OIG No. 25-04 Review of Log Cabin Restoration Project1B
Joseph M.Centorino,Inspector General
TO:
FROM:
DATE:
RE:
Honorable Mayor and City Commission
Joseph M.Centorino,Inspector General
April 16,2025
Review of Log Cabin Restoration Project
OIG No.25-04
Background
On July16,2024,Mr.Larry Shafer and Ms.Sharon Weiss filed the attached 7-part complaint
with the Office of Inspector General (OIG).The complaint requested an investigation by the
OIG beginning with a kick-off meeting in the City Manager's large conference room,to pursue
allegations of gross negligence,willful misconduct and/or fraud by the City Administration in
connection with the City's attempted restoration of the historic log cabin structure in North
Beach.Subsequently,the complainants contacted the OIG and requested an additional
investigation into the unsuccessful planting of trees in North Beach Oceanside Park and along
the beach-walk.Both issues have generated spirited discussion among residents,City
officials,and City personnel.
The complainants,while genuinely concerned about and disappointed in both projects,could
provide no factual substantiation for the very serious allegations made other than the
numerous well-documented delays in completing the log cabin project and the surprising loss
of so many of the trees along the beach-walk and in Oceanside Park as well as the public
funds used to purchase and plant them.
The OIG declined the suggested "kick-off'gathering,and while the factual predicate provided
was deemed insufficient to justify a full-blown OIG investigation of the allegations,the OIG
recognized that the public interest in these projects and the frustrating setbacks in their
execution justified a review of the City's actions in both of them as part of the OIG's ongoing
oversight of City programs and expenditures.
This report provides a factual background on the log cabin project,a G.O.Bond project,which
includes a chronology of events based on available records and the OIG's discussions with
City personnel involved in the project.It does not conclude with a finding of "intentional
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misconduct"by any individual involved in the project.The report is intended to illuminate the
various factors that have contributed to extensive delays during the project and to assist City
officials in creating the most expeditious path to its successful completion.
The tree planting failure in North Beach Oceanside Park will be addressed in the OIG's
quarterly report on the G.O.Bond.
Complaints on the Log Cabin Project
With respect to the North Beach Log Cabin,the complaints directed at the City Administration
were as follows:
1.Gross negligence and/or willful misconduct regarding the proper maintenance and
repair of a City real estate asset;
2.Gross negligence and/or willful misconduct and/or breach of fiduciary responsibility
and/or fraudulent misrepresentation of facts regarding the destruction and removal of
the log cabin;
3.Gross negligence and/or willful misconduct and/or fraud regarding the reconstruction
of the North Beach Log Cabin-failure of the City Manager's office to implement
Resolution 2018-30356;
4.Gross negligence and/or willful misconduct and/or fraud regarding the reconstruction
of the North Beach Log Cabin-failure of the City Manager's office to use the 2018 GO
BOND money approved by the voters to reconstruct the North Beach Log Cabin;
5.Gross negligence and/or willful misconduct regarding the preservation of the
remaining North Beach Log Cabin remnants including the coral rock chimney and log
framing members.
Definitions
This review was conducted with the following definitions from Black's Law Dictionary as a
guide:
Gross negligence:A severe degree of negligence taken as reckless disregard;blatant
indifference to one's legal duty,another's safety or their rights.
Willful Misconduct:The intentional disregard to safety of others or improper behavior that is
of major proportions and that is carried out intentionally.
Fraud:Some deceitful practice or willful device,resorted to with intent to deprive another of
his right,or in some manner to do him/her injury;as distinguished from negligence,it is always
a positive and intentional act.
Fraudulent misrepresentation:To intentionally give a false or misleading representation
usually with an intent to deceive or be unfair.
Breach of fiduciary duty:The neglect or failure to fulfill in a just and proper manner the duties
of an office or fiduciary employment.
OIG Review
OIG Investigator Jani Singer conducted a review of the project and determined the following
salient facts:
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In early 2017,at the request of the administration,Frank Garcia,a City employee in Facilities
and Fleet Management (formerly Property Management Division),commissioned an
evaluation of the log cabin,located at 8128 Collins Avenue,from BEA Architects,Inc.In a
letter to Frank Garcia,dated May 25,2017,the consultant stated that the intent of the
requested evaluation was to provide the City with general information regarding the condition
of the log cabin structure,and possible options for its utilization,within the context of a
proposed redevelopment of the property on which it sits.On 6/16/2017,the conditions
assessment for the log cabin from BEA Architects Inc.was provided to the Finance and
Citywide projects Committee (FCWPC,now known as FERC).The report stated:
The exterior wood members of the log cabin bear evidence of significant
deterioration (rot)and possible termite damage,the building is in a state of
disrepair and in overall poor condition.Numerous locations at the exterior logs
where rot has caused deterioration have been filled in and patched with concrete.
The building is reportedly infected with fleas and vermin.The building is not in a
state suitable for public occupancy...The existing floor level of the Jog cabin is
below flood elevation for its location;its proximity to the Atlantic Ocean places
this structure under high velocity wind requirements (unlikely to be met by this
structure)...per information provided by the City,the Jog cabin has NO historical
designation,nor to BEA's knowledge any potential for such designation ...Many
aspects of this log cabin structure appear to be non-compliant with current
building codes...It was determined that relocation of the log cabin was not viable
(as further damage and/or collapse was possible)and,given the extent of the
deterioration,making the structure code compliant would be "synonymous with
construction of a new replacement structure".The cost estimate provided for the
new structure was $487,500.
The Finance Committee unanimously approved the complete demolition and removal of the
structure in the amount of $15,000,noting that it was a public safety issue and "nasty"and
suggested that this would make space for the North Beach Yard project.North Beach Yard,
LLC.had been working with the City to lease the property on which the log cabin sat and
activate a cultural hub modeled after Wynwood Yard in the City of Miami.
On 6/21/2017,the Miami Dade County Historic Preservation Board passed Resolution No.
