The Sanibel City Council recently approved a federal loan and local agreements for planning grants, as well as established a temporary use permit for beach club day passes for eligible hotels and motels.
At a special meeting on July 30, the council voted 4-0 on a resolution to request a loan under the Federal Emergency Management Agency’s Community Disaster Loan Program for $5 million.
Prior to the vote, Deputy City Manager and Chief Financial Officer Steve Chaipel reiterated that the program provides funding for local governments to operate essential community services after substantial revenue loss caused by a disaster. Shortly after the city was impacted by Hurricane Ian in 2022, an application to the program was completed and submitted to FEMA.
He continued that the city was approved for up to $5 million for the loan and staff recommends requesting the full amount. The loan would be for a five-year term, and interest would be set at the federal interest rate and would start accruing at the time that FEMA accepts the city’s resolution.
Chaipel added that no payments of principal or interest would be owed until the loan fully matures at the five years. In the past, municipalities that have received such a loan have had it canceled and provided as a grant, so that is an opportunity if the city can show it has a cumulative operating deficit.
Also during the meeting, the council voted 4-0 to approve subrecipient agreements with Lee County for funding from the Recovery and Resiliency Planning Program of the Community Development Block Grant — Disaster Relief (CDBG-DR) Fund for $702,000.
Staff submitted applications for planning grants for the Sanibel Plan Update for $250,000, Sanibel Transportation Master Plan for $200,000 and Sanibel Broadband Feasibility Study for $252,000.
Also at the meeting, the council voted 4-0 on a resolution to establish the temporary use permit for beach club day passes.
Prior to the vote, Planning Director Paula McMichael reiterated that council discussed at a prior meeting a proposal from the Sundial Beach Resort & Spa to sell day passes to the beach. However, the Sanibel Code classifies this type of use as a “beach club” and it specifically prohibits such a use.
She continued that Sundial’s request, per General Manager Becky Miller, is to use the day passes as a replacement for resort housing dwelling units that cannot currently be occupied due to hurricane damage and to discontinue the program once those dwelling units are able to be rented. The estimated date for the opening of overnight rentals is Nov. 1. The resort’s proposed business plan states that ticket sales would be monitored to ensure adequate parking on-site, and the program would run Wednesday through Sunday and include access to on-site amenities, such as pools, beach and dining at the tiki bar.
McMichael reported that staff drafted a resolution to establish a temporary use permit for beach club day passes with several conditions, including making the permit available only to resort housing properties licensed as a hotel or motel by the Florida Department of Business and Professional Regulation and only to replace dwelling units unavailable for short-term rental due to storm-related damage. The issued permit would expire in one year; it would be valid for six months, with the ability to renew for three months, based on unforeseen circumstances.
She added that 10 properties located in the Resort Housing District would be eligible, for a total of 745 units. They are: Beachview Cottages, Holiday Inn, Island Inn and Island Inn (Kimball Lodge), Sanibel Inn, Sunset Beach Resort, Seaside Inn, Shalimar Resort Hotel, Song of the Sea Motel, Sundial Condominium Phases 1, 2 and 3, and West Wind Inn.
IN OTHER NEWS
– Chaipel provided a presentation and an overview on the draft fiscal year 2024-25 budget, which included taxable property values, residential annual taxes, operating millage rate, revenue projections, Hurricane Ian fund, general fund reserves, operating expenditures, capital expenditures and more.
To view the presentation, click on CITY COUNCIL BUDGET WORKSHOP.
The council’s next budget workshop is set for Aug. 27 at 5:30 p.m.
