Officials say sales tax revenue and residential sales increase

The Lake Travis–area economy is growing, according to Bee Cave City Councilwoman Zelda Auslander; Lakeway City Manager Steve Jones; and Doug Land, a Realtor with Capital City Sotheby's International Realty. The three spoke at the July 17 Lake Travis Chamber of Commerce economic forecast luncheon at Lakeway Resort and Spa.

Sales tax revenue on the upswing

In Bee Cave, sales tax revenue has grown 724 percent since 2001, an average of about 60 percent each year, Auslander said. Sales tax revenue growth from 2007–13 averaged about 5 percent per year, or 31 percent total, she said. The statistic is important because sales tax revenue makes up 80 percent of Bee Cave's operating budget, she said.

Jones said the city of Lakeway has seen an increase in sales tax revenue of 8.7 percent this July compared with July 2012, and a total increase of 8.2 percent in sales tax revenue during the past year. This growth rate is slightly below Austin's 9.6 percent annual sales tax revenue increase from July 2012 to July 2013 and Austin's 8.4 percent uptick in sales tax revenue this July, he said.

Residential and commercial sales

With May's passage of its home rule charter, Bee Cave is authorized to begin annexing properties in its extraterritorial jurisdiction, or ETJ, which Auslander said included 1,132 homes in a February 2013 estimate. Current projects under construction or in the permitting stage in the ETJ include one single-family home development and two multifamily home developments, she said. Within the Bee Cave city limits, four single-family home developments and one multifamily home development are in progress and three senior living centers are slated for the area, she said.

Jones said new residential builds have increased in Lakeway this year, and projected an increase of 336 homes to be built this year compared to 2012's tally of 270 units.

Land confirmed an uptick in residential real estate and said that in Lake South, sales increased 27.5 percent for the first half of 2013 compared with 2012. Real estate sale volume has risen an estimated 35.6 percent from 2012's $217.3 million to a projected $294.7 million for 2013, he said. Land said there are 16 new construction developments in the Lake Travis area, including Sweetwater and Rough Hollow, with 1,800 planned units each. Rocky Creek has 400 homesites scheduled, and Ladera has 336 homesites planned.

Land attributed the housing starts to new job opportunities in Austin, the movement of people into the area and the need for new units to keep up with this demand.

Jones said that the number of commercial real estate permits issued this year is not yet back to 2007's prerecession levels.

He said the city issued permits for an assisted-living facility, The Harbor at Lakeway, in May, and a Texaco Car Wash in June. Permits are pending for the Lupine Lane Learning Center, a Schlotzsky's/Cinnabon/Carvel drive-thru, Abercorn International School's expansion and an office park build, Tuscan Village senior condominiums and a Lexus service center. The city recently announced plans for a town center anchored by H-E-B that would be constructed off Glen Heather Drive, Jones said.

Bee Cave's commercial expansion is slated to include Hill Country Indoor sports complex, CVS/Pharmacy, Gateway to Falconhead, Masonwood, ReVival Texas expansion, the Park at Bee Cave and a barbecue restaurant, Auslander said. The city is also set to see its first hotel in the Hill Country Galleria, she said.

On the horizon

Bee Cave staffers are working to update the city's zoning and subdivision codes, improve customer service with a new city website and online permit tracking program, and provide recreational enhancements by creating both a primitive park and sculpture park, Auslander said.

Jones said Lakeway has been working on easing transportation congestion in the area and recently unveiled a proposal to build an elevated roadway alternative to RR 620. Jones said the city hopes to get a transportation project for the area on Capital Area Metropolitan Planning Organization's 2040 plan.