CRA approves up-to $13.6 million TIF rebate for proposed 175-room downtown hotel with start-by condition

The Fort Myers CRA on April 23 approved a tax-increment financing (TIF) rebate for a proposed 11-story, 175-room hotel at 1st and Jackson Street. The development team requested a not-to-exceed TIF rebate figure of $14.2 million (a 95% increment request); CRA consultant Steven Beal ran scenarios and estimated a 95% payout of approximately $13.5 million. After discussion about timing, height approvals and appraisal uncertainty, the board approved a rebate package not to exceed $13,600,000 and attached a requirement that construction begin by June 2026 or the incentive will expire.

Terry Kramer and developer representatives described a construction schedule that assumes site activity before the end of the calendar year and a planned groundbreaking in February 2026 under the optimistic timetable. The developer said hurricane-driven cost increases required design changes and an 11-story plan to reach financial viability. Kramer and the consultant explained that the final annual rebate depends on assessed values and millage rates in future years; Rachel Smith said the $14.2M request is an upfront planning estimate and actual payouts will vary with future appraisals.

Board members negotiated a lower cap than the developer requested and emphasized that the rebate is payable only after taxes are assessed and paid; consultant Beal noted delays reduce the total payout because incremental payments begin only when the property first appears on the tax roll. Commissioners also discussed off-site parking arrangements, historic-preservation and PUD approvals required to reach the 11-story design. The motion to approve the $13.6M cap carried on a voice vote (motion by Commissioner Anderson; second by Commissioner Berson).