Fort Myers Community Redevelopment Agency Board of Commissioners unanimously approved a tax increment rebate request from JAXI CMD LLC for the development of The Royal Palm Hotel & Residences, 2424 Edwards Drive in downtown Fort Myers. The $30,170,000 tax increment financing will be broken up by three separate phases of the project.
The site is on a 2-acre parcel known as Royal Palm Towers in the historic river district, overlooking the Fort Myers Yacht Basin to the northwest.
The $187 million Royal Palm development project is expected to increase tax collections for the city but will need the city’s support to get off the ground. The tax increment financing rebate request will be used to attract the right investor base, facilitate the commitment from institutional lenders for a construction loan and bring the project to fruition.
The development team includes JAXI CMD and The Astor Companies, with the construction team being JAXI Builders Inc.
Eduardo Caballero Jr. presented the project to commissioners on behalf of JAXI CMD. “Our overall objective with this redevelopment is to help maximize mixed-use development with the multifaceted Royal Palm development project,” he said.
Phase one will focus on redevelopment and beautification of the current Royal Palm Towers, set to host 101 newly designed corporate suites. The first floor also will host a restaurant to increase foot traffic and promote business expansion in the area.
“Immediately thereafter we’re followed with phase two redevelopment, which provides a much-needed expansion to the town’s lodging accommodations for tourism and conventions,” Caballero said.
The second phase will focus on 253 full-service hotel rooms, which are expected to provide the necessary lodging to make the most of the Caloosa Sound Convention Center and Amphitheater.
Phase three will then feature 104 newly developed residences. The residences will be condominiums, which will allow the opportunity for ownership in the downtown area.
The tax increment rebate will be financed in the amount of $4.03 million in phase one, $15.98 million in phase two and $10.16 million in phase three.
Other features of the project include the addition of 347 new parking spaces and 7,000 square feet of retail and restaurant space.
Caballero also highlighted the direct and indirect job creation the redevelopment of Royal Palm Towers will bring, totaling 1,252 permanent jobs.
The project is estimated to be completed by the end of 2029, the development team said.
“By the time your project is done, it’s going to be such a transformational change to downtown and the river,” CRA Commissioner Kevin Anderson said. “Your project would definitely complement what’s going to happen at the yacht basin.”
The project also hits several CRA objectives, including maximizing mixed-use development, creating a variety of housing opportunities to increase the number of residents, attracting new businesses and encouraging projects that enhance the streetscape, pedestrian experience and improve the vitality of the redevelopment area.
