CAPE CORAL, Fla. — City Council approved $2.5 million in incentives Wednesday for a hotel project that could help solve a growing challenge: housing 800 city workers who are deployed during hurricanes.
WATCH: City Council discussion of hotel incentives gets testy:
In a 5-2 vote, Council approved the incentives for a five-story Marriott TownePlace Suites near Pine Island Road and Del Prado Boulevard.
Milwaukee-based Continental Properties Company plans to build the 112-room hotel at 1475 NE. Eighth Terrace. Louisville-based Schulte Hospitality Group will manage the project, according to a city presentation.
The incentives include a $176,000 impact fee credit and $770,000 site improvement grant, according to council documents. As part of the deal, Cape Coral could reserve two floors of the hotel during emergencies like a hurricane.
As the city grows, it struggles to house the 800 employees Cape Coral requires to work during hurricanes, Emergency Management Director Ryan Lamb told FOX 4.
"It is a kind of no room in the inn situation because we have so many folks that need to be here," Lamb said. "And again, it's not an option that they're here."
Employees are housed in Cape Coral fire stations, City Hall, and Police headquarters during a storm, Lamb said. Staff sleep on bunk bed cots and have limited restroom and shower space, Lamb said.
The hotel could house firefighters, building inspectors, water plant operators, and police officers, Lamb said. That includes staff who work both during and after a hurricane.
Cape Coral currently only has one hotel outside a flood hazard area, Lamb said, and the hotel doesn't have a backup generator.
The new hotel would be located outside a flood hazard area. Cape Coral would pay the hotel $350,000 for a generator and backup system.
During the meeting, District 2 Council member Laurie Lehmann asked who would be responsible for maintaining the generator.
Lamb said the city would pay for it during emergency use - otherwise it would be the hotel's responsibility. District 5 Council Member Keith Long and Mayor John Gunter suggested the council explore other options.
Long pointed out Cape Coral would still have to pay for the hotel rooms at the current federal General Services Administration (GSA) rate.
"So alls we're doing is pre-paying an amount in excess of what we realistically would pay if we just went to a local hotel and rented out a block," Long said.
The GSA rate is how much federal employees are reimbursed for travel and food while on official business. The Lee County GSA rate is currently $139 a night. GSA rates are lower than average, City Manager Michael Ilczyszyn said.
Mayor Gunter said it might be cheaper to put city employees at hotels around the city instead of approving the incentives. City Manager Michael Ilczyszyn pushed back.
"I've been there, we've done it as Public Works director, as assistant city manager. There's nowhere," Ilczyszyn said. "We're shoving people in closets."
The city manager said other Cape Coral hotels sit in flood zones and pose a risk to first responders. Council Member Bill Steinke said the deal is a win-win for the city.
Steinke also sits on the Lee County Tourist Development Council. He said Cape Coral doesn't have enough hotel rooms and could use the extra bed tax revenue.
"We need to do everything we can to encourage these hotels to come our way and provide these rooms for us," Steinke said.
The council ultimately voted to approve the incentives, 5-2.
Council members Bill Steinke, Laurie Lehmann, Derrick Donnell, Joe Kilraine, and Rachel Kaduk voted in favor. Mayor John Gunter and Council member Keith Long voted no.
The project is expected to start next month and be completed in April 2027, according to Council documents.
