South Seas Resort owners win approval for development

The owners of South Seas Resort received approval from Lee County to build vacation accommodations on Captiva Island at a higher density than ever before in the island’s history. 

At a zoning hearing Aug. 6, Lee commissioners voted 3-1 to approve the owners’ request to rezone 120.5 acres at South Seas to permit development of hotels and a condo complex totaling 628 units up to 45 feet high.  

The decision overturns more than 50 years of precedent since previous zoning rules set in 1973 allowed three units per acre. Captiva Civic Association plans to continue its fight to uphold that rule in court.  

In addition to changes in density and height, the decision terminates all public access to South Seas, including its marina, restaurants, spa and golf course. 

Commissioner David Mulicka was absent, and Commissioner Mike Greenwell joined the meeting remotely by phone. Commissioner Kevin Ruane voted against the rezoning request, citing concerns over the increase in wastewater and its strain on the system that the development would create. 

“I’m struggling with the conversation with wastewater,” Ruane said, adding later, “Unfortunately, the math to me just doesn’t add up.” 

Eric Milbrandt, a research scientist with Sanibel-Captiva Conservation Foundation, said the increased density could lead to water quality problems, such as increased nutrients that could intensify algae blooms and hurt seagrass.  

The decision comes almost two years after commissioners approved and adopted land development amendments that allowed South Seas to ask for the boosts in height and density. Ruane also was the sole vote against those previous amendments. 

An investigative report published last April in Gulfshore Business found that the process played out in both private and public meetings with South Seas and county officials contradicting themselves on when discussions began and who initiated them.   

The commissioners’ decision two years ago set in motion an intensely debated public rezoning hearing process, finally leading to their approval of rezoning changes Aug. 6. 

South Seas was purchased in 2021 by Timbers Co., The Ronto Group and Wheelock Capital. Together, they formed a joint ownership group called WS SSIR Owner LLC. 

Hurricane Ian hit South Seas in Sept. 2022, about a year later.  

Last April, The Captiva Civic Association, or CCA, sued Lee County to prohibit South Seas from asking to build at a density greater than three units per acre or 912 units spread across 302 acres on the resort, claiming that the government violated previous agreements reached in 1973 and 2002. South Seas has said it wants to build up to 1,347 units, a 48% increase. 

Following that lawsuit, a Gulfshore Business investigation found that South Seas began discussions with Lee County about the land-use amendment at least six months before any public meetings took place. From July 2021 through 2023, commissioners also held nearly 33 hours of private meetings related to Captiva and/or South Seas. This timeline contradicts public statements by county officials and resort owners, who claimed county staff initiated the Land Development Code amendments. 

In July, the Lee County Hearing Examiner recommended approval of the rezoning, including 21 deviations from the Land Development Code. Chief Hearing Examiner Donna Marie Collins signed off on the recommendation. 

Technically, it approved of the resort owner’s request to rezone 120.5 acres to Mixed-Use Planned Development. It used to be zoned for Residential Multiple-Family, Marine Commercial and Two-Family Conservation.  

“The [Mixed-Use Planned Development zoning] preserves the traditional character, scale and tranquility of the resort,” a summary of the examiner’s recommendation reads.  

Terminating public access to the resort reduces the number of trips that the resort generates, the examiner found.  

Several speakers against the change at the Aug. 7 zoning meeting, including Sanibel City Attorney John Agnew and Mayor Mike Miller, called that finding a “fallacy.” They argued that guests at South Seas will travel to attractions outside the resort via its only road in and out and create traffic congestion and safety problems. 

“Without a doubt, an approval of this zoning application would adversely impact Sanibel,” Agnew said.  

South Seas also is pushing to hire hundreds of workers with plans to ultimately double its pre-Ian workforce of 400 to 800 employees. Many workers use the resort’s shuttle service to get to and from work. 

The zoning changes will boost county tax collections, said Alexis Crespo, vice president of planning at RVi, a landscape architecture company working for South Season. South Seas estimates that its planned developments, expected to be complete in 2029, will cause its property valuation to surge up to $653 million.  

South Seas owners are investing about $1 billion to rebuild the resort after Ian, said Greg Spencer, president of South Seas Development Group. Spencer argued at the zoning hearing that South Seas was “the standard” for resorts back in the 1970s and ’80s but that the changes in density and other improvements are needed to update that standard. 

“That’s what the consumer wants now,” he said. 

Commissioners agreed, with Brian Hamman saying the change responds to “what the market wants” and Greenwell calling it “an opportunity to do something special here.” 

Commissioner Cecil Pendergrass added, “Things change. It’s unfortunate, but things do change.” 

Captiva Civic Association members would likely agree with that sentiment. But they will continue to oppose the commission’s vote in court, said Lisa Riordan, president of CCA’s board of governors, after the hearing. 

“I was disappointed but (the decision) was not unexpected at all,” Riordan said. 

South Seas also is appealing a circuit court ruling that the 1973 decision limiting development on the property to 912 units is still valid. 

Spencer declined to comment on how legal proceedings might impact development plans. 

“We’re moving forward and planning for the future,” he said.