"I think it's a perfect use for something that has died," Estero planning board member Jim Tatooles said at Village Hall on Oct. 20, as Gulfshore Business reported. He was talking about the former Regal theater at Coconut Point. Even so, he and the other board members did not send the plan forward that night.
The 16-screen building has been closed since November 2022. WGCU reported the closure while Regal's parent company, Cineworld, was in Chapter 11 bankruptcy. Nearly four years later, the building is not waiting for another theater operator. It is waiting for a vote. Simon Property Group and Waypoint Residential want to tear it down and build apartments, and the rest of Coconut Point has already been changing in the same direction.
Simon's Case for Apartments at the Mall
At the Oct. 20 hearing, Simon Vice President of Development Bill Moston explained why a mall owner wants housing. "The malls that are surviving and thriving in our current environment are focused on adding live-work-play environments to their shopping centers," he told the board, according to Gulfshore Business. "That's what's happening around the country with the malls that are not dying."
The Village's staff report for that meeting names Chris Moore of Waypoint as the applicant and Bowman Consulting as the authorized agent. It also shows how the trade would work. To offset the traffic impact of 254 of the units, the plan cuts 11,800 square feet of commercial space elsewhere in the Coconut Point development. That means Simon would give up some of its retail allowance in exchange for residents. Village staff recommended approval with conditions.
The staff report lists apartments and accessory uses on the theater site, with walkways to the mall's existing shops and restaurants. It does not show ground-floor retail. Under this plan, the building would add customers within walking distance of Coconut Point's stores, not more storefronts.
How the Plan Has Shrunk Since January
The developers first presented the project at an informational meeting in January 2026 and came back for a workshop in March. Each round brought a smaller plan, but board members kept raising the same objections.
| Initial proposal | Plan reviewed Oct. 20, 2026 | |
|---|---|---|
| Units | Up to 365 | 355 |
| Buildings | Two five-story buildings plus a four-story building | One four-story building |
| Height | Five stories | 44 feet 6 inches to the parapet |
| Parking | Five-story garage | Structured parking with a parking deviation |
| Site | Former Regal theater | 6.85 acres |
In January, board members criticized the project's scale, height, reduced parking, traffic and access, and how it fit with nearby development. The developer said it would revise the plan. In October, 355 units on 6.85 acres still struck the board as too dense. "It appears that the designer designed it to the maximum limits of the site," board member Al Paivandy said, according to Gulfshore Business. Members also said there was too little green space around buildings of that height.
The Garage With One Way In and Out
The most specific objection was about the garage entrance. The developer moved the parking garage to put it closer to the apartments, but the new layout has only one entrance and exit. Board members were concerned about cars backing up.
Allan Bowditch, president of the community advocacy group Engage Estero, pointed out a difference in who would drive when. He told the board the target renters would often commute to work, unlike many of the area's retirees. "So, I start to question the issues related to the number of cars required on that site and also the number of visitations there will be at the peak hours of travel," he said, as Gulfshore Business reported.
The developer's transportation consultant, Ted Treesh, measured the project against what used to be on the site. He testified that one garage entrance is "more than sufficient" and that the apartments would produce fewer peak-hour vehicle trips than a movie theater did. That comparison is the core of the dispute. A theater's traffic peaks on evenings and weekends, while commuters leave in the morning and come home in the late afternoon. The board has to decide which pattern fits better at that corner of US 41 and Coconut Road.
The board also has limits on what it can weigh. Its recommendation is based on whether the project meets Estero's land development code and comprehensive plan, not on members' personal views of the architecture. On Oct. 20, members voted unanimously to give the developers more time to revise the plan instead of recommending approval or denial.
The Rest of the Mall Has Already Changed
While the theater site has been tied up in hearings, Coconut Point has been filling its other spaces with a different kind of tenant. The newest arrivals are shops and appointment-based services that people visit during the day, often on the way to somewhere else.
- LaserAway opened its Estero clinic on Sept. 29, 2026, at 23050 Via Villagio, Suite 109, according to the company's announcement and its location page.
- Rowan, an ear-piercing studio, has opened at 23161 Fashion Drive, Suite 107, between Evereve and the future Brooks Brothers, as reported by WINK News and listed on Rowan's studio page.
- Kendra Scott is open. Simon posted its "Now Open" notice on Sept. 23, 2026.
- Brooks Brothers is still marked "Coming Soon" on the brand's store locator, at 23161 Fashion Drive, unit 109.
- Shake Shack plans to open at Coconut Point in 2027, according to Gulfshore Business. It will be the chain's first location in Lee County, as the Naples Daily News noted in June.
Across US 41, the Lyden Drive Strip Has Filled In Too
The same pattern continues across Tamiami Trail on Lyden Drive. Whataburger opened its second Southwest Florida restaurant on Oct. 22 at 22927 Lyden Drive. It seats 158 and is open daily from 6 a.m. to 11 p.m., according to Gulfshore Business, which reported a line out the door at the 11 a.m. opening.
Two doors down, Toasted Yolk Cafe opened last Dec. 16 at 22941 Lyden Drive, in the former Zoe's Kitchen space. It serves breakfast and lunch from 7 a.m. to 3 p.m., with a full bar for mimosas and Bloody Marys. When Estero approved outdoor alcohol service there, Gulfshore Business placed it a few hundred yards south of First Watch. That puts three daytime-focused restaurants within a short walk of each other, directly across from the mall.
The businesses arriving along this part of US 41 serve breakfast, lunch, errands and appointments, and the theater site's proposed replacement would bring people who live there year-round.
The Next Dates on the Calendar
The proposal returns to Estero's Planning, Zoning & Design Board at 4:30 p.m. on Tuesday, Nov. 17, at Village Hall, according to the Village of Estero. After that:
- The board decides whether to recommend the revised plan to Village Council.
- Village Council casts the final vote on whether the project moves forward.
The hearing is open to the public, as the October one was, when residents spoke about traffic at the garage entrance and around the property. Until a Council vote, the plan remains a proposal and the theater building stays as it is.
If you own a home near Coconut Point and want to know how a new tenant mix along US 41 and possible new residents on the Regal site could affect your property's value, the Dom and Judie Team at Dominick Clarizio can give you a straightforward, data-driven assessment. Get your instant home valuation or schedule a free consultation.