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. GRAPHIC PROVIDED<\/p>\n
The Bimini East project has advanced to the final step for approval.<\/p>\n
The Cape Coral City Council held the first of two required public hearings Wednesday for the $500,000 project that will include 900 residential units, 250 hotel keys, 210,000 square feet of medical office, 55,000 square feet of general office, 130,000 square feet of ground floor retail and a marina with 50 boat slips.<\/p>\n
Three linked agreements \u2014 the developer\u2019s agreement, purchase and sale agreement and lease agreement \u2014 were moved forward.<\/p>\n
\u201cA project of this magnitude and duration requires trust in the developer,\u201d Councilmember Bill Steinke said. \u201cWe need to increase our commercial base, get the tax burden off our residents \u00ad- that\u2019s a project like this. I put my trust in someone to come in our city and do this type of work \u2014 this type of magnitude on the usability of our city, amenities available to our citizens, and take the burden they take on in contributing the requirements of the city. There is no one I would rather get into a deal with that Crown and Bimini Base Redevelopment.\u201d<\/p>\n
The negotiated agreements are between the city, landowner and municipal service provider and Bimini Basin Redevelopment Company LLC, the purchaser and project owner, and Crown Development Inc., the developer.<\/p>\n
Steinke said everything the city has asked for has been given, with the city being more of the taker.<\/p>\n
For those who expressed concerns that the project might come to fruition once all is said and done, City Manager Michael Ilczyszyn said the developers have a solid reputation.<\/p>\n
\u201cListen, these developers that are here that have put this proposal forward are well known in Southwest Florida. We are not dealing with a team that is not proven. I would expect they would know very soon whether or not this will work,\u201d Ilczyszyn said.<\/p>\n
Crown Development President Larry Nygard reiterated their commitment, saying they devoted hundreds of hours into the process to this point \u2014 a 180-page document. <\/p>\n
\u201cI hope we have proven ourselves as a reputable partner and someone who works both ways,\u201d Nygard said. \u201cThe developer has to have confidence in the city. Some of what I saw tonight was not exciting for me. It really was concerning. Everybody that I have worked with has had the best interest of the city in mind. To be accused of something different than that has upset me.\u201d<\/p>\n
He told council he is just a phone call away.<\/p>\n
\u201cI want to do what is right and what is good for the city, but I have to run a business too,\u201d Nygard said. \u201cWe are affecting a half a dozen other businesses in that area wondering what is going on. There are other lives impacted.\u201d<\/p>\n
Bimini East is to be built on acres the city assembled and purchased. The city has an interlocal agreement with the South Cape Redevelopment Agency to reimburse the city with the acquisition costs.<\/p>\n
The developer\u2019s agreement runs with the land.<\/p>\n
The time period for the development milestones states the development agreement will take effect within 10 days after the purchase and sale agreement is entered. <\/p>\n
Within six months after closing, the developer will submit the first phase civil-engineering permit applications, including the marina.<\/p>\n
Within 24 months the first phase will begin, followed by commence balance of the core area 24 months following. By Oct. 1, 2032, the CO or temporary CO for any vertical improvements will be made to avoid repayment trigger.<\/p>\n
Assistant City Manager Mark Mason said the agreements include an expedited review, paired with the developer\u2019s payment.<\/p>\n
\u201cThe developer agrees to pay personnel costs associated with the review \u2014 full time onsite staff if requested \u2014 we will bring on separate staff to do that work,\u201d Mason said. \u201cThe developer pays, and provides, workspace associated with that.\u201d<\/p>\n
The closing depends on environmental diligence and two development gates \u2014 parcel-control gate and marina gate.<\/p>\n
Project development <\/p>\n
Mason said the 34-acre project carries a $500 million estimated investment.<\/p>\n
The mixed use development includes a maximum of 900 residential units with townhomes and apartments permitted; approximately 250 hotel rooms; 150,000 to 200,000 square feet of medical; minimum of 120,000 square feet of commercial; 50 boat slips, which requires slip transfer of approximately 20-25 units; and at least 2,000 garage spaces \u2014 up to four parking garages; bandshell; and public open space amenity areas.<\/p>\n
The marina, he said, will include at least 50% for public use and up to 25% for boat rentals, or ferry service. The developer will also operate and maintain the city\u2019s installed mooring field.<\/p>\n
A dockage charge will be permitted.<\/p>\n
Steinke asked about the boat slip transfers and where those might come from.<\/p>\n
Mason said they are currently working with the county.<\/p>\n
Ilczyszyn said with the manatee protection plan, they are not allowed to consolidate boat slips that have a higher classification of manatees. He said they have properties in different zones that are already developed with the highest around D&D and Sirenia Vista Park.<\/p>\n
Ilczyszyn said they will look at Sirenia Vista Park, as there will never be boats there due to the warm water manatee congregation. He said they will not take away from any future ability.<\/p>\n
The parking will include 480 spaces permanently dedicated for public use and that parking charges are permitted.<\/p>\n
There is also a 99-year lease for the use of Four Freedoms Park at $1 per year. <\/p>\n
Mason said the city will retain the name and public recreational use convent.<\/p>\n
\u201cWe are leasing Four Freedoms Park. It will be altered, but will still be a park. We are also going to have another acre of land within the 20 acres we own that will be a park that will have two tennis courts plus a playground within it,\u201d he said.<\/p>\n
