Cape Coral staff propose phased yacht‑club rebuild; council backs early utility and boat‑house work while weighing later phases

City staff presented a new phasing approach for the Cape Coral Yacht Club site at the committee‑of‑the‑whole meeting on May 27, saying the schedule is governed by contractual obligations and construction sequencing rather than community amenity preferences. City Manager staff and John Oster Stock, the facility projects manager, said the first priorities are seawall work (underway), underground utilities and life‑safety systems, followed by the fuel tanks and boat house so the concession can resume fuel sales and revenue generation.

James Pankin of Kimley Horn and others described how installing utilities around the marina basin puts the project at roughly 75% of site utility work; that, staff said, is a logical point to install docks and next‑stage civil improvements. Staff told council the city is obligated to provide fire flow, water, sewer, parking, stormwater and communications as part of the concession agreement with the boat‑house operator.

Staff estimated the immediate civil/utility and fuel‑tank work at about $38 million. The city’s finance presentation showed roughly $29.9 million in undesignated general‑fund balance at the start of the fiscal year and $10.6 million from the recently completed Seven Islands sale that could be applied to buy down general‑fund debt. Under staff’s recommended funding scenario, using that cash reduces the immediate debt requirement and leaves the city with an estimated $18.8 million financing need that would be covered by special‑obligation bonds and/or commercial paper with annual debt service offset by concession revenues.

Council members broadly agreed to prioritize phases that make the marina functional and generate revenue — seawall, utilities, the fuel tanks and the boat house — and to continue talks with potential private‑public partners for later phases such as parking, a community center and a resort‑style pool. Several council members urged the city to solicit or await the outcomes of unsolicited P3 proposals before committing to phases 3–9. Others, citing marine law‑enforcement and emergency‑services needs, argued the harbor master building (phase four) should be advanced sooner.

Council also pressed staff for specific cost backup — fuel‑tank vendor quotes, historical revenues from the prior boat‑house operation (staff said the boat house produced roughly $500,000 a year pre‑disaster), and a clearer breakdown of how any future operator arrangement would change the city’s debt exposure. The city manager said staff will present further funding scenarios at upcoming meetings, and council generally directed staff to proceed with the near‑term work while keeping final choices on larger amenities open pending P3 evaluations and a July report back.

The next procedural step is the formal bond ordinance and related resolutions, which staff recommended keeping authorized (not to exceed $65 million) while applying available cash to reduce the general‑fund portion of the debt. Council members asked that staff also model a sale‑or‑reserve option for the property (sell with deed restrictions for public beach/marina access) so taxpayers can compare buy, partner, or sell outcomes.

Why it matters: The Yacht Club site is a high‑profile waterfront asset at the center of competing priorities: restore marina operations quickly and generate revenue, or build the full set of amenities in one program. The city’s choice — cash‑fund vs. borrow, city‑built vs. P3 partner — will determine how much short‑term debt the general fund carries and how soon residents see new amenities.

What’s next: Staff will return with vendor quotes, revised funding scenarios (including commercial‑paper bridging options), and updates on unsolicited P3 proposals at the July 29 committee meeting; bond ordinances remain on the near‑term calendar for council action.