Collier seeks proposals for Port of the Islands site

Five years after razing the long-abandoned Port of the Islands Resort & Hotel, Collier County will seek proposals for development of the nearly 7-acre site in the Everglades. 

The 1960s-era hotel, at 12323 Union Road, 23 miles southeast of Naples, closed in 2013 after years of lawsuits and mounting debt. 

The Board of County Commissioners was set to approve a proposal for affordable housing this week on the consent agenda, but Vice Chair Bill McDaniel Jr. asked for a discussion, suggesting they broaden the county’s options. 

Collier County obtained the property at a county auction in January 2020 for $1,239.80 after it drew no bidders. Graffiti artists and others had vandalized the exterior, hallways and hotel rooms, causing unsafe conditions. Because so many years had passed, millions of dollars in debt, tax and other liens were erased under state law. 

In October 2020, commissioners paid Fort Myers-based Honc Destruction to remove asbestos, demolish the hotel and backfill the property off Tamiami Trail East. It was razed in January 2021 and, since then, the county has paid about $8,000 for mowing and other upkeep. 

At this week’s meeting, Cormac Giblin, director of housing policy and economic development, told commissioners that County Manager Amy Patterson received an unsolicited proposal in March from an affordable housing developer interested in building a fully affordable housing project on the property. 

Records show that letter came from Ryan Hyler, a partner of South Carolina-based Styx Cos., which is renovating the former Golden Gate Inn and Quality Inn & Suites Golf Resort into 230 affordable, contemporary studio apartments. Noting Styx’s “established track record of delivering high-quality affordable and workforce housing communities” in the Southeast, Hyler suggested a partnership in which Styx leases the property and develops it. 

“We believe the Port of the Islands site presents a compelling opportunity to address Collier County’s critical affordable housing needs, and we are committed to working collaboratively with the county to structure a transaction that achieves shared objectives,” Hyler wrote, adding they’re ready to move quickly. 

Since then, Giblin told commissioners, the county has received additional interest from other affordable housing developers. In a memo to commissioners, he outlined evaluation criteria that would be included in an invitation to negotiate, including affordability restrictions, such as units priced below 60% of area median income, which is $113,600 in Collier County; targeted residents, such as essential service personnel, veterans and seniors; and the duration and enforceability of affordability requirements.  

Other criteria include the ability to leverage external funding sources, such as bonds, private equity and state programs including LIHTC and SAIL; demonstrated financial feasibility; hurricane resilience and environmental sustainability; a strong track record of developer experience and project delivery; and a clear timeline with readiness to proceed. 

Giblin said staff is recommending the county issue the ITN. However, McDaniel asked to consider other options. 

McDaniel said he does not want the county to move forward with an invitation to negotiate based solely on an unsolicited proposal. Instead, he urged commissioners to broadly market the property, including placing a for-sale sign on-site, to attract a wider range of potential uses. He added that the opportunity should remain open to all types of development, not limited to housing. 

Commissioner Rick LoCastro, whose district includes the property, agreed, saying increased competition would be beneficial. 

The ITN’s intent was a long-term lease for $1 in return for building and managing affordable housing, but after further discussion, Giblin said the ITN would seek proposals for lease or purchase and ask developers to bring their best offer. McDaniel made a motion, and commissioners unanimously approved that. Giblin said ITNs are usually put out for 30 days, depending on the interest the county draws. 

Port of the Islands opens out onto the Faka Union Canal, the Gulf and the Ten Thousand Islands. As a result, the hotel drew interest from northerners. However, it had a sordid history, according to historic Florida groups Abandoned Florida, Southwest Florida History and others. 

Gulf American Land Corp., founded by developers Leonard and Jack Rosen, who developed Cape Coral in the late 1950s and early 1960s, built resort complexes on both sides of Tamiami Trail. In 1967, the company constructed the hotel as Remuda Ranch, marketing it as a destination where wealthy northerners were flown in to invest in and purchase land in Golden Gate, despite the lack of utilities, public services or firm construction commitments. Prospective buyers were shown the success of Cape Coral, but Golden Gate ultimately proved to be largely swampland, in what became one of the largest land sales scams in Florida history and prompted state intervention. 

One promotional postcard described the property as “a bit of Old Spain,” highlighting an upscale Spanish-style ranchero with a clubhouse hacienda, guest accommodations and a 150-boat marina, along with amenities, such as riding stables, a quarter-mile racetrack, hunting dog kennels, shooting ranges, swimming pools, a health club and access to hunting and fishing. 

The property was later subdivided, and only the successful Port of the Islands Everglades Adventure Resort remains today.