The Rowlett City Council has issued a notice of default to Sapphire Bay Land Holdings I, the developer of the $1 billion Sapphire Bay project on Lake Ray Hubbard. The decision comes after a series of council meetings and years of frustration over delays in the mixed-use development, which was initially approved in 2019 following the city’s split with its previous partner, Bayside Land Partners.
Mayor Jeff Winget addressed the city’s concerns, stating, “can no longer tolerate the absence of progress” on the project’s commitments, which were first made to residents ten years ago. The development agreement required Sapphire Bay Holdings to invest about $1 billion in the 117-acre site, including 1.4 million square feet of commercial space and 1,600 residential units. While some progress has been made with the addition of a marina, single-family homes, a restaurant, and an apartment complex, the main section—intended for a hotel, conference center, and man-made lagoon—remains mostly undeveloped.
“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, stating only that the company’s attorneys were preparing a response to the city’s notice.
The project has faced multiple setbacks, including a fire in 2023 that damaged the View at Sapphire Bay, a 400-unit apartment complex developed by Zale Properties. Some units in the complex have since opened.
Despite these challenges, city officials maintain that their vision for a regional entertainment destination remains unchanged. Zoning restrictions in the area limit further residential development, meaning future construction will focus 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.”
