>> TONIGHT IN GULF COAST NEWS INVESTIGATION, THE CAPE CORAL BUILDING DIVISION IS ABOUT TO BE AUDITED AFTER A STATE COMMITTEE APPROVED REQUEST THIS WEEK. GULF COAST NEWS INVESTIGATOR EVAN DEAN IS HERE TO EXPLAIN WHAT PROMPTED THIS. YEAH, PETER CONCERNS WERE BROUGHT FORTH BY THE VERY PEOPLE WHO WORK WITH THE DIVISION EVERY DAY. THE BUILDERS AND CONTRACTORS IN THE CITY. THEY CLAIM CAKES BUILDING DIVISION IS MISUSING FUNDS AND EVEN BREAKING STATE LAW. WELL, THIS IS THE ENGINE THAT DRIVES CAPE CORAL, THE BUILDING INDUSTRY, AND IT HAS TO BE RUNNING AT TOP. >> NOTCH WITHOUT ANY PROBLEMS. WAKE COUNTY INJURIES. EXECUTIVE DIRECTOR OF THE CAPE CORAL CONSTRUCTION INDUSTRY ASSOCIATION. >> OR C C C I A WHICH REPRESENTS HUNDREDS OF BUILDERS AND CONTRACTORS ACROSS THE CITY RIGHT NOW. THEY’RE WORRIED THERE ARE PROBLEMS WITH THE DIVISION THAT OVERSEES THEIR WORK. THERE ARE SOME REALLY GOOD PEOPLE THAT THE CITY HALL, OKAY. SOME REALLY GOOD PEOPLE DOWN THERE THAT ARE DOING A TERRIFIC JOB. BUT THERE IS INEFFICIENCIES DOWN THERE THAT NEED TO BE ADDRESSED. THAT’S WHY 2 MONTHS AGO THE CC CIA WROTE TO STATE LAWMAKERS SHARING CONCERNS AND RESEARCH INDICATES BUILDING DIVISION AMONG THEIR ALLEGATIONS. ARE THAT PERMIT FEES ARE INFLATED AND THE PROCESS IS CONFUSING. TOP OF THEIR CONCERN. THEY CLAIM THE DIVISION IS BREAKING STATE LAW. ONE THAT MANDATES PERMIT FEES ONLY FUND THE COST TO OPERATE THE DIVISION. THE CC CIA ALLEGES SOME THIEVES HAVE BEEN DIVERTED TO UNRELATED EXPENSES. WE DO BELIEVE SOME OF THE MONEY WAS SET ASIDE FOR HURRICANE OVERTIME. SOME OTHER THINGS WITH >> THE FIRE DEPARTMENT DURING THE HURRICANE. THAT IS THE THAT IS THE MAIN CONCERN WE HAVE SUBMITTED TO 270 PAGES THIS WEEK. STATE REP MIKE GIALLOMBARDO SHARED THOSE CONCERNS IN TALLAHASSEE AND REQUESTED AN AUDIT ESTATE COMMITTEE APPROVED A SPOKESPERSON FOR CAPE CORAL SAYS HIS CITY AUDIT WAS COMPLETED LAST YEAR AFTER SIMILAR ALLEGATIONS WERE MADE. >> THE AUDIT DID FIND PROBLEMS WITH THE BUILDING FUND. BUT THE SPOKESPERSON SAYS STAFF HAS SINCE WORKED TO ADDRESS ALL RECOMMENDATIONS THAT WERE MADE. NONETHELESS, THE CITY WILL COOPERATE WITH THE NEW REQUEST. THIS IS A CITIZENS. >> ISSUE THAT WE’RE JUST TRYING TO MAKE SURE THIS MONEY IS USED IN THE CORRECT WAY. IT’S NOT CLEAR EXACTLY HOW LONG THE AUDIT WILL TAKE, BUT YOU CAN COUNT ON GULF COAS
Cape Coral Building Division faces audit after allegations of misusing funds
Updated: 7:33 PM EST Nov 19, 2025
The Cape Coral Building Division is set to be audited after a state committee approved a request this week. The request was initiated by the very people who work with the division every day: the builders and contractors in the city. They claim the building division is misusing funds and even breaking state law. “This is the engine that drives Cape Coral, the building industry. And it has to be running at top notch without any problems,” Wade Kundinger said. Kundinger is the executive director of the Cape Coral Construction Industry Association, or CCCIA, which represents hundreds of builders and contractors across the city. “There (are) some really good people down at city hall,” Kundinger said, “but there (are) some inefficiencies down there that need to be addressed.” That’s why, two months ago, the CCCIA wrote to state lawmakers sharing their concerns and research into the Cape Coral Building Division. Among their allegations are that permit fees are inflated and that the process is confusing. At the top of their concerns, they claim the division is breaking state law, which mandates that permit fees only fund the cost to operate the division. The CCCIA alleges some fees have been diverted to unrelated expenses. “We do believe that some of the money was set aside for hurricane overtime, some other things with the fire department during the hurricane,” Kundinger said. “That is the main concern.” This week, State Rep. Mike Giallombardo shared those concerns and requested an audit, which a state committee approved. It’s not clear how long the audit will take. “This is a citizens’ issue,” Kundinger said. “We’re just trying to make sure this money is used in the correct way.” A spokesperson for the city of Cape Coral sent the following response to Gulf Coast News:”Audit Report 24-04 was conducted through full collaboration among the City Auditor, Finance staff and the CCCIA. While the 24-04 report was prompted by similar allegations, audits are not based solely on allegations. All recommendations from that