By Coral Gables Gazette staff

The dispute between the City of Coral Gables and the Coral Gables War Memorial Youth Center Association moved closer to possible litigation this week, as city officials signaled their patience was running out after they argued that it had spent nearly a year looking for financial and organizational records from the nonprofit group tied to the historic youth center property without success.

During the May 5 City Commission meeting, Mayor Vince Lago walked the commission through a timeline of the past 10 months, detailing how the city has continuously requested documentation from the association, only to be turned away. 

Although the two parties held a mediation on March 12, CIty Attorney Cristina Suarez said that information from that meeting was privileged as they were still in a “mediation posture.” Even so, it doesn’t appear likely that the two sides have made any progress considering the tone of the commission meeting. 

A year of requests has yielded few answers, says city

“We are asking for cooperation as a partner because we are partners,” Lago said Tuesday as he outlined a detailed timeline of the city’s efforts to obtain information from the organization.

Although the mayor couched his and the city’s requests as amiable, he continued disparaging the organization, as he has done at several points last year. “I think we need to spend $50 to $75 million renovating the (youth center), if not more, to make it a world class facility. If you’re talking about doing that, under no circumstances can you do that when you have this type of cooperation and this type of partnership with a 501(c)(3) that lets its 501(c)(3) lapse for five years [and] does not provide financial documentation,” Lago said.

Lago compared the association unfavorably to major nonprofit organizations such as the World Wildlife Fund and the Bill & Melinda Gates Foundation, which publicly disclose audited financial records online. “The power that this organization has over the city in regards to the Coral Gables Youth Center is immense,” Lago added. “We have to be fiduciaries on behalf of the residents.”

Independence is the point, says Association

But the association, through letters submitted by its attorney, argues the city is fundamentally misunderstanding the organization’s role. In an April 6 letter to Suarez, the association said its independence is essential precisely because it must hold the city in check.

“The Association serves as the long-term steward and watchdog for the Youth Center property,” attorney Jane Muir wrote. “Any arrangement that would place the Association under the control or oversight of the City … would fundamentally undermine that function.”

The association maintains it is not legally obligated to provide the broad records requests sought by the city because no contractual relationship exists requiring disclosure under Florida public records laws.

The nonprofit did provide some supplemental information in April, however, including confirmation that it maintains approximately $100,000 in investment accounts with Morgan Stanley and that its expenditures in recent years primarily supported youth sports scholarships, uniforms, trophies and similar programs benefiting youth center participants.

A decades-old property clause still shapes the fight

Although each side is arguing over details, the main disagreement between the parties centers on a more than 75-year-old clause that came with the property when it was donated to the city for use as a youth center. The deed contained a powerful reverter clause: if the property ever ceased being used for youth-related purposes, ownership would revert back to the association.

That provision survived a major legal challenge in the 1960s when the city explored building a school on the property. Courts ultimately upheld the reverter clause, reinforcing the association’s continuing authority over the site and preserving the youth center’s original mission.

Both sides warn against the other gaining too much control

Now, the city is primed to challenge the reverter clause once again, interestingly with Vice Mayor Rhonda Anderson making an argument that while the association’s board might be trustworthy now, there is no guarantee who will be on the board in the future and what they could seek to do with the property. 

The association has made a similar argument against city control of the property in the past, including last year and they have receipts that show the city has already tried to do something different with the youth center. 

The association also emphasized that courts previously upheld the enforceability of the reverter clause and said it remains committed to protecting the youth center’s mission “in perpetuity.”

Commissioners signal patience is running out

At the commission meeting, Lago pressed commissioners to establish a firm deadline for the association to appear before the commission and address mounting questions surrounding its governance, finances and oversight of the property. “We are now going on one year where we’ve been requesting information and they have not provided anything,” Lago said.

Anderson and Commissioner Richard Lara largely backed the mayor’s concerns, with Lara warning about the legal and financial uncertainty posed by the reverter clause.

Complicating matters further, the association offered to appear before the commission and provide a presentation about its history and operations but has been unavailable during the city’s last two commission meetings, according to Suarez.

That absence became a point of frustration Tuesday.

“All five of us here are incredibly busy individuals … and we don’t miss these meetings,” Lara said. “If they want to give a presentation, I think the standard of reasonable has more than been met.”

One final opportunity before possible litigation

Ultimately, commissioners agreed to give the association one final opportunity to appear at the next commission meeting later this month. If mediation fails or the association again does not appear, the city is expected to move forward with litigation aimed at compelling disclosure and clarifying the city’s authority over the youth center property.

“We’ve given them one year to find a solution,” Lago said. “I think it’s time to move forward.”