Fort Myers Beach braces for LPA vote that could shape downtown’s future
By Richard Luthmann
Fort Myers Beach developer Terry Persaud unveiled plans this week for a boutique hotel at the foot of the Pier in Times Square, presenting what he called a “smart, balanced addition” to the Town’s post-Hurricane Ian recovery.
Persaud wants to build a three-story retail center with 50 hotel rooms on his property in Times Square to “complete the Bookend” from Estero Bay to the Gulf and the Pier.
He highlights the need for FMB to increase hotel room inventory, attract overnight visitors, and enhance economic activity and tourism revenues.
However, Persaud’s vision faces opposition from Margaritaville principal Tom Torgerson.
We spoke with Torgerson, who believes the project should be sent “back to the drawing board” because he sees “no value” in what Persaud is offering as a “public benefit to justify a height variance” for the development.
Some town insiders say Torgerson believes the three-story development will “kill” the view from Margaritaville resort to the Pier, and that’s the basis for the opposition.
We report, you decide.
GULF-TO-BAY SHOWDOWN: OLD SAN CARLOS “BOOKEND” VISION UNDER PRESSURE
“This is the Gulfside bookend,” Persaud said during a public unveiling at Buffalo Bill’s restaurant, steps from the sand. “We already have the Bayside with the Arches project. This hotel ties it all together—from the Gulf to the Bay, down Old San Carlos.”
The proposed project is a three-story, 50-room hotel with ground-level retail and a rooftop bar, replacing Persaud’s Sunset Beach Tropical Grill, which Hurricane Ian destroyed.
“The beach economy doesn’t rebound without lodging,” Persaud said. “Overnight guests are the backbone of our recovery. This project helps bring them back.”
But while the Arches Bayfront Hotel—a seven-story, 263-room resort—sailed through the Local Planning Agency, Persaud’s more modest project is reportedly under pressure from behind the scenes.
“This is about the view,” one Town insider told FLGulfNews.com. “Torgerson doesn’t want anything substantial between Margaritaville and the Pier.”
HEIGHT, HANDSHAKES, AND HIDDEN AGENDAS
Persaud’s plan exceeds the height limit by just nine feet, plus 13 additional feet for ADA-compliant rooftop elevator access. “We designed this to meet modern flood and safety codes,” Persaud said. “We’re meeting needs while respecting the town’s character.”
Despite being well within FEMA and ADA parameters, anonymous sources claim the real issue is aesthetic, not legal.
“Torgerson wants to preserve his sightlines,” said one Town source. “It’s got nothing to do with code. It’s about keeping Margaritaville front and center.”
Torgerson, the co-CEO of TPI Hospitality, a powerful force in Florida’s hospitality industry and the developer behind the $100 million Margaritaville Resort on Fort Myers Beach. With over 40 years of experience in hotel and restaurant development, Torgerson has positioned TPI as the dominant player in the island’s post-Hurricane Ian redevelopment. TPI’s projects often tout significant public benefit packages, including land donations, view corridors, and infrastructure improvements.
However, Torgerson’s influence has drawn scrutiny. He is currently a defendant in a federal class-action lawsuit in Minnesota, where former employees allege TPI executives cut them out of a lucrative ESOP payout before the resort opened. Torgerson has denied wrongdoing and insists that all his developments—past and present—aim to support the broader Fort Myers Beach community.
In the pending federal court case, Torgerson’s lawyers are fighting to keep the company’s financial records sealed from public disclosure.
Some in FMB find the lack of transparency troubling, particularly when Torgerson and his group are engaged in a public-private partnership.
“Why fight that hard to keep things secret if everything’s above board?” one local questioned.
GULF-TO-BAY SHOWDOWN: THE ECONOMICS OF A COMEBACK
Persaud emphasized the economic necessity of rebuilding hotel capacity.
“Day trippers are great, but they’re not enough,” he said. “They don’t book rooms, they don’t eat three meals, they don’t tip the way overnight guests do.”
The island lost well over a thousand hotel rooms to Hurricane Ian. Many properties are still dormant.
“This project gets 50 rooms back in circulation,” Persaud said. “That’s 50 families a night supporting our small businesses.”
Tourism data backs him up. Overnight visitors spend significantly more per day than same-day tourists, particularly in local dining, retail, and recreation.
“We don’t need volume, we need quality,” Persaud added. “This is a targeted project that matches the scale and feel of Times Square.”
But according to insiders, the Town’s decision may not hinge on facts.
“There’s pressure to kill it in its current form,” said one Council insider. “It’s coming from people who already have their footprint and don’t want to share.”
REWRITING THE PAST, OR REPEATING IT?
Persaud’s history with the Town is well known. He bought the Times Square property in 2014 for $3.5 million, invested in fire safety upgrades, navigated regulatory hurdles, and remained stable even after Ian impacted his business.
