Cape Coral Council approves Grove incentives, budget amendment; reconsiders contested rezoning and advances boathouse talks

CAPE CORAL CITY — The Cape Coral City Council on Aug. 20 approved a revised development agreement and related incentive package for the Cape Coral Grove mixed‑use project, adopted a $23,953,471 amendment to the fiscal 2025 budget, approved a reconsidered ordinance changing the zoning of a small parcel (Ordinance 37‑25), and heard an update on stalled negotiations with the Boathouse restaurant operator.

The council unanimously approved Ordinance 30‑25 (the amended and restated Cape Coral Grove development agreement) and the companion economic participation agreement (Resolution 1‑62‑25). City staff presented a reduced project scope after the developer removed parking garages; staff said eligible enhanced value recapture (EVR) costs dropped from $122,900,000 to approximately $86,400,000 and the total incentive award was revised to $96,437,702 (figures from the developer presentation and staff memo). Economic development staff and the developer said reimbursements are performance‑based and will be paid only as new taxable value is delivered to the tax roll.

Why it matters: City officials said the Grove project is intended to bring large new commercial investment and jobs; the council’s approvals authorize the performance‑based structure that will reimburse a portion of new ad valorem taxes for a set period if the development is built.

Council also adopted Ordinance 41‑25, the third budget amendment for fiscal 2025, which increases total revenues and expenditures by $23,953,471 and raises the adopted budget from $1,160,000,000 to $1,180,000,000. Staff said the increase reflects previously approved items and new grant receipts, including nearly $9 million in state funds for an emergency operations center building and additional design funds for the Oasis Sports Complex; other adjustments include an economic development reserve and funding for existing sidewalk projects.

The council reconsidered Ordinance 37‑25 — a land‑use rezoning the council had previously failed on a 4‑4 vote — and after public and council debate approved the ordinance on reconsideration. Council discussion focused on neighborhood fit, the parcel’s long‑term role as a commercial node, and how future traffic and land‑use changes at the nearby intersection could affect residents. The motion for reconsideration passed 7‑1; the subsequent ordinance motion passed with more than a simple majority (the transcript reports the motion carried after recorded votes).

On the Boathouse matter (a privately operated waterfront restaurant), the city manager told council administration remains committed to working with the operator to rebuild the restaurant but said no settlement agreement had been signed by the operator by the initial deadline; city staff have initiated the procurement process for demolition if necessary. The Boathouse’s attorney, Greg Truxton, said the parties met earlier that day with city legal staff, the applicant had submitted redlines on Aug. 15, and he expected another revised draft from the city attorney’s office; he said, “We are working diligently” and that the parties expect to resolve remaining issues before the council’s Sept. 6 timeline.

Other votes and land‑use actions: The council approved two quasi‑judicial plats/vacation items (Resolution 185‑25 and Resolution 238‑25) that vacated small portions of right‑of‑way and platted easements; both motions passed with unanimous recorded votes. On the consent agenda the council approved a resolution supporting a local light‑manufacturing business expansion (Resolution 230‑25) and a separate resolution recognizing Sun Broadcasting’s properly permitted park display (Resolution 249‑25); both were approved by the council. A privately initiated future‑land‑use amendment (Ordinance 29‑25) to convert several Pine Island Road District parcels to single‑family was denied by council vote (the roll call recorded one aye and seven nays).

What council members asked for: Members pressed staff for clarity on the Grove project’s performance benchmarks, the schedule tying incentive payments to completed construction, and the budget amendment’s use of reserves for sidewalk work. Multiple council members urged the Boathouse operator and the operator’s supporters to keep negotiations at the bargaining table rather than on social media.

The meeting also included routine quasi‑judicial hearings, roll calls and procedural motions, and a 60‑minute citizens’ input period during which residents raised code‑enforcement grievances and public‑records questions; council members directed staff to follow up where appropriate.

Looking ahead: City staff said they expect further negotiation materials on the Boathouse matter before the council’s Sept. 6 deadline and will proceed with demolition procurement if an agreement is not finalized. The Grove development remains performance contingent; incentive payments will be made only as new taxable value is created and certified.