Council explores downtown CRA to capture tax increment for recovery, members debate geography and governance

Frankie Kopacek, the town’s director of community development, updated the council on April 8 on a Community Redevelopment Agency study focused on Fort Myers Beach’s downtown district (Old San Carlos, Times Square and adjacent commercial areas).

Kopacek said the CRA study—performed with AECOM under a CDBG‑R planning grant—would test a statutory ‘‘finding of necessity’’ (showing blight/damage) and, if approved by the council and Lee County Board of County Commissioners, enable a TIF (tax increment financing) trust to capture incremental property‑tax revenue inside a defined district for reinvestment in infrastructure, streetscape and business redevelopment.

"The primary goal... is to take all the incremental tax that you would get," Frankie said, describing how the mechanism keeps growth above a base taxable value within the CRA trust to fund targeted improvements in the district. Staff noted the proposed area extends from Old San Carlos through Times Square and to Pearl Street and would initially exclude residential neighborhoods to prioritize commercial recovery.

Councilors broadly supported revitalization but raised substantive concerns. Several members urged clarity on who benefits: Councilwoman Link and others asked that CRA priorities include year‑round residents (infrastructure, workforce housing) not only tourism‑oriented redevelopment. Multiple members warned that TIF commitments are often multi‑decade and stressed the need to align CRA objectives with the town’s comprehensive and strategic plans.

Others questioned whether Times Square is the right initial focus: some councilors argued south‑end areas show greater service gaps and should share resources. Frankie responded that a CRA district can later be expanded or a separate TIF area established for other neighborhoods; he said staff has already had preliminary positive discussions with BOCC members and expects a draft finding of necessity to be ready for council review by the end of May, with possible action steps over the summer.

Legal and procedural issues were discussed: the town attorney advised that adoption of a CRA plan defines eligible projects and spending, requires public notice and statutory steps, and that the CRA functions as a dependent special district subject to council oversight. Several councilors asked that governance details be clear and that the council retain final decision authority on projects recommended by any CRA board.

Frankie said public stakeholder meetings and targeted outreach to affected businesses would accompany the study; staff recommended more detail on incentives, governance options and projected revenue tables before any vote. No formal action was taken; staff will deliver the draft finding of necessity and CRA study materials for council review in a forthcoming meeting.