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CRA approves 24‑month phase‑out of South Cape exemption for unimproved parking, adds grant support
Summary
The Cape Coral City CRA voted to phase out an exemption that lets nearby businesses use unimproved lots for parking in the South Cape CRA. Staff said 18 businesses use the exemption but three — Dolphin Key Resort, Family Hardware and Tarpon AC — would fall out of compliance; commissioners approved a 24‑month phased approach and recommended grant support for required improvements.
The Cape Coral City Community Redevelopment Agency on Nov. 12 approved a 24‑month phased termination of an exemption in the land‑development code that has allowed businesses in the South Cape CRA to use unimproved or vacant lots as adjacent parking.
Zach Gogol, CRA project manager, told the board that the exemption (referred to in staff materials as exemption 'b') originated in 2005 and was later absorbed in ordinance 44‑25. "Eighteen businesses are currently using unimproved property for their parking purposes," Gogol said, and staff identified three — Dolphin Key Resort, Family Hardware and Tarpon AC — that would be out of compliance under the proposed change unless they used the phased relief or sought grants to complete improvements.
Gogol recommended a phased approach and grant assistance. Commissioners debated notification of affected businesses, whether the policy should apply citywide to avoid disadvantaging new businesses, and the length of a compliance window. Commissioner Gunther said the 24‑month phased approach coupled with grant assistance "gives them some opportunity" and recommended tying any ordinance to clear rules for future businesses. Commissioner Steinke said he opposed imposing undue strain on existing businesses and favored assistance alongside a sunset. The motion to adopt option 2B (a 24‑month phased termination) and include grant funding for Land Development Code (LDC) improvements carried on a roll call vote recorded as 7‑0.
What changes and why: Staff explained that the exemption eased minimum parking requirements for developments in the South Cape CRA by allowing nearby unimproved parcels, city parking lots and certain on‑street spaces to count toward off‑street parking. Removing the exemption will require some businesses to pave or otherwise improve their lots to meet minimum standards unless they receive grant assistance or use the phased compliance window.
Next steps: The CRA approved the recommendation and will forward the policy recommendation to city council (the CRA cannot unilaterally change the land‑development code). Staff said affected businesses would be given time to design, permit and construct improvements and that grant programs would be pursued to offset costs.
Votes at a glance: The CRA recorded and adopted multiple formal actions during the meeting, including adoption of the agenda and minutes; the consent agenda; appointment of Commissioner Lastra as CRA chair and Commissioner Kilraen as vice chair; approval of the CRA 2026 meeting schedule; and the parcel‑parking decision (24‑month phase‑out with grant support). The parking policy motion passed on roll call, recorded as 7‑0.
The board’s decision notes that 18 businesses currently rely on unimproved lots; staff said the phased approach would render only three businesses temporarily out of compliance if no additional assistance is provided.
