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CAPE CORAL SEVEN ISLANDS PROJECT

CAPE CORAL POLITICS, CAPE CORAL FLORIDASeven Islands Cape Coral

The Seven Islands project is a mixed-use waterfront resort and marina development planned for a 48-acre area in northwest Cape Coral. After more than a decade of planning, recent city council actions and environmental permit applications indicate the project is moving forward, with a potential groundbreaking as early as 2026. 

CAPE CORAL SEVEN ISLANDS PROJECT

CAPE CORAL POLITICS, CAPE CORAL FLORIDAProject overview

Known as the  Gulf Gateway Resort & Marina Village, the project will transform seven undeveloped, man-made islands located along Old Burnt Store Road into a major residential, commercial, and tourist destination. The site was acquired by the city in a 2012 foreclosure sale and was sold to developer Gulf Gateway Development (an affiliate of Forest Development) in 2023. The total build-out is anticipated to take about 10 years. 

Key features of the project is planned to include: 

  • Residential: Up to 995 units of condominiums, apartments, and fish houses.
  • Resort and hotel: A Marriott-branded hotel with 240 rooms and a resort-style lagoon and beach.
  • Commercial village: A centrally located commercial village featuring waterfront restaurants, shops, and a tiki bar.
  • Community spaces: Island 7 will be a community hub with an amphitheater, a community center, a waterfront park, a splash pad, a food truck area, and a dog park.
  • Marina: A public marina with boat slips for transient docking, a kayak launch, and enhanced dock accessibility.
  • Connectivity: The plan emphasizes non-automobile transport with walking paths, bike parking, and golf cart parking to encourage a walkable “automobile-free” destination. 
CAPE CORAL SEVEN ISLANDS PROJECT

CAPE CORAL POLITICS, CAPE CORAL FLORIDARecent progress and developments

  • Updated plans: In September 2025, the Cape Coral City Council approved a text amendment to allow for more flexibility in the development’s non-residential component. This included removing a cap on commercial square footage while still mandating a mix of uses.
  • Permit applications: In December 2024, the developer submitted permit applications to the Army Corps of Engineers and the state for infrastructure such as seawalls and docks.
  • Timeline: The 10-year, phased project aims for a groundbreaking in 2026. The first phase is expected to include Island 7 and the frontage on Old Burnt Store Road. 

CAPE CORAL POLITICS FLORIDA PALM TREES Community Feedback

While the project has been in the works for a decade, public sentiment has been mixed. Some residents, particularly those who live nearby, are excited about the prospect of new local shops and amenities. Others, however, are wary of increased traffic, potential environmental impacts, and a lack of infrastructure to support the growth. The Northwest Cape Coral Neighborhood Association and city officials have emphasized the need for responsible development and transparent communication to address these concerns.

CAPE CORAL SEVEN ISLANDS PROJECT

VIDEO – SEVEN ISLANDS PROJECT SPARKS HEATED DEBATE

CAPE CORAL POLITICS, CAPE CORAL FLORIDA Environmental considerations and permits that are associated with the Seven Islands project.

The Seven Islands project requires extensive environmental permitting due to its location in a sensitive coastal area with wetlands, and it affects waters used by protected species like manatees. Federal, state, and local agencies are involved in the review and approval process. 

Environmental considerations

  • Wetlands and aquatic resources: The project site consists of saltwater forested wetlands and uplands along the North Spreader Waterway. According to a permit application, the seven man-made islands have been in their current state since at least 1985. The project will involve filling and modifying waters of the United States, including placing over 19,000 linear feet of seawalls and dredging for new boat docks.
  • Protected species: Project planning involves balancing development with environmental requirements related to protected species, particularly manatees. The U.S. Fish & Wildlife Service may review the project, as it would affect a waterway used by the animals. The site may also contain habitat for other species, such as burrowing owls or gopher tortoises, which requires specific affidavits for permitting.
  • Water quality: Any new development in the Spreader Waterway, including the planned marina and boat slips, must address potential impacts on water quality. The South Florida Water Management District (SFWMD) and the Florida Department of Environmental Protection (FDEP) review projects for compliance with water quality standards.
  • Cumulative impacts: The U.S. Army Corps of Engineers (USACE) must consider the potential cumulative impacts of the Seven Islands project and other development in the rapidly growing Southwest Florida area. This includes effects on wetlands and important ecological resources. 
CAPE CORAL SEVEN ISLANDS PROJECT

CAPE CORAL POLITICS, CAPE CORAL FLORIDA Permit requirements

  • U.S. Army Corps of Engineers (USACE): The USACE requires a permit under the Clean Water Act for work that affects “waters of the United States.” The city submitted its application in December 2024 for the seawalls, dredging, and docks needed for the resort and marina. The USACE is tasked with evaluating the project’s probable impacts on the public interest.
  • Florida Department of Environmental Protection (FDEP): FDEP is a key state agency that reviews Environmental Resource Permits (ERP) for development projects in Florida. The developer and the City of Cape Coral are working with the FDEP and USACE on environmental permits.
  • South Florida Water Management District (SFWMD): As part of the state’s environmental review, the SFWMD oversees Environmental Resource Permits and ensures projects comply with water management regulations.
  • City of Cape Coral: The developer needs various permits from the city, particularly for commercial and residential construction, which can be approved more quickly than marina permits.
  • Lee County: For certain environmental considerations, developers may need to adhere to Lee County’s Land Development Code, especially concerning native habitats and buffers. 

