The Galveston County Daily News reported Thursday that the deal with the Marquette Cos. revives a potential housing, golf course and hotel project.
The Galveston City Council in 2007 approved the development plans. Hurricane Ike hit Galveston the following year at a time when real estate nationwide faced economic challenges.
The School Land Board, overseen by the Texas General Land Office, last October announced it would pay Marquette Land Investments $10 million for the tract and a partnership on development. The land board Wednesday announced the finalized deal with Marquette Cos.
The state plans to preserve much of the bayside property with conservation and easement restrictions.