Developer seeks $5.66 million TIF rebate for 141 affordable for‑sale homes; approval made contingent on $19.5M CDBG‑DR award

The Community Redevelopment Agency (CRA) advisory board on Tuesday recommended that the CRA Board of Commissioners approve a tax‑increment financing rebate for the Tolles Garden project — a planned 141‑unit affordable for‑sale condominium development — in an amount not to exceed $5,662,906, contingent on Lee County awarding the project $19,500,000 in Hurricane Ian Community Development Block Grant–Disaster Recovery (CDBG‑DR) funds.

The recommendation follows presentations by the applicant’s attorney, developer and financial consultants detailing the project location at the southwest corner of Veronica Shoemaker Boulevard and Addison Avenue in the Doctor Martin Luther King Jr. Boulevard CRA district, the proposed unit mix and the capital stack. Jennifer Fisher, attorney for Tolles Garden Lender Asset SPV LLC, said the developer seeks a 95% increment rebate from the CRA to fill a financing gap if the county grant is approved.

The developer, Stylianos Vallianos of Fuse Group Investment Companies, said his company acquired the site via a deed in lieu of foreclosure and is committed to completing the project as originally planned. “We wanted to really bring it to fruition,” Vallianos said, adding the team plans a mixed‑income for‑sale community with 73 units targeted at up to 80% of area median income (AMI) and 68 units targeted at 80–120% AMI.

Matt Simmons of Maxwell, Hendry & Simmons reviewed the project economics and affordability analysis. He gave the total development cost as about $53,400,000 and the hard cost per unit at roughly $256,000. Simmons said anticipated net sales proceeds at closing total about $33.1 million, and that projected tax revenues once units are on the roll would generate an aggregate increment rebate pool of roughly $5.7 million over the remaining CRA term. Using an 18‑year horizon and a 6.5% discount rate, he said the net present value of the TIF rebate stream is about $3.0 million — approximately the size of the project’s identified funding deficit, which Simmons put at about $3.12 million.

Fisher and Simmons described how the requested TIF would work alongside the county CDBG‑DR funding: the county award would be negotiated into a funding agreement, then the county would perform required environmental review before HUD releases grant funds. Fisher noted the CDBG‑DR award would carry restrictive covenants and HUD compliance requirements (including Section 3 and Davis‑Bacon prevailing wage rules) that protect long‑term affordability and workforce opportunities. “HUD will record a restrictive covenant against the property,” Fisher said, noting the covenant is intended to prevent buyers from flipping units for profit and to ensure affordability over the grant period.

Board members asked about community outreach, prior starts and stops on the project and whether historically interested potential buyers have been recontacted. Vallianos said the team has reactivated permits and retained local partners, and Mike Love — a local member of the team — is assisting with reengagement of community leaders and outreach lists that were compiled under prior efforts. “We kept all the permits active,” Vallianos said, and said civil approvals are in place so horizontal work could begin quickly if the funding is secured.

Board members pressed for clarity on timing and disbursement. Fisher said the county is eager to move toward a funding agreement and that the project must meet HUD’s CDBG‑DR closeout deadline for Lee County grants, which requires the funds be expended by November 2029. Simmons said the county’s disbursement would likely be on a reimbursement or construction‑draw basis rather than a single lump sum; the CRA TIF rebate would be paid annually as increment is collected and could be distributed over the CRA term. The motion that passed explicitly conditions CRA action on the county award.

The advisory board unanimously voted to recommend approval; Vice Chair Holloway moved the motion and Commissioner Coleman seconded it. Attorney Ryan Knight participated online as legal counsel and confirmed the project team and staff had worked with the CRA attorney on eligibility determinations under state law and the redevelopment plan.

Project proponents highlighted additional supportive resources under discussion, including down‑payment assistance programs and bank products targeted to the local 33916 area; Fisher and Vallianos said prior commitments of down‑payment aid from the county and other sources will be revisited with current funders if the new developer proceeds. The project team estimated the construction phase would support roughly 310 jobs and the combined construction and initial operating phases would produce an estimated $88.5 million in economic output over the first several years.

The advisory board’s recommendation will go to the CRA Board of Commissioners for final action. If approved by the CRA board and if Lee County finalizes the CDBG‑DR agreement, the developer intends to complete financing and begin horizontal work with the goal of moving toward vertical construction and unit sales within the county and HUD timelines.

Votes at a glance: The advisory board voted unanimously to recommend the TIF rebate request; motion by Vice Chair Holloway, second by Commissioner Coleman.