A major development southeast of Austin is moving forward after the Mustang Ridge City Council approved a development agreement with an affiliate of SonWest Company. The 211-acre Pura Vida project, located about 15 miles from downtown Austin, is expected to bring $1.5 billion in investment to Mustang Ridge.
The agreement allows SonWest to begin infrastructure work on the long-planned community. After years of discussions over water rights and local approvals, developers Andy Bilger and Shawn Breedlove said construction could start by late next year if market conditions remain stable. The plan includes multifamily housing, retail spaces, restaurants, a hotel, civic space, and a possible surf park covering up to 30 acres.
While talks have taken place with surf park operators such as Surf Lakes Holdings, no final deal has been reached for the surf park component.
SonWest has spent four years assembling land and negotiating terms for infrastructure at the site near U.S. Highway 183 and FM 1327. The location sits across from an industrial project by Clay Development & Construction that will include a building leased to a Tesla supplier.
To support the new community, SonWest will pay for significant utility upgrades including a 30,000-foot water line and a wastewater treatment facility capable of processing up to 3.3 million gallons per day in partnership with Creedmoor Maha Water Supply District.
Mayor David Bunn said the city expects “significant ancillary business” from the development.
The agreement also gives Mustang Ridge officials authority to consider financial incentives like property tax abatements and sales or hotel tax rebates for future partners. Developers are already discussing opportunities with potential multifamily and retail tenants while marketing sites to major anchor businesses.
Concerns about water use have emerged due to ongoing drought conditions in Central Texas. Some residents question whether building a surf park is appropriate given current water challenges. Bilger responded that Pura Vida’s system would rely on recycled and reclaimed water through cooperation with Austin-based VVater: “very low volumes” would be used rather than drinking water.
Interest in lagoon- and surf-themed developments is increasing across Texas. Other projects include iLand Development’s proposed $1 billion Leander Springs project in Leander; iLand’s $400 million lagoon project in Marble Falls; Discovery Land Company’s redevelopment of a wavegarden lagoon near Del Valle into a surf-and-condo community; Megatel’s $2 billion Saint Tropez residential project near Lake Houston which recently completed its first phase; while Sports Hospitality Ventures recently canceled plans for a Sports Illustrated Resort at Lago Mar Crystal Lagoon outside Houston after announcing it in January 2024.