2017-11 strongly urging the City of Miami Beach and the City's Historic Preservation Board
to designate the North Beach Log Cabin as a local historic site and to stabilize and restore
the structure.The County's Resolution was provided to the members of the City's Historic
Preservation Board as well as the Mayor and Commissioners.
A week later,on 6/29/2017,the City Manager,Jimmy Morales,issued a Letter to Commission
stating that the Mayor's North Beach Panel passed a motion recommending that the City
Administration seek second and third opinions regarding the demolition of the log cabin by
restoration experts in order to properly evaluate the current condition and make every
reasonable effort to evaluate the possibility of renovating and restoring the structure so that
it could continue to be a community feature,and to do so in tandem with the production
schedule of the proposed North Beach Yard Project in order not to avoid undue delay.
The next day,the Finance Committee again discussed the log cabin and the lease that was
being developed for the North Beach Yard Project.The City Attorney advised the Committee
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that the City needed to make a determination on what to do with the log cabin in order to meet
the proposed lease timelines.He further advised that there was community interest in having
the log cabin designated as a historical site.The Committee decided that the North Beach
Yard project was the priority and should move forward and that the City could decide what to
do with the log cabin at another time.The City Attorney advised that the City Administration
would continue with lease negotiations and present to the Commission on July 26,2017.
On 7/11/2017,the City's Historic Preservation Board discussed Resolution 2017-11 by the
Miami-Dade County Historic Preservation Board,which strongly favored designation of the
log cabin by the City as an historic site.The City Board then voted to recommend to the Mayor
and the Commission that the log cabin be retained and restored in its current location.
Notwithstanding the opinions of both the County HPB and the City HPB that historic
designation should be sought,neither board filed a formal Request for Designation per
Chapter 118-591 of the Miami Beach Code which provides as follows:
(a)Requests for designation.
1)Requests for designation of an individual historic site or district may be made
to the historic preservation board by motion of the board,the city manager,by
resolution of the planning board or city commission,by any property owner in
respect to his own property,by a majority of property owners of record within a
proposed district,by resolution of the county historic preservation board,or by
resolution of any organization whose purpose is to promote the preservation of
historic sites.
2)Proposals for designation shall include a completed application form available
from the planning department.
The OIG contacted Deborah Tackett,Historic Preservation and Architecture Officer for the
City's Planning Department,for further explanation of this Code Section in light of the County
HPB's "strongly urging"the City to seek designation and the City HPB's recommendation to
the City Commission,without either board filing an application.Ms.Tackett explained:
By resolution,the County's Historic Preservation may request historic
designation through the historic designation application process.To initiate the
historic designation process,as the applicant,the County is required to submit
a complete application to the Planning Department.The County did not submit
any applications to the City for designation of the log cabin.The resolution of
the County's Historic Preservation Board dated June 21,2017,is "urging the
City of Miami Beach and the City's Historic Preservation Board to designate
the North Beach Log Cabin...meaning,the County would like the City to initiate
the historic designation process.
On 7/21/2017,the Facilities and Fleet Management Department presented a proposal to the
Finance Committee from McKenzie Construction,one of the additional consultants retained
at the request of the Mayor's North Beach Panel,and which was previously involved with the
restoration of the log cabin structure within the Village of Biscayne Park.The proposal was
based on a visual inspection of the current conditions of the property during a site visit;a
review of the BEA Architect report dated 5/25/2017,internal McKenzie historic construction
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data from the rehabbed log cabin in the Village of Biscayne Park in 2016;and the educated
estimate that approximately 45%of the existing logs would have to be replaced.The
estimated cost to restore the structure and replace 45%of the logs was $685,246.59.The
Finance Committee directed the City Staff to do the following:
a)Collaborate with the Miami-Dade Preservation League to further investigate the Log
cabin's historical significance;
b)Work with the City's Grants Department to identify potential funding opportunities
available for restoration including the State Department's Division of Historical
Resources (DHR),namely the DHR's Special Category Grants;and
c)Have the Facilities and Fleet Management Division revisit the feasibility of successfully
relocating the log cabin and further exploring the option to build an in-kind structure
while salvaging key elements of the log cabin that remain in fair condition (i.e.treated
interior logs and coral rock fireplace).
On 07/26/17,the City Commission accepted the recommendations from the Finance
Committee made at its 07/21/17 meeting.In his Commission Memorandum,City Manager
Morales advised the Commission that both the Miami-Dade County and Miami Beach
Preservation Boards had expressed support to restore and retain the structure.He further
advised that the Planning and Property Management departments had researched the
property and the Building Official had also visited the site,determining that the structure was
not suitable for public use or occupancy as it was a fire trap,had no fire protection,and did
not comply with ADA or Florida Building Code accessibility requirements.
Finally,the City Manager advised that the property was not located within any local historic
district,was not individually designated as a local historic structure,and that the City had no
budgeted funds for restoration of the log cabin.At the same Commission meeting,the City
adopted Resolution NO.2017-29942 approving a new lease agreement between the City and
North Beach Yard,LLC involving the use of the City-owned property located at 8100-8140
Collins Avenue,which included the log cabin site.The lease was executed by the parties on
November 20,2017.
On 09/20/17,the Facilities and Fleet Management Division provided the Finance Committee
with another conditions assessment of the log cabin from Douglas Wood Associates,Inc.
(DWA)including a reconstruction cost estimate in the range of $750,000 to $1,000,000.The
report was consistent with the assessments and recommendations previously received by
City staff,namely,that restoration of the log cabin would require rebuilding most of the
structure from scratch.In the report,it was stated:"If there were a delay between dismantling
of the existing building and reconstruction,salvaged materials could be stored.Of course,the
salvaged materials should be stored indoors.An air-conditioned space would be best."
During the hearing,the Committee heard public comment,including from local activist and
Historic Preservation Board member,Kirk Pascal,who visited the log cabin with the Douglas
Wood team and acknowledged that the log cabin would have to be disassembled and stored
while the City considered the best way to reassemble it and decided its ultimate use.
