They were suspended with pay 2 months ago. This week they were fired. Fort Myers Beach Community Development Director Frankie Kropacek and Community Services Director Jeff Hauge were officially let go this week. Here’s what we know…
As a result of projects funded by grant money that Kropacek and Hague were working on, last month Fort Myers Beach Town Manager Will McKannay signed a contract with the firm Clifton Larson Allen to conduct a forensic audit into 4 grants. While that investigation still has several weeks before it’s completed, the “findings were decided,” according to the town’s Public Information Officer. No additional information has been made public or shared with at least 3 council members we spoke to.
The possible irregularities were uncovered during the 2027 budget process. The work includes an analysis of 4 grants totalling $31.7 million: A Bay Oaks Campus Redevelopment Grant ($1 million), a Florida Department of Environmental Protection Grant ($17 million), a Florida Division of Emergency Management Grant ($8 million), and a Federal Emergency Management Administration Reimbursement Grant ($5.7million).
The contract with Clifton Larson Allen is for 6 months and there is no not-to-exceed amount the town will pay the company. We’ve asked the town, through a records request, for the invoices to date the taxpayers have paid for the review. We have not received those as of the publication of this story.
Payment to Clifton Larson Allen is based on these hourly rates by their staff with invoices submitted every month:
– Principal/Signing Director/Technical Director: $500 per hour
– Director/Manager Rate: $400 per hour
– Senior Rate: $300 per hour
– Director Rate: $200 per hour
– Electronic Document Review Platform Senior Associate $395 a month & $25 one-time fee per GB uploaded.
Read the full contract with Clifton Larson Allen HERE
Town Manager Will McKannay has said he plans to hold a town hall meeting to release details of the investigation once it’s completed.
Here are more details about the 4 grants under the forensic microscope:
The $17 million DEP amount is a beach renourishment grant which was signed by Environmental Project Manager Chad Chustz who is still fully employed by the beach. Chustz’ name has never been mentioned in the investigation. The massive beach renourishment project, and grant funding, was also aided by consultant Mike Poff who has decades of experience.
The $8 million FDEM amount was a dune vegetation grant also involving beach renourishment. FDEM funded the design, engineering, monitoring, purchase, delivery and placement of beach compatible sand to renourish the beach.
The $5.7 million grant is a Hazard Mitigation Grant which is the funding to elevate these 25 homes on the island. These homeowners have been left in limbo for years waiting for the funds to be distributed. The communication with homeowners about this grant funding has been horrendous. Kropocek was heavily involved in adminstering this program along with the town’s consultant Tidal Basin. While the homeowners have been able to clean up their homes and move back in or sell, without elevating their homes, they continue to get hammered with high insurance rates.
Back in late 2021 Fort Myers Beach was awarded a $1 Million grant to redevelop Bay Oaks. Hurricane Ian came through and upset that apple cart. The redevelopment plans had to be changed and an extension to use the grant requested. All of that was approved. In order for the grant money to be awarded the Town of Fort Myers Beach had to match the $1 Million and follow the guidelines set for by the National Park Service – Land and Water Conservation Fund, the organization that awarded the grant.
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