Cape Coral City Council receptive to Seven Islands sale proposal
Development on North Spreader calls for 1,000 residential units, 240-room hotel, marina
The proposed sale of the city’s Seven Islands acreage was received well by Cape Coral City Council Wednesday although some concerns were expressed.
While Council was happy with what Forest Development and city staff have negotiated — $20 million for the land and a project on par with what the city outlined in its request for proposals — the elected board asked for more details and another look at the monetary incentives to be provided by the city.
The city sent out the request for development proposals last year. Forest Development was the top-ranked request, and negotiations between city and the developer started last September.
The city-approved concept plan on which the Gulf Gateway Resort and Marina project is based features nearly 1,000 residential units, 45,000 square feet of commercial/ office, a 240-room hotel with 25,000 square feet of meeting space, a 40,000-square-foot community center, a 280-slip marina, and more.
The five multi-family condos within the plan will have a maximum height of 115 feet and eight stories after an agreement was reached between the city and the Northwest Neighborhood Association.
John Bashaw, president of the NWNA, spoke during citizens input, praising the decisions made concerning the Seven Islands and said the “opportunity to create the gold standard in mixed use development was at hand.”
Forest Development, represented by founder and managing partner Peter Baytarian, said the goal was to make the Gulf Gateway Resort and Marina a destination over the course of the next 10 years, with much of the construction set to begin in the next two years, assuming all the permits go through.
Baytarian said the development will create nearly 10,000 jobs with $650 million in project investment and a total economic impact in the tens of billions.
Mayor John Gunter was among those who complimented the effort, but expressed concerns with the $2.5 million the city would pay to Forest in the way of economic incentives, saying the incentive language was too broad.
“They need to be more defined and crystal clear. We’re looking for components that will bring impact to the area,” Gunter said. “We want to attract business more than residential.”
In 2012, the city bought foreclosed properties totaling more than 650 acres for $13.7 million, using money from the city’s stormwater and water and sewer funds to fund $3.9 million of the purchase price.
The Seven Islands parcel alone will be sold for $20 million. After paying back to water and sewer funds and the economic incentives, the city will net $13.5 million, almost what it paid for all of that property purchase10 years ago.
Lawrence Zabik, of Zabik & Associates, said the meeting went well and that staff was great to work with.
“This was the first significant update with the city council and I think they were pleased with the plan and will finalize it in the next two months,” Zabik said. “We’re excited about moving forward with the Seven Islands project.”
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