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EDC ex-chief demanding more money

Rick Michael asserts that he should be paid until his severance bonus is paid. EDC officials scoff.

By JEFFREY S. SOLOCHEK

© St. Petersburg Times, published January 25, 2001


BROOKSVILLE -- Rick Michael's last day as executive director of the Hernando County Economic Development Commission was supposed to be Dec. 29.

He was supposed to get $29,916 in severance pay and another $5,000 as a bonus, and then he would be part of the EDC's troubled past.

Disputes over the money's source have delayed payment of the bonus, though. As a result, Michael claims, the EDC still employs him and it owes him $370.74 a day as salary. Through Wednesday, that amount totaled $6,302.58.

"He hasn't terminated his employment until he's paid the amount agreed on," said James Sheehan, Michael's lawyer. "They've locked him out. They've not paid him the amount agreed on."

Sheehan sent a letter to EDC board members last week alerting them to Michael's position. He said Wednesday that he expects a relatively quick response to begin negotiations.

"If they don't, we sue them," he said. "That's the way our world works. We believe we have a valid legal position."

The EDC has referred Sheehan's letter to its attorney, Tom Hogan Jr., said the group's president, Don Clifford. The board has not scheduled any meetings to discuss the proposal until it gets advice from Hogan, he said.

But Clifford did not mince words when offering his own view of Michael's latest effort to force the EDC's hand. Last week, Michael also tried to pry loose private EDC records under the state open records law, which Michael in the past had asserted did not apply to the privately run non-profit corporation.

"He submitted a letter that his employ or his tenure as executive director was concluded on the 29th of December. Period," Clifford said. "I don't know how much more definite you can get on that. Let's not use semantics."

Len Tria, who joined the EDC board in the fall, said he didn't know what to make of Michael's request. But he doubted the board would give in to this demand.

"I would say the chances of that are not good," Tria said.

Gus Guadagnino, the EDC's treasurer, agreed.

"I don't see how. To me it's bizarre," Guadagnino said. "But I'm not a lawyer."

In recent weeks, County Commissioner Diane Rowden has questioned the propriety of using county-generated money to pay Michael's severance package. The full commission decided the EDC could spend the money as it sees fit.

The commission also left Rowden as its designee assigned to oversee how the EDC spends the money it gets from the county, and Rowden said Wednesday she planned to look into the facts behind the $5,000 payment and Michael's claims for per diem pay.

"Yes, I am going to be requesting some more information," said Rowden, who has been looking at the EDC's credit card bills, office supply receipts and other related items.

Sheehan contended that the EDC cannot play accounting games to get out of paying Michael. He left the response date to his letter open, but said, "We're not going to wait for a long time."

The EDC, meanwhile, has put together a committee that has met to prepare for a national search to replace Michael, Clifford said. He expected the search would take three to five months after it gets rolling.

Until then, Clifford is helping with the daily operations. The county administration also is rewriting its contract with the EDC, and the terms are scheduled to come to the County Commission for review in two weeks.

County proposals that the EDC operate in strict compliance with the Sunshine Law do not sit well with some EDC board members, though. Guadagnino, for one, said he would not risk going to jail for talking privately with another community business leader about a deal.

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