Council approves $109.1M GMP for new police headquarters, staff warns of annual debt service impact

The Fort Myers City Council voted to approve Amendment No. 1 to the police headquarters contract, authorizing a guaranteed maximum price (GMP) of $109,143,562 with Wharton Smith Inc. The vote carried with no opposition after a lengthy staff presentation on project costs and financing options.

"The total project cost is now $147,200,000," Chris Tenney, director of financial services, told the council, and said a 30-year level principal-and-interest repayment at the example rate used in the presentation would produce roughly $7,820,000 in annual debt service for that single project. Tenney warned that additional projects and existing borrowing could push combined annual debt service higher, and said council may need to discuss millage adjustments and other revenue measures such as police impact fees.

Council members asked whether delay would change pricing or financing. Tenney said subcontractors and equipment are already staged and that postponing the GMP could increase costs; he also noted refinancing opportunities in the future. Councilperson Geraldo emphasized the project is part of a larger neighborhood transformation and asked staff to ensure the public understands the projects’ interdependence.

The council action authorizes the city to move forward with construction financing and project execution under the approved GMP. City staff said additional discussions on the millage rate and debt-service strategy will occur in upcoming budget workshops.