CMake Error include dir 'include' does not exist relative

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I am using ros kinetic on ubuntu 16.04

After setting up the environment and installing all dependencies using rosdep from the root I am running catkin_make and getting error:

CMake Error at /opt/ros/kinetic/share/catkin/cmake/catkin_package.cmake:302 (message):
  catkin_package() include dir 'include' does not exist relative to
  '/home/cerlab/Documents/depowder_summer_2018/src/cam_kinect'
Call Stack (most recent call first):
  /opt/ros/kinetic/share/catkin/cmake/catkin_package.cmake:102 (_catkin_package)
  cam_kinect/CMakeLists.txt:83 (catkin_package)


-- Configuring incomplete, errors occurred!
See also "/home/cerlab/Documents/depowder_summer_2018/build/CMakeFiles/CMakeOutput.log".
See also "/home/cerlab/Documents/depowder_summer_2018/build/CMakeFiles/CMakeError.log".
Makefile:3118: recipe for target 'cmake_check_build_system' failed
make: *** [cmake_check_build_system] Error 1
Invoking "make cmake_check_build_system" failed

The CMakeLists.txt file for my cam_kinect starting at line 80 is as follows:

## LIBRARIES: libraries you create in this project that dependent projects also need
## CATKIN_DEPENDS: catkin_packages dependent projects also need
## DEPENDS: system dependencies of this project that dependent projects also need
catkin_package(
 INCLUDE_DIRS include
#  LIBRARIES cam_kinect
 CATKIN_DEPENDS roscpp sensor_msgs std_msgs roslib message_runtime
 DEPENDS Boost PCL
)

Also my ros environment:

ROS_ROOT=/opt/ros/kinetic/share/ros
ROS_PACKAGE_PATH=/home/cerlab/Documents/depowder_summer_2018/src:/opt/ros/kinetic/share
ROS_MASTER_URI=http://localhost:11311
ROS_VERSION=1
ROSLISP_PACKAGE_DIRECTORIES=/home/cerlab/Documents/depowder_summer_2018/devel/share/common-lisp
ROS_DISTRO=kinetic
ROS_ETC_DIR=/opt/ros/kinetic/etc/ros