Residents filled the Cape Coral City Council chambers on Monday, September 28, and the crowd spilled into an overflow area. Most of the people who spoke asked council to put the North 3 Utilities Expansion Project on hold until after the November 3 election. Councilmember Jennifer Nelson-Lastra moved to pause the project. Councilmembers Keith Long and Rachel Kuduk supported her, and the motion failed 5-3. After more than five hours, council passed Resolutions 243-26, 244-26 and 245-26, the initial assessment resolutions for the North 3 Potable Water Improvement area.
If you own or are buying a home or lot in North 3, the assessment amount matters less right now than the calendar. Two other things decide who pays: the date your contract closes and which installment box is checked in Paragraph 9(f) of the standard Florida contract. If nobody changes the default, the form contract tends to leave the bill with the buyer.
The Cost Becomes Final Between Two November Dates
The city puts North 3 at roughly three square miles in northwest Cape Coral. It covers about 1,900 improved parcels and 3,200 unimproved ones, inside a boundary formed by Burnt Store Road, the Bonefish Canal, the Spreader Waterway and Kismet Parkway. According to the Cape Coral Breeze, the estimated assessment for one equivalent parcel, which is 10,000 square feet, is $35,264 east of Burnt Store Road and $41,029 west of it. West-side parcels have an optional five-road improvement that would add $5,765 per equivalent parcel on top of that. Owners will also pay connection costs, which the Breeze reported as $3,000 to $5,000 for a typical plumber's connection, $100 for the septic abandonment permit, $325 for the water meter and a $225 account deposit.
None of these figures is final yet. Here is the schedule the Breeze reported:
| Date | Step | What it means for a contract |
|---|---|---|
| October 19, 2026 | Homeowner information meeting | The last public briefing before the final vote |
| November 2, 2026 | Public hearing on final assessment resolutions and assessment rolls | The estimates are expected to become formal assessments |
| November 3, 2026 | Initial prepayment period opens | Paying up front costs the least in total |
| December 2026 | Notice to proceed for construction | Construction starts. The improvement is nowhere near "substantially complete" |
| March 31, 2027 | Initial prepayment period ends | The lowest-cost payoff window closes |
| April 1 to July 31, 2027 | Interim prepayment period | Costs $279 more east of Burnt Store Road and $322 more west of it |
| November 2027 | First amortized installment on the tax bill | Owners who didn't prepay start annual payments |
A sale signed this month could close before or after November 2. Under the standard contract, that date affects who pays.
What Paragraph 9(f) Says
The current Florida Realtors/Florida Bar Residential Contract for Sale and Purchase covers assessments by a city or other public body in Paragraph 9(f). The AS IS version uses the same wording.
At Closing, Seller shall pay: (i) the full amount of liens imposed by a public body ("public body" does not include a Condominium or Homeowner's Association) that are certified, confirmed and ratified before Closing; and (ii) the amount of the public body's most recent estimate or assessment for an improvement which is substantially complete as of Effective Date, but that has not resulted in a lien being imposed on the Property before Closing. Buyer shall pay all other assessments.
The second seller trigger can't apply to North 3 this fall. The city expects construction to start by the end of 2026, take about two years and finish by the end of 2028. So the seller's obligation depends entirely on the first trigger, and anything that falls outside it goes into "all other assessments," which the buyer pays.
The Installment Box Matters More Than the Price
When an assessment can be paid in installments, 9(f) asks the parties to check one of two boxes. Option A says the seller pays installments due before closing and the buyer pays installments due after it. Option B says the seller pays, in full, before or at closing, any assessment the public body allows to be prepaid. If neither box is checked, the contract treats Option A as selected.
Compare that with the North 3 schedule. The first amortized installment lands on the November 2027 tax bill. Under Option A, a closing any time between now and then has no installments due before closing for the seller to cover. The buyer takes over the whole payment stream. Prepayment opens November 3, 2026, which makes Option B something the parties can actually use, and the form says it applies to assessments the public body allows to be prepaid. How Option B interacts with an assessment that is still pending on the effective date is a question for your closing attorney or title agent. Get the answer before both parties sign.
