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Council grants one-year extension on yacht-basin lease; debate over $250,000 annual compensation continues

Fort Myers City Council · April 6, 2026
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Summary

Council approved a one-year extension of the ground lease amendment for the Fort Myers Yacht Basin with Fort Myers SMI LLC, after developer and council discussion about permitting progress. A separate council motion seeking $250,000 per year in exchange for extra time passed amid legal and enforceability questions; staff and the city attorney flagged the need for negotiated contract language and further legal review.

Council considered Amendment No. 2 to the ground-lease agreement for renovation of the Fort Myers Yacht Basin with Fort Myers SMI LLC (SunTex-affiliated developer). The amendment would extend the approval period by one year to April 1, 2027, after the developer described recent permitting progress including an FDEP permit and Army Corps coordination.

Eric Smith, a SunTex representative, told council the FDEP permit had been issued and that Army Corps and Fish & Wildlife items were in progress. "Our FDEP permit has been issued for the project... the big hurdles, in my opinion, have been overcome," Smith said, adding the firm expects next milestones to fall in the near term.

During debate, Councilperson Berson moved an amendment tying a payment of $250,000 per year to any extension of the approval period. That motion passed in the meeting's recorded votes; council then separately voted to approve a one-year extension as drafted. City legal staff cautioned that the extension language before council did not include the $250,000 payment language and that adding it would require negotiated contract amendments to ensure enforceability. The attorney also discussed force majeure claims tied to federal permitting delays and recommended management work with the developer to add clear reporting deadlines and protections.

Council directed staff and the city attorney to negotiate language reflecting council directives and to return with agreed contract language that resolves the legal points while the one-year extension provides schedule certainty.