Editorial: FMB Town Council’s Rocky Rebuild: Records from Past Administration Still Missing

by Richard Luthmann

FMB rebuilds. Moving forward, the community’s role in advocating for a thorough review of past transactions and retrieving missing records remains critical. Ensuring fair and transparent development practices will be essential for the town to rebuild and prosper post-Hurricane Ian. Continual questions arise about the Town Council’s transparency and the missing records from the era of former Town Manager Roger Hernstadt.

Rebuilding with Controversy
FMB’s recovery has been marked by allegations of preferential treatment and inconsistent regulation enforcement, leading to frustration among developers and local businesses. A recent editorial in Sun Bay Paper criticized the Town Council’s approach, emphasizing the need for fair, transparent, and inclusive development practices.

In response, a local community leader refuted the editorial, stating there were “glaring inaccuracies.” The leader cited a specific case involving developer Jesse Schmid, who had been embroiled in a contentious dispute over fines and liens. At their request, we have not identified the community leader.

The Schmid Saga
Schmid’s case highlights the complexities of FMB’s recovery efforts. On May 6, Schmid’s attorney offered a $15,000 settlement to resolve outstanding fines, which the council declined. Instead, the Town Council calculated a settlement amount of $247,000, which Schmid also declined.

However, Schmid’s attorney, Steven Ramunni, presented the “smoking gun” letter to the Town Council on May 20, which he claimed showed the property complied as of November 2020. The attorney argued that the fines should have been approximately $420,000, not the millions claimed by the council.

“The letter allegedly showing Schmid ‘owes nothing’ was never presented to the council during the May 6 meeting,” the community leader stated, adding that it had not been presented at a February hearing either.

Disputes Over Fairness and Transparency
Our editorial stressed that the council must “embrace fairness and transparency in its dealings with all businesses.” We criticized the council’s handling of the Schmid case, suggesting that the over $1.25 million in fines might be erroneous and questioning the council’s demand for a $250,000 settlement.

The community leader defended the Town Council, asserting that, based on the available information, they had acted fairly. “The council has acted in a fair and transparent manner,” the leader wrote. 

Our editorial response highlighted the Town’s obligation to determine the truth and exercise judgment. We suggested the town’s assumptions were “clearly erroneous” and that the current Town Manager, Andy Hyatt, should have been tasked with reviewing the matter before it reached the Town Council.

Missing Records from Roger Hernstadt’s Era
A significant issue complicating FMB’s recovery efforts and directly impacting our community is the missing records from Roger Hernstadt’s tenure as Town Manager. These records, which include emails and correspondences, were purportedly lost when a server was destroyed.

We questioned why the Town Council hadn’t secured these records from Fox Rothschild LLP, the law firm representing the town during Hernstadt’s administration. “The Town owns these materials and has a right to them,” we argued, suggesting that retrieving these documents could clarify unresolved issues.

An audit committee recommended against forensic accounting, which leaves the council without critical information for making informed decisions. “Every time the Town Council considers a matter, they do not have the full universe of documents for any transactions in the Roger Hernstadt era,” we wrote.

Call for Action
We strongly urge the council to take immediate action and request all files related to the town’s representation from the former Town Attorneys’ offices. “Fox Rothschild LLP is a large and well-respected Florida law firm. They have the files and could deliver them to the current Town Council,” we stated.

We emphasized the need for transparency, arguing that the town cannot render fair judgments without all the facts. “The Town has de facto stated that it is not transparent because it doesn’t have all the records,” we wrote. “How can the government render any judgment while it admits that it is not transparent and doesn’t have all the facts?”

Future of FMB’s Recovery
The controversy surrounding Schmid’s case and the missing records from Hernstadt’s administration have raised significant concerns about FMB’s recovery efforts. While the Town Council insists it has acted reasonably and transparently, critics argue that the lack of complete information hampers effective decision-making.

It’s time for FMB to get on the Same Page, and then Turn the Page.