This week, the Cape Coral City Council approved a nearly $3 million incentive package to Continental Properties to build a 5-story, 112 room Marriott Townplace hotel on NE 8th Terrace.
The project cost is estimated to be $29.1 million making the incentive package a 8.3% return on the construction cost which will be paid back as tax rebates over 15 years. The incentive package includes: an enhanced property value recapture grant of $1.5 million, a site improvement grant of $770,000, an impact fee credit of $176,000.
Staff and City Manager Mike Ilczyszyn pushed hard for approval of the inventive package because of what the city was getting in return. As part of the deal, 2 floors of the hotel will be used as a City Emergency Operations Center if needed during a declared weather emergency. As the hotel is built a city-purchased $350,000 generator will be built into the hotel building which will power the 37 rooms on the first two floors. When Ilczyszyn was questioned why the city just didn’t strateically place other generators at different hotels around the city, his answer was that only one other hotel, The Fairfield Inn, is outside the flood plain.
The City Manager also highlighted how difficult it is finding rooms for staff when an emergency hits. “Every resident in the state is looking for a room (during an emergency). The availability of rooms is near zero. We’re shoving people in closets.” The deal with the owners of the Marriot Townplace are guaranteeing two floors of rooms through this deal.
The city is in the planning stages to build a new $30 to $35 million state-of-the-art Emergency Operations Center that would accommodate over 100 people and account for the future growth of Cape Coral. However, that facility is years down the road. The city requires 800 people to work a disaster, both at an EOC and out on the streets.
Construction on the new hotel is expected to start next month with a targeted opening of Spring of 2027. The hotel will be built on 2.36 acres of property and employ 23 people when it’s open.
Council member Bill Steinke, who voted for the incentive package, also sits on the Lee County Tourist Development Council and said more hotel rooms are needed in Cape Coral to help generate more tourist tax dollars. “This is a great package with a high-quality hotel, to bring to our city.”
Mayor John Gunter and Council member Keith Long voted against approving the incentive package.