Current Events
SNAPPLE Deal Stays in Place, Says Manhattan Supreme Court Justice Richard Braun
Why is it ok to deny the public scrutiny of a city contract before it is signed?
Bottleneck broken: Snapple deal's a go
BY HELEN PETERSON, DAILY NEWS STAFF WRITER, July 30, 2004 A Manhattan judge raised his glass yesterday to the Bloomberg administration's deal to put Snapple vending machines in city buildings - even though he found the contract was not properly reviewed. Manhattan Supreme Court Justice Richard Braun refused to quash the five-year, $126 million pact to place 3,500 vending machines offering iced tea, bottled water and chocolate drinks in city-owned and city-operated buildings. City Controller William Thompson had sued the city over the Snapple contract, calling it a "sweetheart deal." He asked the judge to overturn it. Despite upholding the contract, Braun found that the deal was not properly certified and should have been scrutinized by the city's Franchise and Concession Review Committee. The FCRC approved the concession portion of the deal in a 4-2 vote in December, but parts of the agreement concerning Snapple's right to market itself as the city's official brand were not submitted to the panel. Braun said future deals involving "intellectual" property, such as the Snapple deal, are subject to the same review as those involving "tangible" property. He declined to void the deal, however, on the grounds that Thompson waived some of his objections by failing to list them in a letter sent to Mayor Bloomberg in March. Both the controller and the Bloomberg administration claimed victory last night. "Justice Braun agreed with our position - that the people own the rights to the city's name, and that the mayor does not have the right to sell our name without an open, transparent and fair process," Thompson said. "From now on, the mayor will have to bring his franchise and concession deals to the public, not through the back door." City Corporation Counsel Michael Cardozo also praised the decision. "We are gratified that the court sustained our ongoing efforts to enhance the city's revenues through strategic partnerships such as the Snapple arrangement," Cardozo said. "However, we disagree with the court's opinion that intellectual property such as efforts to market the city's image constitute a 'concession' like a restaurant in a park," Cardozo said, adding that the city will appeal that part of Braun's decision. |