENT VIOLATION” OF ETHICS LAWS, PAPER REPORTS

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Courtesy - Ken Braddick - Dressage-News

WEST PALM BEACH, Florida, Dec. 29–The mayor of Wellington accepted $6,500 in contributions toward a legal defense fund from two prominent opponents of the expansion of the Palm Beach International Equestrian Center that the Palm Beach Post reported Saturday was “an apparent violation of ethics laws.”

The Post report said Florida law prohibits payments of more than $100 of the type made to Bob Margolis, who became mayor after an election in March, 2012, in which opponents of the expansion to include a new dressage facility, a hotel and shopping plaza took control of the council that governs the community of 55,000 residents.

The reported apparent ethics violations come less than two weeks before the start of the Winter Equestrian Festival and its companion Global Dressage Festival, the world’s largest horse show that runs for more than 12 weeks and attracts riders from more than 30 countries to compete for more than $6 million in prize money.

The report said the payments to the mayor were made by Neil Hirsch, owner of the Players Club bar and restaurant, and Victoria McCullough, owner of equestrian property near the show grounds. Both have declared their opposition to expansion and commercial development of the show grounds.

The new council revoked approvals by a previous body of the development on what was the Palm Beach Polo Club, the original centerpiece of horse sports in Wellington.

Although professing publicly to support dressage, the council majority withdrew approval of additional stabling, blocked a truck and service access road leaving only a single entrance and exit for all traffic–spectators as well as horse trucks and service vehicles–to a one-way street and barred use of the facility, including the covered arena, from May 1 to Oct. 31, South Florida’s hot and humid tropical summer.

A family that was a major financial supporter of the opposition slate of candidates has also filed a lawsuit with the Circuit Court seeking to have the grounds restored to their previous state–meaning dismantle the state of art dressage arenas, 200 permanent stables, the covered arena and grass derby field built at a cost of several million dollars.

Mayor Margolis Implicated in Ethics Law Violations

Legal Defense Contributions to Wellington Mayor Appear to Violate Ethics Law

By Mitra Malek

Palm Beach Post Staff Writer

Wellington - Mayor Bob Margolis accepted $6,500 in contributions toward a legal defense fund from two prominent opponents of the controversial expansion of Wellington’s $120 million equestrian industry, an apparent violation of ethics laws.

State law prohibits public officials from accepting gifts of more than $100 from lobbyists and companies or people employing lobbyists.

Victoria McCullough

Neither donor Neil Hirsch nor donor Victoria McCullough are registered as lobbyists. But lobbyist restrictions apply, according to Florida’s gift rules.

Hirsch directed a group that lobbied against a proposed $100 million equestrian complex. And McCullough’s attorney lobbied the village council against decisions it made in favor of the Winter Equestrian Festival.

Hirsch said he didn’t know the state’s gift-giving rules limited his contribution to $100. McCullough didn’t return repeated calls for comment. Margolis, too, didn’t return calls.

The gifts raise thorny ethical issues, experts in finance and elections law say.

“Was that money as a reward for having spoken to the person?” asked Ben Kuehne, a Miami election lawyer who represented Al Gore during the 2000 presidential recount. “Even if it’s totally legitimate, it smacks of special favoritism, of some unprincipled exercise of power.”

Neither officials from the Florida Commission on Ethics nor the Palm Beach County Ethics Commission would comment on the gifts or whether they are investigating them, although a county ethics officer in November notified Margolis he wanted to discuss one of the mayor’s gift disclosure forms.

Margolis filed two quarterly gift disclosure forms this year, one listing a $4,000 check from McCullough, the other listing a $2,500 check from Hirsch.

Both donors own property next to equestrian sites owned by Mark Bellissimo, the biggest developer of equestrian events in Wellington, and have opposed their expansion and commercialization.

According to gift disclosure documents, the money went toward a “legal expense fund trust” Margolis set up after the March elections, when a technical malfunction assigned the wrong vote totals to several candidates, including Margolis. Final results showed Margolis would have prevailed either way, but he still hired a lawyer to defend his win.

State law says cash donations to legal defense funds are considered gifts. And state and county gift laws prohibit elected officials from accepting gifts of more than $100 from lobbyists — including partners, employers or principals of lobbyists — who have in the past year tried to influence the decision-making of the government officials to whom they’re giving money.