On 10/13/17,the Facilities and Fleet Management Division presented the Finance Committee
with a cost estimate of $274,000 to salvage,remove and store the serviceable materials.The
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estimate was prepared by McKenzie Construction.Additionally,staff was asked to obtain
pricing information for the potential construction of a larger log cabin structure better suited
to host a variety of community functions.
On 10/18/17,the City Commission approved $274,000 for the dismantling,removal and
offsite storage of the salvageable components of the log cabin.Judy Hoanshelt (then CMB
Grants Manager)was directed to identify potential grant funding to rebuild the log cabin at a
later date.Potential funding from the Parks Dept.was discussed as well as the possibility of
earmarking a percentage of the resort taxes from the North Beach Yard to rebuild the log
cabin.The Commission also recommended a referral to the Finance Committee regarding
"Crowd Funding"for the log cabin renovation/reconstruction project.Importantly,the
Commission decided to allow the new Commission to make the ultimate decision on its use.
The election for the new Commission occurred in November 2017.
A week later,the City received a proposal from Douglas Wood Associates,Inc.,a structural
engineering firm,to "demolish the existing log cabin at 8128 Collins Avenue,while salvaging
existing materials which are from the original construction and which are in good condition."
The proposal detailed the City's intent:"It is intended to store salvaged material for possible
future re-use in a reconstructed cabin.It is further intended to relocate the existing stone
fireplace and chimney to a temporary location."
On 11 /14/17,the City HPB,had an informal discussion (the item was not on the agenda),and
was advised at that time that the prior City Commission had authorized the deconstruction of
the log cabin.The only way for the Board to obtain jurisdiction over the structure would have
been to apply for a designation pursuant to Chapter 118 of the City Code,conduct a
preliminary evaluation and direct staff to prepare a formal designation report.If that were
done,there would have been zoning in progress and it would have remained under the
Board's jurisdiction until a final decision was made by the City Commission regarding historic
designation.This was not done.
Nevertheless,the HPB expressed that it wanted the new Commission to know that it was still
looking at ways to protect the log cabin and made a recommendation that the Mayor and City
Commission "provide protection for the log cabin structure or salvaged components in the
event the structure is disassembled."The HPB also requested additional information from the
Planning Dept.regarding the log cabin's historical significance and agreed to hear additional
information regarding the historical significance on December 18,2017.
Two days later,however,a building permit to "disassemble,remove and arrange for off-site
storage of the existing log cabin structure"was applied for by TEAM CONTRACTING INC.
The City then began the work of clearing the lots.
The Dade Heritage Trust also sent a letter to the Mayor and Commission and City Manager
in support of preserving the log cabin and integrating it into the North Beach Yard project,but
no application was filed with the City by the Trust.
Proposals could have been initiated by the Historic Preservation Board,City staff,City
Manager,a Member(s)of the Miami Beach Planning Board,or the City Commission,among
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others.Had any of the potential applicants followed Chapter 118,the following would have
happened:
Section 3.In the event of a proposal for designation by the Historic Preservation
Board,staff,City Manager,or member(s)of the Miami Beach Planning Board or
City Commission,the proposal shall be submitted in writing to the Historic
Preservation Board,c/o Planning Department,1700 Convention Center Drive,
Miami Beach,Florida 33139 at least thirty (30)days prior to the date on which the
proposal is to be discussed.The Board by a majority vote of its members,or
Planning Director may waive this requirement in cases where a delay would likely
result in its destruction of the subject historic features.
Section 4.Preliminary Evaluation.The Board shall consider preliminary evaluations
for designation at its general or special meetings.The Board shall consider all
documents and affidavits submitted by the initiator in conformance with the criteria
for designation set forth in Chapter 118,Article X of the Land Development
Regulations of the Miami Beach Code,as amended.Additionally,the Board shall
consider the significance and urgency of the proposal and any special legal or
factual considerations relative to other potential designations and the workload of
the Board and staff.The Board shall at its earliest convenience do one or more of
the following:
A.Request the preparation of a designation report by the Planning
Department;
B.Continue the proposal to a certain future date to allow pending,higher
priority designations;
C.Permit the initiator of the proposal to provide necessary documentation for
the proposed designation;
D.Reject,with a brief statement of the underlying reasons for the rejection,the
proposal for Jack of conformance for the criteria for designation;
E.Defer discussion pending further investigation and/or completion of the
record.
Had this process been implemented,the HPB would have had the jurisdiction to review the
demolition permit and give an advisory opinion to the City Commission.However,ultimately,
because the log cabin was located on City property,the final decision regarding its demolition
rested with the Commission.
On December 4,2017,at 10 AM,newly elected Mayor Gelber had a meeting with Facilities
Director Adrian Morales regarding the log cabin.The subsequent chronology during that day
was as follows:
1:36 PM-a group of citizens,on behalf of the North Beach Neighbors Alliance,requested
a meeting with Mayor Gelber and the new Commission in an effort to reverse the prior
Commission's decision to dismantle and remove the log cabin.
1:54 PM-Adrian Morales emailed City Manager Morales and advised him that he had met
with the Mayor regarding the log cabin and offered to brief the Manager on the discussion.
1:59 PM-Daniel Gell,from Team Contracting (the company hired to dismantle the log
cabin),emailed Frank Garcia and copied Adrian Morales and said,"As per your directive,
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I will start work this week while awaiting the receipt of the purchase order and permit.We
will be mobilizing tomorrow instead of on Wednesday.Please confirm that this is okay."
2:30 PM-City Manager Morales emailed Adrian Morales,advising him that he had already
been briefed on the matter stating,"Let's get that permit issued."
3:11 PM-Adrian Morales responded to Daniel Gell and told him that it was ok to mobilize.
The permit was issued two days later on December 6h.The description of work on the
permit included "disassemble,remove,arrange for off-site storage of the existing log cabin
structure"and the term "total demo".The City started the dismantling of the log cabin on
12/6/2017.
The North Beach Neighborhood Alliance did not meet with the Mayor prior to the
deconstruction of the log cabin.A meeting was scheduled with Commissioner Samuelian for
December 9,2017.It is unknown at this time if other meetings with elected officials occurred;
however,all officials had been notified of the community's concern related to the dismantling
of the log cabin.
