Two new phases of an approved development will bring more than 50 new residential lots to Lakeway.

The two phases at the Lakeway Highlands development, located south of the intersection of Hornsby Bend and Crosswind Drive, were approved by Lakeway City Council at its April 20 meeting. The council recorded a 5-2 vote for both sections, with council members Louis Mastrangelo and Gretchen Vance casting ‘No’ votes.

Each phase at Lakeway Highlands will feature 28 residential housing lots.

Charlotte Hodes, director of Building and Development Services for the city of Lakeway, said the two lots were annexed into city limits last year.

Council member Vance and neighboring residents voiced concerns about the effect the development would have on nearby water sources. Vance said she has observed runoff issues at nearby coves.


“We have documented photographs that the water is a mess right now,” Vance said. “My concern is 100% about the water.”

Residents also voiced displeasure over tree clearing that has apparently allowed at the Lakeway Highlands development site.

Hodges said there has not been any construction at these particular sites.

“This area has not been clear-cut,” Hodges said.


In a vote following the approval of the Lakeway Highlands sites, Lakeway City Council denied a permit application for a retirement community.

The Bee Creek Senior Living Facility, which was proposed at 4528 Bee Creek Road, Lakeway, north of Lakeway Middle School, included plans for 250-300 units dedicated to senior care. The community would include independent and assisted living care, as well as specialized memory care.

Council rejected the proposal by a vote of 5-2. Council members Vance and Steve Smith were the dissenting votes on the motion.

Members of the council specifically pointed to the city’s comprehensive plan and asserted a living facility would not meet Lakeway’s goal of developing commercial centers that generate sales tax.


“I think there could be a much better use of that property realizing a better sales tax [revenue] to the city,” said Lakeway Mayor Pro Tem Laurie Higginbotham. “Long term ... it doesn’t make sense to me.”