Market Brief
Cape Coral City Council voted 7-1 on November 2, 2026 to approve a $10 million incentive package for the city's first Costco, a 165,000-square-foot store with a gas station at 600 Chiquita Boulevard South.
What the November 2 Costco deal includes, how the $8 million property tax rebate works, and where Cape Coral home sales stand by ZIP.
Cape Coral City Council voted 7-1 on November 2, 2026 to approve a $10 million incentive agreement with Costco Wholesale for the city's first Costco, a 165,000-square-foot warehouse store with a gas station at 600 Chiquita Boulevard South, the Cape Coral Breeze and Gulfshore Business reported on November 3. The package is made up of an Enhanced Property Value Recapture Grant of up to $8 million, up to $1.8 million in development impact fees and up to $200,000 in utility impact fees, paid over a 25-year performance period. Gulfshore Business reported the store is expected to bring 150 to 175 jobs. No opening date has been announced.
This brief covers what the agreement does and how it ties to housing costs and home sales in Cape Coral. Monthly price, pace and sales figures for Lee County sit on the Fort Myers market data hub. We first noted the proposal in our Lee County price cuts piece before the vote.
What did Cape Coral approve on November 2?
Council passed Resolution 302-26, the Economic Development Incentive Agreement between the city and Costco Wholesale Corporation, by a 7-1 vote, according to the Cape Coral Breeze. Councilmember Keith Long cast the dissenting vote. The city announced the plan on October 27, and WGCU reported that this will be Costco's third Lee County location, after Gulf Coast Town Center and the store at U.S. 41 and Cypress Lake Drive. The Cypress Lake store is set to move to a site under construction off Colonial Boulevard between Metro Parkway and Plantation Road.
Gulfshore Business reported that the parcel is about 53 acres, including about 30 acres taken up by a retention pond, and that neither the city nor Costco owns it. It last sold in March 2022 for $4.75 million. City Manager Michael Ilczyszyn told council the site had soil compaction problems that made it costly to develop, according to the Breeze.
How does the $8 million property tax rebate work?
The largest piece is the recapture grant. Gulfshore Business reported that it is repaid from city property taxes generated by the finished development, up to $8 million. Ilczyszyn described it as a "synthetic" tax increment arrangement similar to those in the South Cape Community Redevelopment Agency district, the Breeze reported. Rebates begin only after the store receives its certificate of occupancy and the taxes appear on the tax bill. Lee County is not participating, so county property taxes on the site are not rebated.
| Incentive piece | Amount | Reported terms |
|---|---|---|
| Enhanced Property Value Recapture Grant | Up to $8,000,000 | Paid from city property taxes on the completed store |
| Development impact fees | Up to $1,800,000 | Rebate |
| Utility impact fees | Up to $200,000 | Deferred, per Gulfshore Business |
| Total | Up to $10,000,000 | 25-year performance period |
Sources: Cape Coral Breeze and Gulfshore Business, November 3, 2026.
Costco pays for transportation work on Chiquita Boulevard, including road widening and a traffic signal, Gulfshore Business reported, and the Breeze reported that sidewalks, curbs and turn lanes along the length of the property are part of the planned road work. The Breeze also reported that the site currently generates little to no property, public service or gas tax revenue.
Why does a commercial project matter to Cape Coral homeowners?
Council members framed the deal around the tax base. Councilmember Laurie Lehmann said commercial growth shifts the tax burden away from residents, according to the Breeze. The grant rebates the store's city property taxes up to that $8 million cap. Our Lee County listing tax bills piece shows what property taxes look like on homes for sale in the county today.
For households, the practical change is distance. The city manager said a Costco has been one of residents' most requested additions and would give residents a closer option than shopping in Fort Myers, WGCU reported. The two existing Lee County stores are in Fort Myers and south Lee County.
At the same November 2 meeting, council voted 4-1 to end Ilczyszyn's employment and appointed Maureen Buice as interim city manager, Gulfshore Business reported.
How are Cape Coral home sales moving?
Our Southwest Florida Market Pulse lists six Cape Coral ZIPs with at least 15 sales. From August through October 2026, they closed a combined 1,387 homes across all residential types:
| ZIP | Closings | Median price | Median days on market |
|---|---|---|---|
| 33914 | 293 | $515,000 | 42 |
| 33993 | 284 | $355,000 | 57 |
| 33909 | 275 | $329,900 | 53 |
| 33904 | 221 | $404,000 | 47 |
| 33991 | 176 | $400,000 | 55.5 |
| 33990 | 138 | $341,250 | 43 |
Source: Momentum Market Pulse, Southwest Florida, October 2026 edition (trailing three months, all residential), computed by Momentum from Florida Gulf Coast MLS records. Deemed reliable but not guaranteed.
For October alone, Lee County recorded 1,472 closings at a median $354,500 in 54 days, and the Momentum Market Score for the region held at 30 out of 100, Moderate buyer advantage. Our Lee County ZIP codes piece ranks every Lee ZIP by pace, and our Lee County homes back on market piece covers deals that fell through.
People also ask
Is Cape Coral getting a Costco? Yes, if the project goes forward. Cape Coral City Council approved a $10 million incentive agreement for a 165,000-square-foot Costco with a gas station at 600 Chiquita Boulevard South on November 2, 2026. No opening date has been announced.
How much is Cape Coral giving Costco? Up to $10 million: an Enhanced Property Value Recapture Grant of up to $8 million paid from the store's city property taxes, up to $1.8 million in development impact fees and up to $200,000 in utility impact fees, over a 25-year performance period.
How many jobs will the Cape Coral Costco create? Gulfshore Business reported the store is expected to bring 150 to 175 jobs.
Where are the other Costco stores in Lee County? WGCU reported Costco operates at Gulf Coast Town Center and at U.S. 41 and Cypress Lake Drive, with the Cypress Lake store set to move to a site off Colonial Boulevard.
Limitations
The incentive terms come from news reports of the November 2 meeting, not from the signed agreement; final terms are set in Resolution 302-26. The two outlets describe the utility impact fee piece differently, and we report both. Costco has not announced an opening date and does not comment on future store locations. Market Pulse ZIP figures cover all residential closings from August through October 2026 and do not reflect any effect of the project. Information is deemed reliable but not guaranteed.
Sources
- Council agrees on $10 million incentive for Costco, Cape Coral Breeze, November 3, 2026.
- Cape Coral City Council approves $10 million Costco deal, Gulfshore Business, November 3, 2026.
- City partners with Costco to bring wholesaler's first location in Cape Coral, WGCU News, October 27, 2026.
- Momentum Market Pulse, Southwest Florida, October 2026 edition, Momentum Research report built from Florida Gulf Coast MLS records, generated November 12, 2026.
- Fort Myers market data hub, Momentum Research.
Disclosure: Jon Brooks is a co-founder of Momentum Realty, a Florida real estate brokerage that owns and funds Florida Housing Intelligence. Momentum has a financial interest in Florida real estate transactions, including in markets named here. See our editorial standards.
Market statistics in this article are computed from MLS data licensed by Momentum Realty, and are current as of the date shown. Data may be preliminary and subject to revision by its source. This article is general information, not advice about any specific property, transaction, or financial decision, and is not a representation about any specific property, community, builder, or association.
Equal Housing Opportunity. Editorial standards · Corrections · About