Former commissioner says Boynton's new lobby ordinance targets him
BOYNTON BEACH — A former Boynton Beach city commissioner, once a focal point in an FBI a pay-to-play investigation, claims he is the target of a new lobbying ban passed by the city.
“I don’t see how it can be viewed any other way,” said David Katz, who left the commission in 1995. “After getting a list of everyone registered to lobby in the city of Boynton, I was the only name.”
Katz currently serves as chairman of the city's Planning and Development Board. The board reviews applications for rezoning land from developers, clearing the way for projects that can be worth millions.
As chairman of the board, Katz voted in July 2016 to transform the historic Oscar Magnuson House into a restaurant, city records show.
Four months after the meeting, the Community Redevelopment Agency tabbed Shovel Ready Projects to take on the property, but the project stalled and eventually fell apart, frustrating commissioners.
In May, Shovel Ready hired Katz to lobby — but to no avail. The company gave the property back to the CRA in July to avoid a legal action.
Commissioners take action on city lobbying
City Commissioner Joe Casello voiced concern this past summer about how board members could represent the city on a project only to turn around and lobby for the developer. Casello asked his colleagues to write rules that would ban the practice.
The commission on Oct. 31 prohibited board members from lobbying city staff or commissioners on topics, projects or laws they have voted upon or may vote upon.
“This addresses a lot of the issues we know has been going on in this city for a while,” Casello said. "Hopefully (the ordinance) will curtail some of that.”
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Katz said he’s taking it personally.
"For anyone to say this is not personal toward me I award you five Pinocchios," Katz said at the Oct. 16 meeting.
Katz said he never voted on the Oscar Magnuson House when Shovel Ready was named as the developer. A real estate broker, Tom Prakas, was the only representative of Shovel Ready listed at the time of the meeting.
Katz said two years later Shovel Ready sought him out, looking for assistance in talking with the CRA.
“Shovel Ready had an issue and it was recommended for them to have me,” Katz said. “They asked me for help, it’s not something I’m constantly doing.”
Commissioners Justin Katz — no relation to David — and Casello said the ordinance will help improve transparency in city government. The Palm Beach County Code of Ethics has policies and penalties in place for lobbying, but there are loopholes, Justin Katz said.
“You shouldn't be able to vote and recommend something on this board, then a day later become a registered lobbyist and get paid to push an idea," he said. “I don’t want residents being influenced by money and special interests.”
David Katz said the Palm Beach County Commission on Ethics already has an ordinance to cover lobbyist foul play, enacted in 2010, and that he would never try to break its code.
"If I was going to be hired (for a related project) I would have to recuse myself, period," Katz said. "If I didn't, I would be in a world of hurt."
After Katz spoke before the commission at an Oct. 16 city meeting, Casello recognized him for his hard work on the development board, and thanked him for “the fantastic job” he’s done.
A footprint in Boynton politics and FBI probe
While he hasn’t served as a city commissioner since 1995, David Katz still has a footprint in city politics. He is close friends with former Mayor Jerry Taylor and was Commissioner Mack McCray's campaign manager in March 2017.
In 2007, Katz became a focus for the FBI after allegations of his involvement in a “pay-to-play” scheme where a local developer claimed she was asked to pay Katz to help get her proposed multimillion-dollar Heart of Boynton project approved.
The allegations surfaced after the Community Redevelopment Agency voted unanimously to end 11 months of talks with Intown Partners and move on to a second interested developer, the Auburn Group. Former Commissioner Ron Weiland was accused of pressuring Intown Partners and the Auburn Group to hire Katz as a lobbyist, and both companies ended up hiring him.
When Katz left Intown, the company's president charged that Boynton Beach had become a "pay-to-play" city. Katz said during the investigation he was never called or asked to speak with FBI investigators because he did nothing wrong. No charges were ever filed against him.
Lobbying history raises speculation on development ties
In recent years, Katz has lobbied for several companies interested in doing business with the city, raising speculation on his ties to several development projects.
“The companies came to me,” Katz said. “I’ve been in the city for 32 years and I know how things work. Lobbying has to do with relationships.”
In August 2014, Katz lobbied for Auburn Group (also known as Florida Affordable Housing), a company the city turned down to redevelop Ocean Breeze East in the Heart of Boynton. It's the same company Katz lobbied for during the FBI investigation. Although the city didn't chose Auburn, three years later Katz voted on a rezoning of the project property, planning director Michael Rumpf said.
In October 2017, Katz registered to lobby for Washington Real Estate Partners. That November, he lobbied commissioners to sell a portion of city-owned land, reserved for a new police station, to the company to build a Wawa gas station and convenience store. His efforts did not prevail.
If the commission decided to move forward with Wawa or Auburn Group, the companies would have to submit site plans that ultimately would be reviewed by Katz and the development board, Rumpf said.
Connection to commissioner’s red-light camera decision
Residents and colleagues wondered if McCray was influenced by Katz to turn red-light cameras back on.
McCray said during the Aug. 1, 2017, meeting to approve red-light cameras he changed his mind without any influence from Katz. In May 2017, Katz became a lobbyist for American Traffic Solutions, the company that leased the red-light cameras to Boynton. The city voted to turn the cameras back on in August 2017.
Casello, who voted against the cameras, said at the Aug. 1 meeting that "it's hard to wrap my head around that." Casello said that an ATS lobbyist, who may or may not have been Katz, helped McCray flip his stance “for the sole purpose of generating ATS profits.”
Before the lobbying restrictions passed, McCray expressed his opposition.
“This is redundancy and is already on the Palm Beach County Board of Ethics” McCray said Oct. 16. He wanted to table the proposal because the commission did not have enough information.
Vice Mayor Christina Romelus agreed with McCray.
“If they are lobbying that is one thing, but if they are advocating this should not be against the law,” Romelus said. “This shouldn’t cause people to fear approaching a commissioner or mayor because they are concerned about something.”
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McCray and Romelus were absent when the commission voted to tighten the lobbying restrictions. Casello, Justin Katz and Mayor Steven Grant voted in favor.
It left David Katz with a bad taste.
“Casello has persisted this is not personal against me in an attempt for transparency,” Katz told commissioners. "But let’s pull back the curtain and have Toto bark a bit.”
ctodaro@pbpost.com
@chelseatodaro
Palm Beach Post Staff Writer Alexandra Seltzer contributed to this story.
