Settlement Agreement Reached on the Lake Worth Casino

Settlement Agreement on the Table for our Casino Building

At last and mucho dollars later, the City, Morganti and REG have reached an agreement to finally get something done at our casino building. How many years has it been now? The 5th tolling agreement will be extended until February 2018.

According to the backup under Agenda item 12-F:

Under the Settlement Agreement, Morganti, No Limit (window/door sub-contractor) and REG shall perform the Balcony Remediation at no cost to the City. Morganti is required to work with the City’s point of contact (Phil Johnson) to coordinate the work and minimize the impact on the Casino and its surrounding businesses. The City’s experts will perform routine inspections of the work during construction and issue a certification to the City once the work is properly performed and complete. Within 30 days after completion of Balcony Remediation and certification by the City’s experts (along with Building Official sign-off), the City will release contract payments to Morganti in the amount of $33,751.08 and to REG in the amount of $10.00. The City will retain $135,000 of the contract payments as the negotiated settlement amount to cover the City’s attorney’s fees and expert expenses.

Morganti, REG, and/or No Limit will obtain and assign to the City all warranties given to them relating to the products and materials utilized in the Balcony Remediation. Morganti and No Limit will correct any Balcony Remediation work found to be defective or not in conformance with the Balcony Remediation plans and specifications within one (1) year after certification promptly at no cost to City. Morganti and No Limit will also be responsible for and pay for replacement or repair of adjacent materials or work which may be damaged as a result of warranty repairs.

The City, Morganti, REG and No Limit will release each other from claims or damages which arise from the defects within the notice of claim, but not claims for latent defects or the work being performed in connection with the Balcony Remediation. The Parties will also execute the Fifth Extension of Tolling Agreement which tolls the statute of limitation until February 2018, when the work should be completed. Through this settlement, no party admits any liability, but rather the parties agree to the settlement as a compromise of the claims in the interests of avoiding the costs and uncertainty of litigation. Except as noted above, each party bears its own attorneys’ fees and costs in connection with this Settlement Agreement.

Next, the City can repair our existing pool.