The Coral Gables Times
Thursday, October 19, 1961, page 8 (of 24)
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8 THE CORAL GABLES TIMES Thursday, October 19, 1961
A Lot, a Law, a Man, and An Argument
By MAURICE LABELLE Times Reporter Probably no piece of land in Coral Gables has been involved in more controversy than the Old Youth Center tract. There were many who would not rest until the center of youth recreation in Coral Gables was removed from the downtown area. They advanced many reasons: poor location, safety, lack of proper facilities, noise. What It's All About The upshot was that the City, which had purchased the property in 1945 for $16,500 and turned it over to the War Memorial Youth Center Association for operation with reverter clauses, sold the land to Florida National Realty Co. This is a Jacksonville subsidiary of the Alfred I. Du Pont empire. WAS 1955 That was in 1955 and the purchase price was $350,000 and some change. In a complicated arrangement with the City and involving the University of Miami, the Youth Center was established at its new location. The City now owned the new facility, but the association maintained some reverter rights. Meanwhile Florida National Realty Co. reportedly resold the property in 1956 after holding it only a few months, to James Sottile. The reported price was $450,000. For some reason which has never been explained by the parties involved, Florida National Realty remained the owner of record, that is, its name remained on the deed. HE COMPLAINED The funds received for the tract became the subject of controversy when Harry Morgenthaler, founder of the Youth Center, stirred up the dust that had settled around the transaction. He complained about the way some of the funds were lying around in non-interest bearing accounts in Coral Gables First National Bank, then owned by Sottile. Meanwhile, in 1957, Sottile announced plans to build a six-story "empire building" at the site that would include the bank. But this and other announced plans never materialized. One problem was the clause in the sale contract that required that 40 per cent of the property area had to be set aside for parking. REMOVE, DEMOLISH The City and Sottile began to feud shortly after he gained ownership over the Old Youth Center Building. The What's It Worth? How much is the Sottile property worth? According to the City Tax Assessor's office, a value of $99,200 was placed on the property in 1941. The County has assessed the property at $62,000. An ad placed in a local daily in November, 1960, asked $685,000 for the tract. City wanted it removed or demolished. After a long discussion, Sottile finally agreed to remove the building. In 1958, the Traffic and Parking Committee of the Chamber of Commerce, under Chairman Al Jacobson, approached the City on a plan to use the site for off-street parking to accommodate Miracle Mile area employes and employers. According to Jacobson, Sottile at first wanted the City to repair the sidewalks around the block-long property before he would consent, but later agreed to go along when the City balked. The arrangement was basically a tax forgiveness for use arrangement. It was presented as a 10-year contract, as required by law, but in reality it was an indefinite lease cancellable in 30-days. This was to touch off the biggest controversy of all — a controversy which has now been rekindled with the reported sale of the property from Sottile to Publix Super-markets for a new market and three other stores. ENTER WEKSLER Attorney Bernard B. Weksler, who began a one-man war in 1959 on what he says is tax freeloading, attacked the arrangement. (See letter on page 5 of today's paper). He charged that Sottile was enjoying a tax ride at public expense on a lot that was only partially used for parking; that it encouraged holding for speculation, and delayed downtown development. The deal was also in violation of the City Charter, Weksler said. He pointed to sections 1 and 2, Chapter 28985, of the City Charter which require that all such leases for parking involving tax exemption be for at least 10 years. The City Commission heard Wekslers' charges, questioned his motives and changed nothing. They pointed out that the deal had provided off street parking for an average of 129 cars and had cost the city nothing. PROFIT REPORTED A net profit of $700 has been reported since the Nov. 1, 1958, lease was negotiated. This is profit over the tax loss to the City of $7,000. But the county lost more than $7,000 in taxes on the property. A freak side benefit accrued to the City when Le Jeune Road construction began and Troup Bros., Inc. needed a place to store fill materials and cast concrete ditch covers. In exchange, Troup agreed to fill in a portion of a lake at the maintenance yard. This has been estimated as worth $5,000 to the City. Last week, Sottile notified the City it must vacate the property because he had found a lessor.
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