Artist Rendering VA Regional Outpatient Clinic On target to be
completed in 2012 1 Patriot Plaza Project Briefing Cape Coral
Economic Development
Slide 2
Patriot Plaza Artist Renderings
Slide 3
City of Cape Coral Budget Headlines Steep Declining Tax Revenue
Value Base 91% Of Revenue From Residential Housing MSA Ranked
Lowest For Recovery (100) Major Competition For Limited Business In
todays troubled economy, making projects happen depends on the
ability to create partnerships. Communities need to start thinking
outside of the box and consider new channels of funding and
support. Note: Quotes from 2010 How You Build It Conference 3
Slide 4
Patriot Plaza Parcel 1 & 2 Taxable Value 3-Year Decline
2008 - 2010 Parcel Value History for Parcel 04-44-24-C2-0013.0030
(frontage) and Parcel 04-44-24-C2-0013.0040 (rear) Source: Lee
County Property Appraiser Tax Rolls
Slide 5
Patriot Plaza Parcel 1 & 2 Total Land Tax Income Source:
Lee County Property Appraiser
Slide 6
POTENTIAL TO CHANGE REVENUE FROM DECLINE TO GROWTH Patriot
Plaza Site Raw Land Revenue $98,242 (08) Patriot Zoned Commercial
Raw Land $62,410 (09) Lost Tax Revenue of $35,832 for Patriot Plaza
Site Assessed: $5,227,200 - $2,700,720 Down 48.3% Conservative
Estimate Growth > 10% = $2,970,792 Moderate Estimate Growth >
25% = $3,375,900 Aggressive Estimate Growth > 48% = $3,997,066
Potential New Raw Land Tax Revenue: $69,652 (10%) $79,150 (25%)
$93,714 (48%) 6
Slide 7
Cape Coral Tax Roll Value in Billions 139,428 Average Parcels
(21 8.4) Source: Lee County Property Appraiser Tax Rolls 7
Slide 8
Hope Hospice Ad Valorem Example Source: Lee County Property
Appraiser Tax Rolls 8
Slide 9
Patriot Plaza Project & Incentive Developers Project
Summary 222,000 VIZ Mixed Use Sq ft 154,000 Medical Related 30,000
Hotel (110 Rooms) 38,000 Retail Related Equivalent Size to VA
Clinic Pay $1,758,230 Impact Fees Promote VIZ Growth Now Citys
Incentive Summary $1,449,659 over 15 Years (not to exceed) Create
Jobs Stimulate Economy Stop Declining Tax Base Increase Local
Commercial Tax Base ($22,044,837) Net Cape Coral Revenue of
$8,024,264 9
Slide 10
10 Patriot Plaza Project Development Objectives 222,000 Square
Feet of Mixed Use Development Related Infrastructure Costs NON -
Incentive Portion of Project (38,000 SF) Type SF $/FT Total $
Pharmacy 14,000 5.709 79,926 Retail 10,000 5.709 57,090 Bank 4,000
9.06 36,240 ConvStore/ Gas Station 5,000 12.679 63,395 Fast Food
5,000 14.384 71,920 TOTAL 38,000 $308,571 INCENTIVE Portion of
Project (184,000 SF) Type SF $/FT/RM Total $ Hotel (110 Rooms)
30,000 2,520 277,200 Medical/Office 84,000 8.634 725,256
Rehab/Clinic Medical/Wellness 70,000 1.458 102,060 ALS/Fire/Police
184,000 3.124 57,482 Utilities 184,000 1.563287,661 TOTAL 184,000
$1,449,659 TOTAL INFRASTRUCTURE COSTS FROM PROJECT $1,758,230
Slide 11
Distribution of Ad Valorem Taxes & Projected Patriot Plaza
Revenue Source: Lee County Property Appraiser Immediate ROI is >
21% $1,758,230 in Total Impact Fees Earned $1,449,659 Medical/Hotel
Impact Fees $1,758,230 divided by $1,449,659 = 21.3% Plus New Tax
Revenue:$22,044,837 Cape Coral 35% Portion:$7,715,693
Slide 12
Incentive Return On Investment 308,571Impact Fees Retail
Portion of Patriot Plaza 1,449,659 Impact Fees Medical
Office/Rehab/Hotel 22,044,837 Ad Valorem Taxes $23,803,067 Total
All Revenue Sources $22,044,837 X.35 (Cape Coral Ad Valorem Project
Revenue) = $7,715,693 $7,715,693 Cape Corals Portion of Ad Valorem
Taxes 308,571 Up-Front Non-Incentive Based Impact Fees 1,449,659
Up-Front Business Development Related Impact Fees $9,473,923
*1,758,230 Up-Front -1,449,659 Business Development Incentive
$8,024,264 (Net Cape Coral Patriot Plaza Project Revenue) $8,024,26
/$1,449,659 = 5.54 (Investment Returned 5 times) 12
Slide 13
Financial and Related Benefits Tax Incentive Finance Model
(Establish Baseline) No Change to Expected Revenues Impact Fee
Revenue Today Business Development Difference Immediate Payback for
City Reinforce and Support Bond Ratings Raw Land Value Increases in
VIZ 51 Other Commercial Parcels Impacted Recessionary Development
& Jobs Today Conservative Approach: $92 sf versus $199 sf
13
Slide 14
Incentives (BDI) to Spur Growth Now Council Chooses Business
Development Incentive Multiple Years to Payout Incentive (i.e. 15)
Build Larger Commercial Tax Base Present versus Future $$ Value
Coincide with VA Center Timeline Encourage Mixed Use Projects
Promote Development Now Stop Downward Tax Spiral Differentiates
Cape Coral from Other Cities Responsible Cost Effective Way to Push
for Growth 14
Slide 15
Recommended Action from Council Approve a BD Incentive of
$1,449,659 (max) Rebate Based on Hotel & Medical Portions Tie
Expectations to Actual Performance Only What is Built is Eligible
for Incentive 15 Year Incentive Term (similar to TIF) Rebate Amount
Limited to Difference (TIF) 15 QUESTIONS