“I’ve been committed to this town for over a decade,” he said. “I stuck through the storm and stayed through the rebuild. That should count for something.”
In 2023, Persaud settled a $2.7 million fine dispute with the Town for $250,000 and a $500,000 good-faith bond. “We reached a compromise,” he said. “Not everyone was thrilled, but we got to a resolution. That’s progress.”
Even now, Persaud remains optimistic. “The town has been professional and fair,” he said.
But Town Hall whispers tell a different story.
“The message being sent is: build big, or get buried,” one source said. “This isn’t about doing what’s best for the Town. It’s about who’s got the most pull.”
To get answers, we went straight to the horse’s mouth. We asked Tom Torgerson for comment on the issue. He provided detailed responses to several important questions and was extremely forthcoming with his time.
Luthmann: Mr. Torgerson, are you actively opposing Terry Persaud’s Times Square hotel development either publicly or behind the scenes?
Torgerson: I attended Mr. Persaud’s open house last evening on behalf of his proposal. I as well will attend and participate, via the Town’s procedures, in the first public hearing on Mr. Persaud’s proposal this Tuesday at the LPA Meeting. In advance of that I have reached out to each LPA Member, in typical open air fashion, which I am certain they all will attest to. During our discussions we had very productive exchange on the Town’s redevelopment post Ian. As Mr. Persaud’s project progresses to the Town Council, I would intend to follow the very same process of open air disclosed discussion with any Councilors that a willing to meet with me as well.
Q: Is your concern with Persaud’s development based on its height and density, or is it because it may obstruct Margaritaville’s view corridor to the Pier?
A: Mr. Persaud has his rights associated with the property he owns, and I don’t challenge that. Our Town’s Land Development Code and Comprehensive Plan does allow an applicant to request variances exceeding the LDC “by-right” parameters up to but not exceeding the Comp Plan. However, those variance asks, if to be considered, need to be justified by a combination of hardship and/or public benefits. Mr. Persaud’s ask for extensive variances is based upon the later, him providing Public Benefits in exchange for his requested variances. It is accurate to say that as a resident and business owner on FMB do not see any material value in what Mr. Persaud is offering for Public Benefit and rather would suggest granting the variances would impose a hardship on the community.
Q: What is your response to local sources who claim you’re “flexing your influence” to kill Persaud’s proposal before a public vote?
A: My personal opinion as a resident and business owner is that this project should be sent back to the drawing board, but we will see what our elected leaders determine once they evaluate all the evidence.
Q: Do you believe that Persaud’s project poses a financial or branding threat to Margaritaville or TPI operations on Fort Myers Beach?
A: My 40+ years of being a developer-owner-operator of hotels and restaurants has had a consistent theme, and that is synergy. A cluster of hotels and restaurants and entertainment options establishes a destination versus a transient quick visit. Our MV project never had any expectation but for it to open into a synergistic entertainment cluster environment at its doorsteps. It was actually concerning for us to be forced to open into a post-Ian setting that virtually wiped out the neighboring environment we wanted to have. So to answer you question, I would say a resounding “NO”.
Q: Why is TPI fighting to keep financial records sealed in the Minnesota ESOP lawsuit? What would disclosure of these records reveal to the public or town leaders?
A: I didn’t know that we were? (NOTE: Here is a recent court filing from Kloss v. Argent Trust Co. et al.)
Q: Can you confirm whether Margaritaville Fort Myers Beach is currently profitable or operating under financial strain due to litigation or post-Ian challenges?
A: Profitable and not under any financial strains from any direction.
Q: Did the ESOP termination and stock sale to your long-time associate John Dammermann enable you and TPI leadership to shield Margaritaville’s windfall from former employees, as the lawsuit claims?
A: No, BTW, the Defendant’s reached out recently offering, in their words, to settle for a nominal cost in exchange for us not having to spend millions going to trial. This is the result of the Judge issue a ruling on motions that literally resulting in their claims being dismissed.
Q: What assurances can you give the Town and residents that your redevelopment plans are financially sustainable and won’t collapse under the weight of pending litigation?
A: We have no outstanding out of the ordinary operating claims, slips and falls, etc. I don’t know how to answer this, we have industry normal insurance coverage and operate in a manner that mitigates claims of all kinds/exposures.
Q: Should financial transparency be a condition for any developer participating in public-private partnerships in Times Square or on Fort Myers Beach?
A: If there is a question as to a developer’s financial and/or skills to carry out a development, it is prudent for the jurisdiction to require performance bonds.
Q: How do you respond to accusations from community members and property owners that Fort Myers Beach town policies unfairly favor TPI over smaller developers like Persaud?
