CAPE CORAL, Fla. — Cape Coral city staff is recommending moving forward with one of two competing proposals to redevelop the Cape Coral Yacht Club.
The City Council’s Committee of the Whole meets Thursday, Sept. 24, to review and compare two unsolicited Public-Private Partnership proposals for the Yacht Club redevelopment.
The city received the first proposal in March from the Yacht Club Development Group, which later partnered with Forest Development. A second proposal came in May from KMB Marine and Yacht Clubs of the Americas.
The recommendation, outlined in a city document, calls for negotiating with KMB Marine & Yacht Clubs of the Americas over a competing proposal from Forest/YCDG.
City staff cited several reasons for the recommendation, including a higher projected economic impact from KMB’s plan.
The Forest Development and YCDG proposal envisions a waterfront destination with a marina, a 4-star luxury resort-style hotel, automated boat storage, townhomes, retail, a community center, an expanded beach and public amenities. The proposal states an estimated total capital investment of approximately $250 million.
Forest/ YCDG site plan
Under that proposal, the city would be responsible for fuel tanks and dispensing systems, pool complex and beach reconstruction, seawalls, roadways, utilities and upland structures. The developer would fund the boardwalk, docks, hotel, retail, parking and automated boat storage.
Forest and YCDG are seeking a 99-year lease from the city with options to purchase the property outright, along with a separate 99-year ground lease for the hotel.
The KMB Marine proposal calls for a marina-resort redevelopment featuring 130 wet slips, 35 lift slips, a 685-space parking garage, a roughly 125-room hotel, a convention and community space, a restaurant, a poolside bar and a ship store. KMB puts its marina construction cost at $30 to $33 million, with hotel costs estimated separately at $53 to $88 million through Bowden Hospitality.
Under the KMB proposal, the city would be responsible for public boat ramps, upland areas, roadways, seawalls and beach reconstruction. KMB states it would fund marina construction entirely, with the hotel funded by Bowden Hospitality.
KMB//YOCA Updated Site Plan
KMB’s $33 million construction plan is projected to generate $48.85 million in total economic output, compared to $29.61 million from Forest/YCDG’s $20 million construction plan.
KMB’s proposal also keeps the land in city hands, with no real-property acquisition proposed.
City staff noted this is only a starting point, and if the committee gives direction to move forward, staff intends to negotiate a strong and fair agreement for Cape Coral residents before bringing any deal back to City Council for final consideration.
The proposal is set to be presented at the Cape Coral Committee of the Whole meeting Wednesday.