Margaritaville Senior Community Deal at Risk in Texas City

12 September 2024

The future of a Margaritaville-branded community in Texas City could be wasting away.

The development, spearheaded by Minto Communities USA, was slated to become one of Texas’ first Latitude Margaritaville communities, catering to seniors in a laid-back, tropical-themed community, the Houston Business Journal reported. However, after nearly 18 months of negotiations, talks have stalled over zoning disputes and branding disagreements.

Minto Communities USA, a Florida-based subsidiary of the Minto Group in Canada, has been expanding its Margaritaville concept across the region.

The proposed development site is the Kohfeldt tract, a 1,300-acre stretch of land historically tied to oil drilling. Located between state highways 3 and 146 near Moses Bayou, the site has long been considered prime real estate, but issues related to oil well cleanup delayed previous development attempts.

Minto’s plans for Latitude included 3,500 homes designed for residents aged 55 and older.

But tensions arose over issues including zoning, fencing locations and even the development’s name. Minto’s preference to name the project “Latitude Margaritaville Galveston Bay” conflicted with the city’s desire to include Texas City in the branding, Mayor Dedrick Johnson said.

“They’ll tell you that they’ve never had this much trouble at any other city,” Johnson said. “And we’ll tell you that we’ve never had this much pushback from any other developer.”

While Texas City is open to some flexibility, there are non-negotiable regulations that all developers must adhere to, the mayor said.

Johnson issued a letter terminating the project earlier this year. After a seven-week silence, Minto presented a revised proposal, which the city’s engineering and planning department is reviewing. However, City Engineer Kim Golden said she has yet to see anything that differs significantly from previous proposals.

If Minto and Texas City cannot reach an agreement, it’s unclear where Minto would develop the community. Similar Margaritaville developments in Florida and South Carolina have been successful, and the Houston area was chosen for its favorable climate and proximity to key amenities.

Latitude is the latest in a series of Margaritaville-branded developments in the Houston area. The first resort opened in 2020, with more projects underway, including a resort on Galveston’s East Beach. An RV resort in beach town Crystal City was rebranded as Texas’ first Camp Margaritaville in 2022.

Despite uncertainty surrounding the project, Texas City officials remain confident in the future of the Kohfeldt tract, whether developed by Minto or another group.

— Andrew Terrell