Seven Islands Update - Here we Grow Again

SEVEN ISLANDS PROPOSAL UNVEILED

Soon you may have to say goodbye to the designation Seven Islands and get used to saying Gulf Gateway when describing the 47 acres west of Old Burnt Store Rd., roughly between Embers and Tropicana Parkway. On February 23, 2022, the Cape Coral City Council heard a proposal to develop the Seven Islands by Forest Development Acquisition LLC, who the city selected as the first-choice developer for the long-awaited project. The company has been in talks with the city since September 2021. The Forest project is known as the "Gulf Gateway Resort and Marina Village," mixed-use development with a hotel, restaurants, commercial and residential units, all in line with the D-1 plan approved by City Council in November 2016. The Seven Islands Zoning District, which was adopted in 2019 with input from the NWNA, restricts construction to 995 residential units with a maximum building height of 8 stories or 115 feet. It was intended to develop a multi-use neighborhood that fosters a sense of place and creates a destination environment in the Northwestern Cape. Council responded favorably to the Forest proposal with the caveat that incentives be crafted to bring commercial and hotel construction to the first stages of development as well as the residential component. Lawrence Zabik, project manager for Forest Development, said that adjustments could be made on some of the locations and some of the timing to accommodate Council desires. He said the D-1 plan was a good plan and that they will work with the city to execute that plan. The whole project, which will be done in phases, will take about 10 years to complete. Construction could start as early as late 2023. By its end, it will bring about 2,500 residents to Cape Coral. Forest Development is a team of real estate development professionals led by Peter Baytarian. Its responsible for the Nautilus 220, a 330-unit waterfront development in Lake Park, near Palm Beach. Mr Zabik said the Gulf Gateway project could be similar to Nautilus but remain within zoning restrictions.

Forest Development's Nautilus 220 in Lake Park, FL. Could Seven Islands be similar minus the height?

View from above of Forest Development's Nautilus 220 in Lake Park.

Forest Development estimates the project will generate about 9,500 jobs in construction and development, a total investment of $650 million, and an economic impact of $1.6 billion through jobs, incomes, and economic activities during the 10-year construction period. After construction, total jobs would be about 650 with 400 direct and 250 indirect.

The next step in the process will be for the city to declare the Seven Islands as surplus property and then approve a sale and purchase contract as soon as March/April. The council would then approve a development agreement for the project in June/July. As the project progresses, the city will meet monthly with developers to ensure open communications. This is similar to the relationship Forest had with Lake Park for the Nautilus development. Lake Park lauded the relationship in a letter of recommendation for Forest Development to Cape Coral.

The project team is comprised of 33 businesses all with extensive experience. Many are from the east coast such as R and N Architecture and Insite Studios Landscaping. Katz Construction out of Palm Beach, Coral Gables, and Tampa, has been responsible for multiple projects throughout Florida ranging from high rises in Miami and Palm Beach to three-story multi-family complexes in surrounding suburbs.

Some onboard locally are Hans Wilson Marine, out of Ft. Myers, which has been responsible for 320 marina projects including Cape Harbor and Burnt Store Marina. Avalon Engineering and Gates Construction are well known locally with a long list of accomplishments.   Scott Dunlap, who is a property developer and partner in this project, has a growing local portfolio that includes over 700 acres along the Burnt Store Rd. corridor and knows the area well.

NWNA President John Bashaw said he's excited about the project after witnessing the presentation and that it could be the gold standard for mixed-use development in Cape Coral. He admitted sentiment among Northwest residents is mixed with some for development and some against, though the majority want to see something go up as long as it's done in a smart and responsible way.

"It's going to be a long, ongoing process," Bashaw said, "but I'm convinced that all of the necessary parties are going to be a part of it, and we're going to wind up with a high-quality destination in Cape Coral."