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 – The Latitude Margaritaville project, proposed by Minto Communities USA, faces an uncertain future in Texas City as negotiations with local officials have stalled, and key disputes remain unresolved. This ambitious endeavor aims to create an active-adult community across 1,318 acres of land known as the Kohfeldt tract. However, Texas City Mayor Dedrick Johnson has declared the project effectively dead, citing multiple irreconcilable issues that halted development talks more than a year ago.
The primary issues at the center of the stalled project involve disputes over branding, a mismatch in the ratio of residential to commercial lot use, proposals for private access gates on public streets, and the limited financial benefits the development would offer to the local school district. Mayor Johnson’s letter, dated September 19, 2024, outlined these concerns as reasons for terminating the negotiations with Minto Communities. The city manager and engineers noted that no new proposals had significantly deviated from those previously rejected.
Minto Communities, a subsidiary of the Canadian Minto Group, has expressed a desire to proceed with the project despite the setback, continuing to advocate for redevelopment plans intended to revitalize land historically linked to oil drilling. The mayor emphasized that extensive concessions were made available to Minto, but the developer’s requests for further changes created an impasse.
As a reaction to the stalled negotiations, Minto Communities sent a cease-and-desist letter to Mayor Johnson after he allegedly made defamatory statements regarding the developer and the Latitude Margaritaville initiative. The letter demanded a public correction regarding comments made at a meeting in March, where Johnson implied that the project was entangled in legal issues. Johnson has since refused to issue any public correction.
The challenges surrounding the Latitude Margaritaville project reflect broader concerns among Texas City officials, business leaders, and members of the Texas City-La Marque Chamber of Commerce regarding the potential economic benefits of the community. Initially, city officials last year expressed optimism after visiting Minto’s successful developments in Hilton Head, South Carolina. The project was seen as a contributor to local job creation and economic stimulation. However, city commissioners have indicated a willingness to reopen negotiations and discuss the plan further.
Despite the ongoing disputes, Texas City officials remain hopeful for the development of the Kohfeldt tract, recognizing its potential to generate significant taxable revenue and create local employment opportunities. As it stands, however, the future of the Latitude Margaritaville project remains uncertain, largely because of ongoing disagreements between Minto Communities and the city government.
While Minto has a strong track record of successful developments in Florida and South Carolina, the lessons learned from past projects have not yet translated into a viable outcome for the Latitude Margaritaville initiative. The city’s officials remain committed to exploring options that may lead to successful development, whether with Minto or a different developer, despite the undercurrents of conflict that currently persist.
Deeper Dive: News & Info About This Topic
- Galveston News: Texas City’s Massive Margaritaville Development
- Houston Chronicle: Latitude Margaritaville in Texas City
- Galveston News: Texas City Rejects Margaritaville Cease and Desist
- Connect CRE: Texas City Considering Latitude Margaritaville Community
- Waxahachie TX: Developers Share Vision for Large Community
- Wikipedia: Texas City, Texas
- Google Search: Latitude Margaritaville Texas City

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