This was posted and up for 60+ days and saw the price dropping and learned the seller was motivated.

In short it's this: Seller is facing foreclosure nightmare.

Was able to get a meeting with the seller and negotiated using evolving knowledge of construction and deal analysis in addition to discovering seller motivation through direct contact.

I've got signed deal with Seller for $250,000, which includes the 3 franchises AND the real estate for 1 of the units.

Pretty,  as others have stated here, the permitting process through the City of Cape Coral has been hindered by their ability to scale up their staff to handle the massive demands for all permitting including new construction but also anything else that requires a permit, home improvements, sea walls, alternative sea walls, pools and more.From your post, I can see that you are frustrated, and I believe some of that is due to not understanding the steps and processes of new construction, including what must be done prior to submitting permits.

A smart seller/listing agent will likely require a large EMD to tie you to performing on your offer, so be prepared for that. 

deposited in a demand deposit account?  

Since the changes were made, demand for the product has roughly doubled.

What I am trying to understand is after Coachella ends, would it still have the strong recurring demand/occupancy for STRs?

Lenders dont allow seller carry back and NO cash equity..