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Council extends approval period for Fort Myers yacht basin redevelopment after Corps delays
Summary
City council granted a one-year extension to Apr. 1, 2026 for Fort Myers SMI LLC (Suntex) to complete approvals for a marina and upland redevelopment, citing delays at the U.S. Army Corps of Engineers and continued city-developer negotiations about bond repayment timing.
The City of Fort Myers voted March 3 to extend the approval period in the ground lease for Fort Myers SMI LLC (Suntex) by one year, moving the approval deadline to April 1, 2026, to allow more time for federal permitting by the U.S. Army Corps of Engineers.
City staff explained the underlying ground lease, executed April 1, 2023, includes an “approval period” intended to give the developer time to secure necessary federal, state and local permits. Assistant City Manager John Leggett said Suntex submitted permit applications to the Florida Department of Environmental Protection and the Army Corps and would not meet the current April 1, 2025 deadline because the Corps’ review was taking longer than expected.
Suntex representatives urged the council to grant the extension. Sawyer Smith (counsel) and Eric Matz (Suntex) described the Corps process as the primary delay and said they have engaged congressional staff to help speed the review. Matz urged patience and said the company’s plan includes “a promenade, recreation, outdoor dining and waterfront activity” that the Corps must evaluate carefully.
Councilmembers pressed Suntex on contract obligations tied to a city bond on the yacht basin. Councilmember Persons sought assurance the city would be made whole if the project were to be delayed for many years; he said the city has been paying debt service on the bond and cited roughly $187,000 in interest the city has paid since the ground lease was signed. City attorney and the developer clarified that the lease requires Suntex to repay the bond sum upon commencement (operational occupancy) and that the commencement date is defined in the lease and may be subject to written waiver by the lessee in certain cases.
Councilmember Berson said he would vote against the extension unless Suntex provided compensation for interest accrued on the bond; other councilmembers said the delays were outside Suntex’s direct control and supported the extension. The motion to extend the approval period passed on a roll-call vote with one no vote.
The extension preserves Suntex’s rights under the lease while the federal permitting process continues. Suntex must complete additional environmental, geotechnical and design studies, and the parties continue to negotiate timing for bond repayment tied to commencement of operations.