On December 12,2017,after the dismantling had begun,the Miami Design Preservation
League sent a letter to the Mayor and Commissioners "supporting the preservation of the
North Beach Log Cabin in place or on a nearby location rather than dismantling it.We further
advocate for the City of Miami Beach to designate the Log Cabin as a historic structure."The
MDPL continued:
We were surprised and disappointed to learn that the City chose to proceed
with the dismantling of the Log Cabin this week.We question why this is
proceeding with such haste,given that there is no threat to life-safety and
especially since other boards have requested more discussion on the building
as well.While grateful that the building has not been destroyed,we are
concerned about the lack of full transparency in this process.It is not clear to
us who or what is driving this decision to remove the building from its original
site.Certainly,the concept of North Beach Yards or any other future civic use
could work on this site with the Log Cabin in place.
Miami Dade Preservation League itself did not prepare an application for historic designation.
In early 2018,the City moved the salvageable pieces to an air conditioned warehouse.The
remaining logs were tagged and stored in dry storage containers and the chimney/fireplace
was secured,and at all times both were in air-conditioning.
For the next 18 months,the City worked with North Beach Yards,LLC.towards the
development of the site pursuant to the lease agreement.On May 16,2018,the Commission
approved the conceptual plans for the site.The lease,signed in November 2017,required
North Beach Yards,LLC,within 365 days of executing the agreement,to provide the City with
written evidence of (1)equipment leases/financing for container structures;(2)secured
financing for tenant's work;(3)the availability of liquid assets;(4)a general contractor
contract;and (5)a performance bond and payment bond covering the full amount of tenant's
work (in the amount of $1,750,000).There was no proof of compliance and on June 6,2019,
the City Manager Morales notified the Commission of the status.On August 8,2019,the City
Manager notified the Mayor and Commission that he intended to terminate the lease
agreement.
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In their complaint to the OIG,the complainants alleged that"...the City Manager's Office had
no written contractual requirement to destroy the North Beach Log Cabin to meet the needs
of the lease.Without a landlord lease obligation to destroy the North Beach Log Cabin,or a
fully effective lease,the destruction of the North Beach Log Cabin may be considered willful
misconduct and willful damage and destruction of valuable city property..."
As has been noted above,the log cabin was not destroyed.Notwithstanding that,Section
1.3 of the lease agreement,in fact,imposed on the City an obligation to remove the structure:
1.3 Removal of the Log Cabin Building.Prior to the Commencement Date,the
City,at its sole cost and expense,shall remove from the Premises the
approximately 1,100 square foot building depicted in Exhibit A as the "Log
Cabin.
In April 2020,the City decided to terminate the lease with the warehouse that had been storing
the dismantled log cabin.Frank Garcia,the project manager at the Facilities Department,
tried to locate another air-conditioned facility but was unable to do so.In an email to Mark
Milisits,the City's Asset Manager at the time,he stated:
"We've been asked to relocate the remnants of the North Beach Log Cabin in order to
vacate the warehouse they currently occupy.I was afraid this would happen after we
relocated the coral rock fireplace...I think the log cabin (or what remains of it)should
return to North Beach (empty west lots?),however,our commitment to the community
was to keep the containers in a climate-controlled facility.To that end,I need your help
to identify some warehouse/storage options.Given the current financial climate,we'll
have to find a very inexpensive storage arrangement somewhere.Please tap your
contacts and get back to me with any leads."
The City's Asset Management Division was unable to find another facility in which to store
the log cabin.
In June 2020,the containers with the remaining logs and the chimney/fireplace were picked
up from the warehouse and moved to the North Shore space.The container with the wood
remnants remained air-conditioned but the container for the chimney and fireplace,still
contained within a custom-fabricated steel armature,did not.This method of storage was
recommended by consulting Engineers at Douglas Wood Associates as the City.Aside from
periodically checking on the locks and packaged unit air conditioners,no maintenance or
repair work was performed on the deconstructed log cabin between June of 2020,when the
containers and coral rock fireplace were returned to the 8128 Collins Ave site,and August
2024.
On 3/9/2022,Vice Mayor Kristen Rosen Gonzalez,after receiving residents'concerns related
to possible improper storage of the salvaged parts,placed item R9-I on the Commission
agenda for a discussion regarding the log cabin.Facilities Director Adrian Morales,
represented to the Commission that the remaining parts were accounted for,in good
condition,and safe.The Commission also learned from Maria Hernandez,GO BOND
Director,that the log cabin was a Tranche 2 project and that,due to delays in other GO BOND
projects in the parks category,the Tranche 2 money would not be available until 2024.
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On 4/3/2024,the City Commission approved item C7-T,which prioritized the reconstruction
of the log cabin and moved the project to Tranche 1 of the GO BOND.Staff was instructed to
identify and quantify the funding gaps so that they could be addressed in the FY 2025
budgeting process.The total GO BOND budget for this project is $1,076,000.The
Administration recommended a temporary re-alignment of funding in the amount of
$1,009,000 from the North Shore Path and Fields Project (GO BOND #13)and $67,000 from
the Skate Park Project (GO #13)since these projects would not need the funds until Tranche
2.A capital budget amendment allocating funding for this project in Tranche 1 was approved
by the City Commission on May 15,2024.The City then started the procurement process to
hire a design consultant for the reconstructed log cabin.
In August 2024,after visiting the storage site with the complainants,Investigator Singer
requested Facilities Management to go out to the log cabin and assess the storage containers
and remaining parts.Frank Garcia visited the remnants of the log cabin with his Operations
Manager and confirmed that the A/C units were blowing cold air to keep the logs cool.He
also replaced the padlocks on the containers.He observed the plant growth and other
vegetation that the complainants had described.He initiated a work order to remove some
of the wood slats surrounding the fireplace and remove the growing tree from the structure.
