Economically Cape-Able

Fifteen years ago, Cape Coral existed more or less as a bedroom community. It had a population of about 74,000. Residents seeking variety in their shopping, dining and entertainment needs often traveled across the only bridge to and from Fort Myers, at a dollar each way. People loved their Cape, but it lacked certain amenities, a diverse business base and employment, which typically help drive a strong economy.

Now look at the place.

Last year, Cape Coral welcomed nearly 9,000 new residents, and the population is increasing at a clip of 1,000 a month, local officials say. At that rate, the city will soon approach the 150,000 mark, which has a certain ring to it, says Mike Quaintance, president of Cape Coral's Chamber of Commerce. "We used to think 100,000 was the magic number, but once we reach 150,000, people are going to see significant interest from retail developers," Quaintance says.

Perhaps it's the influx of new people with new ideas, or the notable projects-26 new restaurants arrived in 2003, and five new schools are planned. But the times are changing in Cape Coral. It's now America's ninth fastest-growing city (of those with a population of over 100,000).

And the residential growth is just the beginning of the story.

In November 2003, 530 permits for new home construction were pulled for Cape Coral, topping the 2002 monthly average of 300 and setting a new monthly record. "The economy is changing in the Cape," says Mike Jackson, the city's economic development director. "The Cape's economy is largely driven by the residential housing market, which is and continues to be a huge growth engine for Southwest Florida, but this level of investment is starting to drive other sectors as well."

Jackson identifies retail and industrial-heavy commercial as the markets to watch in 2004. Often, big-box stores like Best Buy or Target require a certain population level before building. The 100,000 mark brought Target to Santa Barbara Boulevard and Ross Dress for Less to the Coral Pointe Mall.

The way things are moving in Cape Coral, it won't be long before retailers are clamoring for space. "In the past few years, residential development was the primary factory in economic development in the Cape," says Joe Mazurkiewicz, executive director for the Cape Coral Council for Progress. "Now, national developers are willing to build here, and they're building developments we've never seen before in the Cape."

There are already plans for a Super Wal-Mart on Pine Island Road as well as two new franchise restaurants-Houlihan's and Ruby Tuesday. Bob Evans is already completed on the corner of Del Prado Boulevard and Veterans Memorial Parkway, Jackson says. He points to the reopening of the Marquis Company movie theater in the Coralwood Mall as another indicator of economic development. "All of this is significant because these franchises have specific criteria that must be in place before they will open a location. Cape Coral is there," he says.

Quaintance predicts that 250,000 to 500,000 square feet of new retail space will open in the Cape in 2004.

One corridor that's filling in fast is Santa Barbara Boulevard, particularly from Veterans Memorial Parkway north to Pine Island Road. Currently, corner lots are where the commercial action is. Riverside Bank is constructing its headquarters just north of Veterans, and there are plans for a Pizza Hut and a Jason's Deli. Within seven years, the homes lining the street will give way to attractive strip centers, or freestanding businesses, predicts Gary Tasman, a broker with Grubb & Ellis|IPC. "It's going to be upscale, like north Naples along U.S. 41, built to quality specifications," he says. "It's a vibrant commercial corridor."

The drivers behind Santa Barbara's transformation include the rush of new nearby residents-plenty to attract developers-and the eventual six-laning of the boulevard, Tasman says. "Santa Barbara is happening right now, all quietly popping up. It's not if and when, like Pine Island," he says.

Although the incoming builders, retailers, restaurants and service companies bring jobs and tax dollars, city officials continue to seek a variety of businesses. "We are working to create a very diverse economy in the Cape," Jackson says.

Part of that diversity will rely on new industrial-heavy commercial development that Jackson and his staff at the economic development office hope to attract. "I want the commercial industrial community to know the Cape's appetite for success," he says.

Because industrial operations based in a city contribute more to the overall tax base than do individual residents, Jackson says, it's imperative to attract this sector. It's also helpful to residents, who now contribute heavily to the tax base to compensate for the dearth of industry in the Cape, he says. "Not only do industries contribute more to the tax base, but they also don't consume as many city resources as single-family homes do. It's advantageous to embrace their presence in our community," Jackson says.

In January, Jackson talked to commercial real estate developers about two 30-acre sites for specialized industrial properties with Class A office space, but couldn't say much more about the location or estimated building date. "Eighty percent of the time a company wants to move into an existing building," Jackson says. "Our city doesn't have many spec office spaces, but we're working on it." He wants to make Cape Coral the most business-friendly community in Lee County, he says, and that starts with developments like these. Jackson's not the only one who thinks the city needs an industrial sector to help spur business development. Chet Hunt, director of the Community Redevelopment Agency, which is currently fine-tuning plans to resurrect Cape Coral's downtown, hinted that the next area of interest for the CRA would be in the mid-Cape-Viscaya Parkway industrial section. "It's an area with a lot of obsolescence and aging. It's old and it's riddled with parking problems and infrastructure needs. The CRA would revitalize the area and develop it into a premier industrial area for the city," Hunt says.

Part of the diversification strategy includes attracting more high-end businesses, such as technology companies, that pay better wages.

The good news is that there are already some of those companies in the Cape. Whitney Information Network is one example. The publicly traded corporation, which locally employs nearly 240 people, trains people to invest in real estate and other businesses.

The company's founder and CEO, Russell Whitney, says it's here because the Cape is his home. "We love Cape Coral," Whitney says.

On average, salaries run in excess of $30,000-slightly higher than Lee County's median figure. But the company executives make anywhere from $100,000 to $450,000 a year, he says. Whitney is the Cape's ninth largest employer.

The company also helps support the area's economy by flying in 150 people each week to take part in training. They stay at a local hotel and eat at Cape restaurants.

Providing a trained workforce is key to attracting high-end businesses, and that's one reason for the aca-demic village proposed for the Cape's north side. City officials want to establish a charter school and bring in a university, Jackson says.

Another component of the city's economic transformation is work to revitalize the downtown with the 440-acre CRA district that runs from the Cape Coral bridge westward past Palm Tree Boulevard, as far north as Southeast 44th Terrace and as far south as Vendome Court. Hunt says that developers and investors visit his office daily to discuss opportunities. Residents of Cape Coral have probably noticed a few changes to the area already, including new and remodeled buildings and better landscaping. The CRA wants to make the downtown a pedestrian-friendly residential and commercial area with waterfront dining and living options surrounded by what Hunt likes to call an aquatic necklace.

The CRA has been working with the city council to change code restrictions for the purpose of maximizing land use in the district. Hunt and his team want to create more density, thereby establishing an urban feel for the downtown. Awnings will cover walkways and extend within feet of the street. Zero lot lines will also be allowed to create the urban-village feel the team is hoping to accomplish. As well, the CRA is asking the city council to reduce the 25-foot setbacks from rights-of-way on parcels to six feet. Additionally, the CRA wants to gain approval to allow 40 units per acre in some areas (right now, 20 is the limit per acre). "I truly believe we have the plans in place to build a premier city," Hunt says.

The CRA's vision, as well as that of other developers and investors, is a departure from the intent of the original city planners, who envisioned a sprawling retirement community. So too are the developments of Tarpon Point Marina and Cape Harbor. Mazurkewicz reports that a luxury hotel is under construction at Cape Harbor and developers at Tarpon Point are talking about establishing a mixed-use commercial/residential village concept to begin construction this year. "Everything is taking off in the Cape. We're really starting to see things happen. People in the city are going to witness significant growth in 2004," says Mazurkiewicz.