CRA Chairman Jim Kosmas pays back grant

Asks why same CRA attorney advised it was legal then; not legal now

It was legal then and illegal now. NSBNews.net file photo by Sera Frederick / CRA Chairman Jim Kosmas is shown here holding a golden shovel for the Sept. 29 groundbreaking at the Hampton Inn on Flagler Avenue. Construction on the beachside hotel has been grounded since that day without explanation. Standing behind him in sunglasses to the far left is fellow CRA board member Chad Schilsky. Both were approved for grants for their businesses, which turned out to be illegal.

NEW SMYRNA BEACH -- CRA Chairman Jim Kosmas told NSBNews.net over the weekend that he repaid his Community Redevelopment Agency the $1,925 grant for improvements to his law office that was unanimously approved by his board with him abstaining from the vote.

"I paid the city on Friday," Kosmas told NSBNews.net. "What I Don't understand is why the attorney said it was OK then and now it is not."

NSBNews.net has been asking the city that very same question since Nov. 8 when fellow CRA member Chad Schilsky said he was called into a meeting with CRA Director Tony Otte, City Manager Pam Brangaccio and City Attorney Frank Gummey, in which he was told to sign a letter he insisted he didn't even write.

The letter, dated Nov. 8, states: "Dear Mr. Otte: I have decided to withdraw my grant application to the Community Redevelopment Agency for improvements to 103 S. Pine Street. I have not received, nor will I accept any money from the Community Redevelopment Agency for this property. Thank you for your attention to this matter. Sincerely, Chad Schilsky."

NSBNews.net asked the city officials referenced by Schilsky in a series of e-mails who wrote the letter, but got no response. Otte would only say by phone when asked the question of who authored the letter: "We're changing some of our policies and procedures."

Both Schilsky and Kosmas told NSBNews.net in separate interviews that they were advised by their CRA directors and the CRA consulting attorney Mark Hall that the grants were proper and legal.

Kosmas, who was named chairman earlier this year, was advised by then-CRA Director Kevin Fall and Otte, and Schilsky, appointed in March, was advised by Otte and Hall.