A conceptual rendering shows the main entrance of the proposed Fort Myers police headquarters. City Council approved a construction contract for the project on July 20.
Fort Myers government
Fort Myers City Council locked in a construction contract for a new police headquarters, strengthening public safety infrastructure for years to come. But homeowners may pay for it through the city’s first property tax increase in more than a decade unless officials find other revenue sources.
The 182,000-square-foot headquarters at Fowler and Market streets is expected to cost $147.2 million, according to the city’s latest estimate.
That includes a $109.1 million contract with Wharton-Smith Inc. to manage construction at 2150 Fowler St., which Council unanimously approved during its July 20 meeting. Construction is expected to begin in September and finish by late August 2028.
Fort Myers Director of Financial Services Christine Tenney said the city plans to issue $125.9 million in bonds to finance most of the project. The plan also assumes the city will receive $11.25 million from the sale of the former News-Press site to Midtown Catalyst LLC, which is in the due diligence period through Nov. 11.
The future Fort Myers police headquarters will be built on city-owned property at the corner of Fowler and Market streets. Construction is expected to begin in September.
Evan Williams
A typical 30-year repayment at 4.6% interest would cost about $7.82 million annually in debt service.
“Keep in mind that this is not something we have available in the general fund budget,” Tenney advised council members. “So, we will be looking at raising our millage (property tax) rate, perhaps, to cover that debt payment.”
If 60% of voters approve Amendment 3 in November, Tenney said Fort Myers may need an even larger millage increase or additional fees to cover the debt. The amendment could reduce city revenue by an estimated $15 million annually by increasing nonschool homestead exemptions to $250,000 in 2028 and limiting commercial property tax increases.
That projected loss exceeds the city’s estimated annual debt service of $11.3 million, which includes both the new headquarters and another $45 million in capital project debt, Tenney said.
In recent months, city officials discussed delaying construction to prepare for potential revenue losses if Amendment 3 passes. Ultimately, every council member supported moving forward, calling the headquarters a necessity.
“We have to do what we have to do when it comes to the police department,” council member Terolyn Watson said.
Fort Myers City Council meets July 20, when members unanimously approved a construction contract for the city’s new $147.2 million police headquarters.
Evan Williams
Like governments across Florida, Fort Myers is setting its millage rate as it prepares the fiscal 2026-27 budget. Council members will hold public hearings later this summer and fall before adopting a final tax rate and budget ahead of the Oct. 1 start of the fiscal year.
The city’s current millage rate is 6.5 mills, or $6.50 per $1,000 of taxable assessed value after exemptions, such as homestead. That equals about $650 annually on a home with a taxable value of $100,000.
Fort Myers has lowered its millage rate each year for the past decade.
At the city’s current property values, adding 0.6515 mills on top of current rates would cover the police headquarters debt service alone but not the city’s other capital improvement debt, Tenney said.
That estimate also does not account for Amendment 3, which could require even higher tax rates or additional fees.
A conceptual rendering illustrates the planned Fort Myers police headquarters from the Central Avenue and Market Street perspective. The project is expected to be financed primarily through bonds.
Fort Myers government
State law allows the city to increase its property tax rate to 110% of the rolled-back rate with a two-thirds vote. Based on the current rolled-back rate of 6.6455 mills, that would allow an increase to 7.3112 mills. With a unanimous vote, Council could raise the rate as high as 10 mills.
While an increase that large appears unlikely, council members may be more willing to consider higher rates if Amendment 3 passes. The measure requires approval from 60% of Florida voters.
The amendment would increase the homestead exemption from $50,000 to $150,000 in fiscal 2027-28 and to $250,000 the following year.
A conceptual rendering depicts the Market Street side of the planned Fort Myers police headquarters. The facility is expected to open in 2028.
Fort Myers government
City staff estimated in March that 43% of Fort Myers’ $13.93 billion property tax base receives a homestead exemption. Those properties generate about $87.2 million annually, funding 48% of the city’s general fund, which pays for services including police, fire, parks and other infrastructure.
If Amendment 3 is approved, the city estimates it would lose between $8.4 million and $14.3 million in annual residential property tax revenue. It also would lose another estimated $1.4 million annually because the amendment would reduce the annual assessment cap on commercial and other nonhomestead properties from 10% to 5%.