A feature that will called Spoonbill Lagoon is seen in the foreground of this artist’s rendering that shows what the Spoonbill Bay subdivision is expected to look like when it’s finished. Construction on the subdivision is underway off State Highway 361, near the southern city limits of Port Aransas. Illustration: James Young, Costa Country Building & Design; Spoonbill Bay, LLC
Residential construction appears to be in its fourth year of a slowdown in Port Aransas.
Over the past 15 years, 2022 stands out as the biggest year for residential construction here, with 335 building permits issued that year, according to records at Port Aransas City Hall.
It’s been downhill ever since, with the city’s Development Services department issuing 192 residential permits in 2023; 183 in 2024; and 105 in 2025.
Twenty-eight residential permits have been issued so far this year. If that rate continues, 2026 will end up being the least active residential construction year since that high point in 2022.
Commercial building permits have followed roughly the same path over the past four years. While Development Services issued 36 commercial building permits in 2022 and then 39 in 2023, the number then fell off to 16 in 2024, 15 in 2025 and five so far this year.
But is construction completely dead in Port Aransas?
Not by a longshot.
Workers take a look on a recent day at one of the exterior walls at the new recreation center that’s under construction at Port Aransas Community Park. It’s one of several construction projects that the City of Port Aransas has underway. Staff photo by Dan Parker
City of Port Aransas construction projects are underway to establish a new fire and EMS building; a public works headquarters; and a recreation center. Work is expected to begin soon on a building that will house the city’s Surf Rescue team.
Additionally, subdivisions up and down State Highway 361 continue to grow.
Spoonbill Bay
Twelve houses have been built so far at Spoonbill Bay, and plans are to construct about 190 there within the next few years, according to Willard Hammonds III, the development’s CEO.
Spoonbill Bay is on the west side of State Highway 361, on the south end of Port Aransas.
Source: City of Port Aransas Staff illustration by Keith Petrus
Exactly how many more houses will go up in the next year at the subdivision will be dictated by future market conditions, Hammonds said.
An Exxon-Mobil Checkout store is under construction at the development.
Hammonds said a feature called Spoonbill Lagoon is planned. It will have a lazy river, an “amenity pool” with a swim-up bar, a pavilion, a children’s pool with slides and an eatery, he said.
The lazy river reportedly will be about 12 feet wide and 610 feet long. Plans are to make the amenity pool 4,322 square feet in size and the children’s pool 3,092 square feet.
The development plans to make Spoonbill Lagoon open to the public, with an admission charge, during the early life of the subdivision, but the amenity eventually will be open only to residents, Hammonds said.
The pools and lazy river will be supplied by filtered well water, according to Hammonds. Well water also will be used for irrigation, he said.
Other water conservation measures include catching condensation from air conditioning units.
Cinnamon Shore
Fifty homes have been completed over the past year at Cinnamon Shore South, and another 61 are under construction, according to Jennifer Chappell Smith, part of Cinnamon Shore’s marketing team.
An artist’s rendering shows what the new Tortuga’s Saltwater Grill and Local’s Cafe & Market are expected to look like when they’re built as part of the planned 1A Centre on Beach Access Road 1A. Illustration: EDR
Several weeks ago, a new shop – Saltwater Gypsies Market – opened at the subdivision. Opening about the same time was Sea Glass Pool and Fitness Center, bringing the number of neighborhood pools in the south village to five.
Ground will be broken soon on a restaurant called Dos Boca, which is expected to open in 2027. Anchoring South Town Square, it will be the first indoor restaurant at Cinnamon Shore South, Chappell Smith said.
Also at Cinnamon Shore South, workers finished Sundown Court, a paver-lined roadway connecting a pond and lakefront at the south development. With overhead lighting and pocket parks, Sundown Court will serve as a venue for weddings and private parties.
New features at Cinnamon Shore North over the past year have included a restaurant, Stout’s at the Shore. Another restaurant, this one called Tiki Jay’s is expected to open at the North Town Center this summer.
Palmilla Beach Resort
Twenty-two homes have been completed over the past year at Palmilla Beach Resort & Golf Community, according to Greg Carr, vice president of development at Palmilla.
Currently, 19 homes are under construction at Palmilla, Carr said.
Earlier this year, Palmilla officials approached Port Aransas City Hall with a proposal to build a hotel-conference center in a public-private venture. The proposal remains under consideration by city officials. (Expect a report on the project in the May 28 edition of the South Jetty.)