Smaller plant growth was sprayed with EPA approved organic pesticide.A recurring
preventative maintenance work order was opened to check on the coral rock fireplace and
remove plant matter quarterly.Mr.Garcia advised that if directed by the Administration,the
coral rock fireplace and storage containers could be relocated to a warehouse facility on the
mainland.Based on previous relocation expenses,the cost for relocating the structures again
would be approximately $15,000.
On 8/22/2024,Investigator Singer emailed both complainants and advised them of the update
given by Frank Garcia.She also advised them that the OIG would not be taking further action
on their allegations.Ms.Singer did not receive a response to her email from the complainants.
The topic of the log cabin was discussed at the February 26,2025,City Commission meeting
under Item R9W sponsored by Commissioner Kristin Rosen Gonzalez.It was pointed out by
Finance Director Jason Greene that a significant portion of the perceived delay in completing
the G.O Bond project was due to its original inclusion among the Tranche 2 projects,and that
the project is now in Tranche 1.Capital Improvement Projects Director David Gomez
recounted at the meeting that the project has been stalled due to the difficulty in finding the
right consultant to do the job with available funds and that the City was on its 4 consultant
for the project.Assistant City Manager David Martinez made clear that the project was not
intended to involve a reconstruction of the pre-existing log cabin,but rather an incorporation
of the remaining physical elements of the structure into a new structure.
The Commission then voted to get regular reports on the project at meetings of the Public
Safety and Neighborhood Quality of Life Committee.The consultant has been hired and
design is under way.There has not been another conditions assessment of the log cabin.
The OIG,after hours of review of Committee/Board/Commission meetings,consultant
reports,hundreds of email communications and other documentation,plus discussions with
City personnel,has determined that,although there has certainly been a basis for widespread
frustration and disappointment on the part of all stakeholders with the delays in the process
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of completing the log cabin project,there exists insufficient evidence at this point to support
further action.The OIG will continue to monitor this project and will report any significant
findings should they occur.
Respectfully submitted,
oseph M.Centorino,Inspector General
°Kline Singer,lnveslig tor
a1/47 as
Date
Date
cc:Eric Carpenter,City Manager
David Martinez,Assistant City Manager
Maria Hernandez,Assistant City Manager
David Gomez,Director of Capital Improvement Projects
Francisco Garcia,Division Director,Facilities
Thais Veira,G.O.Bond Program Director
Karen Riva
Larry Shafer
Sharon Weiss
OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach
1130 Washington Avenue,6"Floor,Miami Beach,FL 33139
Tel:305.673.7020 •Hotline:786.897.1111
Email:CityofMiamiBeachOIG@miamibeachfl.gov
Website:www.mbinspectorgeneral.com
Page 11 of 11
To:Joseph M.Centorino
Miami Beach Inspector General
City of Miami Beach Office of Inspector General
OAIG Investigation Request and Formal Complaint regarding Eric Carpenter,Deputy City
Manager and others in the CMB City Manager Office
Filed by:
Larry Shafer
Sharon Weiss
Other concerned citizens have agreed to be added to this list.The full list ofthose citizens participating in
this complaint will be provided after this complaint is submitted to the CME OAIG.
Date:July 16,2024
Subject:Detailed Complaints Regarding Eric Carpenter,Deputy City Manager and others in the City of
Miami Beach City Manager Office regarding Gross Negligence,Willful Misconduct,and Failure to
Maintain the City Assets North Beach Log Cabin and Byron Carlyle Theater
This is a seven part complaint,with parts 1-5 addressing the North Beach Log Cabin,and parts 6-7
addressing the Byron Carlyle Theater.
Section 1-North Beach Log Cabin
•Complaint I -Gross Negligence and/or Willful Misconduct regarding the proper maintenance and
repair of city real estate asset the North Beach Log Cabin (formerly 8128 Collins Avenue)
•Complaint 2-Gross Negligence and/or Willful Misconduct and/or Breach of Fiduciary
Responsibility and/or Fraudulent Misrepresentation of Facts regarding the destruction and
removal of the North Beach Log Cabin (formerly 8128 Collins Avenue)
•Complaint 3-Gross Negligence and/or Willful Misconduct regarding the reconstruction of the
North Beach Log Cabin -Failure of City Manager's office to implement the June 6,2018
resolution 2018-30356 adopted by the CMB Commission
•Complaint 4-Gross Negligence and/or Willful Misconduct and/or Fraud regarding the
reconstruction ofthe North Beach Log Cabin -Failure of City Manager's office to use the 201 8
G.O.Bond money approved by voters to reconstruct the North Beach Log Cabin
•Complaint 5-Gross Negligence and/or Willful Misconduct regarding the preservation of the
remaining North Beach Log Cabin components,including coral rock chimney and log framing
members
Page 1
Section 2-Byron Carlyle Theater
•Complaint 6-Gross Negligence and/or Willful Misconduct regarding the proper maintenance and
repair of City real estate asset the Byron Carlyle Theater (500 71 Street,Miami Beach FL 33141)
•Complaint 7-Willful Misconduct and Breach of Fiduciary Responsibility to the City and
taxpayers by choosing to not maintain city property and then attempting to sell it to for-profit
developers
Section 1-North Beach Log Cabin
Complaint I-Gross Negligence and/or Willful Misconduct regarding the proper maintenance and repair
ofcity real estate asset the North Beach Log Cabin (formerly 8128 Collins Avenue)
A.Mr.Carpenter and others in the City Manager office had the responsibility of maintaining and
safeguarding the City ofMiami Beach real estate asset called the North Beach Log Cabin,
previously located before its destruction at 8 I28 Collins Avenue,Miami Beach FL,33141.
