Old School Square files lawsuit against Delray Beach over terminated lease

DELRAY BEACH — The fight for Delray Beach’s Old School Square just grew even more contentious.

On Friday, Old School Square Center for the Arts filed a lawsuit against Delray Beach after the city abruptly parted ways with the center’s management and terminated its lease in August.

Old School Square is seeking to overrule the city’s decision, which has led to a public outcry from residents concerned the center would be shut down.

Old School Square is home to the Crest Theatre, Cornell Art Museum, an art school and more.

Delray Beach Mayor Shelly Petrolia and City Commissioners Juli Casale and Shirley Johnson, who voted to terminate Old School Square’s lease, are listed as defendants in the case, along with Delray Beach City Attorney Lynn Gelin, former Old School Square President and CEO Shannon Eadon, and former Old School Square board member Joy Howell.

Old School Square claims the city’s decision to terminate the lease was “improper as it was done in bad faith to advance the personal interests of Petrolia, Johnson, and/or Casale.” The lawsuit also alleges defamation, civil conspiracy and abuse of process by the city.

Petrolia declined to comment, saying she couldn’t comment on active litigation against the city.

City leaders said Old School Square had violated the terms of its lease, failed to present required financial information to the city, began renovations without the proper permits and failed to attract a diverse range of talent to perform there.

Petrolia previously told the South Florida Sun Sentinel that Old School Square itself is not in jeopardy. She just wants a different organization to run it and make it more vibrant.

The city previously said it’s looking for organizations with “appropriate qualifications, experience, financial capacity and a proven track

record of executing bestin-class campus operations and management services.” The bidding process opened on Oct. 19 and is scheduled to run through Dec. 17.

Delray Beach’s decision to terminate the lease came in controversial fashion during a City Commission meeting on Aug. 10. Despite the topic not being on the agenda, the commission voted 3-2 to move forward with new management without giving Old School Square or residents a chance to comment on the issue during the meeting.

The lawsuit claims the abrupt vote came about in a “seemingly rehearsed manner” by Gelin, “who responded that the commission could vote to terminate the Lease without cause.

“Despite numerous other options at the Commission’s disposal, as provided by the lease, Gelin failed to provide those options, let alone mention them, as it was clearly a set-up dooming [Old School Square] before the commission meeting even started.”

More than 10,000 people have signed a petition “Save the heart & soul of Delray Beach: Old School Square Center for The Arts, Inc.!” A protest was held outside City Hall the following week and critics also addressed city commissioners during a public meeting, but no changes came as a result.