Colleyville staff says city "is open for business," cites rising occupancy and dozens of proposed projects

Chelsea, an economic development presenter for the City of Colleyville, told the City Council at a Jan. 22 work session that "Colleyville is open for business," citing a 92.5% commercial occupancy rate, rising market rents and a pipeline of proposed projects totaling roughly 765,000 square feet.

The update outlined market data, recent and prospective businesses, city programs that support local retail and restaurants, and several city-owned sites with active studies or contracts. Chelsea said sales tax collections have risen over the past decade—roughly from $6 million to about $10 million—and that Colleyville’s commercial market shows falling months vacant even as asking rents climb.

The presentation placed local figures alongside broader industry pressures. Chelsea referenced commercial-data provider CoStar and industry groups including ICSC, noting nationwide retail disruption in 2024: she said 7,327 U.S. store closings were announced in 2024 and that one tracker recorded 49 U.S. retail bankruptcies in 2024 versus 25 in 2023. She said those trends affect small and large operators alike, but that Colleyville continues to attract interest from new concepts and expansions.

Projects and prospects listed in the presentation included proposals or in-process projects at multiple sites: a 24,000-square-foot Tinker Northwest site, a 90,000-square-foot Tinker Northeast proposal, an 83,000-square-foot Hodges property proposal, a 303,000-square-foot Sabora senior living proposal, a 40,000-square-foot Pickleball Kingdom, a 25,000-square-foot southern-gateway restaurant and boutique grocery concept, a 19,000-square-foot medical-office precinct, a 10,000-square-foot Kiddie Academy, a 5,000-square-foot sports training facility, a 12,000-square-foot Golden Paws development, a 4,000-square-foot O’Brien office, and a 150,000-square-foot distribution center. Chelsea said those items together represent roughly 765,000 square feet of new-construction proposals.

On specific city properties, staff noted a flood study is underway for a 37-acre Northern Gateway parcel, and that a 3.81-acre Northern Gateway parcel has a letter of intent and a pending contract for a pickleball concept and a quick-service-restaurant site. Chelsea said the 5.8856-acre Southern Gateway parcel is under contract with a developer and that a site plan is underway that would include a boutique grocery store plus retail and restaurant uses.

Staff emphasized local programs that aim to support businesses. Chelsea described the city’s gift-card program, launched in 2018, and other promotion and grant programs the city uses to boost local spending. She said Colleyville returned money to local businesses through multiple programs in 2024 (including a restaurant-focused gift-card effort) and that, since 2018, the city estimates more than $5 million in economic investment tied to those programs, grants and matching funds.

Chelsea also described outreach and retention work: staff contact businesses directly, run a business center incubator in the village with the Colleyville Chamber of Commerce, attend trade conferences such as ICSC and regional forums, and created a business navigator role to help entrepreneurs navigate city processes.

Council members and staff asked questions during the update about where online sales tax is recorded and how the city uses categorical retail data. Chelsea said the city receives categorical (non-identifying) data on remote versus in-store sales and uses it to target prospects and compare gaps in local offerings. She said Colleyville’s sales tax is roughly split 50/50 between in-store and online/remote collections.

Chelsea closed by inviting council and residents to promote shopping locally; she also noted the monthly Economic Development Forum with the Colleyville Chamber of Commerce, held every fourth Thursday at the Colleyville Business Center, for business updates and community outreach.

The work session continued with no formal votes on economic-development items; staff flagged active contracts, site studies and ongoing negotiations as next steps for council oversight.