BUSINESS

'Nothing more than a bait and switch': Kalea Bay developer wins right to build higher tower

Laura Layden
Naples Daily News
Panoramic view of Kalea Bay

After a surprise compromise, the developer of Kalea Bay won the right to build its final residential tower even higher in North Naples.

On Tuesday, Collier County commissioners voted unanimously to allow Detroit-based Lodge Abbott & Associates to add three more floors and 10 more condos to its fifth tower, bringing the building's height to 270 feet.

Commissioners agreed to give the developer 20 more feet than it actually requested, so ceiling heights could be raised from 9 feet to 10 feet in the building, to keep up with the competition.

In exchange, the developer offered to donate more land to the county for marina parking, and to pay the county $1 million to help design and build the parking.

Commissioner Chris Hall, who represents North Naples, played the lead role in hammering out the deal, which eased some, but not all of the neighborhood opposition.

Ahead of the hearing, Hall met with the developer's land use attorney Rich Yovanovich to ask what it would take for the developer to donate an entire 3-plus-acre commercial tract, instead of just half of it, for boat trailer parking to support the county owned Cocohatchee River Marina.

While it wasn't part of the rezoning request, the nearby commercial tract became a bargaining chip.

Neighbors complained that they were misled and believed the entire parcel would be donated to the county, based on an informational meeting last year, held by the developer – as part of its "horse trading" to get what it wanted.

After a schematic drawing recently surfaced, showing a restaurant, retail shops and offices on half of the land, a handful of community associations, representing more than 1,000 residences in the surrounding neighborhood, organized in opposition to it.

Rendering of proposed commercial development near Cocohatchee River.

The property, known as Tract 10, sits at the corner of Wiggins Pass Road and Vanderbilt Drive.

Opponents feared the commercial development's impact on noise, traffic and the environment, with the land to be developed sitting so close to the Cocohatchee nature reserve and estuary, which flows into the Gulf of Mexico, through Wiggins Pass.

After the vote, David Cort, a treasurer for the Cove Towers Preserve Condominium Association, one of the opponents of the proposed commercial development, described the outcome as a "great deal for the citizens of Collier County and our local community in the Cocohatchee/Wiggins Bay area."

"Our group is extremely pleased with the outcome," he said.

He praised Hall for his behind-the-scenes efforts and his negotiating skills as a businessman.

In case you missed it:Developer looks to expand final tower in Kalea Bay, faces neighborhood opposition

More:Developer of Kalea Bay faces opposition to commercial development near Cocohatchee River

And:North Naples neighbors hope old transcript can stop developer's bid to expand Kalea Bay tower

Final tower will be higher than the rest

Lodge Abbott agreed to give up all of development rights on its commercial property, but only if it could have the extra 20 feet, on top of the additional 25 feet it had requested, for the tower, which Yovanovich said would make it more consistent and competitive with what's out there today.

The last tower can now be built higher than any other one in Kalea Bay.

The northernmost building was restricted to a lower height to reduce its impact on the neighboring community of Arbor Trace, as part of a settlement the developer and the county struck in 2008.

Using a shade analysis done by professional consultants, Yovanovich showed that even at 270 feet the tower would not cast shadows on Arbor Trace, and the extra 20 feet would not be detrimental to its residents, even in "worst-case scenarios."

In exchange for more height and density in Kalea Bay, Lodge Abbott also agreed to make room for a fire station, and add an emergency access road for the Tarpon Cove community.

Commissioner Hall pointed out those concessions were other benefits the county wouldn't get if it didn't approve more condos, which he said would not be "bothering anything," as far as traffic or noise, while adding taxable value to the county that's sorely needed to deal with budget shortfalls.

"I think that's a good deal," he said.

Collier County Commissioner Chris Hall speaks about the “Collier County Health Freedom” ordinance at the Collier County Administration building in Naples on Tuesday, March 28, 2023.

Not everyone agreed.

Compromise didn't sit well with everyone

Many argued no changes should be made to Kalea Bay, or the settlement agreement that's tied to it.

The agreement was struck after the developer sued Collier County in 2005 for more than $280 million, contending the county's eagle protection rules could block the construction of its towers.

At the time, the county had more stringent protections for eagles than the federal government did — and it didn't want to budge on them. Then came a hard-fought settlement that paved the way for development.

Doug Fee, a longtime North Naples resident, and one of the most vocal critics of the zoning change, continued to argue against it.

"Do not change things," he urged. "Leave it alone."

Years ago, he was involved in the negotiations for the agreement, and he questioned whether opening up the settlement could somehow put taxpayers at risk, and the county at risk of getting sued again, if the developer comes back asking for more changes in the future.

Doug Fee discusses an online petition on change.org with over 800 signatures on Tuesday, October 25, 2016 at the Collier County Commission Chambers in East Naples. "It grows every hour," said Fee. In a 5-0 agreement, the Arthrex expansion passed.

Fee held up a folder two inches thick with signed petitions against the rezoning.

He stressed that he had nothing against Kalea Bay, but a deal is a deal, and it should be upheld by county leaders.

Frank Halas, a former county commissioner, who represented North Naples, agreed.

He was a part of the legal wrangling and settlement negotiations with the developer for eight years, while serving on the commission, and he emphasized concessions were made by all sides.

"It was a great day for Collier County to see this lawsuit withdrawn by the developer," Halas recalled.

County residents, he said, should be able to count on their elected leaders to uphold such agreements.

"This is nothing more than a bait and switch," Halas said.

Judi Palay, a long-time resident who lives in Arbor Trace, pleaded with the commission to "help slay the dragon – the over-builders, those who want quantity of units, not life quality for those who were here first," by not opening up the settlement.

After the vote, she lamented that she was "beyond disappointed," with the outcome, and commissioner Hall, who she felt didn't listen to everyone's concerns.

She complained that the compromise would result in a payday for the developer, but a headache for residents.

"Kalea Bay gets about $100 million, without regard to the concerns of many of us. Imagine the traffic on 41 when traffic is stopped because of fire engines leaving. In season, 41 is almost a parking lot. Can you hear the sirens and bells going off?"

"I could go on, but the point is there was much work to have been done before any vote should have been taken," she added.

In reaction to concerns that Lodge Abbott might come back to the county again and ask for more homes or condos on its large swath of land, Hall put Yovanovich on the spot.

While Yovanovich stopped short of promising the developer won't ask for anything else, he pointed out that the golf course that's under construction is taking up the rest of the developable land, and it's a valuable asset.

"There is no land left," he said. "There is nothing else to develop."

Rich Yovanovich

The original development county commissioners approved in 2000 had the last building at 15 stories (over parking). The county agreed to allow two more floors as part of the settlement.

Vertical construction began in 2015 on the first tower at Kalea Bay. The community sits off Vanderbilt Drive, overlooking Wiggins Pass, Turkey Bay and the Gulf of Mexico.

Three towers have been built, and a fourth is under construction.

The settlement stated the maximum number of units "shall not exceed 590," however, there was an ability to renegotiate the terms. With the approved changes, there can be up to 600 condos.

In 2015, Lodge Abbott asked to replace its yet-to-be-built golf course with 62 single-family homes, but county commissioners shot down the request.