Bonita Springs council OKs steps toward buying 5.8-mile rail corridor, authorizes up to $45 million for referendum planning

The Bonita Springs City Council voted to let staff finalize terms for the Trust for Public Land’s (TPL) offer to buy a rail corridor and to pursue a voter-funded bond to pay for acquisition and initial improvements.

Derek, a city staff member presenting the proposal, told the council the overall TPL purchase price for the entire corridor is $60,000,000 and that Bonita Springs’ 5.8-mile portion is priced at $28,500,000. He asked the council to confirm inspection conditions (survey and title work, environmental Phase I/II), appraisal expectations and authorization to prepare borrowing for a general-obligation bond, using a working figure of $35,000,000 and asking permission to explore options up to $45,000,000 for terms not to exceed 30 years. “An overall purchase price is $60,000,000. The 5.8 mile segment for the city is $28,500,000,” Derek said.

Why it matters: The acquisition would transfer existing leases, licenses and crossing agreements to the city, include deed and land-use restrictions intended to protect the corridor for possible future reactivation of rail service, and place the project in a rail-banked interim-trail status under Surface Transportation Board processes. Derek said his timetable anticipates council approval of contract language on March 25, a referendum on Aug. 18, and closing in October if inspections and other conditions are satisfied.

Supporters and partners at the meeting included Doug Hathaway of the Trust for Public Land, who said TPL is the buyer working to keep the corridor intact and would coordinate with Bonita Springs, Estero and Collier County. “I look forward to continuing our work with you and the village of Estero and Collier County and making sure this once-in-a-generation opportunity … becomes a reality,” Hathaway said.

Public advocates also spoke. Deb Orton, representing Friends of Burt, told the council the nonprofit has built outreach capacity and financial support, saying, “We right now have 4,100 Friends of Burt. The vast majority of those are here in Bonita Springs … We have 31 HOAs that have endorsed. We have 38 business sponsors.” The group asked the council to consider the outreach plan alongside contract and referendum timelines.

Council discussion focused on appraisal methodology, bond security and taxpayer impact. Several council members stressed the need for appraisals that reflect title and corridor constraints so underwriting and disclosures are accurate. One council member recommended retaining an appraisal reviewer such as CBRE to audit methodology and ensure the appraisal supports borrowing. Staff said they will require appraisers to have survey and title information and retain rights to a desk review or audit of the appraisal.

On financing and phasing, council members debated the amount to seek in a referendum and the trade-offs between asking for more money up front to build initial trail segments versus seeking a smaller amount to reduce sticker shock. A staff speaker said the city currently has $5,000,000 in the capital improvement program potentially available for initial work; the staff presentation outlined scenarios at $30 million, $32 million and $35 million and asked permission to model higher options. Derek told the council he had included a working estimate of up to $35,000,000 in his materials but recommended exploring up to $45,000,000 for planning purposes.

Council action and next steps: A motion to proceed with staff’s conditions on appraisal, due diligence and to explore borrowing up to $45,000,000 for terms up to 30 years passed on a roll-call vote called by the clerk; the council members recorded aye votes and the motion carried. Staff were directed to continue joint due diligence with Estero and Collier County, to work with bond counsel and a retained financial adviser to model tax impacts and borrowing scenarios, and to return to the council with final referendum language and dollar-impact estimates in April.

The council also approved a request authorizing the mayor to sign a draft letter requesting technical assistance to support nonprofit outreach and preparatory work (for IRS justification and related tasks) and confirmed staff may pursue additional, reimbursable due diligence as necessary under the joint memorandum of understanding.

What the vote does not do: The council’s action authorizes staff to finalize contract terms and to prepare financing scenarios and outreach; it does not commit the city to any final borrowing amount or construction plan, and no referendum or bond sale will occur without further council action and voter approval.

The meeting closed with staff confirming they will retain CBRE to assist with appraisal questions and will return in April with refined language and impact estimates for council review.