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    Deputy City Att'y Who Handled Queen Mary Says He Exited City Hall Last Month Dissatisfied w/ QM Matters; Says He Shares Staubach Co. Report's Opinion That QM Operator Owes City Hall Rent

    (May 24, 2004) -- has learned that James McCabe, a LB Deputy City Attorney who handled certain matters regarding the Queen Mary, exited City Hall last month.

    James McCabe told that at the time of his self-initiated departure he was dissatisfied with aspects of City Hall's handling of the Queen Mary, which prompted him to leave before a previously planned exit scheduled for October.

    Mr. McCabe also told that he has read the publicly released Staubach Company report on the QM lease...and he agrees with its opinion that the QM's operator (QSDI, Inc.) owes City Hall rent money as a result of QSDI's misinterpreting rent credit provisions of its lease.

    Several months ago, City Hall indicated QSDI owed City Hall roughly $2 million in rent as a result of a lease misinterpretation, a sum that has now reportedly reached close to $3 million. QSDI president/CEO Joe Prevratil cites provisions of the lease and other City Hall related conduct in contending his firm is entitled to certain rent credits and does not owe rent.

    As previously reported by, the City Council has referred the QM matter to city management for discussion and negotiation with QSDI.

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