Prosper Trail & Shawnee Trl — Approximate Site of First Retail Component
The Prosper Arts District development agreement sets a June 11, 2029, deadline for the developer to obtain a town building permit for Hotel Carbon, the XO2 Tower or the Mixed-Use Parking Garage. If none is issued by then, the agreement becomes void and the town may initiate rezoning, according to the development agreement.
Agreement terms and site constraints
The agreement also bars several kinds of businesses from the property, including package liquor stores, smoke or vape shops and pawn shops. It requires a parking garage; for visible portions in the Mixed-Use Zone, the garage must receive compatible architectural treatment, which may include cladding, murals or other artistic features, according to the agreement.
Floodplain revisions are another site constraint. Community Impact reported that a larger area in the southeast corner must be reserved for detention and drainage, based on a Capitalize Ventures map. The outlet also reported that two prospective investors—one from the United States and one from Korea—were reluctant to proceed because of the structured-parking requirement. Prosper’s council updated its zoning ordinance in April 2026 to require structured parking for multifamily developments, Community Impact reported.
A phased approach
Capitalize Ventures owns the land and is now pursuing separate project components with multiple partners, rather than depending on one developer for the entire development, according to Community Impact. The company’s first proposed component is retail on the site’s southwest corner, at Prosper Trail and Shawnee Trail, a location consistent with conceptual plans approved by Prosper Town Council in 2024…