Agenda 02/23/2021 Item #11B (Great Wolf Resorts Feasibility Study)02/23/2021
EXECUTIVE SUMMARY
Recommendation to accept a Market and Financial Feasibility Study from Hunden Strategic
Partners, Inc. on a proposed development project involving Great Wolf Resorts, Inc., at the City
Gate Commerce Park adjacent to the Paradise Coast Sports Complex, and authorize staff to
negotiate a development agreement for subsequent Board consideration.
OBJECTIVE: To accept a report from Hunden Strategic Partners, Inc., and provide staff direction on the
negotiation of any future development agreement.
CONSIDERATIONS: Great Wolf Resorts, Inc. (“Great Wolf”) operates the largest family of indoor
water park resorts, with 17 locations across North America, the closest one to Collier County being in La
Grange, Georgia. In addition to the water park, each resort features many other amenities. Recently, Great
Wolf has been exploring an additional location in Florida, and has identified Collier County as a prime
location, specifically collocated at the City Gate Commerce Park adjacent to the Paradise Coast S ports
Complex (“PCSC”).
Activity Center No. 9, which includes the City Gate Commerce Park, is a Mixed -Use Activity Center
concept, designed to concentrate almost all new commercial zoning in locations where traffic impacts can
readily be accommodated, to avoid strip and disorganized patterns of commercial development, and to
create focal points within the community. The Board established the Interchange Activity No. 9
Innovation Zone in 2018, involving several hundred vacant and undeveloped acres in East Naples, around
the commercial and industrial areas near the Interstate 75 and Collier Boulevard intersection. The aim of
the Innovation Zone is to attract businesses driven by high future growth, stability, resource
independency, diversification, and other positive economic impacts by offering flexible incentives and
enhanced zoning overlays.
Recently, Activity Center No. 9 has seen increased development activity, driven by the creation of the
PCSC and other strategic land acquisitions of the County. This includes the acquisition and
redevelopment of the former Golden Gate Golf Course, a one million square-foot Uline Corporation
distribution center, the addition of a last-mile Amazon fulfillment center, and other prospective initiatives
in development. The addition of a Great Wolf Resort in the area would continue the creation of a
community focal point, enhance the offerings of the PCSC, and add a substantial number of jobs and new
revenues to the County while diversifying our tourism offerings.
Great Wolf is currently exploring locating a 550-room resort on an existing 20-acre site adjacent to the
PCSC in the City Gate Commerce Park. The potential investment of the project is approximately $234
million in construction and development costs. Great Wolf has initiated discussions with County staff
regarding the potential development of investments that are based on performance by the potential resort
project to help close the financing gap of the project, estimated at $19.5 million. These include:
• Impact and Building Fee deferrals
• Tax Increment Financing (TIF) from the Innovation Zone
Any investment provided would be contained only to the Great Wolf Resort property, based on
performance goals developed in conjunction with the resort. Staff has examined likewise properties in
other counties and municipalities that have included similar development investments for the company, as
well as the annual sales and revenues generated by likewise projects.
At the October 13, 2020 meeting, the Board entered a contract with Hunden Strategic Partners (HSP) for
a Market and Financial Feasibility Study. Hunden completed this work over several milestones in January
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2021. HSP found through the development of a 30-year proforma, that this development project would
cost approximately $234 million. Based on the assumptions in this model, the net operating income in the
pro forma would be able to support developer equity of $57 million and an additional $157.5 million in
private debt. This leaves a funding gap of $19.5 million, including land costs, for the development of the
hotel.
HSP will attend the meeting to deliver a full presentation of their findings.
FISCAL IMPACT: The cost of the consulting agreement with Hunden Strategic Partners is $40,000.
The City Gate Commerce Park is within the Interchange Activity Center No. 9 Innovation Zone
established by Ordinance 2018-39.
According to the HSP study, locating this project in Collier County is expected to generate more than $5
billion in net new spending, $2.4 billion in net new earnings and more than 1,400 new full-time
equivalent jobs over a 30-year project horizon. In addition, project driven increased Tourist Development,
sales and County property tax collections are expected to total approximately $150 million over the same
30-year period. Based on the developer’s required internal rate of return the HSP study acknowledges that
some level of County investment would be necessary. Great Wolf Lodge is requesting $15 to $20 million
from the County to cover land, impact, and permit fees. Across the range of project driven increased tax
collections, the requested investments would take 4 to 5 years to pay back.
GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic
Element of the Collier County Growth Management Plan which states: “Collier County will support
programs which are designed to promote and encourage the recruitment of new industry as well as the
expansion and retention of existing industries in order to diversify the County’s economic base.”
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issues at this time, and requires majority vote to accept the report. -JAK
RECOMMENDATION: To accept a Market and Financial Feasibility Study from Hunden Strategic
Partners, Inc. on a proposed development project involving Great Wolf Resorts, Inc., at the City Gate
Commerce Park adjacent to the Paradise Coast Sports Complex, and authorize staff to negotiate a
development agreement for subsequent Board consideration.
Prepared By: Sean Callahan, Executive Director, Corporate Business Operations
ATTACHMENT(S)
1. Great Wolf Final presentation (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.B
Doc ID: 15072
Item Summary: Recommendation to accept a Market and Financial Feasibility Study from
Hunden Strategic Partners, Inc. on a proposed development project involving Great Wolf Resorts, Inc., at
the City Gate Commerce Park adjacent to the Paradise Coast Sports Complex, and authorize staff to
negotiate a development agreement for subsequent Board consideration. (Sean Callahan, Executive
Director, Corporate Business Operations)
Meeting Date: 02/23/2021
Prepared by:
Title: – Corporate Business Operations
Name: Sean Callahan
02/15/2021 2:43 PM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
02/15/2021 2:43 PM
Approved By:
Review:
Corporate Business Operations Sean Callahan Additional Reviewer Skipped 02/15/2021 7:48 PM
Corporate Business Operations Sean Callahan Additional Reviewer Completed 02/15/2021 7:48 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/16/2021 8:58 AM
Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 02/16/2021 9:30 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 02/17/2021 10:06 AM
County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 02/17/2021 11:22 AM
Board of County Commissioners MaryJo Brock Meeting Pending 02/23/2021 9:00 AM
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