The city of Marble Falls is negotiating with a developer on plans for a 463-acre resort-lifestyle community complete with a massive lagoon.
The proposed project, dubbed “Laguna Marble Falls,” is still in its early stages with nothing set in stone or officially approved. It could include its own 4-acre lagoon, thousands of living units, hotels, restaurants, and retail space.
The current site being discussed is 3800 U.S. 281 North in the Marble Falls city limits. The resort could potentially occupy a large rural space behind Walmart between RR 1431 and U.S. 281.
“Laguna Marble Falls promises breathtaking lake views, luxurious amenities, and unparalleled relaxation,” reads an excerpt from the project’s landing page. “At Laguna Marble Falls, we’re bringing the cool urban lifestyle to the countryside. Our vision is a thriving community where residents can enjoy a balanced live-work-play environment, all within a convenient and connected setting.”
These figures could and will likely change if a development agreement is reached with the city, but the following is currently listed on the site:
“Part of me says ‘it’s a great project’ and part of me has a hard time wrapping my arms around how big it is,” Marble Falls Mayor John Packer told DailyTrib.com. “I don’t have an opinion one way or another. I just want to see how some of these big pieces come together. I feel like when these opportunities come along, the city has to consider them.”
The matter has not yet been voted on by the City Council or brought forth publicly and is still in a negotiating stage. Before anything is approved, a development agreement will have to be brought before the council in an open meeting.
Packer only recently became aware of the Laguna Marble Falls project after being elected to office in May, but Deputy City Manager Caleb Kraenzel provided more insight, explaining that the city had been in negotiations with developer iLand for months.
“We are negotiating a development agreement with them,” Kraenzel said. “The thing that takes the most time is getting to the bottom of infrastructure. I think we’re all of the mind that (the impacts of Laguna Marble Falls) would be profound, but that means different things to different people.”
Kraenzel explained that the primary appeal of Laguna Marble Falls is the tourism draw, capitalizing on the city’s desire to be a destination, but he also acknowledged the elephant in the room: water.
“(Water), of course, is at the forefront of our considerations,” he said. “We’re evaluating whether we can handle it. There is more due diligence to be done, definitely for us.”
While the exact amount of water usage for the resort hasn’t been determined, Kraenzel noted that the city could likely handle it, having more than doubled its firm water contract with the Lower Colorado River Authority in 2024 from 3,000 acre-feet per year to 7,000. He also said that the city’s incoming state-of-the-art wastewater treatment plant could aid in supporting the resort and using the city’s recycled water to service it. The city’s water capacity also is further bolstered by the wells of the Capstone Ranch groundwater system, which it acquired in 2023.
Water has been of paramount concern for residents in recent years, with both major Highland Lakes reservoirs, lakes Buchanan and Travis, hovering at around half-full or less.
According to Kraenzel, the city will only move forward if it makes sense infrastructurewise and if Marble Falls as a whole will benefit from the project. He mentioned a similar instance: When the Thunder Rock development was approved, it came with the stipulation that a large sports complex and recreation center be built along with it to serve all residents.
“This project is of such a magnitude we can enter into conversations with them about funding and cost-sharing for other projects,” Kraenzel said. “They don’t want to overspend and we don’t want to leave a nickel on the table that doesn’t benefit the community.”
The Laguna Marble Falls project is not totally unique and has a sister project nearby in Leander with the same developer. Leander Springs is similar to Laguna Marble Falls and has been on and off the regional economic radar since 2020.
According to a business plan for Laguna Marble Falls posted online as part of an EB-5 funding application, the project could generate over 1,100 jobs and require over $280 million of initial funding. The EB-5 Immigrant Investor Program refers to a federal program that offers a green card and project funding to foreign investors who create jobs.
Kraenzel explained that a project like this would be done in phases and could take years to actually come to fruition.
“I really can’t say at this stage (what the chances of Laguna Marble Falls happening are), but the developer at this stage has more time and investment in coming to terms with this city than is normal.”
Editor’s Note: The story originally published mentioned a possible monorail in the headline and later on in the article as one of the potential amenities of the resort. After publication, DailyTrib.com learned from sources that, while the monorail was part of the initial planning of Laguna Marble Falls, it is currently not part of the designs.