Council approves loan subordination to let Peace River Wildlife Center seek interim construction financing

PUNTA GORDA, Fla. — The Punta Gorda City Council voted Feb. 25 to approve a loan subordination agreement that will allow the Peace River Wildlife Center to seek an interim construction loan up to $3.2 million against its leasehold interest while the city retains fee-simple ownership of the land.

City attorney Leskovich told the council the subordination is “procedural in nature” and would give Synovus Bank notice and a 30-day cure period if Peace River were in default, but would not transfer the city’s ownership of the property. “There is almost zero financial risk for the city with this,” Leskovich said, describing the lender’s rights as limited to the leasehold interest and confirming the city would preserve a reversionary interest in improvements at lease termination.

Why it matters: Peace River has been working for more than a decade to relocate and rebuild after storm damage; the nonprofit’s leaders said delays and rising costs have forced them to seek bridge financing so construction can begin before pledges arrive. Council members pressed for full financial disclosures and clearer timing for phase 1 completion before approving an extension of the certificate-of-occupancy deadline.

Bridal LaPointe, Peace River’s CEO, told council members the organization had raised roughly $3.6 million in pledges and contributions and already invested about $1.3 million in site work. “We don’t believe we’re going to draw the full $3.2 million,” LaPointe said, adding that some pledged funds and city-constructed parking improvements reduce the amount they will need to borrow.

Several council members asked whether a foreclosure could allow a bank or assignee to change the use of the property. Leskovich and Peace River’s counsel said the ground lease contains assignment and non-disturbance provisions that would require any new lessee to operate the site consistent with the lease’s public-purpose requirements. Leskovich said the bank “steps into the shoes” of the lessee but does not acquire rights to use the land for other commercial purposes without the city’s approval.

Council concerns and adjustments: Councilmembers repeatedly asked for clearer documentation about the loan terms, the amount Peace River expects to draw, and the organization’s pledged revenues. Some members urged a workshop so staff and Peace River could present full financials and an updated construction schedule; others argued the procedural subordination should not be delayed because the organization is near closing and Hurricane season is approaching.

Outcome: The motion to approve the subordination agreement passed on a council vote (motion and second on the floor; council recorded majority approval). Council also directed the city manager to place a separate item on a near-term agenda to consider a certificate-of-occupancy extension after Peace River has closed and can provide an estimated completion schedule.

What’s next: Peace River said it could close shortly after the subordination is executed and would then return with a requested CO extension with precise milestone dates. The council asked staff to provide loan documentation and any bank-underwritten financials for the public record before any future extensions are approved.