Bonita Springs weighs $35M bond for rail trail project

Bonita Springs residents may soon vote on city officials’ plan to finance a $28.6 million railway corridor purchase, along with millions more to begin construction of a multiuse trail with amenities along the site. 

The proposed referendum would ask voters to approve or reject a plan to fund a roughly $35 million general obligation bond, with debt service paid through property tax revenues over 20 to 30 years. 

Bond proceeds would cover the city’s planned Seminole Gulf Railway land acquisition and initial costs to begin building its 5.8-mile segment of the Bonita Estero Rail Trail, which runs through downtown. 

Bonita Springs City Council on April 1 held a first public hearing on the ballot measure. A second hearing is scheduled for April 15 to finalize the referendum’s terms or reject it. If approved, residents would vote Aug. 18. 

Bonita could partner with the village of Estero and Collier County on the broader 11.4-mile trail, which would extend from Estero Parkway to the eastern end of Wiggins Pass Road. The project is part of the larger Florida Gulf Coast Trail, which spans from Pinellas County to Collier County but remains incomplete. 

Although the plan is expected to move forward, all three governments could still withdraw from the sale before it closes. Each jurisdiction also will determine how to fund and construct its portion of the trail. 

City staff asked council members for direction on referendum language, including the bond amount and repayment terms. 

Councilor Jim Fitzpatrick said the bond should cover both the land purchase and at least part of the trail’s construction, estimated at about $35 million. 

“We need sufficient funds to purchase, close, plan and hopefully construct enough of [the trail] that can take somebody from downtown Bonita north to Arts Bonita,” Fitzpatrick said. 

Councilor Chris Corrie noted uncertainties surrounding the referendum, including future interest rates and projected property tax revenues. 

If the railway corridor sale closes as expected this fall, Seminole Gulf could take up to two years to remove existing rail infrastructure before construction begins. 

At a March 25 City Council meeting, PFM Financial Advisors Director Julie Santamaria outlined potential financing scenarios. 

Under current tax rates, a $30 million to $45 million bond with 20- to 30-year terms would cost an additional $49 to $88 annually for a resident with an average home value of $441,137. 

City officials also said a $35 million bond would equate to about $4.75 per month per resident over a 30-year term. The bond could be supplemented with capital improvement funds.