audit have been addressed and the report is officially closed. The City will fully cooperate with this new request. “Additional information: “The findings from the ’24-04 Building Fund Audit Report’ addressed prior fund balance compliance, documentation practices, and payroll accuracy. Building Division staff worked diligently to comply with all recommendations, and have successfully implemented every audit action. The City Auditor’s Office has reviewed these improvements, and currently, none of the original recommendations remain open or unaddressed. “The City Auditor is independent from city staff, who report to the City Manager. Instead, the Auditor’s Office reports directly to the City Council, ensuring the Auditor can conduct honest and objective audits without outside influence. Decisions about what to review are made independently and based on risk, not at staff request, which protects the integrity of the process.”DOWNLOAD the free Gulf Coast News app for your latest news and alerts on breaking news, weather, sports, entertainment, and more on your phone or tablet. And check out the Very Local Gulf Coast app to stream news, entertainment and original programming on your TV.
CAPE CORAL, Fla. —
The Cape Coral Building Division is set to be audited after a state committee approved a request this week.
The request was initiated by the very people who work with the division every day: the builders and contractors in the city. They claim the building division is misusing funds and even breaking state law.
“This is the engine that drives Cape Coral, the building industry. And it has to be running at top notch without any problems,” Wade Kundinger said.
Kundinger is the executive director of the Cape Coral Construction Industry Association, or CCCIA, which represents hundreds of builders and contractors across the city.
“There (are) some really good people down at city hall,” Kundinger said, “but there (are) some inefficiencies down there that need to be addressed.”
That’s why, two months ago, the CCCIA wrote to state lawmakers sharing their concerns and research into the Cape Coral Building Division.
Among their allegations are that permit fees are inflated and that the process is confusing.
At the top of their concerns, they claim the division is breaking state law, which mandates that permit fees only fund the cost to operate the division.
The CCCIA alleges some fees have been diverted to unrelated expenses.
“We do believe that some of the money was set aside for hurricane overtime, some other things with the fire department during the hurricane,” Kundinger said. “That is the main concern.”
This week, State Rep. Mike Giallombardo shared those concerns and requested an audit, which a state committee approved.
It’s not clear how long the audit will take.
“This is a citizens’ issue,” Kundinger said. “We’re just trying to make sure this money is used in the correct way.”
A spokesperson for the city of Cape Coral sent the following response to Gulf Coast News:
“Audit Report 24-04 was conducted through full collaboration among the City Auditor, Finance staff and the CCCIA. While the 24-04 report was prompted by similar allegations, audits are not based solely on allegations. All recommendations from that audit have been addressed and the report is officially closed. The City will fully cooperate with this new request.
“Additional information:
“The findings from the ’24-04 Building Fund Audit Report’ addressed prior fund balance compliance, documentation practices, and payroll accuracy. Building Division staff worked diligently to comply with all recommendations, and have successfully implemented every audit action. The City Auditor’s Office has reviewed these improvements, and currently, none of the original recommendations remain open or unaddressed. “The City Auditor is independent from city staff, who report to the City Manager. Instead, the Auditor’s Office reports directly to the City Council, ensuring the Auditor can conduct honest and objective audits without outside influence. Decisions about what to review are made independently and based on risk, not at staff request, which protects the integrity of the process.”
DOWNLOAD the free Gulf Coast News app for your latest news and alerts on breaking news, weather, sports, entertainment, and more on your phone or tablet. And check out the Very Local Gulf Coast app to stream news, entertainment and original programming on your TV.