After months of silence, Dallas-based RRAEF Holdings told the Houston Business Journal it will begin work within 30 days on a $700 million Margaritaville resort on Galveston’s East End. The planned 15-story hotel, nearly 300 beach cottages, and waterpark have drawn sharp local opposition over potential impacts to the island’s “ghost wolf” coyote population.
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Developers of a contentious $700 million Margaritaville resort on Galveston’s East End have announced that construction will recommence within 30 days, reigniting discussions about the project's effects on vulnerable local wildlife and the character of the surrounding community.
Dallas-based RRAEF Holdings is set to develop a 15-story hotel along with nearly 300 elevated beach cottages. The project will feature various amenities, including a waterpark, pickleball courts, an infinity pool, and a 400-foot lazy river. Additionally, there will be retail and restaurant spaces showcasing Margaritaville brands like LandShark Bar & Grill and 5 o’Clock Somewhere Bar, as CEO Kip Sowden shared with the Houston Business Journal.
In the first phase, Sowden announced that 100 out of the planned 278 cottages are anticipated to be completed next year. Additionally, Tellepsen, based in Houston, plans to start construction on a 31,000-square-foot deck, which will include numerous amenities for the project. Sowden announced that the shell structures of the cottages are currently being built and will be assembled on-site, each coming with “even a Margaritaville blender” and a golf cart and priced between approximately $1 million and $4 million.
The recent announcement has sparked renewed opposition from residents in the East End and conservation advocates. They are concerned that the proposed development could encroach upon the habitat utilized by Galveston’s unique “ghost wolves,” a genetically distinct population of coyotes that has garnered local support. Jo Hewett, an advocate for the ghost wolf, stated that developers initially discussed wildlife corridors but have since failed to respond to community inquiries. Unfortunately, Hewett expressed doubt that the developers will implement any wildlife protection measures on their property.
Last October, RRAEF decided to withdraw its request for a zoning variance that would have permitted private streets and modified minimum street widths and lot sizes, following significant neighborhood opposition. Construction on the hotel commenced in December 2023; however, locals report that cranes and heavy machinery have remained inactive for months, raising doubts about the company's schedule.
In a different approach, the developers of the $540 million Sachs on the Seawall project, located on Galveston’s West End, have openly addressed wildlife corridors. The recent development features a 216-room Marriott Renaissance hotel, condominium towers, multi-family apartments, and approximately 70,000 square feet of retail and dining space. It received a City Council zoning overlay last month and has a two-year timeline to obtain the necessary permits.
Supporters of the project assert that Margaritaville will boost tourism and create jobs, while opponents contend that it poses a risk to delicate coastal ecosystems and disregards community feedback. As construction teams prepare to move forward, residents and environmental advocates are poised to monitor the situation closely, ensuring that all activities respect wildlife pathways and address community issues.
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