No funds for special events in CRA’s proposed budget 2026
City’s Parks & Rec Dept. would fund major events like Red, White & BOOM! & Bike Nights
South Cape Community Redevelopment Agency funding for special events has been eliminated in the CRA’s 2026 proposed budget.
The city of Cape Coral’s Parks and Recreation Department will fund select events in the CRA such as Red, White & BOOM! and Bike Night.
The matter came forward Wednesday in a budget presentation made to Cape Coral City Council sitting as the CRA governing board.
Councilmembers Dr. Derrick Donnell and Kieth Long were excused from the meeting.
Councilmemember Bill Steinke, sitting as the CRA Commission’s chair, said he knows CRAs across the state have come under pressure regarding dollars being used appropriately. He said appropriate dollars are those used to attract people to the CRA and support businesses that have events.
“That issue in Tallahassee has died for this year,” Steinke said, adding that he is certain the proposal to sunset CRAs will be brought up again next session. “If it (event funding) is not a challenge this year, why would we remove it this year?”
City Manager Mike Ilczyszyn, who also is the executive director for the CRA, said although funding via CRA funds was removed, they were able to fund the city’s special events through the general fund.
There would not be any funds for private events, he added.
Mayor and CRA Commissioner John Gunter said he would rather be proactive and move forward and be good stewards of tax dollars.
“There are many things that need to be done down there,” he said, such as improvements to sidewalks. “I think we should use the tax dollars in that fashion instead of trying to supplement expenses for a variety of events.”
“All we are saying is we are not going to use our tax dollars in order to supplement what those costs are,” he said. “You have the Rotary Club that has a fabulous event down there. They profit over $100,000 a year. Why should we be using tax dollars in order to supplement having that event?”
Councilmember Jennifer Nelson-Lastra said her only request in the interest of being proactive is to notify the organizations that the change has been made and why.
Budget Administrator Nicole Reitler provided an overview of the agency’s budget which, in 2025 was $7,290,687.
The proposed 2026 budget is $7,001,947.
The 2026 proposal is broken down into revenues and expenditures. Expenditures include personnel at $388,592, operating of $1,672,652 and transfers out at $4,940,703.
The board discussed some expenditures, including one passed unanimously.
The CRA will take $75,000 out of the decorative lighting funds and allocate those funds to a Founders Park dock project.
Gunter, who made the motion to reallocate the money, said the board has had discussions to put some type of catwalk down at Founders Park, a small neighborhood park along the Malaga Canal.
“We had a discussion, but I don’t see that particular project listed in capital improvement projects,” Gunter said of the four-foot catwalk for the park near Club Square. “My ask would be to try to come up with an estimate.”
He said the catwalk would be beneficial for boaters, giving them accessibility, which would expand their downtown area.
“We are pretty restricted when it comes to water accessibility,” Gunter said.
Ilczyszyn also touched on some recommendations of the city abolishing or eliminating the CRA in the South Cape.
“The major point of having a Community Redevelopment Agency under Florida Statute, not only for the city, but the county’s tax revenue is pledged to come into the CRA for redevelopment,” he said. “Counties would love for CRAs to go away, and cities would love for them to grow.”
Ilczyszyn said for every dollar they get, they leverage it and get a 100% return.
“We would be losing that leveraging,” he said. “The city would have to find a way to make all this to happen by ourselves without county tax support.”
Ilczyszyn said the ways the county contributes to Cape Coral most of the time results in the city clawing and fighting for county resources.
He said the CRA is a direct infusion to a specific area of redevelopment.
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