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‘The Story of Chaos and its Disruptor Donald Rumsfeld's Chief of Staff's war tactics exposes the City of Miami to more than $100 Million dollars in damages* and attorney's fees following the trial court's recent decision that the City wrongfully terminated Flagstone Property Group's leasehold on Watson Island. (Order, Attachment 1). “Flagstone’s eviction was without any factual basis” (Order Pg. 21). Rather, the Commission wittingly exposed the City’s taxpaying residents to the largest legal judgement in Miami's storied history against the advice of both the City Attorney and Mayor (May 30, 2017 transcript, Pgs. 147 and 150, Attachment 3). The ‘wrongful eviction with present value damages will exhaust the City’s reserves, bringing the City to “Financial Urgency,” evidencing the Commission's breach of fiduciary obligation to its residents. How did this come about? What evidence of a breach of contract did the Commission believe it had, when not one City administrator involved with the project provided evidence of Flagstone's breach? Why did the Commission not afford Flagstone notice of its alleged breach and provide it the bargained for right to cure? Why did the Commission waive its right to Arbitration, which would have saved time, attorney's fees and costs from outside counsel for what was an inevitable decision? Judge ithe City brought forth no evidence whatsoever ofa breach,” How did the Commission intend to present evidence of breach when its appointed lawyers prevented any of the Commissioners from testifying as to what each believed the breach to be (City’s Motion for Protective Order for Commissioners of 11/30/17, Attachment 4)? In hindsight were all the Commissioners aware what was going on behind the scenes? In reality, this judgement is the result of nefarious efforts by Commissioner Ken Russell, his Campaign Manager Fernando Diez, and his biggest backer Steven Herbits, Rumsfeld's former Chief of Staff, an unlicensed lawyer who represented to the International Municipal Lawyers Association (“IMLA") that he is an outside adviser to Commissioner Ken Russell and his staff (12/13/16 email from Herbits at to Chuck Thompson at IMLA, Attachment 5). Herbits has a longstanding grudge match against the City of Miami Attorney's office. Despite suffering 3 consecutive defeats in his law suits aimed at derailing the project, his actions successfully delayed the project for years. Herbits' attacks were measured, intending to cause the City Attorney's office conflict in its representation of the Commission. Commissioner Russell carried Herbits’ water and later attempted to fire the City Attorney in an unrelated matter, but what is apparent is that these repeated attacks on ' ‘The Court found 7 tltimate factual determinations, the most concerning arc: (1) Flagstone is entitled 10 ‘weat the City’s anticipatory breach as an immediate breach of the amended ATE, the Retail Parking Ground Lease, ‘and Marina Ground Lease, and (2) the City's breaches have directly and proximately caused damage 10 Flagstone in fan amount to be determined (sic) after further proceedings (Order pg. 27). AS a result, Flagstone has the aption of calling the City in Default and suing for incidental, consequential and lost profits which could amass a judgment of ‘more than $250 Million, bankrupting the City. Russell acknowledged as much: “.. . it's $120 million lawsuit..." ‘and we are exposed to: “. . . a $120 million case.” (une 22, 2017 Commission meeting. Pgs. 39 and 42, Attachment 2) Flagstone were choreagraphed and orchestrated by Herbits through his client, Commissioner Russell. By the email referenced above, Herbits first commenced his attack against the City Attorney’s Office by trying to get IMLA to support cutting the City Attorney's budget. Inevitably, the City Attorney announced a conflict of interest and subsequently hired three law firms to represent the City’s three entities at risk: the City Attorney selected one firm, the Mayor another, and the final firm, Stroock & Stroock & Lavan, LLP, who inevitably made the strategic call costing Miami taxpayers millions of dollars, was selected by Commissioner Russell.* As the Planning Director was about to issue the warrant to allow the building process to proceed, Russell interrupted and intervened to prevent the warrant. On May 30, 2017 the City Commission, at the instigation of Commissioner Ken Russell (trial testimony of Planning Director Pgs. 704 - 710, Attachment 6), adopted a resolution directing the City Manager to repudiate the Flagstone-City of Miami Contract on the basis that (1) Flagstone failed to timely commence construction of the retail/parking component of their project, and (2) that Flagstone had failed to satisfy ATE section 6.1.2 condition precedent to entry into the Retail/Parking lease (PXS61). The City refused Flagstone the opportunity to cure the alleged defects. In accordance with the Commission's instructions, the City Manager issued Flagstone a Notice of Default on June 7, 2017 and the City issued Flagstone a Letter to Vacate on June 19, 2017, 12 days later (PX 563 & 564, collectively, Attachment 