The city would receive hotel occupancy taxes from the proposed 32-room hotel adjacent to the Yacht Club and Canyon Grille, according to city staff.
In the end, the council voted 4-2 to deny the request from Legends Communities at its Dec. 15 meeting.
What they said
“There is nothing disqualifying about it. On the other hand, there is no compelling reason to grant it,” Lakeway Mayor Tom Kilgore said during the meeting. “It is a perfectly lawful request, but just because it’s a request doesn’t mean it needs to be approved, and I find no compelling reason on behalf of the larger community to approve it.”
Council member Kelly Brynteson added, “This one’s a hard one, I will admit.”
On his way out of the meeting, Legends principal Haythem Dawlett expressed regret in the council’s decision.
“They denied a project that’s in the development agreement, that allows them to only put the hotel at that location in North Hollow,” said Dawlett, who has overseen numerous projects around Lakeway in recent years. “I think it’s completely misunderstood, but hey, we fight another day.”
The details
According to city documents, the land at 105 Yacht Club Cove currently has a “C-1” designation for office building use. The proposed change would convert the land into hotel use. An office building and the traffic that brings is far different from a working hotel, boutique or not, residents told council members.
“This is not a Motel 6, not a Holiday Inn Express or La Quinta,” Dawlett said. “The room rates are starting in the $300s. We’re not inviting kids to come and do parties there. It’s just not allowed.”
Resident Stacy Shivers said he believes the Lakeway zoning and planning commission that approved the request “got this one wrong.”
“It seems absurd that we’re talking about a hotel in a residential neighborhood,” Shivers said.
All but one public speaker spoke out against the proposed change.
“There is far more opposition than support for this proposal—and that should matter,” resident Kim Richards said.
- 105 Yacht Club Cove, Lakeway
