Sanibel officials approved a rare increase in density for a multifamily housing project at 1523 Periwinkle Way, an exception made to increase the city’s stock of workforce housing.
Sanibel City Council voted 4-1 to approve a conditional use permit for the city’s affordable housing provider, Community Housing & Resources, to construct a three-story, 39-unit apartment building. It represents a 333% increase in density, or 30 units more than allowed under current rules in the commercial district.
The project, Riverview II, is set to adjoin CHR’s Riverview I, or Harkey House, a 15-unit workforce housing apartment that is now under construction.
Unlike most votes, actions to increase residential density on Sanibel require a supermajority, or at least four of the city’s five council members to agree.
Sanibel council member Laura DeBruce addresses the city’s strict density rules during discussion of the proposed housing development.
Sanibel government
“(One) of the most important components of our Sanibel Plan has to do with the density on our island, because we are in fact a wildlife sanctuary committed to conservation on our island,” council member Laura DeBruce said. “Because of that, we have a very strict rule about when we can increase density.”
The permit requires CHR to provide below-market-rate housing for Sanibel Island workers on the site, previously occupied by the now-vacant Fish House restaurant. Applicants will be required to earn 80% or less of the area median income, according to CHR.
Council members debated the plan for more than six hours March 31 before casting their votes. The discussion reflected challenges many Florida communities face as they seek to develop affordable housing, often requiring complex financing structures involving public investment, grants, loans and higher-density construction.
A rendering depicts the proposed Riverview II project, a 39-unit workforce housing development planned adjacent to an existing Community Housing & Resources property.
Sanibel government
Council’s decision paved the way for CHR to accept a $9.75 million grant to fund land acquisition and development of the project. Sanibel staff worked with Lee County officials to approve the amount, equivalent to $250,000 per unit, using federal Hurricane Ian recovery funds awarded to the county.
Lee Commissioner and former Sanibel Mayor Kevin Ruane was among many public speakers at the March 31 meeting who urged council members to approve the increase in density or risk losing the grant funding.
The grant requires CHR to complete and lease the Riverview II apartments by May 2029. Otherwise, the grant could convert to a loan the city would have to repay. City staff said that is unlikely because of the need for workforce housing.
Vice Mayor Holly Smith cast the sole dissenting vote, suggesting a revised plan for a two-story, 26-unit building instead.
Project renderings show a three-story, Old Florida-style apartment building surrounded by vegetation and set back from Periwinkle Way.
Sanibel government
CHR Executive Director Nicole McHale said losing one floor would reduce the expected return on investment by 30%, while construction costs would decrease only 15%, likely preventing underwriters from approving the project.
CHR also plans to develop about 2,000 square feet of commercial space on the site in the future, which would require Council approval.
Sanibel staff found the increase in density is consistent with the city’s development code, which allows higher density to incentivize below-market-rate housing, and is compatible with “the character of the community.” The city’s Planning Commission previously approved the plan in a 5-1 vote.
Council added a condition requiring applicants at Riverview II to work at or own a business on Sanibel Island or a Sanibel-affiliated business on Captiva. That also may include retirees or disabled individuals who worked at or owned a business on the island for at least 20 years.
Immediately after approving the conditional-use permit, council members also voted 4-1 to approve a list of variances required for construction, including vegetation buffers and other site details, with Smith again dissenting.
The former Fish House restaurant site at 1523 Periwinkle Way is planned for redevelopment into workforce housing.
Evan Williams
A CHR traffic analysis showed the 39-unit building would generate less traffic than the former Fish House restaurant.
Plans call for the 45-foot-tall building to sit above a parking garage with 61 spaces. Located on 2.6 acres, renderings show an Old Florida-style design with 600-square-foot apartments, set back from Periwinkle Way and surrounded by extensive vegetation.
Most Sanibel workers do not live on the island, according to CHR. In a poll of local businesses, CHR found workforce housing is “critical or very important,” with many businesses reducing hours or services due to staffing shortages.