City of Fort Myers agreed to sell the abandoned News-Press building for $11.5 million to a developer seeking to build residences, offices and a hotel on the site.
City Council approved the sale and a development agreement to Catalyst Community Development on March 3. The vote was 6-1, with council member Terolyn Watson voting no.
The agreement calls for Catalyst to build at least 580 residential units, 50,000 square feet of retail space, a 24,000-square-foot grocery store, 150,000 square feet of office space, a 140- to 160-room hotel and two parking garages.
The property covers 9.8 acres at the southwest corner of Dr. Martin Luther King Jr. Boulevard and Fowler Street. Besides the former News-Press building, the property includes an old city fire station. The city kept 2.4 acres on the south side of the property to build its police headquarters.
The city purchased the News-Press building for $8.9 million in 2019 with plans to turn it into a police headquarters, but the idea became too costly, so it went up for sale.
The multiuse development would be one of the key projects for the redevelopment of Midtown, the area south of downtown.
The project won’t start immediately, as the buyer has a 180-day due diligence period to inspect the property and 18 months to get the necessary permitting.
Council member Fred Burson questioned the timeline to get the project started. Catalyst President Joseph Bonora said the due diligence is complicated. Catalyst already discovered a stormwater line that needs removal and there is a question about what to do with the rail spur that runs through the property. He said construction will begin sooner than 18 months, depending how long it takes to get the permits.
Aaron Howard, owner of the adjacent property that houses the former school board building, and developer Jim Zabora asked for a 60-day extension. Howard said he wanted to see if his and Bonora’s visions align, or bring in his own development plan.
Zabora, who helped develop Lake Nona in Orange County and is building a 130-acre project in Cape Coral, is working with Howard.
“I believe that I can bring some experience to the table, hopefully in helping Joe and Mr. Howard reach a better plan,” he said.
Bonora said he needed the development order and sale before talking about collaborating because the people could become competitors and offer their own plan.
Watson said it would be worth the 60-day wait.
“It would be a disservice not to try to get the best offer,” she said.
Council also extended its agreement with Suntex, the company redeveloping the city’s yacht basin, for a year to April 1, 2026.
The company said the extension is needed because it’s still waiting for permits from the Army Corps of Engineers.
