Cape Coral North 3 UEP Assessments: Compare Proposed Costs

If you are buying a home in Cape Coral's North 1 East area this fall, the tax history on the listing is missing a line. The Cape Coral Breeze reports that the city's utility assessment for that area starts on the November 2026 property tax bill. It runs up to $3,385 a year for a standard lot on the default 30-year plan, and unless the seller pays it off, it becomes yours at closing.

A few miles northwest, the North 3 area goes through the same process a year behind. City Council was scheduled to hold the first public hearings on North 3 assessments on Monday, September 28, 2026. The proposed rates are not uniform. The Cape Coral City Council's draft assessment agenda lists proposed combined figures of about $41,278 west of Burnt Store Road and about $35,470 east of it. The gap comes from road upgrades that owners west of Burnt Store requested, which the city plans to charge only to parcels on that side.

In both areas, the price you negotiate is only part of what the home costs.

The North 1 East Bill Lands in November

North 1 East covers the area generally east of Del Prado Boulevard, west of U.S. 41, south of NE 28th Street, and north of NE 10th Terrace. That is about 3,800 parcels. Council approved the final assessment on November 19, 2025. Crews are working in the neighborhood now, and the city's roadwork notice for the week of September 21, 2026, lists closures in Contract Areas 7, 8 and 10.

The standard 10,000-square-foot "equivalent parcel" was assessed at $32,288. That figure already includes about $4,000 in grant reductions. Owners had these payment options:

• Initial prepayment: $32,288
• Interim prepayment: $33,142
• 20-year installments: $3,961 a year
• 25-year installments: $3,616 a year
• 30-year installments, the default: $3,385 a year, at a maximum interest rate of 6.25%

Larger lots pay more, because the line charges are based on land area. Because the first installment has not been billed yet, last year's tax bill for any North 1 East home understates what the next owner will pay each year. If the lender escrows taxes, the monthly payment you qualified for is too low by roughly $282 a month on the default plan.

The assessment also leaves out the work on your own lot. The Cape Coral Breeze listed about $3,000 for an average plumber's connection, a $100 septic-abandonment permit, $325 for the water meter, and a $225 utility deposit. The City of Cape Coral's UEP FAQ says owners of developed properties have 180 days to connect to water and sewer after the city sends a Notice of Availability. Whoever owns the house when that notice arrives pays for the connection. For a construction-minded buyer, the practical question is whether the septic tank and plumbing on a given house will make that connection routine or expensive.

Who Holds the Balance After Closing

The City of Cape Coral's special assessment FAQ explains the rule. In general, an assessment is not a lien. It is a tax levy, recorded with the Lee County Clerk of Courts as a notice. If the balance has not been paid in full, it transfers to the buyer, who takes over the remaining payments. Hardship and deferral programs are the exception, and those liens must be paid in full at closing.

Lenders add a second layer. The city's UEP FAQ says some lenders may require a full payoff, and that when property taxes are escrowed, the escrow payment can include the annual assessment. Whether the seller pays off the balance, the price is lowered to reflect it, or you take it over is something to negotiate. The city's default only applies if nobody addresses it.

The balance is easy to confirm. The city's special assessments page has a payoff request tool for any parcel. It explains that a payoff is the current annual installment, paid to the Lee County Tax Collector, plus the remaining principal, paid to the city.

North 3's First Assessment Hearings Were Scheduled for September 28

North 3 is the northwest area generally bounded by Kismet Parkway, Burnt Store Road, Bonefish Canal, and Spreader Waterway. The city counts about 1,900 improved parcels and 3,200 unimproved ones. Most homes there use well water. By mid-2026, design was 97% complete, bidding opened June 25, 2026, and the city was aiming to issue the first construction notice to proceed by the end of 2026.

The September 28 agenda included Resolutions 243-26, 244-26 and 245-26, which cover water, wastewater and irrigation. The drafts set the final assessment hearing for November 2, 2026, at 4:00 p.m. in Council Chambers at 1015 Cultural Park Boulevard. A February 2026 city letter to North 3 owners said the first tax-bill installment would come in November 2027. It also warned that North 1 East figures are for reference only and that North 3 costs may be significantly different.

