Colleyville council approves 22‑acre sale for proposed resort, state highway transfer and business incentives

Colleyville City Council on Aug. 5, 2025, voted unanimously to approve a series of measures that together move forward a proposed luxury resort at the city’s Northern Gateway, accept transfer of State Highway 26 from the Texas Department of Transportation and authorize small business incentives and several contract amendments.

The 7‑0 votes included: a purchase and sale agreement with New City Capital Partners for 22 acres at the Northern Gateway; a turnback resolution to accept State Highway 26 from TxDOT; a landscape maintenance agreement linked to a Green Ribbon grant; economic development reimbursement grants for Luxor Custom Jewelers and Colleyville Florist; and an amendment to City Manager Jerry DeKay’s employment agreement.

The land sale and resort concept

Assistant City Manager Mark Wood said the city’s contract with New City Capital Partners covers 22 acres of the Northern Gateway and sets the sale price at $10 per square foot, “which equals $9,850,000.” Wood said the contract gives the buyer an 18‑month approval window (120‑day feasibility period plus a 420‑day approval period) during which the developer will secure a hotel brand, financing and necessary studies. He said the buyer’s right to exercise an option is contingent on closing, execution of a city developer agreement and final zoning approval by the City Council.

Wood described the developer’s initial concept as an upscale resort with a convention center, rooftop restaurant, spa and casitas, noting the project is at an early, changeable stage. "They want to create sort of an oasis," he said, and emphasized the buyer’s stated intent to preserve mature trees and the site’s topography.

Why it matters: the council’s sale of part of the Northern Gateway would generate proceeds that the city noted exceed the original 2020 purchase price for the entire 37‑acre tract. Council members repeatedly framed the potential resort as a high‑value project that could change the character and tax base of the western gateway.

State Highway 26 turnback and maintenance agreements

Council approved a turnback resolution that accepts jurisdiction, control and maintenance of the rebuilt State Highway 26 (from John McCain to just south of Brown Trail) from TxDOT. The council also approved a related interlocal arrangement for long‑term signal maintenance funding; the North Central Texas Council of Governments (NCTCOG) authorized $150,000 in funding (described in the meeting as $30,000 annually) to help the city maintain traffic signals the city will assume.

Assistant City Manager Mark Wood and other speakers recounted the decade‑long history of the project, saying TxDOT reconstructed the roadway as a six‑lane corridor contingent on local acceptance of the turnback. Council members said local control would allow the city to make future curb cuts, adjust intersections and close lanes for events, but they also cautioned changes must account for train timing and existing signal coordination.

Green Ribbon grant and landscape maintenance

The council accepted a landscape maintenance agreement with TxDOT tied to a FY26 Green Ribbon Grant of $835,000 for landscape improvements along State Highway 26 (Tennyson Parkway to John McCain) and along the SH 121 frontage. Parks and public‑works staff said the work will expand prior landscaping and replace lighting with LEDs; completion was described as tentatively scheduled for fall.

Economic incentives and consent approvals

The council approved Resolution R‑255062 to authorize two economic development incentive agreements that were discussed in executive session and read into the record. Those agreements are: - a reimbursement grant for Luxor Custom Jewelers at 75 Main Street, not to exceed $52,300, for building repairs and painting; and - a relocation/rent incentive for Colleyville Florist in an amount not to exceed $18,000, payable at the end of the first year of a three‑year lease.

Several consent items were adopted or clarified on the consent agenda, including: an amendment to the professional services agreement with Teague, Noll and Perkins for additional Jackson Road waterline services not to exceed $48,500; a construction services agreement with RC Mechanical to replace a rooftop air‑conditioning unit at the Colleyville Center in an amount not to exceed $78,800; and authorization for the city manager to negotiate and execute final documents for the highway turnback program with TxDOT. Staff said the AC replacement was an emergency necessity after a compressor failure.

City manager contract and public comment

Council also approved an amendment to City Manager Jerry DeKay’s employment agreement. During the public‑comment period, resident Cathy Hadley said DeKay “is from Chicago” and questioned whether he had met Texas city‑manager certification requirements; she also raised unrelated neighborhood drainage concerns. Hadley later raised a separate well‑water contamination concern tied to a dry‑cleaning site in Hurst during citizen comment.

Council members responded to Hadley’s comments in the meeting record. Multiple council members praised DeKay’s experience and responsiveness, noted the contract and salary are public record and said DeKay holds the required Texas credentials. The council adopted the resolution authorizing the amended employment agreement by a 7‑0 vote.

Other business and next steps

A first reading of an ordinance to authorize a special‑use permit for an 8‑foot wooden fence at 2400 Broad Oak Way (Longwood Estates) was held; no action was taken and the item will return for final consideration. Staff described ongoing beautification projects (Heritage Avenue medians and a library water feature upgrade), a city‑hosted e‑bike safety class and a Colleyville presence at an Aug. 7 North Texas job fair. A community member raised a separate environmental complaint regarding a dry‑cleaning facility in Hurst; city and state agency contact information were discussed on the record.

Votes at a glance

- Resolution R‑255062 (economic incentives for Luxor Custom Jewelers and Colleyville Florist): motion by Councilmember Gunderson; second by Deputy Mayor Pro Tem Richardson; outcome: approved, 7‑0. (Luxor grant not to exceed $52,300; Colleyville Florist incentive not to exceed $18,000.) - Resolution R‑255063 (city manager employment agreement amendment): motion by Councilmember Graves; second by Councilmember Raine; outcome: approved, 7‑0. - Resolution R‑255064 (request/acceptance of transfer of State Highway 26 from TxDOT): motion by Mayor Pro Tem Elder; second by Councilmember Alfonso; outcome: approved, 7‑0. - Resolution R‑255065 (landscape maintenance agreement with TxDOT for Green Ribbon Grant): motion by Councilmember Graves; second by Deputy Mayor Pro Tem Richardson; outcome: approved, 7‑0. - Consent approvals (various contracts and agreements): adopted as listed in the consent reading, including Teague, Noll & Perkins amendment $48,500; RC Mechanical rooftop AC replacement $78,800; purchase‑sale agreement with New City Capital Partners (22 acres at $9,850,000) approved as part of consent; interlocal for traffic‑signal maintenance with NCTCOG (funding described as $150,000 / $30,000 annually). Outcome: approved as part of consent, 7‑0.

The council did not take final action on the fence special‑use permit (first reading). Several items described in the meeting will return for later council action or implementation by staff.