Two development companies asked for $22.4 million in increment tax rebates from the City of Fort Myers, in exchange for building new housing and commercial projects. The Fort Myers Community Redevelopment Agency (CRA) commissioners had lots of questions, but granted the rebates, to be paid over a period of time.
First Alessio Development wanted $11.4 million in rebates, in exchange for bringing businesses to the southwest corner of state road 82 and I-75. Company President Michael Alessio also promised to build hundreds of apartments and townhomes along 82, benefitting the Martin Luther King, Jr., Boulevard redevelopment area.
"The other guarantee is that we will spend $11 million to buy other properties in that corridor," Alessio told the CRA. And he added that his company would commit that money in the next 18 months, if the rebates are approved.
Attorney Sawyer Smith represented Alessio at the CRA meeting, and said revitalizing that area of the city is a driving force for the builder.
"We're going to bring development and bring jobs, and put money back into that corridor," Smith said. He and Alessio promised 600 permanent jobs.
These increment tax rebates used to be called tax increment financing. But many cities have changed the name to make it more clear: these are not hand-outs.
The rebates require the developer to first pay all taxes due, and then get a refund, based on increased property value. The redevelopment agency says the refunds usually last 15 to 20 years.
Commissioner Teresa Watkins-Brown cautioned her colleagues before the vote.
"We've got to be very careful in what we do," she said.
Fellow commissioners voted to grant the rebate to Alessio, but asked that the company sign a contract, promising to follow through with additional commitments.
Tiffany Vasquez says she lives near Martin Luther King Boulevard, and is tired of deals that she claims never provide affordable housing:
"How many homes sit empty?" she asked. "It's kind of a joke. Look at all those apartments they're building along 75 and Ortiz. They get incentives but the homes sit empty. It's really sad. You can't find a place around here that is affordable."
Next, the developer of a parking lot on Bay Street in downtown Fort Myers talked about rebates to build a 12-story, 98-unit apartment complex. It'd be called The Irving, and the Alzada Company wants $11 million in tax rebates.
Alzada President Rebekah Barney said rising costs make it impossible to build a quality project without the $11 million. She said the money is needed to put in green spaces around the 12-story building, and make it look like a park.
"With the green features and all, no, it can't be done," Barney said.
The commissioners voted yes to grant the rebates for the Irving.
Tim Ferguson is owner of Enjewel Boutique in Fort Myers, and said a vibrant downtown proves that incentives work.
"This is a prime example of how these rebates really pay off — our downtown is really developing," Ferguson said. "And I think without it, we probably would not have seen the revitalization of downtown."
WGCU is your trusted source for news. Mike Walcher is a Visiting Assistant Professor in the FGCU Journalism program. He also does some work for WGCU News. He can be reached at mwalcher@fgcu.edu