7). That same day, Flagstone filed suit to prevent the wrongful taking of its property. At a minimum, these politically negligent actions helped Commissioner Russell fulfill his inaugural speech's self-proclaimed promise to be a “disruptor to the City.” The non-jury trial on liability took place between February 28 to March 3. On March 22, 2017 judge Thomas issued his Order on Liability. Judge Thomas made specific findings of fact concerning a group known as Citizens Against Causeway Chaos (“CHAOS”), which included findings that their attacks were beyond the pale of decency and fair play. For example, CHAOS collectively sent more than 20,000 letters and emails to the City of Miami, threatening City Officials with criminal prosecution and punishment. Such actions had the exclusive intent to intimidate City officials. CHAOS was incorporated August 2014 as a 501(C)(+) by Herbits as a fundraising mechanism to interfere with Flagstone’s leasehold (Articles of Incorporation 8/25/14, Attachment 8; website page, Attachment 9). Herbits is a classic Washingtonian, having served two tenures as Donald Rumsfeld's Chief of Staff as well as working as an outside advisor to Dick Cheney and Casper Weinberger (Bob Woodward. State of Denial. New York, : (Russell) did offer a recommendation to you from over (sic) at Stroock d Stroock, and I sincerely bope that you'll consider that recommendation” June 22, 2017 Commission Meeting Pg. 40). The true conection is Richard Ovelman, a sharcholder in Carlton Fields and lawyer of Steven Herbits, as well ax being # long-time lawyer for the Miami Herald, which may explain its absence of true reporting, referred this matter to Laura Besvinick of Stroock, & Stroock & Lavan, with Russell promoting her, “My recommendation wasn't the firm itsef. but the person, and the City Attomey has the mame and can share it with other Commissioners.” (ibid Pg. 42) (see Attachment 2), 2 New York: Simon Simon & Shuster, 1991, p.72). Herbits lived (presently no longer a City resident) on MacArther Causeway, the adjacent northern causeway to Flagstone, He allegedly consulted the losing bidder during the 2001 competitive bidding process for the ‘Watson Island property, to sue, once again, in 2018 to try to stop the project? This effort ‘was once again unsuccessful, but again intentionally slowed the project's progression. Fernando Diez, Commissioner Russell's 2015 Campaign Manager and current political consultant for his Congressional Bid (paid in excess of $100,000 by Russell), is the present paid political lobbyist for CHAOS* (3/25/15 letter from Fernando Diez “I'm writing to you ‘on behalf of Chaos...” (a) Congressional Campaign expenditure reports of Russell showing Diez as Russell's campaign manager, (b) Russell City of Miami campaign finance reports, and (c) Diez’ letter, Attachments 11, 12 and 13). Six days prior to the hearing, on 5/24/17, Russell tweeted to CHAOS: “will ask @cityofmiami to enforce the [Flagstone] contract, place them in default and take back land." “#watsonisland, (see 5349942766), Herbits and Diez had what they needed: a Commissioner with lite practical experience to do their bidding; a Commissioner who did not care to do any fact finding’ from the day-to- day City workers managing the project; a Commissioner who clearly stated that he would find Flagstone in default prior to a fair hearing on the matter. The self-proclaimed “Disruptor to the City" did exactly that. Judge Thomas found that Ms. Jones Jackson, Assistant City of Miami Attorney, who worked on the project for approximately ten years, removed herself from the Flagstone matter due to persecution by Herbits (Order pg. 5). Herbits subsequently presented two grievances to the Miami-Dade Commission on Ethics, claiming Jones Jackson was untruthful in 2014 when she informed City Commissioners that the City could be on the hook for $58 Million in damages if the City breached its agreement. If only the Commissioners had listened to their attorney in 2017. The Judge found that on November 21, 2016, January 25, 2017, February 16, 2017, March 3, 2017, March 30, 2017, April 19, 2017, April 21, 2017, April 26, 2017, May 3, 2017, and May 25, 2017, CHAOS submitted letters with attachments to the City (including the Department of Planning and Zoning and the Commission) containing concerns with Flagstone’s application for a minor modification? to its Major Use Special Permit. In the (On January 31, 2018, William A. Bermello amended the Complaint agsinst Flagstone secking declaration the aggeernents were illegal [Thomas Order of March 22, 2018]. Bermello asscrted he had standing to sue as he was tn unsuccessful bidder for the development of Watson Island in 2001 [Order Pg. 4, Attachment 10}. Judge Thomas dismissed the Complaire a Diez was a City registered lobbyist for CHAOS 2015-2017, failing to register in 2018, . Russell's inaugural speech upon taking office: “I willlbe the Disruptor to the City,” 11/25/18 at City Hall, found on the City of Miami website under Legistar. ‘The minor modification was the removal of the Testory parking garage, placing parking below grade, aad removing ancillary retail to the Hote use