B.Mr.Carpenter and others in the City Manager office engaged in gross negligence or willful
misconduct regarding the maintenance and repair ofthe North Beach Log Cabin.This gross
negligence or willful misconduct occurred over multiple years.The City Manager's office has
many paid employees that engage in maintenance and management of properties.Mr.Carpenter
and others in the City Manager's office had many paid resources that could have been directed to
maintain the structure.These include all employees of the Facilities and Fleet Management
Organization (Please see
https://www.miamibeachfl.gov/city-hall/facilities-and-fleet-management/)
C.Mr.Carpenter and others in the City Manager office,by their gross negligence or willful
misconduct,caused the North Beach Log Cabin to enter a state of disrepair.It is unclear if the
state of disrepair would warrant a complete demolition of the structure,or if the property could
simply be maintained or renovated like all other structures.The state of disrepair was documented
by multiple inspections by third parties.In fact,Mr.Carpenter and others in the City Manager
approved the use of city funds to purchase inspection reports from third parties that documented
the condition of disrepair.These reports can be obtained by the City Clerk and are referenced in
communications and Letters to the City Commission (Please see all related LTCs,reports and
meeting minutes.)
Complaint 2-Gross Negligence and/or Willful Misconduct and/or Breach of Fiduciary Responsibility
and/or Fraudulent Misrepresentation of Facts regarding destruction and removal of the North Beach Log
Cabin (formerly 8128 Collins Avenue)
A.Mr.Carpenter and others in the City Manager office approved one or more contracts with
demolition companies to destroy the North Beach Log Cabin.They did so even though many
members ofthe public sent written communications to the City Manager's office to protest the
unnecessary demolition of the North Beach Log Cabin.
a.Please see the demolition contracts approved and managed by the City Managers office.
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b.Please see many detailed emails to the City Managers office protesting the unnecessary
demolition ofthe North Beach Log Cabin.
c.Please see the following articles in the Miami Herald that document the broad public
protest against the City Manager s actions related to the North Beach Log Cabin -
i.This Miami Beach log cabin has survived hurricanes.Will it survive thisfight?
https_y/yyy._miamihgraldomngys/local'community_miami-dade_miami-beach_g
rticlel 61515213.html
ii.Residentsfought to save log cabin.Now it's being dismantled,itsfuture
unclear.
https__/iyyy.miamihgrqld_com_neys_local'community_miami-dade_miami-beach_g
rticlel883 72769.html
iii.Miami Beach Wants to Demolish North Beach's Historic Log Cabin
https ://www.miaminewtimes.com/news/north-beachs-historic-log-cabin-could-be-
demolished-bv-citv-9432958
B.Mr.Carpenter and others in the City Manager office negotiated a lease agreement with the
for-profit organization named North Beach Yard LLC dated November 20,2017.The North
Beach Yard LLC negotiated with the City to use the land under the North Beach Log Cabin so
that they could earn money selling food from food trucks and hosting events.This document
(North Beach Yard Lease dated November 20 2017)is attached and bears a handwritten notation
on the cover "2017-29942."The premises to be leased under the North Beach Yard Lease
included the land under the North Beach Log Cabin.(Please see the attached North Beach Yard
Lease dated November 20 2017.)
C.Members ofthe City Manager's office claimed that the destruction of the North Beach Log Cabin
was a necessary requirement to meet the lease terms with the North Beach Yard.However,the
NBY Lease makes no mention of the destruction of the North Beach Log Cabin as a landlord
requirement of the NBY Lease.In other words,this complaint alleges that the City Manager's
office had no written contractual requirement to destroy the North Beach Log Cabin to meet the
needs ofthe lease.Without a landlord lease obligation to destroy the North Beach Log Cabin,or a
fully effective lease,the destruction of the North Beach Log Cabin may be considered willful
misconduct and willful damage and destruction of valuable city property by Mr.Carpenter and
others in the City Manager office.
D.Even if the NBY Lease carried a requirement to remove the North Beach Log Cabin,the NBY
Lease may not have been effective,or in force legally,at all.The NBY Lease between CMB and
the tenant North Beach Yard LLC required many items from the North Beach Yard LLC before
the contract could be considered effective.These include,but are not limited to:
a.14.Security Deposit (Section 2.7):$17,914.00 due upon the Effective Date.(p.4 ofNBY
Lease.)
b.15.Performance Bond and Payment Bond (Section 5.2(n))-Tenant shall obtain a
Performance Bond and Payment Bond for Tenant's Work,and shall name City as
co-obligee.The form ofbonds shall be subject to review and approval by City Manager
and City Attorney,which approval shall not be reasonably withheld.(p.4 ofNEY Lease.)
c.16.Cost Pass-Throughs (Sections 2.4 and 2.5):Property Taxes and any expenses incurred
by City,as specified in Section 2.4 (p.4 ofNEYLease.)
Page 3
d.17.Comprehensive General Liability Insurance (Sections 6.1 ):$1,000,000.00 per
occurrence,$2,000,000 aggregate;Liquor Liability Insurance (Section 6.1 ):$2,000,000
per occurrence,$5,000,000 aggregate (p.4 ofNEYLease.)
e.22.Lease Contingencies:(Section 1.1 (a))-The Lease shall be subject to and contingent
upon Tenant obtaining the following:(a)approval ofa waiver of the competitive bidding
requirements by a 5/7th vote of City Commission;(b)compliance and/or waiver of
applicable requirements of 82-37 through 82-40 of the City ofMiami Beach Code of
Ordinance ("City Code");and (c)any and all approvals as required in the Lease,
including without limitation,any approvals required by the City in its proprietary
capacity,as Owner of the Property);and in the City's regulatory capacity (e.g.,including,
without limitation,any and all amendments,as may be required to the City Code,the
City's Land Development Regulations and Comprehensive Plan,and any final
non-appealable approvals from the applicable City land use boards).
E.The people filing this complaint have seen no evidence that the North Beach Yard LLC met the
obligations to make the lease effective.Specifically,the people filing this complaint have seen no
evidence that the North Beach Yard LLC paid their security deposit,obtained a Performance
Bond and Payment Bond,obtained GL insurance and liquor liability insurance,and met all ofthe
other Lease Contingencies described in the NBY Lease.
a.This investigation should determine ifthe North Beach Yard LLC made their security
deposit and met all ofthe requirements for a fully effective contract with the City of
Miami Beach.
b.An important witness to the events is Ms.Della Heiman,founder of the North Beach
Yard LLC.Her contact information is della@thewynwoodyard.com or
hola@thedoralyard.com and 513-315-6802.