Former County Commissioner Mary McCarty ran afoul of the rules in 2003, when she accepted more than $20,000 in cash from developers and businesses courting favor from the commission. She, too, took the gifts for a legal defense fund. The Florida Commission on Ethics fined her $3,750 in 2005 to settle her violations.

When he wrote the check, Hirsch was a director for Wellington Equestrian Preservation Alliance, which lobbied the village council and whose executive director is a registered lobbyist. That same lobbyist, Mat Forrest, was also a director of the non-profit company, as Hirsch was, according to Florida secretary of state records.

When asked whether he considered himself a lobbyist, Hirsch responded: “I resigned from Wellington Equestrian Preservation Alliance, if that’s what you’re referring to.” Hirsch did resign — but not until June 8, several weeks after he gave his gift.

Hirsch also owns Players Club, a restaurant that shares a border with the Equestrian Village site. In that capacity, he opposed the project, too.

McCollough’s attorney, Janna Lhota, is a registered lobbyist with Wellington and has lobbied the village council on behalf of McCullough. McCullough herself, meanwhile, is registered as someone who employs lobbyists, Lhota among them.

“The question is always: Are you either directly or indirectly attempting to influence government policy” and are you compensating an elected official to that end, said Bob Jarvis, a constitutional law professor at Nova Southeastern University.

To put the contributions in context, it helps to look back a year and highlight a common thread: Bellissimo. He heads the Winter Equestrian Festival and a team of developers who want to build a project called the Equestrian Village, a massive complex originally estimated to cost $100 million and include hotels, shops and arenas.

In February, under a previous council, Bellissimo got the approvals he needed to build Equestrian Village with its commercial bells and whistles. But some in Wellington weren’t happy with that. The project was too big and too wild, they complained.

The loudest and most powerful objectors were members of the billionaire Jacobs family, who own an estate near the project. They incorporated a group, Wellington Equestrian Preservation Alliance, which lobbied the council to reject the project. They hired lawyers and filed lawsuits. And their companies paid for a $500,000 campaign to unseat the former mayor — who was running for reelection — and put Margolis on the dais.

That campaign also helped get two other council members elected, both of whom weren’t happy with the Equestrian Village. That meant a majority of the five-member council, including Margolis, had ties to Bellissimo’s opponents.

Bellissimo soon was before the new council because he missed a deadline. Citing the lapsed deadline, the new council, Margolis included, voted to revoke two previous approvals for the equestrian project, essentially dismantling it.

The contribution from Hirsch came before the votes.

Specifically, Margolis deposited Hirsch’s $2,500 check on May 21. The next day the council voted to revoke the Equestrian Village’s master plan, the project’s zoning framework. Two months later, on July 10, the council voted to revoke the previous council’s approval for the dressage arena, again prompted by a deadline Bellissimo missed.

Margolis didn’t mention the cash contribution during any of the hearings.

As far as McCullough, she, like Hirsch, opposed the Equestrian Village project. She also opposed approvals the previous council granted Bellissimo related to his Winter Equestrian Festival, a major event his team has produced for several years.

In December 2011, she sued Wellington, saying the council never should have granted approvals for the site of the Winter Equestrian Festival. That land is known as Country Place PUD. Her attorney, Lhota, argued successfully in May before the new council, with Margolis as mayor, that a rare rehearing was necessary.

The day-long rehearing took place on July 17, though the result wasn’t what McCullough wanted: The new council unanimously found no legal basis to stamp out the previous council’s approval. Before the hearing, Margolis disclosed that he had spoken with McCullough and her representatives.

Five days later, on July 22, McCullough wrote Margolis a $4,000 check, his legal defense disclosure filing showed. One of McCullough’s lawsuits is pending, and a judge disposed the other in September.

Bellissimo said he considered the donations inappropriate: “It’s a personal gift.”

Both contributions could pose problems beyond gift-giving laws, said Miami election lawyer Kuehne.

Typically legal defense funds are set up as soon as a legal fight looms. Margolis knew he’d won the election on March 30, when the hand recount took place. He didn’t record a single deposit until May 17, followed by Hirsch’s deposit on May 21. He raised $7,600 through Aug. 31.

Margolis’ gift disclosure filings do not indicate that any of the money has been spent.

“After-the-fact creation is considerably troublesome,” Kuehne said. “It is very difficult to administer and to assure funds raised are used for the limited purposes for which the contributions were supposedly raised.”

