Fort Myers Beach

At a Critical Economic Crossroads

The Case for Strategic Development Post-Hurricane Ian

Presented by Mark Wilson, CEO, London Bay Homes

Fort Myers Beach has lost nearly 30% of its tax base while municipal expenses remain constant. With 37% of accommodation capacity still unavailable and one-time FEMA reimbursements and federal disaster relief programs concluding, the community faces difficult choices about its economic future.

Tourism Infrastructure: Still Broken

Only 63% of accommodation capacity is operational. The island's economic engine is running at two-thirds power.

Hotels

1,332 / 2,127

63% operational

Vacation Rentals

2,763 / 4,378

63% operational

4,095

of 6,505 rooms operational

816

permanently destroyed

590 hotel rooms + 226 vacation rentals

720

still closed

167 hotel rooms + 553 vacation rentals

The Downward Spiral

Fewer Rooms → Fewer Visitors → Less Revenue → Higher Taxes → Lower Values

Economic Impact Chain

Fewer hotel rooms and vacation rentals = reduced visitor capacity
Fewer visitors = decreased revenues at local businesses
Decreased business revenue = reduced sales tax and property tax collections
Reduced tax revenue = budget pressures requiring either tax increases or service cuts
Tax increases + reduced services = declining property values
Lower property values = smaller tax base = compounding fiscal challenges

The Budget Crisis

A $44.6M+ annual budget with 30% less revenue to fund it, and temporary federal aid running out.

FY 2025-26 Budget

$44.6M+

Operating with reduced revenue sources

Revenue Pressures: FY 2025 vs FY 2026 Comparison

Revenue Source	FY 2025	FY 2026	Change
Property Taxes	$6.37B base	$4.47B base	-29.8%
Tourist Development Tax	Based on 2,500+ rooms	Based on ~1,300 rooms	-48% capacity
Sales Tax	Pre-hurricane levels	Significantly reduced	Down
FEMA Reimbursements	Available	Sunsetting	Declining
Federal Disaster Relief Grants	Active	Program ending	Ending FY26
State Emergency Management Funds	Funded	Final allocations	Concluding
Insurance Claim Proceeds	Received	One-time only	Not recurring

One-Time Revenue Sources Ending in FY 2026

↓ FEMA Reimbursements

↓ Federal Disaster Relief

↓ State Emergency Funds

↓ Insurance Proceeds

Expense Obligations Continue:

Infrastructure maintenance and hurricane preparedness enhancements
Beach renourishment (millions in ongoing costs)
Public safety services that cannot be reduced
Significantly increased insurance premiums
Existing debt service obligations

As one-time federal disaster relief and emergency management funds conclude in FY 2026, the Town must rely on permanent revenue sources to maintain essential services—while operating with a 30% smaller tax base.

Why Recovery Has Stalled

Full restaurants aren't a sign of health. They're a symptom of scarcity.

The Restaurant & Business Paradox

Surviving restaurants appear busy during season, but this reflects scarcity, not economic health.

The south end, once thriving with dining options, has minimal restaurant availability. Remaining spots are overwhelmed because there's nowhere else to go.

Why Businesses Aren't Rebuilding

Insufficient visitor capacity: Only ~1,000 hotel rooms (down from 2,500+)
Uncertain recovery timeline: Only a few major developments approved, none moving forward
High rebuilding costs: Unclear return on investment without restored tourism infrastructure
Increased insurance costs: Significantly higher post-Ian
Labor challenges: Limited housing for workers
Limited year-round viability: Season-only operation difficult to sustain

Breaking the Cycle

Without restored accommodation capacity, businesses won't invest in rebuilding. Without businesses and amenities, the island can't attract visitors or new development. Strategic development is essential to break this stalled recovery cycle.

Three Paths Forward

Fort Myers Beach has three options. Only one breaks the cycle without punishing residents.

Raise Taxes on Current Residents

With 30% less tax base and constant expenses, remaining property owners bear the entire burden. Tax bills could increase 15-30% over the next 3-5 years.

Cut Essential Services

Reduce police, fire, road maintenance, beach services. This creates a negative cycle: fewer services → lower property values → smaller tax base → even fewer services possible.

✓

Expand the Tax Base Through Strategic Development

Quality development brings:

Immediate impact fees for infrastructure
Ongoing property tax revenue from new construction
Sales tax from construction activity and new residents/visitors
Restored tourism capacity generating lodging taxes
Economic activity supporting local businesses
Reduced tax burden on existing homeowners

Strategic development is the only path that grows revenue without raising taxes or cutting services.

Impact on Property Owners

What “no growth” means for you.

The Fiscal Reality

Same municipal budget ($44.6M+)

30% smaller tax base

Reduced tourism revenue

Sunsetting FEMA & disaster relief programs

= Significantly higher tax burden per property + declining values

Your Property Taxes

Projected to increase 15-30% over the next 3-5 years as the tax base continues to shrink.

Your Property Value

At risk of stagnation or decline as the island becomes less economically viable.

Your Services

Reduced quality: longer emergency response, deteriorating roads, less beach maintenance.

Your Amenities

Continued business closures without sufficient tourism to sustain them.

The Undeniable Facts

$1.9B

in lost taxable value (nearly 30% of tax base)

37%

of accommodation capacity still unavailable

2,300+

housing units not rebuilt

33%

population decline

FY 2026

FEMA reimbursements & federal disaster relief scheduled to conclude

$44.6M+

annual budget needs unchanged

The Solution: Strategic Development

Quality, large-scale development projects are critical economic lifelines that can:

Stabilize and expand the tax base

Restore tourism infrastructure and visitor capacity

Generate ongoing revenue without burdening homeowners

Signal economic recovery to attract additional investment

Preserve and enhance property values island-wide

Make Your Voice Heard

Attend Town Council meetings and speak in favor of responsible development
Contact council members expressing support for quality projects
Counter anti-growth narratives with economic facts
Rally neighbors who understand these challenges but have remained silent

Without strategic development, the mathematics of decline are inevitable. The silent majority must speak up to protect their investments and Fort Myers Beach's future.