Proposed $500 million ‘destination’ development
With the statutory “cone of silence” lifted, Cape Coral City Council heard details and saw visuals of the proposed Bimini East Redevelopment Project from Crown Development Wednesday, which garnered unanimous support for moving forward with a development agreement.
The plans calls for a pair of upscale hotels, a 45-slip marina, retail and office space; walkable space and eateries and 700-900 residential units.
The city began buying up parcels it deemed blighted following Hurricane Ian.
Following damage in the heavily-hit South Cape, City Manager Michael Ilczyszyn said he stepped in to try and figure out how to move past just rebuilding what was there.
In talking to developers, he said he found cost was the barrier to get access to property ripe for redevelopment.
“It was incumbent upon me and staff of how we remove that barrier to entry. By demolishing the already destroyed homes and putting the property back on the market for the land value and utilizing the TIF to pay that gap financing, that was the mechanism we put forward and then led to the ultimate acquisition and our resolution 259-24 for financial support to move this forward,” Ilczyszyn said.
A Tax Increment Financing agreement was created between the city and the South Cape Redevelopment Agency for the project.
Cape Coral City Council also acts as the board of Commissioners for the South Cape Redevelopment Agency. Ilczyszyn also acts as executive director of the CRA.
Tax Increments Financing is a type of funding that allows the use of the difference in property tax revenue between pre-development and post-development values to be used as development incentives or financing for projects within a CRA district.
Projects granted TIF funds are repaid only by properties within the district.
Ilczyszyn said the goal of Wednesday’s meeting was to get a consensus to draft the development agreement and TIF agreement from the CRA.
The Council workshop included a lengthy presentation full of visuals and a fly-over that depicted the plans of the project, which is still a work in progress.
Crown Development President Larry Nygard said they put together a really strong development team for the project, which includes Alessio Companies and Superhost Hospitality
“This is a once-in-a-lifetime opportunity to set the stage with downtown growth,” he said. “I think we have hit all the objectives set forth in the RFP (Request for Proposals.)”
The development site encompasses 33 acres, which is larger than what was initially envisioned, Nygard said as their proposal includes six additional parcels, and the park, to expand the project and enhance the opportunity to magnify the waterfront exposure.
“The development is designed in a way that it can be staged. We are not going to come in and develop 33 acres all at once,” Nygard said of a phased-in development over a 10-year period.
Rendition of the proposed Bimini East development project submitted by Bimini Basin Redevelopment Co. and lead developer, Crown Development, the developer of nearby Bimini Square. As presented to Cape Coral City Council Wednesday, the multi-use development concept calls for two nationally branded hotels with a collective 250 beds; 130,000 square feet of ground floor retail and dining; 310,000 square feet of medical and other office space; a public-access marina with 45 slips; 900 units of apartments and townhomes; a parking garage; an arts/culture bandshell, a “re-imagined” Four Freedoms Park and a new police substation. GRAPHIC PROVIDED
The development would include a big water feature that would be the “billboard for our development” to let individuals know they have arrived at Bimini East.
The development would provide walkable experiences, public spaces, and plazas with all roads and sidewalks leading to Four Freedoms Park on Bimini Basin, which, according to the plan, would transfer legal ownership of the park but would keep its “park” designation.
In addition, Nygard said they are providing pedestrian access that will connect with Bimini Square and the downtown area.
The highlight of the project would be “activating the waterfront.”
“Bimini Basin is a little jewel that very few people get to see,” he said, adding the project really amplifies that and enhances the heritage of Cape Coral and the idea of the canals.
The project includes a 45-boat marina. Nygard said there are still things to work out, next steps, but the current location they think is good to access the basin.
“The marina is a central part of the development and really the heartbeat of the commercial excitement down there,” he said. “What I would think is very important for us right now is to meet with representatives with the Army Corps (of Engineers) and assess their opinion of the project of the get go. This is the next step for us to get the questions answered.”
The project includes two upscale hotels — a Hilton and a Marriott.
As proposed, there is also about 130,000 square feet of retail space on the ground floor, 55,000 square feet of modern office space, and medical office space.
Another highlight of the development includes Canal Street which has visions of street fairs and art shows.
Nygard said there will also be diverse opportunities for the residential component to include condos, townhouses for rent and sale and apartments for rent. He said they are planning anywhere from 700 to 900 units.
As far as Four Freedoms Park, which sits on Bimini Basin, the idea is to enhance the space by adding a bandshell or other features that are attractive.
“Our intent is to convey the land of Four Freedoms Park to Mr. Nygard. Those restrictions flow with the land,” Assistant City Manager Mark Mason said — it has to remain a park and remain being called Four Freedoms Park.
The presentation also included a small multipurpose space and four, or four to five parking garages strategically placed, and wrapped by other buildings, throughout the property creating more than 2,300 vehicle stalls.
A public safety component is being added, a police substation, with the location still to be determined.
The development also took resilient aspects into consideration, such as elevating the entire site to get buildings out of the flood plain.
“All the infrastructure in the area is not usable and essentially will be demolition out and all new infrastructure will be installed,” he said that will be capable of withstanding hurricanes and water.
Mason also took the council through a presentation for the Bimini East redevelopment project. He presented the nonbinding term sheet, which will include further negotiations.
“The total project investment is $500 million over the life of the development,” Mason said. “The overall economic output is $751 million.”
The city will convey 22 acres to the developer, and following city negotiations and acquisitions of eight privately owned structures. The developer is negotiating purchase or relocation agreements with the existing ice cream shop, automotive shop, two bank properties and three multi-family structures.
Mason said the city will acquire the automotive shop and three multi-family structures at $11 million.
The developer will buy these properties as part of the total land deal for $26,292,325 million.
Incentives for the project were also addressed – $45.75 million cap for a TIF rebate, $5 million cap for impact fee credits up to $500,000 a year; $1.6 million cap for demolition rant reimbursements up to $200,000 for eight eligible structures and $1 million cap for shared cost of pedestrian promenade.
“When we looked at this and developed this term sheet, the one thing we were looking at over and above is it is a transformational project for the area,” Mason said. “The project and associated assistance directly fulfill the CRA Redevelopment Plan. We are going to be creating a pedestrian oriented, friendly environment within a 30-acre area.”
To reach MEGHAN BRADBURY , please email news@breezenewspapers.com