Cape Coral approves new waterfront development after almost a decade of planning

CAPE CORAL, Fla. — City Council unanimously approved the highly-anticipated 'Seven Islands' development on Wednesday after more than a decade of planning.

Forest Development said it plans to build a mixed-use development off Old Burnt Store Road in northwest Cape Coral. The North Palm Beach-based company said the property will include condos, apartments, restaurants, a marina, and community center, according to developers.

The Gulf Gateway Resort Marina Village will be located on seven small islands in a canal just north of Matlacha.

"It's going to provide amenities that are much needed in that area," Mayor John Gunter said. "And I want to congratulate the developer for collaborating with the community as much as you have along the way."

Gulf Gateway Resort and Marina

Cape Coral first explored developing the land in 2015, City Manager Michael Ilczyszyn said. The city worked with neighbors and business owners to create a 'vision' for the islands before settling on a developer, Ilczyszyn said.

"[The developers] have really engaged with us, and it’s bringing amenities we don’t see in the northwest," said Kevin Black, president of the Northwest Cape Coral Neighborhood Association.

Several neighbors told FOX 4 they welcomed the project, but raised concerns about traffic - both on the road and in the water. Old Burnt Store Road has two lanes and borders a residential neighborhood.

“Traffic is definitely going to go up," said Dennis Newman, who lives just across the street from the planned development. "But I like to see some businesses closer that I can walk to and enjoy.”

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Other homeowners weren't so happy. Emile LeDonne spoke against the project during Wednesday's meeting. He argued the existing infrastructure can't support the project.

“I just don’t think the canal is wide enough," LeDonne told FOX 4. "I don’t think the roads are wide enough."

The developers pushed back on those claims. Peter Baytarian, a managing partner of Forest Development, said traffic studies show just the opposite.

“Major traffic studies are done, and they look at the capacity of the roadways, to make sure projects like this can basically be cohesive with the neighborhood," Baytarian told FOX 4. "And that’s all been taken into consideration.”

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FOX 4 requested a copy of the traffic study. Forest Development said they could not provide the study by publishing time on Wednesday. The company directed FOX 4 to contact the city.

A Cape Coral spokesperson said they don't have a copy of the study and directed FOX 4 to make a public records request.

Forest Development told council members the development will actually reduce traffic, because northwest people in northwest Cape Coral won't have to travel as far to reach retail shopping.

"Our plan was developed as an extension of the existing community and encourages a variety of alternative modes of transportation such as golf carts, biking, arrival by boat, or walking," said Sam Bauer, senior vice president of development at Forest. "The plan was developed with the city and considers the existing infrastructure while incorporating significant infrastructure improvements."

Gulf Gateway Resort and Marina

Public speakers raised other concerns about the project. Tom Shadrach, who previously ran for Cape Coral mayor, said he supports the development.

But he questioned the ethics of a Forest Development executive donating to Cape Coral's plans to raise the tallest flag in Florida.

The city is soliciting $500,000 for a 250-foot flagpole that would display an American flag the size of the average single-family plot at Bernice Braden Park.

The city's Givebutter fundraiser shows that Gregory Demetriades made a $5,000 donation on behalf of Forest Development two months ago. Demetriades is the company's senior vice president of accounting, according to the Forest Development's website.

"A donation like that can be perceived by public as influence for a proper decision," Shadrach said during public comment. "And I think it's wrong that the city is sponsoring this fundraiser for the flag. It should be an AMVET thing or foreign wars organization."

Council members and the company rejected any insinuation of pay-for-play on Wednesday.

"I support the flag going forward and I guess my background from private industry is such that I'm not used to pay-for-play," Council Member Joe Kilraine said. "Some people come from other backgrounds, may be used to that."

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Bauer said the company heard about the fundraiser on the radio as they traveled to Cape Coral for a meeting.

"We felt like it was the right thing to do, you know, the city is ours and, just as well as anyone elses," Bauer said. "We care about it."

Michael Hannon of the Matlacha Civic Association said the development will bring more boat traffic that could negatively impact the environment.

Bauer said the company conducted "extensive" studies that consider the project's environmental impact. The company applied for environmental permits with the U.S. Army Corps of Engineers in 2023. Those permits are near-completion, Bauer said.

Forest Development said it took steps to preserve wildlife, including moving back the seawall to save almost a mile of mangroves.

Construction is expected to start more than a year from now, the company said.