Coral Springs redevelopment board approves increased tax rebates for Cornerstone developer following loss on hotel property deal
Coral Springs, Florida – The Coral Springs Community Redevelopment Agency (CRA) narrowly approved a significant increase in tax rebates for the developer of the city’s largest mixed-use development, just days after the same developer sold a hotel site back to the city at a major financial loss.
In a 4-3 decision, the CRA board voted to raise the tax increment rebate on the north building of the Cornerstone project from 50% to 75%. The boost means the developer, Rod Sheldon, stands to gain an estimated $200,000 to $250,000 annually once the building is fully assessed and added to the tax rolls in early 2026.
The approval came after Sheldon agreed to sell a parcel of land originally earmarked for a 144-room hotel back to the city for $1.1 million. He had purchased the same lot in 2023 for $2.9 million. After announcing last year that the hotel would no longer be built due to unfavorable market conditions and a lack of interested partners, Sheldon abandoned the project altogether.
The city has no immediate development plans for the now-vacant lot, and officials said the space will be maintained as open green space for the time being.
“We’ve created a great project,” Sheldon said following the vote, referring to the broader Cornerstone complex, which includes apartments, commercial space, restaurants, and a future home for the Coral Springs Museum of Art.
The vote has stirred mixed reactions across the community, with some praising the deal as a practical way to ensure the development remains financially viable — and others slamming it as a reward for poor follow-through.
“The vote that the CRA took tonight was an insult to residents and a reward to a developer that defaulted on their contract and has not done anything to earn this incremental dollars,” said José “Joe” Morera, a former City Commission candidate and outspoken critic of the project’s handling.
Sheldon’s attorney defended the rebate increase by pointing out that the original Cornerstone agreement — created before the economic downturn triggered by the COVID-19 pandemic — already contemplated a 75% rebate. He emphasized that Sheldon had consistently worked with the city and was following through on creating a vibrant downtown hub.
So far, Sheldon has received $753,000 in tax incentives for the south building of the Cornerstone development and is expected to receive another $748,533 next year. With the new increase on the north building, those numbers could climb considerably.
Despite the financial upside for the developer, some board members expressed hesitation. They debated postponing the vote until the true financial impact on city tax revenues could be better understood. Concerns were raised that the additional rebate might reduce funding available for other public improvement projects within the CRA district.
However, supporters of the measure said it was necessary to keep the project on track, especially given the developer’s cooperation in offloading the hotel parcel at a steep loss — a move they said helped prevent a blighted property from sitting idle for years.
“Sheldon didn’t have to sell the land back at a loss,” said one board member. “It was a risk he took, and now he’s continuing to invest in the downtown vision. We need to support that momentum.”
Still, the optics of the deal have proven controversial. Critics argue that rewarding a developer who failed to deliver a major component of the original project sets a poor precedent.
“This isn’t about just one deal,” said a resident who attended the meeting. “It’s about trust. If the city keeps changing terms and giving away more money after promises are broken, what’s stopping other developers from doing the same?”
For now, the green space left behind by the scrapped hotel will remain undeveloped, and the city has not committed to any future plans for the lot. Whether the increased rebate translates into tangible community benefits remains to be seen.
But one thing is certain: Cornerstone, for better or worse, continues to reshape the face of downtown Coral Springs — and how the city does business with its developers.
