Beachfront Bargain or Town Turmoil? The "Sweetheart Deal" That Is Rocking Fort Myers Beach
A Richard Luthmann Feature From Sun Bay Paper (Vote In The Poll)
By Richard Luthmann
NOTE: The full version of this article was published in Sun Bay Paper and can be viewed HERE:
READ THE FULL ARTICLE AT SUN BAY PAPER
In December 2023, a report by Beach Talk Radio uncovered a "Sweetheart Deal" involving Fort Myers Beach property developer Terry Persaud and the Town Council, igniting widespread interest and debate. This deal was pivotal in Persaud's longstanding disputes with the Town. The Sun Bay Paper’s Richard Luthmann took a closer look, interviewing Persaud to understand his viewpoint. Luthmann also contacted FMB Mayor Dan Allers and representatives from TPI Hospitality, the operator of the recently opened Margaritaville Beach Resort Fort Myers Beach.
Acquisition and Regulatory Hurdles
Persaud, recognized for his Times Square property development, encountered numerous challenges since purchasing the property in 2014 for $3.5 million. Regulatory hurdles quickly hampered his plans for additional improvements worth $1 million. The FMB Fire Department demanded $500K in upgrades, to which Persaud expressed his frustration: "I was caught between a rock and a hard place."
The complexities of the "50% Rule" under the National Flood Insurance Program further complicated matters. This rule limited Persaud's improvement budget to around $1.2 million, given the existing structures' $800K valuation. When Persaud sought relief from the Town Council, his appeals were denied, escalating the conflict.
Persaud's legal and permitting challenges included issues with liquor licensing and a series of fines, which he deemed discriminatory. He contested the Town's decision to revoke his liquor license due to his property being labeled as "abandoned," asserting, "My property was not abandoned but 'Under Construction.'"
The "Sweetheart Deal" Controversy
The recent "sweetheart deal" from the Town Council, which proposed reducing Persaud's fines from $2.7 million to $250,000 and a $500,000 "good faith" bond, has not entirely resolved the tensions. Persaud expressed dissatisfaction, stating, "This has been going on way too long. I have gone above and beyond to create an agreement I don't agree with."
Mayor Dan Allers responded to Persaud's stance with concern, noting, "That was a little concerning. You've done this before. For 4-5 years, we've been dealing with this. It's been a matter of compliance. It's the simple things that you agreed to do."
Central to Persaud's dispute is the issue of code compliance and property use, particularly regarding beach chair rentals and the operation of a parking lot. Fort Myers Beach Operations Manager Frankie Kropacek acknowledged a positive shift in Persaud's compliance, stating, "Persaud is now 100 percent in compliance."
Awaiting Final Settlement: Broader Implications
Persaud's struggle raises questions about potential disparities in regulatory enforcement, particularly when comparing smaller entities like his to larger ones such as TPI/Margaritaville. Persaud accused the Town of favoritism, asserting, "Our location on the beach is the best. The Town can't play favorites. There is a divided loyalty to Tom Turgeson and TPI."
As the final settlement awaits being inked, this case signifies more than just a resolution of fines and compliance issues for Fort Myers Beach. It represents an opportunity for the Town to engage in a broader dialogue about development, the role of small businesses, and equitable treatment, which is particularly important in the aftermath of Hurricane Ian.