These are the draft figures for one equivalent parcel and one residential unit:

On the 30-year term, the maximum annual line-extension installments are $670 for water, $2,058 or $1,462 for wastewater depending on the side of Burnt Store, and $632 for irrigation. That comes to about $3,360 a year west and $2,764 east, before any annual amount for the capacity charges. The city notice calls these maximum rates that may come down once actual costs are known. Treat them as proposals until Council votes on November 2.

Why the Line Falls at Burnt Store Road

All of the difference is in the wastewater line charge, and the resolution explains why. When crews restore the streets after installing sewer lines west of Burnt Store, the work will include what the city calls Enhanced Roadway Improvements. The resolution says these were added "at the request of affected property owners and/or homeowner association representatives." The owner notice describes what that means:

"enhanced improvements and transportation features which may include but are not limited to lane expansion, traffic calming features, roundabouts, and multi-use pathways."

The city's quarterly report names two of the roundabouts, at Burnt Store Road and Tropicana, and at Burnt Store Road and Kismet. The resolution finds that parcels east of Burnt Store do not rely on these roads for access, so they get no special benefit and pay none of the enhanced cost. It also names the benefit it expects west of the road: "enhanced marketability and enjoyment of the property, and an increase in property desirability and value."

Nearly all of North 3 sits on the west side. The draft counts about 6,157 equivalent parcels west of Burnt Store and about 512 east, out of roughly 6,669 total. For most North 3 buyers, the higher rate is the one that applies. The side of the road matters most when you compare two similar homes on opposite sides of Burnt Store. The one to the west carries about $5,800 more in assessment per equivalent parcel, and in return the city's plan gives it the upgraded streets.

What Changes on a Vacant Lot

Vacant land is assessed too, and the charges are based on land area, which matters in a part of the city full of empty lots. Cape Coral's platted lots are mostly 40 by 125 feet, or 5,000 square feet. The typical homesite is two of them, which is the 10,000-square-foot equivalent parcel. Each tax parcel's line charges are its area divided by 10,000, rounded to the nearest tenth. A triple lot pays about 1.5 times the standard rate. An unimproved parcel is charged capacity fees for one residential unit.

Cul-de-sac lots get a special rule under the city's draft assessment resolution. For water and wastewater, the draft ignores the "hammerhead" tabs at dead ends because they cannot be built on. The irrigation resolution counts that area anyway, on the reasoning that it still benefits from irrigation service. One lot can therefore have two different parcel sizes on the same assessment roll.

For anyone planning to build, undeveloped parcels must connect to water and sewer before a certificate of occupancy is issued. The connection cost becomes part of the construction budget along with the assessment.

Before You Make an Offer

1. Look up the parcel. The city's future UEP area lookup covers North 1, North 3, North 5 and North 6.
2. Request a payoff figure from the city's assessments page for any North 1 East home, and check for hardship or deferral liens.
3. Ask your lender whether it will require a payoff or allow the installment in escrow.
4. Price in the connection for any home with a septic tank or well: plumber, permit, meter, and deposit.
5. For North 3, confirm which side of Burnt Store Road the parcel is on, and remember the rates are not final until the November 2 hearing.

A Few Common Questions

Is the North 1 East amount going to drop because of the new grant?

Council accepted a $6.5 million state grant for North 1 East on July 15, 2026. The city's published assessment table still shows $32,288 per standard parcel.

Are North 5 and North 6 next?

The city lists both as in the "Study" phase, not yet in design or construction.

Can I deduct the assessment on my income taxes?

The city says this is a question for a tax advisor. Its FAQ notes that non-ad valorem assessments generally are not deductible on a primary residence but may be on rental or business property.

If you are looking at a home or lot in North 1 East or North 3 this season, Daza Estates can pull the parcel's assessment figures and walk through the connection work with you, in English or Spanish, before you set your offer. Let's Connect.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.