In what’s turned into a 10-year battle, dating back to the previous town manager and town attorney, Fort Myers Beach property owner Jesse Schmid has been fighting to get a lien removed from his property at 80 Avenue E. There now appears to be a settlement on the table. This one will need some setting up.
It’s a messy situation Schmid believes he resolved years ago.
Before Schmid owned the property at 80 Avenue East it was owned by Leo Dibiasi then Joe Orlandini. In 2015 the town issued code violations to Dibiasi for an unsafe structure. Additional violations were issued in 2015 for work done without a permit. Town records show Dibiasi never abated the violations and $250 per day fines started accruing.
In July of 2016 Joe Orlandini purchased the property, and along with it the unresolved code violations. Town records indicate that the violations were never resolved, the fine total was now at $257,150 (and growing), and the town was placing a lien on the property.
In 2019 Schmid gets involved with the property and this is also where the situation gets even more confusing. At a Town Council meeting in December of 2019, Schmid pledged to pay $50,000.00 towards the liens on 80 Ave E in exchange for partial release of 1560 I St. from the scope of the liens on 80 Ave E. Because Schmid was also going to purchase 1560 I St. The town tied the Orlandini properties together because the code violations were not being resolved at 80 Avenue East.
During public comment Jesse Schmid stated that he was buying a house with lien issues (1560 I St.) and pledged to pay $50,000.00 towards the liens. The town says former Town Manager Roger Hernstadt indicated to the Town Council they could craft an agreement for them to proceed with satisfying part of the lien for the property in the lien umbrella (1560 I St) and council members agreed with the action.
Schmid delivered a $50,000.00 check to the town to release 1560 I St. from the liens recorded against 80 Ave E and purchased 1560 I street in early 2020. Schmid was under the impression from conversations he said he had with Hernstadt that the $50,000 would also put an end to all the violations at 80 Avenue E. The town has been saying that’s not the case, that the issues at 80 Avenue E were never resolved.
Town records indicate that in May of 2020 former Town Manager Roger Hernstadt made Schmid an “offer.” If he acquired the necessary permits and paid the town $61,000, the lien on 80 Avenue E would go away. If Schmid did not take the deal immediately, a fine of $1,000 per day would be assessed. It’s important to note here that only the special magistrate could impose fines on residents for code violations, not the town manager and his staff. By November Hernstadt’s “offer” had increased to $75,000. Schmid did not pay the $75,000.
In August of 2022 the town filed a foreclosure lien on 80 Avenue E.
On September 28, the structure on the property was completely demolished by Hurricane Ian which deems the property compliant. Being in compliance does not mean the fines go away and the town said the fines have accrued to nearly $1.2 million. The town council agreed to reduce the fine to $247,000, however, Schmid doesn’t believe he owes the town any money because of the $50,000 check he wrote to the town.
The agreement Town Attorney Nancy Stuparich presented to the Town Council last week was as follows:
– White Sand agrees to pay the Town $150,000 on or by February 1, 2027, in full settlement of all outstanding code enforcement matters associated with the White Sand Property and in exchange for a release of the Liens, dismissal of the Pending Fines, dismissal of the Litigation, and agreement not to impose any further associated fines to the extent such is an available remedy to the Town, including but not limited to attorneys’ fees and other costs incurred by the Parties in pursuing the Litigation.
– Within 14 days after the Town’s receipt of the Settlement Amount, the Town will prepare and record a satisfaction and release as to all Liens in the Public Records of Lee County, Florida attached to the White Sand Property at the Town’s sole cost and expense.
Read the proposed settlement agreement HERE.