Mayor Questions Palmetto PWD about $500K in Misused CRA Funds for Waterlines

PALMETTO – Mayor Shirley Bryant met with the Palmetto Public Works Department Wednesday in order to acquire answers about possible misappropriated funding of over $500,000 in taxpayer dollars. The money was used to fund two improper undertakings. Jupiter Marine was given a $50,000 storefront grant and Community Redevelopment Agency capital for a waterline extension contracted to Westra Construction – neither use was within the CRA district.

 

In 2006 Jupiter Marine was given the grant as an incentive to promote viable businesses in the area. However, the property was outside the CRA district and therefore didn't qualify to receive the grant. The agency was reportedly using an erroneous map to determine CRA boundaries. There are three ways to tell if a property is within the district, the most efficient being the tax appraiser's website where an address can simply be typed in to see if it is in the territory. The fact that no one on the CRA bothered to do so has raised concerns.

 

”There are certain times when the CRA can spend money outside the CRA, but at all times it has to be in line with the CRA plan." said CRA Director Jeff Burton. "We were originally supposed to pay Westra $55,000, but we see much larger numbers and we've made requests to different parts of the city to find out where that total money went to – we've never received any written answers back from the city.“

 

The City paid just over $516,000 in total to Westra for waterlines and improvements on a street that was outside CRA district. Mayor Bryant and the new CRA Director Jeff Burton are now working with the Public Works Department to find out how the funding was dispersed and where the pipes were laid out because in addition to erroneous spending, the very scope of services still remains unclear.

 

”I really want Public Works, because this is where the money was going, to explain to us where it went because they are the experts at this – not the CRA,“ Burton said.

 

When Jupiter Marine came the area, there was not adequate potable water service at the location. The city approved an ”unusual“ utility agreement, at the request of Mayor Larry Bustle, where the city allotted the manufacturer credit against impact fees in order to fund a water main for Jupiter Marine. They then gave a construction grant to Westra ”to better accommodate Jupiter Marine and other businesses,“ but there were no other businesses on that street that were located in the CRA district.

 

”In Manatee County and Palmetto in particular, when someone wants to come in and do something – that is why you pay impact fees. They usually file a development agreement where if you are going to need some infrastructure and Palmetto can provide it, you would pay Palmetto to put it in place,“ said current CRA Director Jeff Burton. ”This was an agreement that was something different than normal.“

 

An investigative audit by Special Council Susan Churuti found that an anonymous letter had been delivered to the CRA office informing the advisory board of the mistake. It had been signed with a skull and crossbones. The letter indicated that the CRA agency, under the leadership of Executive Director Tanya Lukowiak, had the knowledge that the business was not within the required district, but never formally responded to the issue.

 

”I am still confused about that letter. I'm speechless. I have absolutely no idea who sent it – but the letter speaks for itself. The board had an erroneous map, but even after they knew they made a mistake, they still continued to fund the project,“ said CRA Board Advisory Member Charles Smith.

 

In summary, not only were funds used outside the district, but the city paid over ten times the amount originally approved for work improvements to Twelfth Avenue East for an entire potable water line. As the final funding of the CRA's involvement is mixed into other sources, it is impossible to determine what was paid out of Palmetto City or the CRA without a fiduciary audit. As it stands, no one is really sure how the money was spent, why improvements were made to Twelfth Avenue East, or where an unplanned leg of 230 feet of water pipe was finally installed.

 

"We don't have anything conclusive at this point in time," said Mayor Shirley Bryant, after the meeting. "We are continuing to research the issues at hand, particularly Jupiter Marine, it will probably be next week before we have some more complete information. That's where we are as of today."

 

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