City faces suit over beach contract

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Point Break was set to run RV operation, wants agreement back

WILDWOOD- Point Break, the management company hired last summer to oversee R.V. parking on the beach, has filed a lawsuit against the city for voiding its concessionaire’s agreement, according to the complaint.

Michael McDonald, who the complaint claims is a majority owner of Point Break, filed the complaint in Cape May County Superior Court Nov. 2, 2012.

The complaint claims that the Beach Concessionaire’s Agreement included opportunities for the establishment of beach concerts and activities, operating a recreational vehicle parking lot, as well as other concessions geared toward the tourist industry. However, it argues that the city created hardships for Point Break by delaying to get permits that would allow the group to operate as the beach concessionaire. 

It also claims that the city simultaneously began contracting with Eastern Exchange; the group originally awarded the 50-year lease of the Monster Truck Building and beach property, before that ordinance was rescinded. The complaint claims that this contract with Eastern Exchange was “inappropriate” because it granted Eastern Exchange the right to hold perform the same activities that Point Break was granted exclusive rights to perform, such as organizing beach concerts and festivals.

Point Break was denied access to documents regarding the Monster Truck Lease and was prevented from bidding on the lease, the complaint alleges. Also, it claims that the bid was never advertised on the city’s website, unlike other bid opportunities.

The complaint names Defendant “John Does 1-10” as individual elected or appointed officials of the city “who failed to perform their duties to permit the effective and efficient operation of the Beach Concessionaire’s Agreement” awarded to Point Break. Defendants “John Does 11-20” are individuals not directly elected, appointed, or employed by Wildwood, but “who may have assisted the city in undermining the intent of the Concessionaire’s Agreement with Defendants or who may have entered into similar, conflicting, or interfering contracts or leases with the city for the same or similar business opportunities.”

According to the complaint, the city was delayed in obtaining a Coastal Area Facilities Act permit from the New Jersey Department of Environmental Protection to permit Point Break to begin the contractual activities related to the beach plan. The city did not relay to Point Break that the permit had ever been obtained, the complaint claims, which “legally constrained” Point Break “from performing obligations under the Concessionaire’s Agreement.”

The city was also obligated to obtain a license from the Division of Alcoholic Beverage Control for selling alcoholic beverages as part of the concessionaire’s agreement, the complaint claims. However, the complaint alleges that the city was denied this license and never told Point Break of the denial.

Point Break is seeking for their contract as the city’s beach concessionaire to be renewed in full and the city to cover their legal fees.

The complaint claims that McDonald was also denied documents by the city, such as legal papers and court documents regarding the lease litigation of the Boardwalk Monster Truck Building. According to the complaint, the city told McDonald that “no documents exist to fulfill this request.”

However, such documents, as the complaint points out, were obtained by the Wildwood Leader in October. However, the Leader did not obtain the documents through the city.

According to Mayor Ernie Troiano Jr. the city is not at liberty to discuss the suit as of yet. He did, however, confirm that his wife’s cousin, Jamie Peterson, who is also CEO of Point Break, is involved in the suit.

He said that as of yet, the city has not filed a response to the suit.

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