The $1 billion Sapphire Bay development on Lake Ray Hubbard is once again in troubled waters.
The Rowlett City Council voted this week to issue a notice of default to Sapphire Bay Land Holdings I, the developer behind the long-delayed mixed-use project that was once billed as a resort-style game-changer for the suburb east of Dallas, the Dallas Business Journal reported.
The vote followed a month of council meetings and years of growing frustration over stalled progress on the project, which was approved in 2019 after Rowlett cut ties with its original development partner, Bayside Land Partners.
Mayor Jeff Winget said the city “can no longer tolerate the absence of progress” on promises first made to residents a decade ago.
Under the city’s development agreement, Sapphire Bay Holdings was obligated to pour about $1 billion into the 117-acre site, building 1.4 million square feet of commercial space and 1,600 residential units. While parts of the peninsula now house a marina, single-family homes, a restaurant and an apartment complex, the central section — which included plans for a hotel, conference center and man-made lagoon — remains largely untouched.
“There’s just nothing else that’s happened,” Winget said. “That heart of the development that was supposed to drive our tax base hasn’t come to fruition.”
Sapphire Bay’s president declined to comment to KXAS, saying only that the company’s attorneys were preparing a response to the city’s notice.
The default marks the latest in a series of setbacks for the high-profile project. In 2023, a fire damaged the View at Sapphire Bay, a 400-unit apartment complex from Dallas homebuilder Zale Properties that was nearing completion, though some units have since opened.
Despite the standoff, Rowlett officials insist the city’s vision for a regional entertainment destination on Lake Ray Hubbard is intact. The area’s zoning caps further residential development, forcing any future buildout to lean heavily on commercial and hospitality uses.
“We still believe the peninsula is incredibly valuable,” Winget said. “We want to see something really great go in there — whether it’s with this developer or a different developer.”
— Eric Weilbacher
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