Fort Myers seeks yacht basin payments amid delay

Fort Myers is asking the company redeveloping the downtown yacht basin to pay the city $250,000 annually until the project is completed.

City Council on April 6 also agreed to extend the ground lease agreement between the city and developer Suntex Marina for another year while Suntex awaits federal approval to dredge and fill part of the basin.

Suntex Marinas was awarded the contract in 2023, before Hurricane Ian destroyed the marina. The original agreement was to manage the yacht basin, Mayor Kevin Anderson said. Suntex’s plans include up to 280 slips, a boat club, a marine store, fuel facilities and about 40,000 square feet of restaurant and retail space on the filled portion.

The lease runs 30 years with two optional renewals. Suntex must invest at least $30 million in improvements.

After nearly 45 minutes of discussion, Councilor Fred Burson made a motion requiring Suntex to pay $250,000 annually until the project is complete. The measure passed 4-3.

He said the amount reflects what the city previously generated each year from the yacht basin.

Burson said it was unfair for the city to go without income while the company delays work beyond what it originally promised, noting the yacht basin expansion was not part of its initial presentation.

Councilor Darla Bonk noted Suntex has faced delays tied to two government shutdowns, but Burson questioned whether federal regulators will approve relocating the channel.

“You got the smalltooth sawfish, you've got the manatees, you've got polluted water in the basin,” he said. “They need a way to flush that out, and if you think this is going to happen in the next few years, we're not being realistic.”

Anderson said April 7 that approving the payment does not mean Suntex must immediately pay the $250,000, adding the city should renegotiate the contract.

Suntex attorney Sawyer Smith said the item had not been published in advance of the meeting.

“We’ll deal with that later,” he said.

Any changes must be negotiated between Suntex and the city’s attorneys, Smith said.

Eric Metz, vice president of development for Suntex, told Council the project is making progress. The Florida Department of Environmental Protection has issued permits, and the Army Corps of Engineers has agreed to the setbacks Suntex is seeking.

“So, right now we’re expecting the Army Corps to get back to us on the final permit in the near term,” he said.

Receiving the FDEP permit has allowed Suntex to begin soliciting bids and vetting a general contractor.

“It’s taken longer, undeniably. But it's not for lack of effort, not lack of commitment,” Metz said.

Council voted 6-1 to approve the one-year lease extension, with Councilor Liston Bochette dissenting.

Council also tabled a vote on awarding RedSpeed Florida LLC a contract for automated school zone and red-light enforcement, opting to revisit the issue at a future meeting.