TEXAS CITY, Texas When it was announced eight years ago, the Grand Cay subdivision promised to be the city s first high-end waterfront development. The project has been marred by the housing slowdown, financial problems and eventually bankruptcy by the former developer.
But a new group of investors could revitalize the project.
The 574-home subdivision on 250 acres near the Texas City-La Marque hurricane levee flood gate at Moses Lake promised high-end houses and condominiums, a marina and even a small restaurant when it was unveiled in 2002. What made the project different from other waterfront projects was that all of the houses could be built at grade level because the subdivision would be on the protected side of the levee system.
The development was supposed to feature six canals, a marina and dwellings ranging from town homes to waterfront mansions. Home prices were to average about $400,000, the project s original developers, Resource Development Group and Arete Real Estate & Development, said. The two groups formed the Webster-based Grand Cay Harbour Ltd.
Putting the deal together included agreements with the county and city to pave the way for the expansion of Skyline Drive, the road atop the levee. A utility district would provide services.
In 2007, after a series of delays, developers cleared the land and dug some of the canals.
But in May, Grand Cay Harbour Ltd. filed for Chapter 11 bankruptcy protection in an effort to reorganize. At the time of the filing, the developers listed Wachovia Bank as the largest creditor. The partnership owed the bank $11.3 million, according to court records.
Now Tom Moughon, a principal with Resource Development Group, is hoping to revitalize the development. In the past two weeks, county and city officials confirmed they were working with Moughon to make sure the original agreements involving the road and utilities would be in place should he work out a favorable deal with creditors.
Moughon said the process was at a sensitive stage and he did not want to comment on details.
We are working on it, but until it s done, it s not done, he said.
Government officials confirmed Moughon is lining up investors to take over the development. It wasn t clear whether David Weekley Homes would remain as the exclusive homebuilder for the subdivision as originally planned.
The development has been the subject of county and city commission meetings, in which officials said Moughon could have an agreement by the end of the year.
The development was a longtime dream of the property s original owner, Lyman Reed.
I began purchasing land out there in 1972, Reed said in a 2004 interview. Always said it could prove to be something good for this community.
This story was brought to you through khou.com s partnership with the Galveston County Daily News.