A senior investigator for the county ethics commission in November sent an email to Margolis saying he wanted to discuss a gift disclosure form the mayor had filed.

“I can’t confirm or deny anything at all,” said Alan Johnson, the ethics commission’s executive director.

Legal defense funds fall into a gray area.

The Florida Division of Elections has no laws governing them. The Florida Commission on Ethics doesn’t either. Anyone can open one, not just elected officials.

Federal tax rules apply, but IRS codes say the money is not limited to legal expenses because it’s a gift.

Inevitably, questions creep up over what to do with leftover legal fund contributions. Returning it is the best option, Jarvis said.

“It’s pretty clear that most of the time politicians don’t give back the money,” Jarvis said. “The reality is … they find another purpose.”

Staff researchers Niels Heimeriks and Michelle Quigley contributed to this story.

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Oct. 20, 2011 — Wellington Equestrian Preservation Alliance incorporates. Neil Hirsch is a founding director.

Dec. 28, 2011 — Victoria McCullough files two lawsuits against Wellington regarding Country Place PUD.

February 2012 — Wellington council grants approvals for Mark Bellissimo to build $80 million Equestrian Village complex.

March 13, 2012 — Wellington election names Bob Margolis winner, and voting tabulation mix-up ensues.

March 30, 2012 — Hand recount confirms Margolis win.

May 18, 2012 — Janna Lhota, attorney and lobbyist for McCullough, lobbies Wellington council for rehearing on Country Place PUD.

May 21, 2012 — Hirsch’s $2,500 check desposited in Margolis legal defense fund.

May 22, 2012 — Margolis votes to revoke an approval for Equestrian Village.

July 10, 2012 — Margolis votes to revoke another approval for Equestrian Village.

July 17, 2012 — Country Place PUD rehearing.

Aug. 13, 2012 — McCullough’s $4,000 check deposited in Margolis legal defense fund.

Aug. 31, 2012 — Hirsch resigns from Wellington Equestrian Preservation Alliance board, effective June 8.

Equestrian Preserve Committee Meeting

Courtesy - Lauren Miro - Town Crier

Members of the Wellington Village Council met with Equestrian Preserve Committee members last week to discuss progress on the village’s equestrian master plan.

Wellington has been working on a new master plan to address equestrian issues since 2011, when it hired Florida Atlantic University to survey equestrian and non-equestrian residents alike and get a feel for the needs of the community.

At the Dec. 12 meeting, Dr. Jaap Vos, who has been working with the village through the FAU partnership, said that the survey data shows that the equestrian community is largely in agreement on many issues.

“There is agreement that Wellington is indeed one of the best equestrian areas in the world,” he said. “It seems people agree that a mix of equestrian disciplines is one of the things that makes this place very unique and desirable.”

During focus groups following the surveys, Vos said that the community stressed that Wellington must put the horses first in drafting its new regulations and future plans. “It’s clear that the horse needs to be central in any equestrian master plan,” he said.

Of the improvements desired in the area, Vos said equestrians overwhelmingly asked for more and better bridle paths and road crossings. “They want a safe way to move through Wellington,” he said.

Village Manager Paul Schofield said that one of the largest safety problems is when horses and cars clash. “One of the things people stress is to keep horses away from cars,” he said.

Schofield said that doing things like delineating horse crossings at intersections is fairly easy, but restructuring the bridle trail system for safety would be harder. “It is a more difficult thing to do to take the trail system that is out there and get something that is there and safe,” he said.

Councilwoman Anne Gerwig wanted to know whether a horse overpass was feasible at the intersection of Pierson Road and South Shore Blvd. “Is it just way too difficult to achieve?” she asked.

Equestrian Master Plan Project Director Mike O’Dell said that Wellington has looked at the issue.

“There are a number of different plans out there that have looked at the concept of putting an overpass there in some format,” he said. “I think if you put some good engineering minds together, you could come up with something that works.”

The one issue where the community was split, Vos said, was on increasing commercial development in the equestrian area, with 42 percent against it and 37 percent in favor.

“One of the issues with this question is that commercial development means different things to different people,” he said. “The community is clearly divided about this.”

Gerwig asked whether equestrian venues were considered commercial elements. “Some people would consider them a purely horse or recreational element,” she said. “That’s not clear from the question.”

Vos said it was open to interpretation, but said he found that all other questions, which were equally vague, typically resulted in consensus among their answers.

