Cape Coral is preparing for one of the largest developments in its history as work moves forward on Cape Coral Grove, a $700 million mixed-use town center planned for the Pine Island Road corridor between Chiquita Boulevard and Burnt Store Road. City leaders say the 130-plus-acre project will reshape how residents live, shop, and socialize—creating a long-awaited downtown-style destination without the need to cross the bridge to Fort Myers.
The development is slated to include more than 350,000 square feet of retail, dining and entertainment space, about 1,300 apartments, and a 125-room hotel. Ground infrastructure is expected to begin in early 2026, with vertical construction targeted for the second half of the year.
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"It’s a once-in-a-lifetime project for the city," City Manager Michael Ilczyszyn said. "Cape Coral Grove is going to be a transformational project for the city of Cape Coral. For decades, our residents have asked for a place to come in the Cape where they don’t have to travel across the bridge — a place to meet, a place to gather, a place to shop and just enjoy the evening. And this town center is going to be that project."
Located at 2301 SW Pine Island Road next to Bubba’s Roadhouse & Saloon, the project is being led by L&L Development, a major New York and Miami-based firm. City officials estimate the Grove will generate nearly $1.2 billion in economic impact over time while creating thousands of jobs.
"The economic impact ― that's almost $1.2 billion with a B," said Bill Steinke of the City Council, which tweaked the agreement recently it has with developers led by L&L Development, a powerhouse in New York City and Miami construction.
Council member Joe Kilraine suggested the figure could prove conservative.
"It's a very solid calculation methodology and in my humble opinion, I think that the value they have adjusted here for the economic impact is very probably a conservative value," Kilraine said. "This project ― the way that it has been developed and the manner in which it's going to be executed along with the infrastructure provided for in addition to this project ― is an ideal way of doing projects in the future."
City incentives are tied directly to performance milestones, ensuring commercial construction happens before residential units move forward.
"The grant is structured so that the developer cannot receive authorization to move forward on any of the residential if the commercial doesn’t happen," said Economic Development Manager Sharon Woodbury. "They will not receive a payment of any grant if they don’t actually move forward with construction, (and) the structure of the incentive grant that was provided is based on a new construction value only. It is structured as 95% of the new ad valorem taxes for a period up to 25 years."
Kilraine emphasized the phased approach as a safeguard.
"It's like 1,300 and some multi-family units, of which the first 400, you have to (first) build 50,000 new commercial space" square footage before the housing can start, he said.
City projections show the project will create 6,500 direct construction jobs and eventually support more than 1,000 permanent on-site positions.
Developers have not publicly named tenants, but expectations include a major grocery anchor and nationally recognized restaurants. Speculation has ranged from Publix to Whole Foods, while reports have linked Cooper’s Hawk Winery & Restaurant to the site.
"Providing a one-stop shop for all their needs, (the) vibrant mixed-use development will cater to both locals and visitors," said Kaitlyn Mullen, the city's senior public information specialist. "The commercial area will feature a variety of retail spaces, from high-end boutiques to everyday stores, and dining options from fast casual to upscale. Entertainment is expected to include a bowling alley and a live music venue."
The design will also emphasize sustainability and outdoor life.
"Sustainability is key, with energy-efficient features like solar panels and green roofs, plus ample green spaces and parks," Mullen said, with the idea to have up to 200 events per year, such as farmer markets and concerts.
L&L Development COO Jamil Lacourt said projects of this scale require confidence and long-term vision.
"We sell space ― that's what we do, that's what developers do: We build, sell and create a community and environment," Lacourt said. "None of us have a crystal ball to predict the future, (but) you're really making calculated, educated bets based on information you have. So you have to make the best decision you can with what you have available.
"And I think what people sometimes lose sight of is you have to have conviction. You have to like believe it. You have to be all in. You have to believe in the product. I'm going to bring it to market. It's going to do well. I'm going to be able to lease it up. And so you really have to like believe in what you're doing is so important in this. I can't stress that enough."
Real-estate analysts say developments that blend housing, retail, offices and hospitality are increasingly attractive in uncertain economic times.
"Mixed-use properties may provide diversification in income, cash flow stability, a hedge against softening real estate sectors and a strategy to help manage rollover risk,” said Sara Croot, a Chase regional sales manager leading commercial mortgage lending. “Mixed-use assets will only continue to gain favor as investors and property owners look for stability and diversification in income and cash flow."
City leaders believe the Grove will finally deliver the central gathering place Cape Coral has lacked for decades—an urban core designed for daily life rather than occasional trips across the Caloosahatchee.
Originally reported by Phil Fernandez, Fort Myers News-Press & Naples Daily News in News-Press.
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