The Community Redevelopment Agency advisory board unanimously recommended approval of a tax increment financing (TIF) rebate of up to $5,662,906 for the Tolles Garden Lender Asset SPV LLC’s proposed 141‑unit affordable homeownership project in the MLK redevelopment district, contingent on a Lee County award of $19,500,000 in Hurricane Ian Community Development Block Grant–Disaster Recovery (CDBG‑DR) funds and completion of required environmental review. "The request before you tonight is for a recommendation for the CRA Board to approve tax increment financing in the amount of $5,662,906," Attorney Jennifer Fisher told the advisory board.

The project would convert an 8.2‑acre site at the southwest corner of Veronica Shoemaker Boulevard and Addison Avenue into 141 for‑sale condominium units targeted to income‑qualified buyers. Developer Stylianos Vallianos of Fuse Group Investment Companies said the team intends to deliver the design originally promised to the community and to keep all units within an affordability spectrum: 73 units at or below 80 percent of area median income (AMI) and the remainder up to 120 percent of AMI. "We are very, very much focused on completing it as originally designed and as originally promised to the community," Vallianos said.

Why it matters: the developer estimates total project costs at about $53.4 million and presented a capital stack that relies on construction financing, developer equity, the requested TIF rebate and a pending $19.5 million CDBG‑DR award from Lee County. Maxwell Hendry & Simmons’ financial analysis estimated a funding deficit of roughly $3.12 million after projected net sales; the TIF rebate stream over the CRA term totals $5.66 million and its net present value was presented as roughly $3.0 million under the assumptions in the study. Matt Simmons, who led the financial presentation, said the TIF rebate would be paid as annual increments over the remaining life of the CRA and that the developer is proposing a 95 percent increment rebate structure.

Board and staff emphasized conditions and next steps. Jennifer Fisher and staff said the recommendation and any eventual TIF agreement would be expressly contingent on the county finalizing a CDBG‑DR funding agreement and on completion of HUD‑required environmental review. Fisher summarized the CDBG‑DR process and compliance requirements, including recordation of restrictive covenants to preserve long‑term affordability, Section 3 economic opportunity requirements, Davis‑Bacon prevailing wage rules and a HUD close‑out deadline tied to the CDBG‑DR funds. She noted the county must close out those funds by November 2029 and that HUD will record affordability restrictions tied to the grant.

Board members pressed the developer on community outreach and risk of another start/stop cycle. Multiple members recounted a long history of stop/start activity at the site and asked how the current team plans to reengage residents, navigate marketing and prevent future delays. Vallianos and Michael Love, a developer team member, described past outreach in Fort Lauderdale and said they had met with local pastors, community groups and the police and fire departments to gauge interest and plan engagement. The developer said they have preserved civil permits and site approvals and would not begin marketing presales until funding agreements are sufficiently secured to avoid another community setback.

The advisory board moved to recommend approval on a motion by Vice Chair Holloway, seconded by Commissioner Coleman. The motion passed unanimously on a voice vote. The board’s action is a recommendation to the CRA Board of Commissioners; any final TIF agreement will require CRA Board approval and, separately, a funding agreement with Lee County for the CDBG‑DR award.

Next steps: the developer and county staff said they hope to reach a county funding agreement within a few months and to run the TIF and county incentive processes concurrently to shorten the overall timeline. If the county and HUD processes proceed as planned, the project team estimated it could begin horizontal work quickly and complete building permits and construction on an accelerated schedule; county and HUD environmental review timelines will affect that schedule. The CRA advisory board packet includes the developer’s affordability plan, financial analysis, references and cited pages from the MLK Redevelopment Plan that staff say show the Tolles Garden concept and site plan in the adopted plan.