CRA approves TIF rebate for Tolles Garden 141-unit homeownership project, contingent on county funding

The Fort Myers Community Redevelopment Agency voted to approve a tax-increment financing rebate request for Tolles Garden Lender Asset SPV, LLC to support development of 141 affordable townhome units, pending the award of county CDBG-DR funds.

The motion to approve the request for a TIF rebate of $5,662,906 (requested as a 95% increment rebate) carried after a motion by Commissioner Geraldo and a second by Commissioner Watson. Commissioners expressed interest in advancing homeownership opportunities in historically under-resourced neighborhoods.

The project team said Tolles Garden would deliver 141 units with a mix of one-, two- and three-bedroom homes. Developers told the CRA that 73 units (about 51%) would be restricted to buyers at 80% of area median income (AMI), and the remainder would be limited by choice to 120% AMI as workforce housing. Developer representatives said site permits have been kept active and horizontal work could begin once the capital stack and federal environmental clearances are secured.

Developer representatives said the applicant is pursuing concurrent funding: the county’s CDBG-DR award (about $19.5 million) is the principal financing element and the CRA rebate is contingent on that county award. CRA staff and the applicant said they are running the applications in parallel because of timing constraints on the CDBG-DR NOFA and directed county action to assist in re-opening a second round of funding consideration.

Speakers at the podium stressed the project’s alignment with the CRA plan. Applicant Jennifer Fisher told commissioners the site is listed in the CRA plan (references cited from the plan) and that the proposed uses — redevelopment of infill property and affordable homeownership — are statutorily eligible under Florida Statute section 163.387(6)(c). Stylianos (Dr.) Vayanos of Fuse Group Investment Companies described Fuse Group’s experience and reiterated the developer’s readiness to proceed once funding is in place.

Commissioners noted the limited supply of for-sale affordable housing in Fort Myers and urged timely county action. Commissioner Burson said he strongly favored homeownership opportunities rather than adding to the city’s rental stock. Commissioner Watson moved approval of the TIF request citing the project’s community commitments and plan alignment.

The CRA advisory board had recommended approval prior to the CRA vote. CRA staff noted the requested rebate’s net-present-value monetization would yield a smaller construction gap figure (staff estimated about $3.1 million available for construction from the requested rebate amount) and that the 95% rebate request reflects that gap in the proposed capital stack.

The commission approved the request and instructed staff to continue coordination with county staff on the pending CDBG-DR award. Developers and staff said the project’s next steps depend on the county’s recommendation to the Board of County Commissioners and HUD-related environmental approvals.

The CRA’s approval authorizes staff to negotiate the rebate agreement consistent with the request and plan requirements; the rebate remains contingent on the county award and final agreement terms.