- McKinney’s City Council will consider a $21 million incentive from its Economic Development Fund to support developer Cole Cannon’s $200 million Cannon Beach surf lagoon and resort project.
- The 35-acre development, a public-private partnership between Cannon, the city, and its economic development corporations, is projected to create 700 jobs and draw 400,000 annual visitors once its first phase opens next year.
- Texas surf lagoon projects have a mixed track record: rival developments in Austin and Leander have hit construction liens and stalled for years, while McKinney’s project and Waco’s Desperado community are both moving ahead on schedule.
McKinney’s City Council is weighing whether to send $21 million from its Economic Development Fund toward developer Cole Cannon’s surf lagoon project, according to The Real Deal. The Cannon Beach development spans 35 acres on one of the last large undeveloped sites within city limits, and its first phase is already under construction and set to open late next year. Council members are expected to take up the incentive request Tuesday, weighing whether the public dollars are worth the jobs and tourism the project promises to bring.
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A Public-Private Bet on a Surf Park
Cannon Beach is structured as a partnership between Cannon, the city of McKinney, its Economic Development Corporation, and the McKinney Development Corporation.
According to the Dallas Business Journal, total project costs are expected to reach $200 million. The funding would cover a resort hotel and surf lagoon. The project would also include a skate park, movie theater, dining, shopping, and other social spaces.
Once complete, the project is expected to create 700 jobs. It could also attract roughly 400,000 visitors each year.
The Details
The $21 million incentive would come from the McKinney Economic Development Fund. The fund would provide the money directly to Cannon to help finance the project.
Construction on the first phase is already underway. Meanwhile, city marketing materials highlight the development’s mix of surf, retail, and entertainment.
These features aim to attract both residents and visitors to the North Texas suburb. The 35-acre site is also among the last large undeveloped parcels inside McKinney’s city limits.
As a result, Cannon Beach has an unusually central and visible location for a project of this size.
A Mixed Track Record for Texas Surf Parks
Other surf lagoon projects in Texas have struggled to reach completion.
The Austin Surf Club is one example. The 333-acre surf park and condo community sits in Del Valle. Surfer Kelly Slater and Scottsdale-based Discovery Land Company developed the project.
Construction recently paused after the project faced $4.6 million in liens. Pre-sale buyers included Matthew McConaughey and Drew Brees. Brees played high school football for the Austin Westlake Chaparrals.
In Leander, iLand Development Group has also faced setbacks. The developer twice failed to win city approval for a $1 billion lagoon-centered mixed-use project.
The project also faced construction liens in 2024. Since officials greenlit the development in 2021, the northwest Austin suburban site has seen little progress.
Why It Matters
Not every Texas surf project has stalled. The Desperado offers a different example.
Waco Surf developed the 450-acre master-planned community around an already popular local surf park. The site sits outside Waco’s city limits.
The project remains on track to complete its first homes by summer 2027. This suggests that projects with an existing, proven draw may have a better chance of reaching completion.
By comparison, new attractions carry more risk. McKinney’s willingness to provide public incentives signals confidence in Cannon Beach.
The city believes the project can avoid the fate of stalled Central Texas lagoon developments. For McKinney, the calculation also comes down to jobs and visitor spending.
City officials expect 700 permanent jobs and 400,000 annual visitors. Over time, they believe those figures can generate enough tax revenue and economic activity to justify the $21 million commitment.
Other fast-growing Dallas-area suburbs are likely watching the bet closely.
What’s Next
If McKinney’s council approves the incentive Tuesday, the funding would move forward with a project already under construction.
The first phase is due to open late next year. Meanwhile, Cannon Beach will face comparisons with the stalled Austin and Leander projects.
Its performance could influence how other Texas cities evaluate future incentive requests. Those requests could involve similar surf-and-resort developments.
For now, Cannon Beach remains one of the state’s more advanced surf-lagoon projects. Construction is already underway on a site that other Central Texas developers have struggled to move beyond the planning stage.