F.Mr.Carpenter and others in the City Manager office made representations regarding the physical
condition ofthe North Beach Log Cabin to the City finance committee and the City commission.
It is unclear if these representations were truthful,or if they were made to coerce the City
commissioners to approve the demolition ofthe North Beach Log Cabin so that the for-profit
company North Beach Yard LLC could use the land under the structure.
G.It is unclear if the destruction of a valuable city real estate asset can be approved by the city's
finance committee alone,or ifthe destruction of a valuable city asset would require a vote ofthe
city commission.It is unclear ifMr.Carpenter and others in the City Manager's office and
members ofthe city finance committee followed each and every law and procedure required to
destroy a valuable city real estate asset.
H.It is unclear if Mr.Carpenter and others in the City Manager office demolished the Log Cabin
willfully and on their own,or if they had the full legal approval and authority from the City
commission.Based on our review of the facts and minutes of the finance committee and
commission from 2017,it may seem that the City Manager's office destroyed the North Beach
Log Cabin without a full and final demolition order voted on and approved by all of the members
of the City commission.A full review ofall ofthe minutes of the finance committee and city
commission from 2017 will be required to determine the all of the facts ofthe matter.
Page 4
Complaint 3-Gross Negligence and/or Willful Misconduct regarding the reconstruction of the North
Beach Log Cabin -Failure of City Manager's office to implement the June 6,2018 resolution 2018-30356
adopted by the CMB Commission
On June 6,2018 (over six years ago),the City of Miami Beach Commission voted 6-0 to adopt resolution
2018-30356.
CMB Resolution 20 I 8-30356 bears the title "A Resolution ofthe Mayor and City Commission of the City
of Miami Beach,Florida,Accepting the Recommendation ofthe Finance and Citywide Projects
Committee to Reconstruct,Restore,and Designate the Log Cabin as a Historic Site to be used as a Mixed
Use Community Space that would Serve as a Cafe or Concession as well as an Information Center Locate
(sic)in the North Shore Oceanside Park."
CMB Resolution 2018-30356 includes a schedule of funding sources that could be used to fund the
relocation and reconstruction of the North Beach Log Cabin (please see the last page ofthe attached
CMB Resolution 2018-30356.)The people filing this complaint would like to know if Mr.Carpenter and
the rest of the City Manager staff contacted these organizations to request funding for the relocation and
reconstruction of the North Beach Log Cabin.The taxpayers of the City of Miami Beach paid a
consulting firm Dover Kohl to produce this consulting report.We need to know if Mr.Carpenter and
others in the City Manager office ignored this information that we paid for.
The CMB Commission voted 6-0 to adopt this resolution.Yet,after six years,no work at all has been
done to meet the resolution's terms.
Mr.Carpenter and others in the City Manager office had the responsibility of implementing this
resolution,and engaged in gross negligence or willful misconduct by ignoring this ratified CMB
resolution for six years.
Complaint 4-Gross Negligence and/or Willful Misconduct and/or Fraud regarding the Reconstruction of
the North Beach Log Cabin -Failure of City Manager's office to use the 20 I 8 G.O.Bond money
approved by voters to reconstruct the North Beach Log Cabin
Mr.Carpenter himselfclaims on his biography on the CMB Web site that "he was heavily involved with
the passage and implementation of a $439 million general obligation bond program."(Please see
htps_//wy_miamibeachtl gov'stafferic-carpenter!)
The 201 8 G.O.Bond program advertised $I ,076,000 for reconstruction of the North Beach Log Cabin.
Page 5
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(Please see https://www.gombinfo.com/project-dashboard/)
As reported by the G.O.Bond Project Dashboard,no progress at all has been made on this project.After
six years,Mr.Carpenter and others in the City Manager office have done nothing with these funds.Yet,
the taxpayers continue to pay taxes to support this G.O.Bond.
Mr.Carpenter and others in the City Manager office have continued to delay and postpone the city voter
approved and financed reconstruction ofthe North Beach Log Cabin.A review ofthe minutes of the G.O.
Bond committee and other city records will show that Mr.Carpenter and others in the City Manager
office have continued to delay and postpone the reconstruction of the North Beach Log Cabin,even
though voters approved the tax increase to finance this activity.
As he admits in his biography,Mr.Carpenter was "heavily involved"with pushing for new taxes for
Miami Beach citizens to be used to pay for the G.O.Bond project.The voters approved the G.O.Bond
with the understanding that the City Manager would use the funds for the purposes advertised in the ballot
measure and related materials.
The voters approved this additional tax in 2018.To date,Mr.Carpenter and others in the City Manager
have done nothing with these taxpayer funds.
The people filing this overall complaint do not know if the funds approved and paid for by the voters have
been misappropriated by Mr.Carpenter and others in the City Manager office.
We would like to investigate whether or not fraud has taken place here.Mr.Carpenter admits that "he was
heavily involved with the passage and implementation of a $439 million general obligation bond
program."His heavy involvement included advertising that the North Beach Log Cabin would be
reconstructed using G.O.Bond funds.The taxpayers are paying for these funds every year when they pay
Page 6
their property taxes.Yet,nothing has been done.No work has started on this project.Has Mr.Carpenter
and the City Manager's office fraudulently deceived the public by advertising that the G.O.Bond would
be used for Log Cabin reconstruction?Why did Mr.Carpenter encourage voters to assume a huge
amount of public debt and then fail to deliver what was advertised in the G.O.Bond marketing materials?
We do not know if the funds are missing.
We do not know ifthe funds have been used for another purpose.
Complaint 5-Gross Negligence and/or Willful Misconduct regarding the preservation of the remaining
North Beach Log Cabin components,including coral rock chimney and log framing members
After strong protest from the community,the City agreed to preserve elements ofthe original Log Cabin
so that they could be used in a future reconstruction of the Log Cabin.
These elements include a rare large coral rock chimney,and some of the original log framing members.
Mr.Carpenter and others in the City Manager office have once again engaged in gross negligence or
willful misconduct regarding their maintenance responsibilities related to the Log Cabin.
