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Council agrees to return funds to FEMA

3 min read

Ten years later, the Federal Emergency Management Agency wants its money back from Cape Coral. FEMA claims the $123,210.49 in question was an “overpayment” because the city’s claim did not attach the required documentation.

The city received more than $11 million from the federal agency from 2004-08 for debris clean-up and repairs to facilities that resulted from Hurricane Charley. The “overpayment” funds are sitting in a disaster fund account separate from the city’s General Fund.

“It’s just sitting there and all claims have been made,” said city Financial Services Director Victoria Bateman. “I don’t think they should get the money, but at this point I think it’s best to give it back to them.”

Bateman explained that while FEMA requested the money back several times in the past, the city never paid it. The city appealed the request in 2012 by refiling the documentation, but a decision on the appeal has not been made.

Bateman added that if the city does not return the funds it could jeopardize qualifying for future disaster relief funds in the event of another hurricane or other major disaster. Since FEMA already deducted the $123,210.49 from the state disaster agency, the city must make the payment to the state.

Councilmember Richard Leon said he would not support repaying the money because he objected to the strong-arm tactics used by FEMA.

“I have a real big problem with them coming in here and saying we owe them money,” Leon said. “What if next week they come here and say we owe them $300,000?”

With Leon casting the lone dissent, council voted 7-1 to make the payment while continuing with the appeal.

Land use designation change

Council unanimously approved changes to the Land Use Designation for property along Burnt Store Road in the city’s northwest section from low density residential and open space to commercial/professional. Owners of the 60-acre tract hope to develop a retirement community surrounding a large lake on the former dirt mining operation. Part of the acreage fronting Burnt Store Road already was designated as commercial/professional and will remain so.

Joe Mazurkiewicz told council that the owners, Burnt Store Ltd., are interested in securing a national real estate vendor and a marketing plan to turn the property into a retirement community.

Council also unanimously approved annexation of several vacant properties on Hibiscus Drive in Del Pine Manor considered an “enclave” as they are part of unincorporated Lee County and surrounded by property within Cape Coral city limits. A developer has been assembling similar multiple properties along Hibiscus and Del Pine Street to create a parcel for a large commercial project down the road.

After annexing the approximately 1.3 acres of property, council had to amend its Land Use Map in order to place the property into the Pine Island Road District.

Council’s next meeting is Monday, Sept. 15, with a special council meeting on Thursday, Sept. 18, to finalize and adopt the Fiscal Year 2015 budget.