Colleyville council authorizes LOI to negotiate sale of 22-acre 'Northern Gateway' for resort-style hotel

Colleyville City Council on June 3 authorized the city manager to execute a letter of intent (LOI) with New City Capital Partners LLC to pursue the sale and development of roughly 22 acres at the city’s Northern Gateway, west of Colleyville Boulevard, for a proposed resort-style hotel. The resolution passed 6-0.

Assistant City Manager Mark Wood called the item “the very first exciting step of a potential development at the city's Northern Gateway.” The LOI sets an initial purchase price of $10 per square foot (about $9,850,000) for the 22-acre parcel and includes an option for the developer to buy an adjacent 15-acre parcel later. The LOI contains an approximately 540-day (about 18-month) feasibility period for the developer to secure financing and entitlements; Wood said the city would not sell or close without council entitlements and the developer lining up funding.

Why it matters: the developer’s preliminary concept is a multiyear, phased resort project that the city and its supporters say could spur restaurants and hospitality activity in Colleyville, while proponents note the plan intends to preserve much of the site’s tree cover and a natural creek. Mayor Bobby Lindemood told the council the total development cost discussed was “over $100,000,000” and reiterated the city would not take on debt to subsidize the project.

What was proposed and how it would be built: Mark Wood described an initial phase featuring a 120-room luxury hotel, two resort pools, roughly 26 casitas, a retail village and a conference center at the front of the property. The LOI envisions future phases that could add another 120 rooms if the first phase succeeds. Wood and council members emphasized developers had sought to incorporate the site’s topography and trees into the design rather than clear them.

City land and prior purchases: Wood said the city owns about 37 acres at the Northern Gateway, acquired in two transactions: approximately 15 acres in 2019 and 22 acres in 2020. He reported the city paid about $4,100,000 for the 22 acres in 2020 and $4,400,000 for the 15 acres in 2019.

Conditions, timeline and next steps: the LOI is conditional. The feasibility period gives the developer time to secure financing, a hotel partner and entitlements; Wood said the city will not finalize a sale without those items. If the council signs the LOI, staff will negotiate a purchase-and-sale agreement and return that agreement to council for formal approval. Councilmember discussion included praise for the long-term vision and a reminder that the LOI is an early step, not final approval.

Public input and vote: the council opened a public hearing on the item and heard no public speakers before taking the vote. The motion to approve the resolution was moved by Mayor Bobby Lindemood and seconded by Councilman Graves; the resolution passed 6-0 (one council member, Marco Alfonso, was absent).

What remains uncertain: the LOI sets a purchase price and a feasibility window but does not commit the city to a sale without a later council vote on definitive agreements, nor does it obligate the city to provide public financing or subsidies. Specifics about project financing, final site plan, traffic or environmental mitigation will be determined in later entitlement and contract phases.