“This survey was done at a difficult time; there was major controversy,” he said. “It’s surprising that people agreed on most of the issues.”

Equestrian Preserve Committee Chair Cynthia Gardner noted that in the past 12 years, the equestrian community has fought against development in several areas, including property near Lake Worth Road and South Shore Blvd. and at the Equestrian Village site.

“The equestrian community has spent the last 12 years fighting commercial development,” she said. “To people who have been fighting and have friends who don’t live here anymore because of the growth that was threatened, there are seriously critical issues.”

One area where Vos said data had been inconclusive was in the economic impact of the equestrian community to Wellington. He noted that a 2011 study by the Palm Beach County Sports Commission found the industry had a $185 million impact countywide, but he added that it could not be known how much stays in the village.

“We really don’t have any data on that,” he said. “We’re not sure how much of it contributes to the local economy in Wellington.”

He said that FAU evaluated Wellington’s employment structure compared with those of other communities, such as Royal Palm Beach and Coral Springs, and found little difference.

“It was surprising,” Vos said. “Here we have an industry with a $185 million impact on the economy. Why don’t we see that?”

He said it’s possible the study did not test for the right variables, but suggested Wellington look into how it “captures the economic benefit” brought in by the industry.

After three hours of tackling issues from public riding spaces to commercial development, Equestrian Preserve Committee members expected to use the information and opinions to help draft the master plan before it returns to the council.

“That was the way the council set up the process, so that it would be in the hands of the committee,” Schofield said. “That’s really how it should be.”

Legal Wrangling Continues Over GDF Site

Courtesy: Molly Sorge - Chronicle of the Horse

The site for the upcoming Adequan Global Dressage Festival in Wellington, Fla., has come under legal fire again. Charlie and Kim Jacobs have filed an amended complaint in Palm Beach County seeking to void the approval of two development orders for the property, stating that they are not in compliance with the Village of Wellington’s comprehensive plan.

With the latest developments, it looks as though the future of the venue will be decided in the Palm Beach County courts, rather than by the council of the Village of Wellington. The litigation marks an impasse in negotiations between the Jacobs family and Equestrian Sport Productions, the organizers of the GDF.

The 96-acre site, at the northeast corner of South Shore Boulevard and Pierson Road, had been the location of a polo stadium for many years. Mark Bellissimo, the CEO of Equestrian Sport Productions, which runs the FTI Consulting Winter Equestrian Festival less than a mile down Pierson Rd., envisioned a world-class dressage facility there to rival the hunter/jumper facility at the WEF.

The ensuing battle between Bellissimo, ESP and local citizens such as the Jacobs family, who own Deeridge Farm on Pierson Rd. and show at WEF, has divided Wellington and caused much contention.

Bellissimo initially planned an Equestrian Village development, to include showgrounds, a hotel, and retail businesses. But the plans for retail and hotel construction met vehement opposition from some Wellington residents, including members of the Wellington Equestrian Alliance. Those plans were tabled, and in February, the Wellington Village Council approved a special-use permit for the property, allowing the show to run at the facility in 2012, from Feb. 2 to April 15. The showgrounds included a permanent covered arena, four outdoor arenas and 200 permanent stalls.

Turbulent Times

In July, a Wellington Village Council that included newly elected members voted to revoke the special-use permit. An earlier vote by that council, in May, had revoked the master plan for the project.

An August vote by the council, however, suspended those revocations and granted permission for the 2012-2013 Adequan Global Dressage Festival to proceed on the showgrounds. In addition to dressage shows, that schedule includes the second round of the $50,000 USHJA International Hunter Derby and three weeks of jumper classes.

The Jacobs family states that they are not against the construction of a dressage facility, but they are adamant that such a facility should meet the stipulations not only of the Village of Wellington’s building codes, but also the intent of the Village of Wellington’s Equestrian Preserve, in which the property lies. They also believe that decisions about permitting construction should include public hearings.

“They opposed it because it sought intense commercial activity in Wellington’s Equestrian Preserve, which is a vitally important resource that is very important to the Jacobs family and the Village,” said Amy Huber, a lawyer with Shubin & Bass, the firm representing the Jacobses.

“They will continue to oppose it until the developer makes it compatible with the Preserve and the surrounding residential area and gives enforceable assurances to the public that it will not be improperly commercialized in the future,” Huber continued. “Along the way, the Jacobs family learned that the Village and other regulatory agencies did not review it properly, and they want to ensure that any development on that important property is reviewed appropriately and with significant public input.”

