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Patriot Plaza Project: Revitalizing Economy through Strategic Development

Explore how Patriot Plaza Project aims to boost economic growth in Cape Coral by leveraging partnerships and strategic funding channels. Analyze revenue potential and community impact through mixed-use development and investment incentives.

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Patriot Plaza Project: Revitalizing Economy through Strategic Development

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  1. Artist Rendering VA Regional Outpatient Clinic • On target to be completed in 2012… Patriot Plaza Project Briefing Cape Coral Economic Development

  2. Patriot Plaza Artist Renderings

  3. City of Cape Coral Budget Headlines • Steep Declining Tax Revenue Value Base • 91% Of Revenue From Residential Housing • MSA Ranked Lowest For Recovery (100) • Major Competition For Limited Business • “In today’s troubled economy, making projects happen depends on the ability to create partnerships.” • “Communities need to start thinking outside of the box and consider new channels of funding and support.” Note: Quotes from 2010 “How You Build It Conference”

  4. Patriot Plaza Parcel 1 & 2 Taxable Value 3-Year Decline 2008 - 2010Parcel Value History for Parcel 04-44-24-C2-0013.0030 (frontage) and Parcel 04-44-24-C2-0013.0040 (rear) Source: Lee County Property Appraiser Tax Rolls

  5. Patriot Plaza Parcel 1 & 2 Total Land Tax Income Source: Lee County Property Appraiser

  6. POTENTIAL TO CHANGE REVENUE FROM DECLINE TO GROWTH • Patriot Plaza Site Raw Land Revenue $98,242 (08) • Patriot Zoned Commercial Raw Land $62,410 (09) • Lost Tax Revenue of $35,832 for Patriot Plaza Site • Assessed: $5,227,200 - $2,700,720 Down 48.3% • Conservative Estimate Growth > 10% = $2,970,792 • Moderate Estimate Growth > 25% = $3,375,900 • Aggressive Estimate Growth > 48% = $3,997,066 • Potential New Raw Land Tax Revenue: $69,652 (10%) $79,150 (25%) $93,714 (48%)

  7. Cape Coral Tax Roll Value in Billions139,428 Average Parcels (21 – 8.4) Source: Lee County Property Appraiser Tax Rolls

  8. Hope Hospice Ad Valorem Example Source: Lee County Property Appraiser Tax Rolls

  9. Patriot Plaza Project & Incentive Developer’s Project Summary City’s Incentive Summary $1,449,659 over 15 Years (not to exceed) Create Jobs Stimulate Economy Stop Declining Tax Base Increase Local Commercial Tax Base ($22,044,837) Net Cape Coral Revenue of $8,024,264 • 222,000 VIZ Mixed Use Sq ft • 154,000 Medical Related • 30,000 Hotel (110 Rooms) • 38,000 Retail Related • Equivalent Size to VA Clinic • Pay $1,758,230 Impact Fees • Promote VIZ Growth Now

  10. Patriot Plaza Project Development Objectives 222,000 Square Feet of Mixed Use Development Related Infrastructure Costs INCENTIVE Portion of Project (184,000 SF) Type SF $/FT/RM Total $ Hotel (110 Rooms) 30,000 2,520 277,200 Medical/Office 84,000 8.634 725,256 Rehab/Clinic Medical/Wellness 70,000 1.458 102,060 ALS/Fire/Police 184,000 3.124 57,482 Utilities 184,000 1.563 287,661 TOTAL 184,000 $1,449,659 NON - Incentive Portion of Project (38,000 SF) Type SF $/FT Total $ Pharmacy 14,000 5.709 79,926 Retail 10,000 5.709 57,090 Bank 4,000 9.06 36,240 ConvStore/ Gas Station 5,000 12.679 63,395 Fast Food 5,000 14.384 71,920 TOTAL 38,000 $308,571 TOTAL INFRASTRUCTURE COSTS FROM PROJECT $1,758,230

  11. Distribution of Ad Valorem Taxes& Projected Patriot Plaza Revenue Source: Lee County Property Appraiser Immediate ROI is > 21% $1,758,230 in Total Impact Fees Earned $1,449,659 Medical/Hotel Impact Fees $1,758,230 divided by $1,449,659 = 21.3% Plus New Tax Revenue:$22,044,837 Cape Coral 35% Portion:$7,715,693

  12. Incentive Return On Investment 308,571 Impact Fees – Retail Portion of Patriot Plaza 1,449,659 Impact Fees – Medical Office/Rehab/Hotel 22,044,837 Ad Valorem Taxes $23,803,067 Total – All Revenue Sources $22,044,837 X .35 (Cape Coral Ad Valorem Project Revenue) = $7,715,693 $7,715,693 Cape Coral’s Portion of Ad Valorem Taxes 308,571 Up-Front Non-Incentive Based Impact Fees 1,449,659 Up-Front Business Development Related Impact Fees $9,473,923 *1,758,230 Up-Front -1,449,659 Business Development Incentive $8,024,264 (Net Cape Coral Patriot Plaza Project Revenue) $8,024,26 /$1,449,659 = 5.54 (Investment Returned 5 ½ times)

  13. Financial and Related Benefits • Tax Incentive Finance Model (Establish Baseline) • No Change to Expected Revenues • Impact Fee Revenue Today • Business Development Difference • Immediate Payback for City • Reinforce and Support Bond Ratings • Raw Land Value Increases in VIZ • 51 Other Commercial Parcels Impacted • Recessionary Development & Jobs Today • Conservative Approach: $92 sf versus $199 sf

  14. Incentives (BDI) to Spur Growth Now • Council Chooses Business Development Incentive • Multiple Years to Payout Incentive (i.e. 15) • Build Larger Commercial Tax Base • Present versus Future $$ Value • Coincide with VA Center Timeline • Encourage Mixed Use Projects • Promote Development Now • Stop Downward Tax Spiral • Differentiates Cape Coral from Other Cities • Responsible Cost Effective Way to Push for Growth

  15. Recommended Action from Council Approve a BD Incentive of $1,449,659 (max) Rebate Based on Hotel & Medical Portions Tie Expectations to Actual Performance Only What is Built is Eligible for Incentive 15 Year Incentive Term (similar to TIF) Rebate Amount Limited to Difference (TIF) “QUESTIONS”

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