September 23, 2025

Texas City Faces Challenges Over Latitude Margaritaville Project

News Summary

Texas City’s Latitude Margaritaville project, aimed at creating an active-adult community, faces significant obstacles leading to uncertainty about its future. Mayor Dedrick Johnson has raised concerns regarding branding disputes, financial implications for the local school district, and the lack of new proposals. Despite challenges, some city officials and local businesses advocate for reopening negotiations, highlighting potential economic benefits. The future of the Kohfeldt tract remains in limbo as stakeholders seek collaborative solutions to revitalize the community.

Texas is facing uncertainty regarding the future of the Latitude Margaritaville project, an ambitious development proposed by Minto Communities USA, which aims to establish an active-adult community on a 1,318-acre site known as the Kohfeldt tract. Despite Minto’s attempts to revive discussions following a year-long stalemate, Texas City Mayor Dedrick Johnson has declared the project effectively dead due to unresolved zoning disputes and development challenges.

The Latitude Margaritaville project involves creating a community specifically catering to residents aged 55 and older, which has raised concerns among local officials about its limited appeal and benefits for the broader Texas City population. Several critical issues prompted the city to walk away from negotiations last year, including disputes over the project’s branding, the ratio of residential to commercial land use, and plans for private access gates on public streets. Additionally, the project was perceived as offering minimal financial advantages to the local school district.

In a letter dated September 19, 2024, Mayor Johnson outlined these concerns, which he believes led to the termination of discussions. He emphasized that extensive concessions had been offered to Minto, but the developer continued to request further changes that the city found unacceptable. The mayor determined that the project did not adequately provide a diversity of land uses or housing options.

However, the situation became more contentious when Minto Communities issued a cease-and-desist letter to Mayor Johnson, accusing him of making defamatory remarks regarding the project and suggesting it was fraught with legal issues. This letter demanded a public correction from the mayor following comments he made during a public meeting on March 26. Despite this, Johnson declined to acquiesce to the developer’s demands.

Some city officials and local business leaders, including members of the Texas City-La Marque Chamber of Commerce, have expressed a desire to reopen discussions and explore the potential of relocating the project back to the negotiation table. There remains a palpable interest among various stakeholders in the economic benefits the Latitude Margaritaville project could bring to Texas City.

Minto Communities, a subsidiary of Minto Group based in Ottawa, Canada, had received positive feedback during an earlier visit from Texas City officials to their successful development in Hilton Head, South Carolina. Yet, the current discourse surrounding the project indicates that no new proposal has significantly diverged from plans that had already been rejected by the city’s past discussions.

The Latitude Margaritaville project was anticipated to help rejuvenate an area historically associated with oil drilling, potentially generating substantial local jobs and economic output if developed. Minto has a notable track record, with past successful projects in Florida and South Carolina, which further heightens expectations for this new venture.

Despite the stalled status of the Latitude Margaritaville project, Texas City officials remain optimistic about the prospects for the Kohfeldt tract. They recognize the potential for significant growth and revitalization in the region, regardless of which developer ultimately brings the plans to fruition. However, the current discord and ongoing disagreements have cast a shadow over the project’s future, leaving its economic impact and developmental timeline uncertain.

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Author: STAFF HERE GEORGETOWN

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