A proposed workforce housing development at the corner of Bee Creek Road and Hwy. 71 hit a roadblock after its bid to amend the 14.89-acre site from commercial to mixed use failed.

Lakeway City Council was unanimous in its decision to deny the request at its April 4. meeting after hearing presentations from the developer, Conine Residential Group Inc., and its agents and listening to more than 13 citizens during public comment.

Plans for the property at 18214 W. Hwy. 71 call for 276 units, a parking structure and a 6,000-square-foot restaurant site.

The main concerns coming from both council and the public were traffic, schools and sales tax.

Public speakers expressed concerns about the property and not maximizing its potential for commercial projects, which would bring more sales tax revenue to the city. That revenue, they say, would keep their property taxes low and help senior residents continue to afford their single-family homes.


Lakeway resident Jennifer Szimanski was against the amendment and said she thinks the city needs all the commercial space and sales tax revenue it can get.

“Many of us are also working people, and now we are going to be paying double the taxes we thought we were going to be paying when we bought our homes,” she said.

Project proponent Clint Strickland, executive director of Belmont Village Senior Living in Lakeway, said the No. 1 objection he hears from potential employees is that they are located in Lakeway. Strickland said he has raised pay rates four times in the past year trying to recruit workers and that there is a “tremendous” need for workforce housing.

“You have to pay the best to get the best; however, they have to be able to get to work,” he said.


Nancy Clayton of Lakeway said she wanted data, not hyperbole when it comes to the workforce housing project.

She also questioned whether this was a workforce housing or affordable housing project, saying “as soon as you say 60 percent of the median household income, that is affordable housing.”

“Residents do not have to work in Lakeway. It is illegal to tell them they have to, either work, or work in Lakeway,” she said.

Discrepancies in the amount of traffic added to roadways due to the development also caused skepticism for the project.


Council Member Gretchen Vance said since another project the developer brought before council, Nightingale, had large discrepancies between the projected traffic and what the traffic impact analysis found, she believed council should not even entertain the zoning change until a traffic analysis was completed for this project.

Developer Kent Conine said he is committed to doing a traffic study regardless if it is required.

“The development team has done a lot of work to make this project as attractive as possible,” Mayor Tom Kilgore said. “It’s a great idea; I just don’t want to see it on this lot.

“There is nothing in this project that would change my mind that we should convert commercial space to noncommercial space."