Legal Or Not?

Anne Gerwig, one of the five Village Council members, stated that Bellissimo “had permission to do everything he did. There was one thing he did without a permit, and it was corrected, which was constructing a deck. Other than that, I know of nothing that was built out there without a permit or with any kind of issue. Everything else was permitted, acceptable and allowed by law,” Gerwig said.

When asked if he was confident that construction at the GDF facility met all codes and was in compliance, Bellissimo replied “Absolutely.

“Our passion and our vision is to develop Wellington as the premiere equestrian lifestyle destination in the world,” Bellissimo continued. “We will not be deterred by bullying tactics, and our partnership is committed to our vision. Approximately six years ago the Jacobs family, using similar tactics, tried to move the [Winter Equestrian Festival], first out of Wellington, and then across town to a new venue. I believe it would have destroyed Wellington as we know it. Our partnership and the community came together, we aggressively fought the move, and we prevailed.  

“As a result, the Winter Equestrian Festival has realized unprecedented growth, has become a major world venue, is attracting record exhibitors and spectators throughout the world, and is raising and distributing millions of dollars to charities and the local community. My only frustration is that the significant money spent in litigation could be better spent to grow equestrian sport and enhance the community,” said Bellissimo.

The Jacobs’ amended complaint states that the original special use permit for the facility stipulated that there be no permanent construction on the site, which was violated by the building of the covered arena. The complaint also claims that significant changes to the topography of the site will cause alterations in storm water retention and run-off.

“The Jacobs family amended its complaint to include and update it with additional significant violations that have been discovered through the legal process,” said Huber. “Of particular importance, and as a result of the Jacobs family’s diligence to protect the Preserve and this community, the developer has had to go back to the drawing board on multiple occasions recently to add additional land for storm water retention to prevent flooding and revise its Best Management Practices to ensure water quality. Even with these modifications, there are still additional violations on the property as constructed, which have recently been discussed by the Village Manager and continue to be in violation. The Amended Complaint seeks to bring this property into further compliance with the rules and regulations of the Village and SFWMD, and ensure that this developer follows the same rules applicable to all development within the Village.”

Within the complaint is the wording “To the extent that any improvements have been made or structures erected, the plaintiffs request that the court order the lands returned to their status prior to the commencement of the development activities challenged herein.”

A Frustrating Impasse

The Jacobs claim they aren’t seeking to prevent the 2013 Adequan Global Dressage Festival activities from happening and also to support the development of a dressage show circuit. “The Jacobs family would be happy to see a dressage facility operate on the property at a scale, intensity and design that is compatible with the surrounding area, sensitive to the neighborhood, complete with protections and assurances against noise, odors, environmental contamination, compliant with all of the Village Codes and Comprehensive Plan, and constructed and approved in accordance with Village’s normal development review and approval process,” said Huber.

Bellissimo is confident the 2013 GDF will go on. “While I suppose, legally, it could be possible to impact the event, it is highly improbable,” Bellissimo said. “I believe the lawsuit for the injunction was an ill-advised, mean-spirited attempt to create uncertainty within the Global Dressage Festival. The fact is clear they filed an injunction to tear down the venue and to void the agreement that allows the events for 2013. Ironically, the end result of their actions was that it galvanized the world equestrian community against the Jacobs’ misguided efforts.”

Gerwig noted that the fate of the site is in the hands of the courts now, not the Village Council. “There were several offers from both sides, but they couldn’t come to an agreement,” Gerwig said. “We’ve been through this process through April, and we’ve been to two mediations, and we haven’t been able to find a resolution that everyone would go along with.

“To me, the worst part is the division of the community. If you’re doing business in Wellington, it's like you have to be on one side or the other. It's a horrible feeling for a community to be divided this way. It does affect everyone.”

Gerwig also laments the expense that the ongoing litigation is costing the village. She notes that Wellington’s 2012 legal fees are more than a quarter of a million dollars higher than budgeted. “We have 58,000 residents, and a small percentage of our residents have anything to do with equestrian events,” Gerwig said. “It’s a real disservice to residents of Wellington who aren't involved in equestrian events. They're all paying the taxes that have to go to fund these legal fees.”

None of the legal wrangling involves the WEF site, and when asked if the Jacobs family would be welcome to show there, as they have for decades, Bellissimo replied, “They are absolutely welcome to compete.”