Advisory board recommends $13.6M increment rebate for proposed Tempo (Hilton) hotel

The CRA advisory board voted to recommend that the CRA Board of Commissioners award an increment rebate of $13,599,839 payable over 17 years to FTM Downtown Hotel LLC for a Tempo (Hilton) hotel proposed at 1st and Jackson streets in downtown Fort Myers.

Developer representatives from Wilbur Smith and the project team described an updated design for an 11-story, 175-room Tempo hotel (previously approved as a nine-story, 140-room project), including a rooftop pool and an agreement for 60 leased parking spaces at the Main Street garage. The developer requested a 95% tax-increment rebate; consultant Steven Beal reviewed the financials and recommended a lower figure after a market and debt-service scrub. Beal reported that a 95% rebate yields a gross increment of roughly $14.3 million but, after adjustments, his recommended 95% rebate amount was about $13.05 million paid over 17 years and calculated levered IRRs of ~9.2% without the increment and ~16.1% with it.

Board member Mike Doyle moved an amendment to lower the board’s recommendation to $13,599,839 for 17 years to align the advisory board’s action with the consultant's analysis; the development team accepted the revised amount. The amendment passed on a voice vote and the amended main motion was subsequently approved by the advisory board. Chair Eady emphasized that the advisory board’s vote is a recommendation to the CRA Board of Commissioners and that consultant Beal will deliver the same analysis to the commissioners.

The advisory board discussion included comparisons with past hotel TIF awards (Hampton and Luminary), questions about parking and feasibility, and recognition that state legislation under consideration in Tallahassee could affect the city’s ability to initiate new projects beyond certain dates. Staff and the consultant noted the PUD amendment and historic-preservation and permitting steps remain part of the project’s approvals process.