State flood grant issue might soon be settled

By SHEILA MULLANE ESTRADA

© St. Petersburg Times, published June 18, 2000

ST. PETERSBURG -- The city of Madeira Beach on Friday withdrew its motion for an injunction that would prohibit former Commissioner Thomas Saxon from accepting a state flood grant.

Instead, both sides will move ahead to a summary judgment hearing at 9 a.m. Wednesday in Pinellas-Pasco Circuit Court.

Madeira Beach is asking Judge Frank Quesada to rule that there are no legal issues to be decided and that the city was correct in withholding a $65,783 federal flood mitigation grant awarded last year to Saxon by the state Department of Community Affairs.

During a conference Friday in Quesada's chambers, the opposing attorneys challenged each other's conduct and motives.

Saxon's attorney, Keith McKinney Jr., accused the city's attorney, Ed Foreman, of "unprofessional conduct" and forcing him to "jump through (legal) hoops." Foreman called Saxon a "bully who is suing the city for private gain" and said McKinney was trying to delay the summary judgment hearing while "trying to strike a private deal with the DCA."

Saxon sued Madeira Beach when the City Commission revoked his grant. The city's action followed accusations that Saxon had improperly used his position as commissioner to influence the DCA's decision to reimburse him for the cost of rebuilding his home damaged during severe flooding in 1996.

The state, which administers the grants, refused to take the money back and ruled that it had been awarded properly. The money is being held in a bank account by the court.

Two weeks ago, the DCA said it would withhold other grant payments to Madeira Beach property owners and instead pay Saxon directly the original grant plus interest ($73,303) if he drops his lawsuit against the city.

McKinney confirmed Friday that he is pursuing the DCA offer. Both Saxon and McKinney said they would be willing to drop the suit if they can be assured the state will pay the money. Meanwhile, the City Commission has voted to use its contingency fund to pay $65,523.40 to the two property owners (Mr. and Mrs. Rick Betz and Mr. and Mrs. Michael Bosch) who have been waiting for their federal grants.

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