Bankruptcy benefactor Robert Lott campaigns for County Council candidate Jim Hathaway

New Smyrna Beach City Commissioner Jim Hathaway, at left, has a new supporter in his campaign for Volusia County Council: Former Southeast Volusia Chamber of Commerce President Robert Lott, who, along with his wife, received bankruptcy protection, having owed hundreds of thousands of dollars to creditors. Hathaway's campaign motto is shown between the two men who took part in the groundbreaking of the beachside Hampton Inn.

NEW SMYRNA BEACH -- Longtime City Commissioner Jim Hathaway and Robert Lott were polar opposites when it came to approval for the $16 million Hampton Inn.

Hathaway was adamantly opposed to the project, while Lott, the former financial planner and one-time Chamber of Commerce president, who was vocal about the need for the hotel, locked horns. Lott even ripped Hathaway at one of the meetings, saying he was out of touch with the business community.

The hotel is well under way, despite Hathaway's no vote. At the groundbreaking last September, both Hathaway, the lone elected official on the commission to vote against the project, and Lott, basked in the glory of the afternoon sun, moving dirt with a golden shovel.

By then, Lott's business had folded, he and his wife, Michele, the publisher of the now-defunct Observer, had already been sent packing from their Flagler Avenue because the rent hadn't been paid. So the Lotts moved the Observer to their Edgewater home, which was foreclosed on in January and the newspaper folded in November.

The Lotts were besieged by a trail of debts in the hundreds of thousands, which was wiped clean in federal bankruptcy court on May 8. While the Lotts were waiting for the court to free them of their mountain of debt, Robert Lott was booted off the Edgewater Economic Development advisory board that he chaired, led by a vote by Edgewater Councilman Justin Kennedy.

Both Hathaway and Kennedy, as well as New Smyrna Beach resident Deb Denys, all put in their bid to run for the district 3 seat on the Volusia County Council held by Joie Alexander who opted not to seek re-election this year.

Lott, fuming from Kennedy's bold move after a stranglehold on Edgewater city hall for years, got his revenge, or so he thought, by joining forces with Hathaway by actively campaigning for him at the Edgewater Community Expo shortly after being shown the door at city hall.

Lott, who claimed he was destitute to the court this spring, suddenly emerged with a new business -- selling ads on restaurant menus. Lott's active show of support for Hathaway while manning a beer tub at the expo with Hathaway's campaign logo affixed to his shirt, was a clear message to Kennedy that he was still around.

And with Denys and Kennedy seeing the political campaign alliance between Hathaway and Lott consummated, they didn't mince words in questioning his judgment, especially with the public focus and scrutiny on scandals with the New Smyrna Beach Community Redevelopment Agency and the Southeast Advertising Authority, both taxpayer-supported entities.

"It's concerning if a candidate knowingly makes alliances with individuals who have proven not to be trustworthy with the public's money," Denys said Tuesday night of Hathaway's connection to Lott. "Accountability is already an issue at the county level. What will happen on a larger scale if left unchecked?"

"It's concerning if a candidate knowingly makes alliances with individuals who have proven not to be trustworthy with the public's money," Deb Denys said Tuesday night of Hathaway's connection to Lott. "Accountability is already an issue at the county level. What will happen on a larger scale if left unchecked?"

Kennedy's criticism when contacted the same night was even more direct, saying of Hathaway, "I thought he was smarter than that. You would think after 18 years in government, he would be more selective in who he has campaigning for him."

Justin Kennedy's criticism when contacted the same night was even more direct, saying of Hathaway, "I thought he was smarter than that. You would think after 18 years in government, he would be more selective in who he has campaigning for him."

Headline Surfer asked Hathaway about Lott campaigning on his behalf with the baggage he brings. "I can't stop someone from campaigning if they want to help me," Hathaway said.

Asked if he would tell Lott to stop campaigning in light of the situation at hand and the potential political fallout, Hathaway emphatically said, "No, I'm not going to do that. If he wants to campaign for me, that's his prerogative."

Asked if he would tell Lott to stop campaigning in light of the situation at hand and the potential political fallout, Jim Hathaway emphatically said, "No, I'm not going to do that. If he wants to campaign for me, that's his prerogative."

Hathaway did stress in a follow-up phone message that Lott took the initiative at the expo and that is the extent of his support as far as he knows.

Lott has repeatedly refused to comment to Headline Surfer.

And so, too, has his attorney, Kenneth Bohannon, who represented his legal interests in the foreclosure of his home and a lawsuit brought by an 82-year-old widow, Barbara Crosby of New Smyrna Beach, who alleged Lott swindled her out of $60,000.

Bohannon was the 2011 president of the Southeast Volusia Chamber of Commerce and represented Lott's legal interests while he was head of the chamber. Bohannon's private representation of Lott, was not disclosed to the chamber membership.