Texas city sues developer over changes in $1 billion mixed-use project

The City of Rowlett, Texas, has sued the developer of a $1 billion mixed-use project for not adhering to approved plans.

According to city officials, the Bayside development is in default of their development agreement with the city. The developer is accused of changing features that city officials felt were critical to the project’s success after the city met its obligations.

Rowlett had agreed to economic development incentives, created a tax increment reinvesting zone, and sought state tax support for a convention center. The city said the developers changed the original vision by eliminating a planned eight-acre Crystal Lagoon, trolley, and one-acre show fountain, and reduced the amount of restaurant, retail and entertainment space by 55%. The revised plan also would increase the space for residential development from 29 acres to 50 acres.

“Bayside is a public-private partnership, and our development partner is obligated to adhere to the vision for Bayside with which both parties are contractually committed; any changes to the vision require city approval,” Mayor Tammy Dana-Bashian said in city news release. “We are disappointed that it has reached this point and that we are forced to take this action.”