Even after they
a.failed to maintain the original Log Cabin,and
b.destroyed the original Log Cabin,and
c.neglected to implement CMB 2018 resolution 2018-30356 to rebuild the Log Cabin,and
d.failed to use the taxpayer approved 2018 G.O.funds to reconstruct the Log Cabin
...still to this day they neglect the Log Cabin by not preserving what pieces are left.
Here are photos taken in July 2024 showing a tree growing out of the rare and irreplaceable coral rock
chimney feature.
Page 7
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How many years of neglect by the City Manager's office does it take for a tree to grow out of a city
asset that was supposed to be protected?
In addition,there are shipping containers at 8128 Collins Avenue,Miami Beach FL,33141 that may
contain the remaining pieces ofthe Log Cabin.The condition ofthese remaining pieces is unknown.It
seems that the remaining salvaged pieces of the Log Cabin are stored in ajunk pile with damaged car
parts and broken windows.
Page 8
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Conclusion on Complaints 1-5 Regarding the North Beach Log Cabin
Ifthere was one isolated incident of damaging or neglecting City property here,one might think that this
may be a simple case of mismanagement by Mr.Carpenter and others in the City Manager office.If there
was one isolated case of mismanagement,the situation might be different.
However,we have at least five complaints here that demonstrate an ongoing and repeated dereliction of
duty by Mr.Carpenter and others.
There are five specific complaints here aboutjust one City asset.The issues have taken place over seven
years.The seven years does not even include the years of Log Cabin neglect from the City Manager's
office that must have taken place before 2017,when the Log Cabin was demolished.In order to determine
the total years of neglect and mismanagement,one must go back to the last time the property was
occupied by a tenant and available for visits by the public.To our knowledge,the Log Cabin was last
occupied by the Log Cabin Nursery,an organization that sold Christmas trees during the holiday season,
and landscaping plants year round.
The complaints here cover five specific instances of mismanagement,taking place over seven to ten
years.One must consider the possibility that active willful misconduct and serious breach of fiduciary
duty to the City and its taxpayers has occurred.
Page 9
Did Mr.Carpenter and others in the City Manager's office take an oath to safeguard City assets when they
were hired?If so,the OAIG should also examine whether or not he or others broke any oath.
Section 2-Byron Carlyle Theater
Complaint 6-Gross Negligence and/or Willful Misconduct regarding the proper maintenance and repair
of city real estate asset the Byron Carlyle Theater (500 71 Street.Miami Beach EL 33141)
A.Mr.Carpenter and others in the City Manager office had the responsibility of maintaining and
safeguarding the City of Miami Beach real estate asset called the Byron Carlyle Theater.
B.Mr.Carpenter and others in the City Manager office engaged in gross negligence or willful
misconduct regarding the maintenance and repair of the Byron Carlyle.This gross negligence or
willful misconduct occurred over multiple years.Mr.Carpenter and other employees chose to not
safeguard the Byron Carlyle by not maintaining it properly,and not engaging in repairs as they
were needed.The City Manager's office has many paid employees that engage in maintenance
and management of properties.Mr.Carpenter and others in the City Manager's office had many
paid resources that could have been directed to maintain the structure.These include all
employees of the Facilities and Fleet Management Organization (Please see
https://www.miamibeachfl.gov/city-hall/facilities-and-fleet-management/)
C.Mr.Carpenter and others in the City Manager office,by their gross negligence or willful
misconduct,caused the Byron Carlyle to enter a state of disrepair.The state of disrepair was
documented by multiple inspections by city employees and third parties.Mr.Carpenter and others
in the City Manager office approved the use of city funds to purchase inspection reports from
third parties that documented the condition of disrepair.These reports can be obtained by the City
Clerk and are referenced in communications and letters to the City Commission (LTCs.)
Complaint 7-yi[Ifu]_Misconduct and Breach of Fiduciary Responsibility to the City and taxpayers by
choosing to not maintain city property and then attempting to sell it to for-profit developers
After neglecting to maintain the Byron Carlyle Theater,Mr.Carpenter and others in the City Manager
office sought out proposals from for-profit developers for the re-development ofthe site.We request that
the CMB OIG investigate this activity to determine why Mr.Carpenter would actively neglect the
property and then offer it to for-profit developers for their use.
Rather than maintaining City property,Mr.Carpenter decided to let the property fall into disrepair.Then,
using the dilapidated condition ofthe property as an excuse,he reached out to for-profit developers to
offer them terms favorable to the developer to redevelop the property.
Mr.Carpenter's role in offering run-down City property (that his office chose to not maintain)to for-profit
developers is documented multiple times in the media.
•"Eric Carpenter,Miami Beach's assistant city manager,recommended that the city approve the
deal and allow the administration to continue negotiating with the developers."(Please see
https___there@ldeal_com_miami/2021_02/25/its-curtains-for-galbut-family-led-proposal-to-redevelo
D-bron-carhyle-theater.)
Page 10
•"Under the rejected proposal,the developers would have constructed a "gray shell"of a cultural
center for the city and paid the city $2 million to help fund construction.It would still have cost
the city an additional $5 million to $10 million to build out a working cultural space,Assistant
City Manager Eric Carpenter said."(Please see
https:Ilwww.miamiherald.com/newsllocal/community/miami-dade/miami-beachlarticle249494120
.html#storylink=cpy)
Mr.Carpenter and others in the City Manager office failed to maintain the city real estate asset named the
Byron Carlyle Theater.Then,after neglecting the property maintenance,he proposed to sell the property
to for-profit developers.His attempt to sell the property failed.Five commissioners voted against Mr.
Carpenter's proposal,and only two supported his proposal.Mr.Carpenter as Deputy City Manager has a
fiduciary responsibility to the City and its citizens and taxpayers,and not a fiduciary responsibility to
outside for-profit developers.The breach of fiduciary responsibility complaint is based on Mr.Carpenter's
attempt to serve the best financial interests of the for-profit developers instead ofthe citizens and
taxpayers ofthe City ofMiami Beach.
Page 11