A plan to build five commercial lots at the northeast corner of Serene Hills Drive and Hwy. 71 got initial approval from Lakeway City Council on Sept. 17.

Lakeway City Council approved Durhman and Bassett Realty Group's preliminary plan to build five pad sites on the 9-acre tract of land. The tract is across the street from H-E-B-owned land, which together serve as an entrance to Serene Hills, a housing development planned for about 300 homes.

The development plan has four smaller pad sites and one larger pad site. During a July Lake Travis Commercial Association Dealmakers luncheon, Durhman and Bassett agent Barry Haydon said the largest proposed pad site, which is intended for two stories and 24,000 square feet, is planned for medical offices on the top floor and retail on the bottom floor.

A bank and sit-down restaurant are being considered for two of the other pad sites because they would meet an area need, Haydon said.

Haydon said progress on the development depends on when the H-E-B across the street is built. H-E-B owns the land but has not set an official construction start date, H-E-B spokeswoman Leticia Mendoza said.