I'm running into some difficulties with the minimum bounding geometry tool, and not for the first time. For some reason, the boundary created through the tool keeps stretching waaay off the area where actual geometry exists.

In the image, the actual geometry to create a boundary for is up by in Port St. Lucie.

Has anyone else experienced this issue, and were you able to solve it? I'll keep troubleshooting.

Thanks!

you have a geometry error. Run a repair geometry tool on the input file assuming it is a normal featureclass. And minimum bounding geometry really only makes sense if one is using projected data (not data in a projected data frame). If you want minimum bounding geometry for geographic data, then you should ensure that that the algorithm returns geodesic lines for the edges, because if you project the results, you will not necessarily obtain the same results.

Also there are some warnings in the help where issues' may arise Minimum Bounding Geometry—Help | ArcGIS for Desktop