Commission splits on Palm River Apartments TIF request after consultant warns original ask was infeasible

Representatives for Palm Riverview Holdings, LLC presented a request for an increment rebate to support a proposed 279‑unit, five‑story residential project in the East Fort Myers redevelopment area. Megan Strayhorn, speaking for the applicant, said the team had revised its earlier request and was asking the CRA for "a 90% rebate of the annual increment revenues generated by the project and a not to exceed amount of $9,100,000." She noted the advisory board did not reach unanimous consensus and that HUD financing adjustments prompted the reduced request.

Consultant Joe Gromacki provided a detailed feasibility analysis and told the board the developer's original $13.8 million request was infeasible under conservative assumptions; he recommended a feasible participation range between $7.2 million and $9.1 million. "The TIF rebate in this case is used to increase the net operating income of the project," Gromacki said, explaining that the rebate can improve the project's debt-service coverage ratio and help attract HUD‑insured financing that would otherwise be unavailable.

Commissioners expressed concern about committing a large share of a new East Fort Myers CRA that has little existing increment, pressed for developer 'skin in the game,' and sought enforceable start-date milestones or performance bonds to prevent long delays. A motion to authorize a $7.2M capture failed on roll call, and a later motion to approve $9.1M with a 24‑month start requirement and an exit recapture (discussed at 2–3% then set to 3% in a draft motion) also failed as presented. The board agreed staff and the applicant should refine the proposal and return with clearer terms and safeguards.

Outcome: the TIF rebate request, as presented at the meeting, was not approved; staff and the applicant were directed to continue negotiating and to bring a revised package back to the board.