Here’s the most current publicly reported timeline for the Cape Coral Seven Islands Project (also referred to as the Gulf Gateway Resort & Marina Village):

CAPE CORAL POLITICS FLORIDA PALM TREES Current Status (as of January 2026)

  • Development agreement approved: Cape Coral City Council unanimously passed the development agreement with the project’s developer in mid-January 2026, clearing a key procedural milestone.
  • Permitting process ongoing: Permits with agencies like the Army Corps of Engineers and Florida DEP for foundational work such as seawalls and dredging have been underway (notice of application published in late 2024).
  • Groundbreaking timing: There is currently no official set date for groundbreaking. Local reporting explicitly states that a definitive construction start date hasn’t been established yet.

CAPE CORAL POLITICS FLORIDA PALM TREES Projected Milestones

Permitting & Early Site Work

  • Permitting for core infrastructure like seawalls and docks is in process and typically takes significant time due to environmental reviews.
  • The developer’s goal, as noted by neighborhood association sources, is to break ground in 2026 with a phased build-out strategy.

CAPE CORAL POLITICS FLORIDA PALM TREES Phased Construction Timeline

  • Build-out duration: Industry and developer projections indicate the entire project will unfold in phases over approximately 10 years, with the first phase focusing on Island 7 and the Old Burnt Store Road frontage.
  • Completion: Given a 10-year build-out plan, full completion would likely occur around the mid-2030s (approximately 2035–2036), assuming timing foll
  • Community center: No later than 6 years from closing date.

CAPE CORAL POLITICS FLORIDA PALM TREES Summary

  • Official groundbreaking: Not yet established (no confirmed start date as of January 2026).
  • First construction phases: Likely begin 2026–2027, contingent on permits and early infrastructure work.
  • Overall project build-out: Expected to take ~10 years, suggesting mid-2030s completion.

Here’s what’s publicly documented regarding infrastructure-related incentive targets and associated dollar amounts for the 7/Seven Islands project in Cape Coral (sometimes referred to as the “Seven Islands” or “7 Islands Project”). Note that available public reports focus on economic development incentives tied to project milestones, not a comprehensive breakdown of all infrastructure items with exact dollar allocations.

CAPE CORAL POLITICS FLORIDA PALM TREES Seven Islands Project: Incentive Grants & Infrastructure Support

Total Incentive Grant Available

  • $2.5 million total phased incentive grant from the City of Cape Coral to the developer as part of the development agreement.

CAPE CORAL POLITICS FLORIDA PALM TREES Specific Incentive Triggers & Dollar Amounts

According to the latest reporting on the project’s incentive structure, the grant will be disbursed based on the achievement of key infrastructure and development milestones:

  1. Marina Completion
    • $1,000,000 incentive payable within 30 days after issuance of the certificate of completion for the marina.
    • The marina must be completed no later than 8 years from the project closing date to qualify.
  2. Hotel Certificate of Occupancy
    • $1,000,000 incentive within 30 days after issuing the certificate of occupancy for the hotel.
    • This amount may be reduced if the hotel has fewer than 240 rooms.
  3. Community Center Completion
    • $500,000 payable within 30 days after issuance of the certificate of occupancy for the community center (minimum 16,500 sq ft).

Milestone Deadlines & Reductions

  • Marina must be complete by 8 years after closing.
  • Hotel by 10 years after closing.
  • Community center by 6 years after closing.
  • If deadlines are not met, incentive amounts are reduced by 10 % for every year late.

CAPE CORAL POLITICS FLORIDA PALM TREES Infrastructure Enhancements

The development agreement also requires the developer to undertake or fund infrastructure enhancements along Old Burnt Store Road, though specific dollar amounts for those improvements have not been publicly itemized in available news reports.

City commentary on the agreement indicates that the development must address traffic and infrastructure capacity as part of the overall project build-out but does not provide a line-item budget for those improvements in published sources. (WGCU PBS & NPR for Southwest Florida)

CAPE CORAL POLITICS FLORIDA PALM TREES Summary of Incentive Targets (By Milestone)

MilestoneIncentive Amount
Marina Certificate of Completion$1,000,000
Hotel Certificate of Occupancy$1,000,000
Community Center Occupancy$500,000
Total Incentive Grant$2,500,000

CAPE CORAL POLITICS FLORIDA PALM TREES Important Context

  • These incentives are performance-based and tied to development milestones.
  • Disbursement is conditional on timely completion of infrastructure and vertical construction as agreed between the developer and the City.
  • The City’s official budget documents or the full development agreement/ordinance would be the authoritative source for any additional infrastructure commitments beyond the milestone incentives listed above.

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