Deal for free downtown Internet dies; Commission holds line on parking fees

By DAVID SEDORE, Palm Beach Business.com

DELRAY BEACH — So much for free wireless Internet service in the downtown, at least for now.

The Delray Beach City Commission Tuesday agreed to terminate a contract with E-Path Communications, the Tampa-based firm that was supposed to wire Atlantic Avenue and provide the free service.

Assistant City Attorney Brian Shutt said E-Path’s agreement with the city expired last month without any work on the system having been done. He said he spoke on the phone with E-Path President Joseph Tortoretti, who indicated that projects outside of Florida had temporarily prevented his company from taking on the Delray project.

According to Shutt, Tortoretti said E-Path remained interested in the project. However, the company did not have a representative at Tuesday meeting, and hadn’t sent anything in writing stating its intent to complete the project.

 “Enough is enough,” City Commissioner Gary Eliopoulos said. “They’re not coming forward. Let’s move on!”

Said Commissioner Fred Fetzer: “This company is not able to deliver for us.”

Fetzer said he wasn’t convinced the “business model” of E-Path  providing free service in the downtown while covering its costs by charging in other parts of the city, was feasible.

Also Tuesday, the commision agreed not to boost the fees it charges downtown business for off-premise parking for at least the next six months.

The commission agreed with a recommendation of the Parking Management Advisory Board to hold the line on "in-lieu" and public parking fees. City parking specialist Scott Aronson had tossed out the idea of increasing the fees by 30 percent to bring them more closely in line with the actual cost of constructing a parking space.

In-lieu fees — paid when businesses expand or a building changes use that will attract more traffic — will continue to range between $7,800 and $18,200. Public parking fees — what newly constructed buildings pay — will continue to be either $16,000 or $18,000, depending on location within the downtown.

The parking board held off in part because of the slow economy and also to gather a more accurate estimate on the city’s cost of constructing a parking space.

— Allowed Delray Mazda to place signs on the side of its building on South Federal Highway.

— Gave a waiver to Ed Morse Cadillac, allowing the dealership to use a temporary building as a sales office while renovating its permanent quarters.
  
— Agreed not to participate in a class action lawsuit involving a challenge to a city’s right to impose business license fees on law firms. Delray’s fee generates between $1,000 and $2,000 annually; how much Delray might have to kick in to cover legal fees if it participated in the suit wasn’t known.

— Appointed John Gergen of Café Luna Rosa to the Parking Advisory Board, replacing Bonnie Beer, who resigned. Gergen represents the Atlantic Avenue corridor east of Federal Highway. He will serve through Jan. 31, 2010.

— Appointed Russell Yeager to serve the unexpired term of Alfred Etienne on the Housing Authority. Etienne resigned in March. The term ends July 14, 2010.