The Broward School Board has decided to resolve a contentious issue by settling a lawsuit for approximately $270,000 concerning a terminated office lease. This lease had become emblematic of financial mismanagement within the district.
Initially, the district had committed to a lease with the nonprofit Handy, incurring costs totaling $545,000 due to prior rental payments, despite never utilizing the office space. “We got zero days of occupancy for half a million dollars,” commented Board member Allen Zeman at a meeting where the settlement was sanctioned.
Handy, known for Helping Advance and Nurture the Development of Youth, pursued a lawsuit against the Broward School District, citing breach of contract and reputational harm. Attempts to contact Handy’s legal representative Thomas Sternberg, and CEO Kirk Brown, were unsuccessful.
In June, the School Board had agreed to lease space at Handy’s new Wilton Manors headquarters to accommodate staff displaced by the sale of a district building. However, the space was deemed inadequate due to its size and insufficient parking, according to emails. Additionally, about $88,000 was spent on technological enhancements, causing further delays in occupancy.
The South Florida Sun Sentinel had earlier reported on the district’s five-year, $2.6 million rental agreement with Handy, highlighting fiscal concerns amidst impending $100 million budget cuts and available space in underutilized schools. The arrangement was subsequently annulled by the board on Nov. 4, utilizing a lease clause that permitted termination if annual funding was not allocated.
Per the settlement’s terms, the district will pay $228,000 immediately and continue with $14,000 monthly payments from April to June, contingent upon Handy’s success in securing a new tenant or selling the property, as detailed in the settlement agreement.
Board member Adam Cervera, an attorney, expressed his opposition, stating, “I am against this. I think this is an asinine amount of money that we are paying these folks on a contract that we properly terminated.”
Kathelyn Jacques-Adams, the interim general counsel for the district, explained that the board had instructed her to pursue a settlement due to the inherent uncertainties of litigation. “With any lawsuit that is filed, there is uncertainty,” she noted, underlining the unpredictability of trial outcomes.
Other board members opted for settlement to avoid legal fees. Maura Bulman, also an attorney, remarked, “I think that in this particular situation, this is a self-inflicted wound. This is something that we should not have been signing in the first place, and we made a mistake.”
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