City of Naples is moving forward with a plan to consider renovating city-owned property into affordable housing for police officers, teachers and others who can’t afford to live near jobs within the city.
City Council, acting as the Community Redevelopment Agency, on Sept. 16 voted 6-1, with Vice Chair Linda Penniman opposing, not to reconsider a prior motion to ask city staff to create a task order with real estate consultant CBRE to draft a request for proposals from investors and developers for 160-190 10th St. N. They agreed to pay CBRE up to $36,000 and that the CRA would review and approve the RFP before it’s publicized.
The CRA unanimously voted on the proposal Aug. 23, but Mayor Teresa Heitmann asked to reconsider the vote to clarify the scope.
“It is really, truly our only last affordable housing option and to hear ‘rezone’ is concerning because rezone has many aspects … and it could give others the impression that we are going to allow more density or intensity within that area,” Heitmann said. “It might have to happen, but I don’t feel that it was properly vetted.”
CRA Chair Ray Christman noted they were seeking options, including rezoning to allow 11 to 12 condos or 26 townhomes, working with a development partner or selling the 0.58-acre property. Penniman wanted to further discuss a public-private partnership.
The CRA purchased the 8,960-square-foot vacant auto repair shop and property for $4.9 million in February to build affordable housing for teachers, police officers and other workers within city limits. Council wanted to target employees earning $62,580 to $125,160, 60% to 120% of the county’s $104,300 area median income.
It’s the first property the 30-year-old CRA has purchased and is zoned for up to 12 units per acre. It’s located near Central Avenue between U.S. 41 and Goodlette-Frank Road. The CRA district, which is funded by taxing its homeowners and businesses, is bounded by Seventh Avenue North, Gordon River, Sixth Avenue South and Third Street South.
In June, the CRA agreed to pay CBRE $3,500 to look at options to develop the property under existing zoning, the city’s comprehensive plan or the state Live Local Act, and to consider adding 40 feet of an 80-foot right of way to increase density and units.
In August, CBRE’s team, which includes Trinity Commercial Group in Estero and Miami-based Gridics, recommended maximizing affordable housing units by using a mixed-use concept, 3,600 square feet of commercial space and parking on the ground floor, with 26 condos above. It would require an amendment to the city’s comprehensive plan.
CBRE noted the existing zoning and comprehensive plan allow 11 townhomes, but if part of adjacent Second Avenue North were vacated, 12 could be built, but they’d have to be sold as fee simple. Trinity Commercial Group advised against that because most residents seeking affordable housing couldn’t afford it. It recommended drafting an RFP.
Heitmann said mixed-use didn’t work well for Naples Square because residents don’t like living above restaurants. “Dealing with commercial below residential has been nothing but heartache,” she said, adding that she wants only affordable housing.
CRA member Bill Kramer wanted the property to bring in money until construction begins.
Unlike unincorporated Collier County, which has thousands of undeveloped acres, the city is built out. In August, the CRA learned the 104-unit Jade affordable apartment complex is being sold this month because investors didn’t want to continue after it took until May to finish repairs to the entire first floor after Hurricane Ian rendered it uninhabitable. The apartments range from 452 to 752 square feet and rent for $1,400 to $2,200. However, its owner, Corridor Ventures Inc., agreed to work with the CRA on another property, Stillwater Cove, a 96-unit building once called River Park Apartments—and the CRA agreed it’s their top priority.
Only two apartment complexes totaling 142 subsidized units in River Park West remain in the city. The affordability period for 70-unit George Washington Carver Apartments expires in 2037, and 72-unit Jasmine Cay Apartments expires in 2044. A full-time worker earning $17.53 hourly, the county’s median wage, can only afford $912 rent per month with utilities, if 30% of income is used for rent.
But Naples Comprehensive Health found 69.74% of its employees are paying more than 30%. NCH says seven to nine job offers weekly are turned down due to housing costs. A 2023 survey of 1,134 NCH employees found nearly 30% lived outside Collier because they can’t afford it, 44.42% are considering moving elsewhere in Southwest Florida and 40.3% may leave Southwest Florida.
A 2024 survey of Collier County Public Schools employees shows half work a second job to get by and 64% fear they’ll be forced to leave the district for other opportunities due to high housing costs.
