talking about the Preserve at all .
“ There is pending litigation between the Preserve … and the Town of Richmond , so at this time I will respectfully decline your invitation to discuss the development ,” Town Planner Shaun Lacey wrote to me in an email .
Mihailides doesn ’ t address the lawsuit specifically , but acknowledges that one of the hardest challenges he ’ s faced is “ overregulation .” He points to his other business ventures in different states , namely Florida and the Carolinas , where “ everyone rolls out the red carpet .”
“ They show you the quickest path to success ,” he says , comparing it to opening night of the David Burke restaurant , when he says the R . I . Health Department showed up at 6 p . m . to do an inspection . “ It ’ s so unbelievable to me ,” he says . But the Preserve is no stranger to legal battles . A review of state court cases shows the company filed excessive tax lawsuits against the town ’ s tax assessor in 2021 and 2022 .
Also in 2022 , the Preserve sued National Grid — which has since been bought by Rhode Island Energy — alleging the resort had “ encountered power supply and delivery failure ” that damaged its electrical equipment .
Other lawsuits filed against and from former business relationships , guests and other companies are either pending or have been closed . McDaniel is the latest to join the fray , and her attorney Gagliardi — who declined interviews with himself and McDaniel — suggested there could be more on the horizon .
“ You should know that one victim has already reached out to Ali since we filed suit indicating she wanted to make a written statement detailing her experience at the Preserve ,” he wrote in an email .
McDaniel ’ s twenty-nine-page lawsuit is riddled with graphic details of alleged encounters she had with Mihailides over the years after she began working with him beginning in 2019 . The accusations include him making unwanted sexual advances toward McDaniel and other female employees , even referring to her in front of guests as his “ mistress ,” “ future ex-wife ” and “ girlfriend ,” according to the lawsuit .
In one instance , McDaniel accused Mihailides of entering her cabin on the resort while she was showering , even though the door was locked .
“ When McDaniel yelled at Mihailides asking what he was doing in her cabin , he stated that he was just making sure that she was awake ,” McDaniel alleged in the lawsuit . She explained the experience made her so distressed she “ placed objects in front of the door to alert her in case Mihailides entered while she was showering or sleeping .”
The lawsuit also includes communications McDaniel said she had with other women , including one who alleged Mihailides told her , “ You ’ re so empathetic , I bet you ’ re amazing in bed .”
“ That was one of the many horrifying and disgusting things he said to me ,” the woman added , according to the lawsuit .
The 170-page response filed on behalf of Mihailides points the finger back at McDaniel , painting her as a disgruntled contractor who tried to cozy up to the Mihailides family for financial gain , and then turned on the company and owner after it didn ’ t work out as planned .
The company also highlights that she took similar legal action in a case involving pop icon Justin Timberlake when she worked as a bartender and waitress in 2007 , alleging she “ became the subject of vile and discriminatory conduct , and of a hostile working environment , because of her gender .”
McDaniel alleged Timberlake and others “ engaged in and allowed others to engage in the viewing of internet pornography on the restaurant ’ s premises , in [ her ] presence and to her extreme emotional distress and humiliation .” The case was settled .
In the Preserve case , where McDaniel is seeking $ 3.3 million in damages , Benjamin argued McDaniel ’ s allegations were “ false and malicious and imputed conduct which injuriously affects Mihailides ’ s reputation , tends to degrade him in society and brings him into public disfavor and contempt .”
The claims and counterclaims so far are taking the predictable form of “ he-said , she-said ,” making it challenging to know if McDaniel ’ s experience will become part of the growing number of subordinates speaking out against superiors in a post-Me-Too world . But Gagliardi suggested McDaniel could be just the tip of the iceberg at the Preserve .
“ We expect more women to come forward and possibly more lawsuits to be filed ,” he wrote in an email in July .
‘ THE CENTER OF NEW ENGLAND ’
THE LAWSUITS have had a chilling effect in the community , as several residents were willing to discuss the Preserve for this story — but only off the record out of fear of getting called into court .
Mihailides declined through his attorney to discuss the McDaniel lawsuit , but he said in
April he believes his relationship with the town is getting better because it “ finally realizes that this concept is a sustainable , great model .”
There are some with local power who agree , including Town Councilor Michael Colasante , a staunch supporter of the Preserve . He tells me he doesn ’ t like how the town pushed back at Mihailides at the beginning , arguing it sends the wrong message that Richmond isn ’ t business-friendly at a time when it desperately needs a bigger tax base .
And because the Preserve members mostly use properties as second homes , or places they visit for a week or month at a time , Colasante argues the company doesn ’ t put a strain on local infrastructure or put children into local schools — making it a win-win for the town budget .
“ Paul is a visionary ,” Colasante says , telling me he ’ s known Mihailides for years .
“ Unfortunately , the town of Richmond has been running in a certain direction for the past decade and a half ,” he says . “ People have very little vision if any vision at all . They are reluctant and they don ’ t understand it . When you start having big players come into town , like Paul , the discussion really goes to a higher level .”
But people like Peixinho , who — like many at the Preserve — own a second home , are wary of Mihailides and what they claim is his business practice of always fighting and trying to find ways to pay less when it comes to taxes .
“ They have to be good neighbors and being a good neighbor means paying your taxes on time and not appealing every tax assessment ,” Peixinho says . “ I ’ m not against the Preserve , I ’ m just concerned about the pattern I see .”
For his part , Mihailides looks beyond how he fits into Richmond and focuses more on how the Preserve fits into the regional , national and global community . He points to glowing writeups in Forbes and other publications , such as Travel + Leisure , that have highlighted the Preserve for its unique offerings .
“ No one is really spending the kind of money to do what I ’ ve done anywhere in America — never mind in Richmond , Rhode Island , which I think is the center of New England ,” he says .
What Mihailides has failed to answer over more than the decade he ’ s been planning and building the Preserve , however , is whether Richmond wants to be the center of New England .
Eli Sherman is an Emmy- and Edward R . Murrow- Award winning reporter with the CBS affiliate WPRI-TV . He ’ s a member of the station ’ s Target 12 investigative team . 🆁
156 RHODE ISLAND MONTHLY l SEPTEMBER 2023