Heads roll in Palmetto's $6 million grant mistake

The city of Palmetto is typically eligible to receive up to $1.5 million a year in federal community development block grant funds. But bad advice resulted in those funds not being applied for from 2006-2009, costing the city up to $6 million.

That mistake was made by Tanya Lukowiak, the former executive director of the city's community redevelopment agency, according to Jeff Burton, Palmetto's new interim director and a consultant on updating the city's redevelopment plan. Mayor Shirley Groover-Bryant confirms that it was Lukowiak's advice that led to the multi-million dollar mistake.

Lukowiak's husband, former city utility director Chris Lukowiak, ran for mayor in 2008, losing to Bryant.

Burton claims that Lukowiak had mistakenly advised the city that the city's source of revenue for its community redevelopment district would be jeopardized by accepting community development block grant funds. So for four years, with no one checking on Lukowiak's advice, the city lost out on any chance for the grant funds while property values, property tax and other revenues plummeted.

But the two programs are completely separate and have nothing to with each other, according to a Bradenton attorney Coffee Talk spoke to — an attorney who is intimately familiar with CRA programs.

To verify the mistake, Burton requested a letter from Manatee County Community Development Director Susie Copeland stating that the city could in fact receive the block grant funds without affecting the tax increment financing dollars which fund the community redevelopment agency. Those funds bring in about $4.5 million a year for improvements to the district.

An audit undertaken by the city cost nearly $6,400 paid to St. Pete law firm Bryant Miller and Olive last year. That audit discovered that a property outside the boundary received a $50,000 storefront grant. Burton blames a 10-year old map and a “current” plan from 1993 for contributing to the problems.

Asked about whether those funds had been recouped, the mayor says, “Not at this time. I believe there are some other issues that have come to light.”

Lukowiak was put on administrative leave last June and her contract was not renewed when she was paid a severance package of $147,480 that the city approved in July.

For her part, Bryant says, “We felt that we needed to safeguard that the funds were being spent correctly.”