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Bonita Springs council approves line of credit to keep rail-trail purchase on track
Summary
After hours of public testimony in favor, the City of Bonita Springs voted 6–1 to authorize staff to obtain a line of credit—up to $15 million—to preserve the Bonita Estero Rail Trail acquisition while grant decisions are pending.
The Bonita Springs City Council voted 6–1 on April 16 to authorize staff to secure an interim line of credit to support the city's potential purchase of the Bonita Estero Rail Trail corridor.
The approval gives city leaders the ability to draw interim financing while the project's sponsors and partners pursue state and federal grants and private donations. The action does not obligate the city to immediately draw funds.
Advocates filled the council chamber during public comment and repeatedly urged the council to act so the project would remain eligible for three upcoming grant rounds. "The commitment that you make today will increase the likelihood for success with grants from private, state, and federal levels," said Deb Orton of Friends of the Bonita Estero Rail Trail. Multiple business owners and longtime residents spoke about safety, health and tourism benefits.
Finance staff and the city's financial adviser presented options for interim and long-term financing. Julie Santamaria of PFM Financial Advisors told councilors the city is "in a very strong financial position" and outlined three examples: a 15-year bank loan, a 20-year bank loan and a 30-year public bond. Santamaria said a $15 million draw taken in full would translate to roughly $600,000 to $1.4 million in annual debt service depending on the final structure and term.
Councilmember Jesse moved to approve obtaining the line of credit; the motion was seconded (second not specified in the record) and carried in a roll-call vote: Councilmember Corey, Aye; Councilmember Fullick, Aye; Councilmember Fitzpatrick, Aye; Councilmember Bogaz, Aye; Deputy Mayor Purdon, Aye; Councilmember Carr, No; Mayor Mike Gibson, Aye. The clerk recorded the motion as approved, 6'to'1.
Mayor Gibson and other council members said the line of credit is intended to be a short-term tool to preserve grant eligibility and allow the city and project partners time to finalize fundraising. Finance Director Lisa Robertson and consultant Santamaria said the line of credit typically carries an undrawn fee and would be converted to long-term financing later if the city draws funds.
Supporters told the council the project could attract tourists, increase downtown business and improve safety for cyclists and students. "It will create a safe, vibrant corridor that welcomes bikers, walkers, runners, and nature lovers," Wolf Moon Cafe owner Clara Facilione said. Local business leaders and nonprofit volunteers described fundraising already under way and named specific statewide programs the project has applied for, including the Florida Wildlife Corridor, Florida Forever and the SunTrails Acquisition Fund.
Council discussion acknowledged the project's scale and the fiscal trade-offs. Councilmember Jim Magnus, a longtime project supporter, described the line of credit as a "signal" to grant-makers and donors. Councilmember Fitzpatrick and others asked staff to return with long-term financing scenarios during the city's FY2026 budget process.
Votes at a glance - Motion: Authorize staff to obtain interim financing (line of credit) to preserve acquisition options for the Bonita Estero Rail Trail; mover: Councilmember Jesse; second: not specified; Outcome: Approved, 6'to'1; tally: Yes 6, No 1 (Councilmember Carr). Notes: City will not necessarily draw immediately; staff to return with long-term financing options and explore bond rating/bond-insurance options. - Related council actions during the same meeting are summarized below (see "Other council actions" section).
Why it matters The council's vote keeps the city positioned to meet grant application deadlines in coming months while donor and partner commitments are secured. Backers said a local funding pledge increases competitiveness for state grants and private donations; opponents and some council members warned the city must ensure other capital and operating needs are not displaced if grant funding fails to materialize.
What's next Staff will proceed to place a line of credit and return to council with contract terms, draft long-term financing scenarios (bank loan versus bond), and recommendations about whether to request a municipal bond rating. Project backers and staff said they will continue grant applications and donor solicitations in parallel.
