At least six Fort Myers Beach residential developments are involved in a lawsuit with their insurance companies over compensation for Hurricane Ian damage. Photography by Nathan Mayberg
At least six residential developments in Fort Myers Beach have sued their insurers over insurance payouts from Hurricane Ian, and many remain open as they continue to work on repairs, representatives said Thursday at a special City Council meeting to hear about Apartment management boards. Some said they were starting to run out of cash due to long delays due to insurance battles.
A few apartment representatives who spoke to the council said their buildings have been habitable so far. There are thousands of condominiums on Fort Myers Beach. Many are occupied primarily in the winter although some were also full-time residences. In recent years, more units have been used as vacation rentals. With rent money drying up in most places, financial pressures have increased in some buildings.
Gary Baker, of the Palm Harbor Club, said insurance only paid out about $400,000 despite $5 million in damages. “We have exhausted our reserves.” Baker said. They referred the matter to their lawyers. Baker said the board may have to do that “Huge evaluation” On apartment owners. “We’re trying to fix it” Baker said. They have 26 units that still cannot be filled.
Representatives had mixed opinions about the town’s permitting system, from some who said it was working well to others who said town staffing shortages were leading to delays and others who blamed their contractors for not handling permits timely and correctly. There have been suggestions that the city work closely with Lee County to allow the assistance.
Some said they want to ease regulations on allowing aspects of remodeling such as tiling and drywall.
Apartment buildings overlook the critical wildlife area on Little Estero Island on Fort Myers Beach. Photography by Nathan Mayberg
‘Costs have exploded’ said Mike Close of Cresciente. Close said the project and its 172 units incurred losses of more than $20 million. The town’s permit system has delayed the entire rebuilding of the pool that was destroyed by Hurricane Ian, and it now has to go through hearings again, Close said. Close complained about having to file paperwork with the city for $22,000 of drywall work on the first floor.
“We have to submit a lot of paperwork to city staff.” Close said. “Use common sense.”
Others said the city permit fees are too high.
The city paid them $14,000 to allow it, said Jim Cecil, president of Admiral’s Bay. Cecil asked how the city was factoring in the cost of permits. “I’d like to know what we’re getting for this.” He said.
Joe Specht, the town’s new building official, said he would look into the matter. “I’m still in discovery mode.” He said. Specht said he has been in town for a little over a month and is trying to speed up the permit process. Joe said he is trying to speed up permits.
Apartment buildings overlook the critical wildlife area on Little Estero Island on Fort Myers Beach. Photography by Nathan Mayberg
The city of Fort Myers Beach entered into a contract in October with Jacobs Project Management for $538,000 for building inspection and permitting services, and to assist the city’s Planning and Community Development Review Office. Jacobs Project Management Company
Admiral’s Bay is also suing over replacing window elevators in the apartment building, Cecil said. Replacing elevators in residential buildings has been a common problem due to delays in spare parts from manufacturers.
Dave Nussbaum, who represents Island Winds, called on the city to ask the state for a moratorium on cash reserve regulations for condos. Condominium owners at Island Winds are running out of money as they grapple with insurance and spending money on costly repairs, Nussbaum said.
Edward Smith, of Harbor Point, said: “We’re all hurting for money.”
Jim Waltor, who represents the Riviera Club, praised the Fort Myers Beach Fire District for their quick responses and assistance in obtaining permits.
Waltour’s remodeling process improved after a change in their condo board led to the board taking over the permit application process from their contractors after long delays. A change was made at Waltour after a contractor failed to respond quickly to a problem identified by the fire district in an order for a new fire suppression system. Waltor said the fire department’s response was quick “Important.” He wanted the city building department to provide more staff to tour the property to deal with permit issues.
Fort Myers Beach Fire Department Chief Scott Wirth, who is also a general contractor, said one problem he has encountered with permit applications is that some contractors did not design some of the plans correctly which delayed permit applications.
Fort Myers Beach Mayor Dan Allers said another follow-up meeting will be held. “It was very clear that they were all dealing with similar issues with insurance, FEMA, the Small Business Administration, and Florida Power and Light.” Allers said. “The city will continue to assist in any way we can to ensure our residents are returned to their homes as soon as possible.”
Fort Myers Beach Deputy Mayor Jim Atterholt encouraged apartment owners to contact state and federal representatives regarding their issues for further assistance.
Atterholt told Thursday’s meeting “It was an excellent opportunity for township and fire officials to hear directly from people on the front lines and answer questions.”
Atterholt said “Many of the remaining issues appear to be related to insurance companies, new state reservation requirements for condos, Florida Power & Light and federal agencies such as the Small Business Administration (SBA) and FEMA. It is very important that people also reach out to the CFO’s office In Florida to report insurance company violations, state legislators to stop reserve requirements, and the Florida Public Service Commission to the lack of response by Florida Power & Light and its members. From Congress to assist with the SBA and FEMA. The city hopes we can have regular meetings with condo leadership so we can To help solve any remaining problems.
Fort Myers Beach Observer editor Nathan Mayberg can be reached at NMayberg@breezenewspapers.com