Here is what the payment stream looks like, using the per-parcel annual payments the Breeze reported:
| Term | East of Burnt Store Road | West of Burnt Store Road |
|---|---|---|
| 20 years | $4,266 per year | $4,963 per year |
| 25 years | $3,895 per year | $4,532 per year |
| 30 years | $3,648 per year | $4,244 per year |
Add up the 30-year east-side payments and you get about $109,440, compared with an estimated $35,264 to prepay. Finance Director Crystal Feast told council that the initial prepayment has the lowest total cost and that paying over time adds interest. A buyer who sees that tax-bill line will price it into the offer, whichever box ends up checked.
The City's Wording Doesn't Match the Contract's Trigger
The seller's obligation in 9(f) turns on "liens" that are "certified, confirmed and ratified." The city describes its assessments differently. On the question of whether a special assessment is a lien, Cape Coral's assessment FAQ says, "In general, no," and explains that it is treated as a tax levy and recorded with the Lee County Clerk of Courts as a notice. The FAQ also says an unpaid balance transfers to the new owner. The UEP FAQ adds that an owner on the amortized option typically doesn't have to pay off the balance when selling, but "some banks and other lending institutions may require payment in full."
That leaves a real question about whether the November 2 resolutions count as the kind of lien that shifts the cost to the seller under 9(f). The form doesn't answer it, and neither does the city's FAQ. Your title agent or closing attorney is the right person to ask. The safer approach is an addendum that names the North 3 assessment and states who pays it, whatever the closing date turns out to be.
There's one exception where the city's answer is clear. Hardship and deferral programs record an actual lien, and the city says those liens must be paid in full at closing. The Breeze reported that both programs are available for North 3. The hardship program defers annual payments for owners who meet income qualifications, and Community Development Block Grant money helps very-low-income families with connection, septic abandonment and meter fees. If a seller signs up for a deferral, they have recorded a lien that must be paid at sale.
Why Buyers Can Negotiate This Right Now
Market conditions make it reasonable to ask the seller to cover the assessment. The Royal Palm Coast Realtor Association's August 2026 report for Lee and Hendry counties shows a 49-day median time on market for single-family homes, and sellers received 92.8% of their original asking price. Months' supply rose from 5.0 in July to 5.4 in August. Those figures cover the whole region, not Cape Coral alone, and September numbers weren't out as of early October. Still, it's a market where sellers already expect some negotiation, and a request to check Option B or credit part of the assessment fits within it.
For sellers, the same numbers argue for dealing with the assessment before a buyer raises it. A listing that discloses the North 3 status, shows a city payoff figure and offers a clear allocation removes a five-figure unknown from the buyer's math.
What to Settle Before Signing
- Confirm the parcel and the side of the road. The city's North 3 page lists Burnt Store Road as the eastern boundary, while the Breeze reports separate figures for parcels east and west of it. Check the specific parcel against the city's resolution and map.
- Count equivalent parcels. Feast said 93.5% of parcels fall between one and two equivalent parcels, and oversized lots are assessed more.
- Map the effective date and closing date against November 2. That date decides which 9(f) trigger applies.
- Decide the installment box on purpose. Leaving 9(f) blank means Option A.
- Ask the lender early whether it will require the assessment paid in full.
- Order a written payoff form. The city's Estimated Loan Payoff lookup is for information only, and the city recommends a completed payoff form for a scheduled closing.
- Budget the connection separately. The plumber, permit, meter and deposit costs aren't part of the assessment.
Quick Answers
Are the North 3 amounts final? No. They are estimates until the final assessment hearing on November 2, 2026.
Could the project still be delayed? The motion to delay failed 5-3. Mayor John Gunter said that putting the project off would let the current bids expire and force a rebid, and that coming back in 12 to 18 months would cost more.
Does this apply to vacant lots? Yes. The Breeze reported that residents and lot owners east of Burnt Store Road face the $35,264 estimate. The city counts about 3,200 unimproved parcels in the project area.
This post is general information, not legal or tax advice. Your closing attorney or title agent should review the specific contract language.
If you have a North 3 home or lot under contract, or plan to list one before the November 2 hearing, Miki Matrullo and the team can help you find out which side of Paragraph 9(f) your sale falls on and put the allocation in writing before anyone signs. Contact us to go over your dates.
