Community development districts get nod

Jul 23, 2026 By MEGHAN BRADBURY 5 min read

Cape Coral City Council approved two community development districts Wednesday — one for the Seven Islands, the other for Star Farms at Cape Coral.

Jonathan Johnson, who spoke on behalf of Gulf Gateway, the developer for the Seven Island project, said a CDD does not change the entitlements of what may be built for either of the projects, nor the scope of either. He said the decision for a CDD would allow for assessments to be made only on the properties within Seven Islands and Star Farms.

“They are collected on the Lee County tax roll bankable entity,” Johnson said.

In addition, by statute, a CDD puts all actions within the districts in the Sunshine, meaning everything will be public record.

7 Islands Community Development District

Ordinance 34-26 established the 7 Islands Community Development District, an area of approximately 47.18 acres in northwest Cape Coral along the North Spreader for Gulf Gateway Resort & Marina Village.

According to the petition to establish the district, “the establishment of the district will prevent the general body of taxpayers in the City of Cape Coral from bearing the burden of installation of the infrastructure and the maintenance of the above-described facilities within the development encompassed by the district.”

The 7 Islands CDD proposed facilities — infrastructure and maintenance — include potable water system, sanitary sewer system, stormwater drainage system, irrigation system, roadway improvements, earthwork, landscaping and environmental, public right-of-way improvements and amenities. The electrical infrastructure would be done by a service provider.

The estimated costs, which include a 10% contingency is $71,504,778.04, with the largest sum being earthwork at $29,378,815.31.

All improvements would be paid by residents buying property and residing in the district.

According to the document, “the district may issue special assessment bonds to fund all or a portion of the costs of these facilities. These bonds would be repaid through the levy of non-ad valorem special assessments. Prospective future landowners in the district may be required to pay non-ad valorem assessments levied by the district to secure the debt incurred through bond issuance.”

The 7 Islands Community Development District is a mixed-use development, which will be made up of 992 residential dwelling units, a 240-room hotel, event space, retail, community center, and marina.

Resident David Scott, who lives in the northwest, spoke during public comment, urging council to table the ordinance.

“We have big problems with Forest Development and how they have been acting since they came into the city,” he said, citing the removal of mangroves along the shoreline of one of the manmade “hammerhead” islands without required permitting. “Let’s just slow everything down. This whole thing can be changed.”

Councilmember Rachel Kaduk asked the city attorney to talk about Chapter 190.

City Attorney Aleksandr Boksner said all requirements have been satisfied and a denial from city council would be a legal challenge as nothing presented would be contrary to the requirements of the state statute that governs the creation of such districts. He said based on his review, he found nothing to support denial because the developer had submitted all the appropriate documents.

“The cost associated with the infrastructure improvements are borne exclusively by the individuals within the community development district,” he said.

Star Farms at Cape Coral Community Development District

Ordinance 35-26, to establish the Star Farms at Cape Coral Community Development District, is petitioned by Forestar Real Estate Group, Inc., a Delaware corporation.

City Manager Michael Ilczyszyn said the analysis for the comprehensive plan and zoning done at the time was for the establishment of Hudson Creek, now known as Star Farms.

According to the petition, “the District is the best alternative for delivering community development services and facilities to the proposed community without imposing an additional burden on the general population of the local general-purposes government.”

Johnson said they initially came forward in October and asked for an independent special district, which was denied, so they came back with the petition for a CDD.

An independent district would have created statutory autonomy within the are defined, including independent governance apart from the city.

The Star Farms encompasses about 1,279.55 acres and is located east of Burnt Store Road, south of Yucca Pens Preserve, north of Wilmington Parkway and west of Andalusia Boulevard.

“Whether we approve this tonight has no bearing on the development agreement that has already been approved,” Mayor John Gunter said. “There was a PUD, a development plan approved by the City Council back in 2023.”

The proposed facilities infrastructure ownership and maintenance for the CDD include environmental restoration/enhancement, drainage systems, and perimeter landscaping and walls. The city and county ownership and maintenance include off-site road improvements, sanitary sewer systems, and potable water systems.

All improvements would be paid by residents buying property and living in the district.

Councilmember Keith Long said when the decision was made to allow for the development, one of the benefits was it would bring utilities up Burnt Store Road to the project.

“They are required to fund all of that on their own and currently are in the process of putting in those lines as we speak today,” Boksner said.

The estimated costs with a 15% contingency sits at $220,985,639.90.

Star Farms at Cape Coral Community Development District “is designed to provide public infrastructure, services, and facilities, along with operation and maintenance of the same, to a master planned residential development currently anticipated to contain a total of approximately 2,500 residential dwelling units.”

To reach MEGHAN BRADBURY, please email news@breezenewspapers.com