Hoping to add “tools to its economic development toolbox,” the city of Cape Coral is asking voters to grant city council the authority to approve property tax exemptions for new and existing businesses that make a significant investment in the city and create jobs that meet or exceed the average annual wage here in Lee County.

Such businesses would need to meet criteria established by state statute, would have to apply to the city for the exemption, undergo a city vetting process and garner council approval at a public meeting.

Counties and municipalities are vested with the ability to grant ad valorem tax exemptions by both the Florida State Constitution and Florida Statutes provided voters within their jurisdiction approve.

Cape Coral City Council placed its approval referendum on the Nov. 8 General Election ballot. Voters will decide whether the elected board should be given the authority to grant exemptions to new and existing businesses that meet criteria established by the state statute and the local enabling ordinance.

If approved, the exemption would be limited in terms of both the amount of taxes that could be waived and duration.

The total exemption amount would be capped at $2 million annually and the exemption would sunset in 10 years unless Cape voters agree to extend that authority via a renewal referendum a decade down the road.

The program has been implemented by at least 38 counties across the state and 20 cities, including Tampa, St. Petersburg, Clearwater and Largo, according to the Pinellas County website. Other cities that offer the incentive include Sarasota and North Port as does Sarasota County.

Lee County does not.

Proponents of this type of tax break say it allows businesses to lower the cost of their investment temporarily while adding to the community’s tax base down the road. They also cite the benefit of job creation, which adds to the local economy.

Critics question whether tax abatement incentives actually stimulate economic growth as intended and touted, and cite studies that have found that such exemptions can result in other taxes being raised to compensate.

Here is where we usually would weigh in with our opinion formulated from researching those pros and cons, weighing the arguments, and looking at the local picture: The city’s existing incentive programs, how they have been implemented and whether Cape Coral taxpayers are getting the promised bang for the buck.

As with so many much more important things — homes, possessions of a lifetime, livelihoods and lives — Hurricane Ian left that formulated analysis in our pre-storm past.

For the question now is less about whether Cape Coral should dangle a property tax exemption before businesses looking to come here or greatly expand.

The question is whether the city should consider doing so now:

In the wake of the heavy hit to our tax base, which will be impacted by extensions for those paying taxes to fund next year’s budget?

With the prospect of lower or lesser post-storm property valuations — and city revenues — the year after that?

Whether, in the wake of storm-wrought devastation to property and infrastructure that is in the millions upon millions of dollars — city debris cleanup alone is estimated at $76 million — the city should waive up to $2 million per year in the short-term for a hoped-for long-term benefit of a more diversified tax base?

Or whether it would be best to devote efforts and resources to recovery — helping the city’s economy and valuations bounce back as quickly as possible by focusing on the businesses and residents who are looking to rebuild with the staggering costs that come with the process, despite insurance, despite FEMA funds.

And to let those businesses that can envision the benefits of that recovery — and want come in or expand to profit from it — pay their taxes.

The greatest incentive Cape Coral has historically had for both business and economic development is growth.

Our demographics — population and income — along with quality of life and the availability of land and infrastructure have been our city’s primary driver to draw business investment.

Demographics are the no-cost tool in the city’s economic development toolbox whereas lack of water and sewer infrastructure in the north Cape, and the lack of a direct I-75 interchange and other transportation challenges, have been the wrench.

So back to the question which, again, is less should City Council be authorized to grant ad valorem tax exemptions to qualified new businesses and expansions of existing businesses and more should such an exemption or exemptions be considered or granted now?

Whether this ordinance passes on Nov. 8, our answer is the same.

Our focus should be on recovery.

Our emphasis should be on building back.

Our priority should be on expediting the process.

And our goal should be dedicating the city’s limited resources to making these things happen.

–Breeze editorial