A project to build a new pool in Palmilla’s Oasis complex will begin after Labor Day and is expected to be finished by Spring Break 2027, Carr said.
Palmilla is also in the planning phase of new amenities including a boathouse, resort pools and pickle ball courts at Palmilla’s Waters Edge neighborhood.
Sunflower Beach
Sunflower Beach Resort and Residences is a mix of custom homes, luxury cabins, condominiums and townhomes located at 190 Beach Access Road 1.
Kerry Huffstutler, a sales executive at Sunflower, said the development built a pickleball court over the past year and has four homes currently under construction, with two more under permitting.
1A Centre
Groundwork has begun on 1A Centre, a $5 million development that will include a restaurant, coffee shop and green space on Beach Access Road 1A.
The site is owned by Beth and Kelly Owens, who also own Fins Grill & Icehouse and MacDaddy’s Family Kitchen.
Beth said the restaurant will be the new location of Tortuga’s Saltwater Grill, which currently operates at 429 N. Alister St. The old Tortuga’s location will be turned into a new restaurant called Sabalo. The Owens family will remain the owners.
The 1A Centre development will be 8,000 square feet in size – actually, 12,000 square feet, including the patio area.
A next-door coffee shop, which will include a small market, will be called Local’s Cafe & Market.
A green space will be on the grounds.
Beth said she and Kelly are hoping to see Tortuga’s Saltwater Grill open by late January and Local’s Cafe & Market around the same time.
Lighthouse Cove
At Lighthouse Cove, a long term permanent resident subdivision located off Port Street, some 70 houses are complete.
According to developer Nick Lorette, the subdivision was originally planned to build out 70 to 115 structures. However, construction has slowed as he waits for the market to come to the price he wants to build houses at.
Over the past year, Lorette has finished three new homes in the subdivision and plans to start up one more within the next three months.
Sunrise Beach
Lorette has been focusing his attention on a new subdivision located at 5497 State Highway 361, about half a mile south of Cinnamon Shore North.
“My partner and I bought (the land) several years ago, and I had phase one ready to go about four years ago,” he said.
That original phase consists of 55 lots. Fifty-one houses have been or are in the process of being built, and the remaining lots are either under contract or closed on.
Lorette added that they will be breaking ground on phase two, which will consist of 30 additional lots, by the end of summer.
El Dorado RV
Developer Kelby McCan, with Kartographic Industries, LLC, said that El Dorado RV, a new RV park located in the 700 block of Sandcastle Drive, is nearing completion.
According to McCan, all 70 pads, or spaces, have been built, and the foundation for the park’s clubhouse is expected to be poured later this month. The park is also expected to have a pool.
Port Royal
Ongoing recovery construction continues at Port Royal Ocean Resort and Conference Center, located on State Highway 361, almost nine years after Hurricane Harvey.
The resort completed phase one of its pool project, with the heated pool, children’s water play area; and a completely resurfaced lower pool opened on Valentine’s Day.
According to General Manager Amy Granberry, construction on the front building, which faces State Highway 361, is on track to be finished this summer.
Fire/EMS
The City of Port Aransas fire department and EMS building, located in the 400 block of Ninth Street, reportedly should reach substantial completion in August. Substantial completion means the building can be used for its intended purpose with a couple of punch list items to check off.
The first floor of the building will have five drive-through bays for Port Aransas Volunteer Fire Department vehicles and four bays for EMS vehicles. The second floor will have offices and sleeping quarters for EMS personnel.
Public works
Work on the city’s new public works department headquarters is expected to be finished by August.
Located at 415 Ninth St., the 6,500-square-foot building is on the same block where the city is in the middle of building the new headquarters for the EMS and fire department. The structure will have three extra-long vehicle bays, four offices and a lobby for the public.
Surf rescue
Port Aransas City Hall is expected to give a contractor notice before the end of this month to begin construction of a new headquarters building for the city’s Surf Rescue team.
Hopes are that the facility will be finished in about a year, according to David Parsons, city manager.
The building will be on Ninth Street, next-door to the new building that’s going to house the fire department and EMS.
The Surf Rescue building will have about 2,500 square feet of airconditioned space and about 2,100 square feet of unairconditioned space where bays for vehicles will be located.