The Rowlett City Council has issued a notice of default to Sapphire Bay Land Holdings I, the developer responsible for the $1 billion Sapphire Bay project on Lake Ray Hubbard. The council’s decision comes after ongoing delays and years of frustration over the lack of progress on the mixed-use development, which was first approved in 2019 following the city’s split with its original development partner.
Mayor Jeff Winget explained the city’s position, stating, “can no longer tolerate the absence of progress” on commitments made to residents a decade ago. According to the development agreement, Sapphire Bay Holdings was required to invest approximately $1 billion into the 117-acre site, including plans for 1.4 million square feet of commercial space and 1,600 residential units. While some amenities such as a marina, single-family homes, a restaurant, and an apartment complex have been completed, major components like a hotel, conference center, and man-made lagoon remain unbuilt.
“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 but indicated that the company’s attorneys were preparing a response to the city’s notice.
The project has faced multiple setbacks over the years. In 2023, a fire damaged The View at Sapphire Bay, a 400-unit apartment complex developed by Dallas-based Zale Properties that was nearing completion. Some units have since opened.
Despite these challenges, Rowlett officials maintain their commitment to transforming the area into a regional entertainment destination. Zoning restrictions in the area limit further residential development, which means future construction will need to focus on commercial and hospitality spaces.
“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.”
