By Richard Luthmann
It’s Jesse Schmid vs. Fort Myers Beach Town Council, and Schmid is ready to start throwing haymakers.
A recent FMB Town Council meeting considered the case of Schmid, a real estate developer, and violations on the property at 80 Avenue E. Schmid claims the Town Council got it all wrong and promises a “Wrecking Ball” lawsuit where “people will leave in bracelets” if they don’t resolve the matter immediately.
Schmid, who owns White Sand Properties of Fort Myers Beach, LLC, faces over $1.25 million in fines and violations. LaBelle Attorney Steven A. Ramunni, who represents Schmid and White Sand, hopes cooler heads will prevail.
“We’re going back to the Town Council on Monday, May 20, to ask for a reconsideration and a Shade Meeting. Jesse [Schmid] will give them one last chance,” Attorney Ramunni said.
Jesse Schmid vs. Fort Myers Beach
The developer accuses the Town of malfeasance under both the former and current administrations and of targeting and misconduct by former Town Manager Roger Hernstadt and others. He calls the levy a “Fort Myers Beach Exit Tax.” Schmid says he owes nothing, and the Town Council is mishandling facts to create a baseless “EXIT TAX” because they are cash-strapped.
In response, Schmid claims he owes nothing and says the Town Council is mishandling facts because it is cash-strapped.
At the May 6 Town Council meeting, Attorney Ramunni asked for finality on the matter. He first argued for a dismissal of all fines based on non-offender status, highlighting White Sand’s full compliance with a settlement agreement from 2019. The evidence of a cashed $50,000 check and subsequent communications from the Town confirming the resolution of the liens.
Filed with the Town Council before the meeting, these documents are publicly available.
The Town Council declined to recognize Schmid’s payment as full satisfaction of the issues. After deliberation and a unanimous 4-0 vote, the FMB Council said they would $250,000. Council Member Scott Safford recused himself after disclosure of prior financial dealings to Becky Vose, the Town Attorney.
Schmid remains outraged.
The “Smoking Gun” Letter
After the meeting, Schmid released a “smoking gun” letter from the Town confirming that there were no outstanding violations on the 80 Avenue E property.
“This letter is part of the Town’s records. It’s on their own letterhead. How they didn’t review it makes no sense whatsoever. They’re trying to make it like I’m somehow in the wrong or admitted something when they are 1000% in the wrong,” Schmid said.
Carl Benge, FMB’s Assistant Community Development Director, wrote the “smoking gun” letter dated November 18, 2020. It says, “There are no active Code Enforcement Cases on this property.”
This evidence—on the Town’s letterhead—makes the levied fines and violations impossible. An unnamed FMB community leader pointed out the mathematical impossibility of the violations claimed against Schmid and White Sand.
“The lawyers agreed the number is $250 per day. If you count the days—every day—from November 18, 2020, until the day of Ian, you have 1,044 days. I’m no mathematician, but $250 times 1,044 isn’t $1.25 million. It’s $261,000 – a little over the $250,000 the Town Council told Jesse to pay. And they agreed he had already paid the original $50,000. If he goes to Court, he will win and probably get attorneys’ fees, sanctions, and punitive damages,” the source said.
Attorney Ramunni says his client is understandably livid. “Jesse Schmid has devastating information about FMB and malfeasance at the highest levels. Mr. Schmid believes this type of information would be of interest to a State Attorney or a Federal Prosecutor. Before talking about whistleblowers and other issues that may bankrupt the Town of Fort Myers Beach, let’s see if cooler heads can prevail.”
“Wait and See”
Schmid will wait for his lawyers to negotiate a meaningful dialogue with the Town Council at Monday’s meeting.
“[The Town] has no grasp on its own facts. Either they don’t have their own records, are being told to ignore them, or they don’t know what they are looking at,” Schmid said. “Either way, it’s not right, and they’ve got this one all wrong,” he said.
We subsequently spoke to Karen Woodson last week at her 49th birthday party. We showed her the November 18, 2020 letter. She was unaware of the letter’s existence until that time.
“As this matter is in litigation, I must consult with the Town Attorney and have nothing to say on the merits. However, I can tell you that had I seen that letter, I would not have voted as I did. I don’t think [John King] would have either. We were presented limited facts,” Council Member Woodson said.
It is unclear whether the Town Council supports reconsidering the $250,000 settlement number for the 80 Avenue E matter.
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