FORT MYERS — Investors in a Fort Myers luxury condominium project say they've lost hundreds of thousands of dollars on what remains an empty lot three years after making their deposits, raising questions about when — or if — the Prima Luce development will ever be built.

James Trageser and his wife say they invested $96,000 in unit 401 of the Prima Luce development on First Street in 2023. They were excited about the waterfront location and were told construction would start soon. "When we put the money down and signed on the contract, we were told that if he doesn't build it, we get all our money back. We get all our money back. That is what we were told repeatedly," Trageser said. Trageser says he only got half his money back — $48,000 is still missing. "Half of the $96,000 my wife and I gave is in escrow, and the rest was used for construction. As you can see right there, there is no construction. It's an empty lot," Trageser said.

Teacher Protects Investment with Performance Clause:

Another investor, high school teacher Ina Muffson, says she put down $130,000 in May 2022 for unit 304. She was thrilled about the investment opportunity but says she protected herself with a performance clause.

"We invested $130,000. $65,000 would be in escrow, and $65,000 would be used for construction costs," Muffson said.

Muffson's contract required the project to be finished by April 2025 or she'd get all her money back. She says she got her escrow money in February but is still waiting for the other $65,000.

"We were supposed to receive the money back April 25, 2025 either way, we were entitled to that money. And to be honest, I probably would have never, no, I definitely would have not signed on to this project, had I had not put in the performance clause," Muffson said.

The two investors say the financial losses have derailed both families' plans for retirement and starting a family.

"That set me and my wife back in our lives by not having that money. There's we could have invested it in other things we're trying to prepare for our future. We're trying to start a family that all that all hit that down," Trageser said.

For Muffson, the loss represents more than money.

"I'm 60, my husband's 64, we were looking forward to, like this little piece of the American dream, to be able to have, like a condo in Florida where we would be able to, you know, use as investment, and at the same time, be it you know, and be able to, you know, have some equity, and eventually, in a few years, be able to retire," Muffson said.

City Council Member Raises Concerns

Fort Myers City Councilman Fred Burson says multiple investors have sought his help.

"His work has been questionable, to say the least. I'm concerned that, while it has nothing to do with the city, the fact that he took a lot of deposits, and he's not giving the money back," Burson said.

Burson says he's seen this pattern before with managing partner Robert Macfarlane.

"This is his MO he's made a lot of money off of other people's money and not performing. And you just have to be very careful when, when you give a deposit to somebody for $100,000 or $125,000, you need to make sure that you're entitled to get it back," Burson said.

The city can't legally intervene in private real estate transactions, but Burson says the contracts investors signed were problematic.

"I've had the opportunity to read some of those deposits, as the customers have come to us looking for help, and they've shared those contracts with me, and the deposits and the contracts were pretty plain, that he was entitled to keep a portion of those deposits. Should they cancel? And I think if they'd have read those contracts a little closer and gotten advice from some good attorneys, they would not have ever signed those contracts," Burson said.

Developer Defends Project Progress:

Managing partner Robert Macfarlane said securing financing has been the biggest challenge and insists the project is not dead.

"We had three approvals, three approvals for construction loans and the first two were unable to fund," Macfarlane said.

He says he's now working with a Florida-chartered bank and expects a commitment within three weeks.

"I was fortunate to be able to be introduced to the bank, introduced to the bank that is currently in the business and doing this kind of business," Macfarlane said.

He said the total construction loan would be $130 million, with approximately $65 million provided through PACE funds and $65 million from the bank.

Macfarlane said investors money was properly used for development costs.

"Their first deposit goes into escrow. The second 10% can be used for development. We spent $53 million total on development," Macfarlane said.

He claimed he used some of his personal funds.

"The project currently does not have any income. I have funded it and funded payroll, rent, architects, engineer, I have funded everything," Macfarlane said.

Macfarlane said he has invested more than $15 million of his personal funds into the project and hasn't received payroll in over two years.

"I have not been paid a payroll in over two years for this project, this project, and any other project other than Social Security," Macfarlane said.

Promises of Resolution:

As for investors with performance clauses like Muffson and Trageser, Macfarlane said they'll be made whole.

"They will get that at the closing," Macfarlane said.

He estimates that could happen by the end of the year, though he acknowledges the timeline will be tight with upcoming holidays.

"Remember now, please, you have Thanksgiving coming, and then you have the Christmas holidays coming, it'll be close. But that's not the point. The point is it will be coming back. If it's another 15 or 20 days, it will be returned," Macfarlane said.

When asked directly if he was tricking people out of their money, Macfarlane responded: "1,000% No."

"I certainly apologize for the delays. I've never seen delays like this, but we are going forward, and as Exhibit A to that, I have paid everything to ensure that we are going forward," Macfarlane said.