A: TPI earned its development rights through a several year effort that involved community focus groups mostly comprised of those most opposed to our original development concept. In that process what evolved, through a process of much give-and-take, is the MV that you see today. Some of the “most significant” Public Benefits provided to the community include:
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- MV Eliminated all density on MV’s surface parking lot at the base of the bridge adjacent to the Lighthouse Resort. Which if Pursaud is approved, would be the only remaining Gulf view corridor as you are descending down the bridge as it winds to the west and faces head-on into the Persaud projects building.
- MV Donated a multimillion dollar land at the base of Mantanzas bridge to allow for the interchange redevelopment, which otherwise could not have occurred and it protects the bridge view corridor.
- MV Donated a multimillion dollar land, fully improved with parking lot and below ground storm water detention, generating a $300k annual annuity to the Town in perpetuity
- MV Transferred building intensity/density away from the beachside of Estero Blvd. to the landward side of Estero Blvd.
- MV Providing an almost 400’ long Gulf view corridor along Estero Blvd.
- MV donated land to increased Town ROW on both Crescent and Fifth to allow for wide sidewalks on both sides of the streets.
- MV donated land to increased County ROW on Estero Blvd. to allow for wide sidewalks on both sides of Estero Blvd. and an extended left turn lane onto Crescent.
- MV Provided 3 public Beach Accesses in lieu of the one that existed previously.
- MV Eliminated all 7 previously existing traffic ingress-egresses along Estero
- MV Located all service deliveries internally and off of all streets.
Q: Are you willing to participate in a public forum or town hall with other Times Square stakeholders, including Mr. Persaud, to discuss redevelopment openly?
A: At Mr. Persaud’s open house last evening, I expressed to him that I was disappointed he didn’t invite me to participate in that exact process, he agreed that was a mistake.
Q: Does TPI believe that the redevelopment of Times Square should include multiple property owners and perspectives, or should it be consolidated under a single master developer like TPI?
A: I have no say in that, nor does that Town unless they want to try acquiring all of the property.
Q: Do you support or oppose Mayor Dan Allers’ redevelopment vision for Times Square?
A: I have no idea what this is, has he proposed one?
Q: Has TPI ever coordinated business interests with the Mayor’s office, directly or indirectly?
A: I have no business interests with the Mayor’s office and have never pursued any. Oh excuse me, the Mayor in partnership with another resident of FMB, have a golf cart rental operation and they rent carts to our MV guests just as they do with other resorts on the island.
Q: If the LPA and Council approve Persaud’s project next week, will TPI challenge, appeal, or obstruct that decision, or will you support the town’s vote and move forward collaboratively?
A: This is a hypothetical; I am not a litigious person. I would have to feel I was personally harmed significantly by some illegal act to ever consider suing someone. Unintended harm is not something I would ever pursue. I can say to this date, I have never sued someone.
Q: Is there anything else that you feel is important for the readers to know?
A: Yes. For perspective, I am publicly supporting the two other hotel/resort projects currently in front of the LPA and Council currently:
- Lighthouse Resort, I support their first addition post Ian and am now supporting their second addition
- Arches Resort, I support their retooled development after they went back to the drawing board and put it into scale with its location.
My concerns about the Persaud proposal, I feel all residents, visitors and business owners should be equally concerned about. I have been very active in this small community as has my wife philanthropically. We love this place and have gone through hell as a result of Ian like everyone else has. To in any way imply I want anything but good for this island would only be stated by someone that doesn’t know me.
REBUILD FOR ONE, OR ALL?
We appreciate Mr. Torgerson’s time, vision, and devotion to FMB. He is not alone, and the long-term interests of the Town are at the core of LPA and Council decisions.
Cutting through all of the noise, the simplest focal point and metric is hotel room inventory. Ian decimated it.
Inventory levels remain historically low. And tourist housing is a primary ingredient in FMB’s economic engine.
More tourists who enjoy FMB for longer periods and create greater economic activity benefit everyone, including Tom Torgerson and Margaritaville.
The Arches project has the Bayside locked. Persaud’s Times Square hotel completes the “Old San Carlos Bookend” vision.
“This is a connected corridor,” he said. “It needs both ends. From the Estero Bay to the Gulf of America.”
The proposed hotel would reintroduce walkability, retail, lodging, and beach access to the Pier’s edge. Persaud emphasized that his plan aligns with the Recovery and Resiliency Partnership Project and prioritizes community-focused redevelopment.
“We’ve designed for beauty, functionality, and inclusion,” he said. “This isn’t just for tourists. It’s for locals, for workers, for Fort Myers Beach.”
As the Local Planning Agency prepares to vote, Persaud hopes facts—not influence—will drive the outcome.
“I’m not asking for special treatment. I’m asking for a fair shot,” he said. “Let’s build a beach that works for everyone.”
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