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CRA warns event grants could draw state scrutiny; city could pick up funding role
Summary
Staff warned that CRA funding for events (~$500,000) could attract legislative challenges and put CRA authority at risk; counsel said the CRA cannot route funds indirectly through the city, and recommended the city consider funding events instead.
The board examined an item asking whether the CRA should continue funding special events and discussed an interlocal approach with the city of Fort Myers and Lee County. Staff estimated the CRA's current event-related support in the downtown is approximately $500,000 and named recipients including the River District Alliance, Florida Repertory Theatre, and the Sidney & Bern Davis Art Center.
Executive director Hilton Terry cautioned that continued direct event funding risks renewed legislative attention; he told commissioners the CRA’s exception for event funding is being watched and could place CRA operations at risk if perceived as funding entertainment rather than statutory infrastructure and redevelopment expenditures. Counsel Clifford Shepherd replied that if the CRA cannot fund events directly, it also should not do it indirectly by reimbursing the city: “If you can't do it directly, you can't do it indirectly,” Shepherd said. He suggested the city could consider funding events from its budget (marketing, economic development or tourism) if the city attorney signs off.
Commissioners asked staff to coordinate a joint discussion with the city manager and attorneys to define an approach before the end of the fiscal year so event programs and sponsorships can be reshaped in next year’s budget.
