The City of Rowlett 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 came after a series of council meetings and ongoing frustration with delays in the mixed-use development, which was first approved in 2019 following Rowlett’s split from its previous development partner.
Mayor Jeff Winget explained the city’s position: “We can no longer tolerate the absence of progress” on commitments made to residents nearly ten years ago.
The original agreement required Sapphire Bay Holdings to invest about $1 billion into developing 1.4 million square feet of commercial space and 1,600 residential units across the 117-acre site. To date, only some sections have seen development, including a marina, single-family homes, a restaurant, and an apartment complex. However, key components such as 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 noted that company attorneys are preparing a response to the city’s notice.
The project has faced several challenges over the years. In 2023, a fire damaged the View at Sapphire Bay apartment complex as it neared completion; some units have since opened.
Despite current issues with the developer, city officials maintain their goal of establishing a regional entertainment destination at Lake Ray Hubbard. Zoning regulations limit further residential construction, meaning future phases must focus on commercial and hospitality elements.
“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.”
