D.R. Horton chief: Deal to buy Cape Coral golf course may not get much sweeter

Builder D.R. Horton is running low on time and patience as it tries to turn an abandoned golf course in Cape Coral into a middle-class community, a top executive says.

Jonathon Pentecost, Horton's Southwest Florida Division president, met Wednesday with The News-Press editorial board concerning the company's bid to buy the shuttered 175-acre The Golf Club of Cape Coral and put 600 homes on the property.

In advance of an Aug. 21 public hearing on a proposed land-use change, he said the builder has made numerous concessions, including a project development plan that preserves about 50 percent of green space, plants thousands of trees and creates a linear park and buffer zones in excess of requirements.

"Everything you do comes at a cost," he said. "... This isn’t an unlimited money tree."

D.R. Horton won't buy the property unless the land-use change is approved. That means the company will call off the deal and the property will continue to be abandoned and grow wild.

Earlier, current owner Ryan Companies scrapped plans for apartments, multi-story condos and commercial components after losing a court battle. The city and the judge determined the best use for the property is single family residential development.

"We want to take on a project that you (the city) has paved the way for: single-family residential," he said. "And we have received nothing but resistance."

Councilman John Carioscia, who represents District 2, said he wants D.R. Horton to submit a binding plan.

"I want something in writing — the final offer," he said. "Whatever they feel that they can extend to the community."

He said D.R. Horton has made proposals that appear to change monthly.

Once the plan is finalized, Carioscia said he will urge compromise among the opposition, city officials, the community and the company.

"Until it is written up and submitted to the city manager, there's really nothing there to discuss," he said.

The background

The Golf Club, 4003 Palm Tree Blvd., was built as the city was being established in the late 1950s. Developers would bring potential homeowners in, treat them to a round of golf and a stay at the property's hotel.

Soon after the turn of the century, golf started falling out of favor, at least at The Golf Club - mainly because of rising greens fees and over 160 courses in Lee and Collier counties. Owners closed the course in 2006, and it has sat empty since, nature reclaiming ponds and fairways.

D.R. Horton has a purchase contract with Ryan Companies pending the land use change.

In June, the Planning and Zoning Commission voted 5-2 to recommend denying the petition to change the future land use of the old golf course from parks and recreation to single-family residential. 

"I’m here with private money, just trying to get the project approved." Pentecost said.

Cape Coral is undergoing rapid growth, with 175,000 residents, and is expected to grow to 400,000 in the coming decades.

The City Council will take the commission's recommendation under advisement but can overrule it.  

Councilman Richard Leon, whose District 4 includes the golf course and surrounding properties, said he is committed to approving the zoning change provided the number of homes is capped at 600 and the southernmost 12 acres are exempted from the zoning change.

He wants the land would be used as a public park.

"It will be there if they want my vote," he said.

Leon and Pentecost said rejecting the change would open the city to legal action. The city and a judge have determined the property's best use is residential.

"If we go back and say residential is not best use, we’ve got a lawsuit on our hands," he said. 

Pentecost said a rejection would allow for punitive damages.

Pending approval, the Council would send the plan to the state for approval. Once the state OKs the plan, Pentecost anticipates the city would approve the project by early October after public hearings.

He will have his most-up-to-date project development plan prepared for ratification the same day the city OKs the zoning change.

The opposition

Save Our Recreation, a group formed to keep the old golf course an open space, has been vocal about creating a park or courting another golf course operator. 

About 400 people strong, it has protested the zoning change at meetings and launched a petition drive against development.

"The opposition has offered nothing but nothingness," Pentecost said, saying the group had 11 years to organize, has raised only $25,000, and made no effort to acquire the property.

"I have offered to buy property and remediate the environmental issues," he said.

He said the city has 1,050 acres of parks, with 55 percent of that acreage within 2 miles of the project in Southeast Cape Coral. A quick survey of the city's website indicates it has at least 829 acres of parkland.  

"Only 31 percent of the population lives in that quadrant," he sad. The city, Conservation 20/20 and the Trust for Public Land passed on the property, he said.

Conservation 20/20, a public conservation program in Lee County, acted on staff recommendations and didn't pursue buying the property, officials said, because the land didn't meet most of its criteria. 

For D.R. Horton's proposed development, the homes at The Palms of Cape Coral would cost about $250,000 to $300,000 and draw an average homeowner making 150 percent of the city's median income, Pentecost said — something city leaders have said they wanted.

"It's right around recognized and named economic initiatives of the city," he said, citing its proximity to Bimini Basin and the south Cape entertainment district. 

In addition, the gated complex will include private streets with amenities including a clubhouse with pool, tennis and fitness area.

He said the project would cost more than $30 million, which includes the land purchase, environmental cleanup, fixing drainage issues, adding utility infrastructure, and reworking traffic patterns outside of the subdivision. 

"I've offered a lot of alternatives," he said. "Somebody needs to tell me which direction to go."