Council signals consensus to begin seawall work for yacht club; seeks private partners and RFI

Cape Coral City Council expressed support Oct. 22 for moving forward with construction of the seawall portion of the Yacht Club redevelopment and asked city staff to seek private-sector interest in operating or financing parts of the project.

Assistant City Manager Mark Mason and Facility Project Manager John Osterstock presented a multi-phase plan and cost estimates for the Yacht Club and adjacent community park. Osterstock said the salvage and marine package originally estimated at about $35 million "is gonna be about $35,000,000 plus inspection services" but staff trimmed the marine package to a smaller scope to avoid building docks that would sit unused. The reduced marine package was described as a $24 million option with roughly $2.2 million in estimated annual debt service. Osterstock described three major components: a marine phase (seawall, dredging, docks and boat ramp), an upland phase to install utilities, a harbor-master building and a parking garage, and a final phase to build the community center, concessions and a pool.

Mason summarized an overall project estimate of about $225 million and an illustrative financing plan that, if financed at once, would produce average annual debt service near $14.2 million. He said the city would likely carry some of the early debt and that revenues from a 3% public service tax option and projected marina/boathouse revenue would not be sufficient to cover early debt service without interim finance (commercial paper or internal loan). "This would include the construction cost as well as the $11,700,000 associated with design and inspection services," Mason told council, describing components included in the total estimate.

Council discussion focused on phasing, revenue risk and alternatives to municipal-only financing. Several members urged the city to seek a public-private partnership (P3) or other private investment to reduce taxpayer exposure; Council Member Kilroy and others said a P3 could accelerate construction and reduce escalation risk. Council requested staff to begin a broad solicitation for private interest; multiple council members favored an RFI (request for information) rather than a narrow RFP so the city could understand market interest for individual components (marina operator, parking garage, concessionaire) or a larger integrated partner. Council also indicated support for returning to committee to review redlines and financing scenarios.

Staff said the immediate objective is consensus to proceed with the seawall work and to finance the seawall on a short timeline using commercial paper until GMPs are available for upland work. No formal vote was taken; council and staff agreed to move forward with seawall procurement and to begin outreach to potential private partners.