All of the services offered at Four Freedoms Park are being permanently moved.<\/p>\n
Ilczyszyn said there is a similar transition plan as to what took place for the programming at the Yacht Club. He said they are moving all the programs to the South Cape Community Center at Presbyterian Church.<\/p>\n
\u201cThe one thing is the day care. Because it is not a state-approved facility for that type of program, we are looking for an alternative,\u201d he said. \u201cI have not been told by parks that program is lost.\u201d<\/p>\n
Ilczyszyn said they are looking for the nearest facility to continue the program.<\/p>\n
\u201cIf we don\u2019t have something close enough for the family, that will be the choice on them to go to somewhere closer,\u201d he said.<\/p>\n
There also will be a police substation of at least 4,000 square feet, and an agreement to stage emergency vehicles three days before, during and two days after an emergency, disaster under a separate agreement.<\/p>\n
The financials<\/p>\n
As presented, the mixed-use project will be built on approximately 34 acres total.<\/p>\n
The developers will pay the city $22.4 million for the 20.1 acres the city owns, plus another two acres to be acquired by the city through the South Cape Development Agency at a cost of $5.5 million each.<\/p>\n
The original 20-plus acre parcel is comprised of 47 individual properties that the city bought site by site following Hurricane Ian at a cost of some $45 million. The total appraised value of the 22 acres is $42,999,504.<\/p>\n
The land-lease agreement calls for the city and the developers to enter into a 99-year lease for $1 per year for Four Freedoms Park on the Bimini Basin, which offers direct access to the Caloosahatchee.<\/p>\n
The project moved into a final negotiation phase last month after the city council approved a key funding element. The council, sitting as the Community Redevelopment Agency board of commissioners, approved a $45.7 million tax rebate for the project.<\/p>\n
According to the Tax Increment Financing agreement, the rebate will run annually through 2042 or when $45.7 million is met, to be paid on a pay-as-you-go basis. Officials said this means the rebate is self-funded and self-generating by capital improvements that are performed<\/p>\n
On Wednesday, Mason put the total city land purchase price at $24.3 million, which he said is the value of the property as appraised, and agreed upon through the development.<\/p>\n
The price will be paid down on a phased approach.<\/p>\n
\u201cFor each time they pull a permit, or some other time when they sell a piece of property to someone else, it triggers the payment for the cost of the land on a prorated basis, a square foot basis,\u201d Mason said. \u201cIf not all the properties are paid for at the end of 10 years, they are required to pay the remainder of the amount at the end of 10 years.\u201d<\/p>\n
Bimini will sign a promissory note and mortgage at closing \u2014 with the note being no-recourse, foreclosure of unreleased land.<\/p>\n
Mason said there is a $1 million security deposit applied to the first phase payment \u2014 $250,000 due within two days of closing and $750,000 due five days after the development agreement closing conditions are satisfied.<\/p>\n
The triggers following for phased payments will occur before vertical constriction, and before the issuance of the building permit to commence it.<\/p>\n
\u201cBefore the permit is issued, the payment must be made,\u201d Mason said.<\/p>\n
He said once the developer agreement is signed, to do anything on the site, the developer has to own the land, hold a mortgage of $24 million for 10 years.<\/p>\n
A transfer trigger is also built in regarding if a portion of the 20 acres is sold.<\/p>\n
Mason gave the example of having an agreement with a hotel that wants to own the land, rather than lease.<\/p>\n
\u201cThey would turn around and sell a piece of the property to the hotelier. From that sale it triggers them to pay us for that particular parcel,\u201d he said.<\/p>\n
Mason said the CRA also will fund two pending acquisitions totaling $11 million.<\/p>\n
\u201cThe developer is purchasing the property \u2014 $5.5 million will go towards the purchase of the Trumbell (Apartment) and $5.5 million for George\u2019s Garage,\u201d Mason said.<\/p>\n
If there is no certificate of occupancy by Oct. 1, 2032, Bimini will repay the disbursed funds within 30 days of the city\u2019s written demand.<\/p>\n
The agreement also includes three incentive caps and conditions \u2014 TIF rebate at a 95% rate with a cap of $45.75 million; impact fee credits of $500,000 per fiscal year and $5 million aggregate cap and demolition assistance up to eight structures for up to $200,000 each.<\/p>\n
\u201cAs a reminder, if you don\u2019t go vertical, you don\u2019t get value. You don\u2019t get any TIF. You have to move forward with the development to recoup the developer\u2019s investment of the property,\u201d Mason said.<\/p>\n
There is also a commitment for public infrastructure improvements constructed by the developer. Those include a pedestrian promenade with a 50% city share of costs \u2014 $1 million city cap from city mobility fee funds; Coronado\/Miramar equal share with a $1.5 million cap per party; Victoria Drive stormwater; utility contributions; and Coronado streetlights.<\/p>\n
Mason said the developer will deliver 99.9% of the onsite infrastructure.<\/p>\n
He said the developer\u2019s agreement also includes a Community Development District option \u2013 the use to sell tax exempt infrastructure bonds to put in roadways within the project area. The city will have one seat on that CDD board.<\/p>\n
Nygard said they are spending millions of dollars to develop the site and make it desirable for such hotels as Marriott. He said it is about energizing the area, to attract others to come to Cape Coral.<\/p>\n
\u201cWe are investing a lot more than what you see in this document,\u201d Nygard said.<\/p>\n
The second and final public hearing will be held at 4 p.m. Wednesday, Oct. 21, in City Council chambers, at 1015 Cultural Park Blvd., Cape Coral.<\/p>\n