CAPE MAY – Yet another shoe dropped in a controversy that has been swirling around Cape May for over a year. Former City Manager Jerry Inderwies Jr. has filed suit against the city, Deputy Mayor Stacy Sheehan, and current City Manager Michael Voll.
Inderwies’ suit also names Adam Gordon as a defendant. Gordon is the executive director of the Fair Share Housing Center (FSHC), a nonprofit with court standing in matters related to affordable housing.
The suit alleges that the defendants “disparaged and defamed” Inderwies, with the intent to harm his reputation in the community.
Inderwies, the son of a former city mayor, served as city manager following the resignation of Neil Young, who remained with the city as its chief financial officer.
Inderwies was appointed to the position Feb. 4, 2020. He served less than a year and resigned effective Jan. 1, 2021. Voll was appointed to succeed him. Voll’s appointment was initially interim, but the interim title was later removed.
Inderwies was in office during the worst of the Covid impact on the resort and played a major role in seeing the city through the many restrictions that were imposed to combat the pandemic. Throughout, Inderwies had a tense relationship with City Council members Zack Mullock and Sheehan. Mullock was elected mayor in November 2020. Council selected Sheehan as deputy mayor in January 2021, a position she has held since.
In the last months of 2020, Inderwies approved a series of bonus payments to six city employees, including himself. The bonus payments came from a trust fund created and maintained to support affordable housing development in the city.
What has been at issue is the work the six individuals performed that could have justified using the affordable housing trust fund as a source for the bonus monies.
The state Department of Community Affairs (DCA) was asked to review the transactions and responded that the use of the funds was a violation of the trust fund spending plan, which the city had negotiated with the FSHC as part of its court-approved fair share housing plan.
DCA returned the matter to the city, saying the state had no jurisdiction in a resolution of the matter.
The Cape May County Prosecutor’s Office was also asked to review the matter and responded with a letter, stating that no criminal charges would be brought.
Meanwhile, the FSHC insisted that the city reimburse the trust fund for the more than $100,000 in funds used for the bonus awards.
Recently, the city hired a special counsel to advise and help resolve the issues related to the disbursed trust fund monies.
Inderwies’ litigation adds new complexity to the ongoing controversy.
