Updated 12:30 p.m. CST on Jan. 24, 2014

Cedar Park City Council on Jan. 23 held its first reading of an ordinance that would no longer permit new automobile dealers in properties zoned for general retail.

City leaders said City Council approval would not affect other commercial developments or existing auto dealers. Assistant City Manager Josh Selleck said the city must review its zoning ordinances and evaluate allowed uses as the city's open land becomes more limited.

Currently vehicle businesses are acceptable uses in general retail or in sites zoned for planned urban development. But Selleck said he doubts new vehicle businesses fit the city's intentions.

"These uses are inconsistent with the general retail zoning districts' purpose statement, but they're also inconsistent with the uses that we envision for our major corridors," Selleck said.

Businesses selling new or used vehicles seek large tracts of land, but the city does not benefit from their presence, Selleck said. The tax on car sales is 6.25 percent, which goes to the state, he said.

"The city would see no benefit from that," Selleck said. "Finally, it's aesthetically undesirable. If these uses are allowed to cluster in our corridors, there would be long-term negative impact."

The Cedar Park Planning and Zoning Commission approved the amendment by 6 to 0, he said.

On Jan. 21, City Council approved a temporary 12-day moratorium on new applications for used or new auto-sales businesses. The initial moratorium allows City Council time to consider a longer 90-day moratorium, which would in turn give city time to discuss the ordinance amendment to restrict new dealerships.

During the hearing, Cedar Park Chamber of Commerce president Tony Moline said the chamber supports the city's economic vision. That includes enhancing business corridors, he said.

But two owners of property near Toll 183A requested City Council exempt them from the moratorium. Both said they have owned the tracts for 34 years and have struggled to pay property taxes. Only selling the sites can release them from those financial burdens, they said.

Original story posted Jan. 22 (amended)

Cedar Park City Council on Jan. 21 heard the first reading of a 90-day moratorium on new applications for auto dealers. City leaders held the special-called meeting ahead of possible new restrictions on businesses selling vehicles in the city.

City leaders said the temporary moratorium would allow them more time to consider an amendment to a city zoning ordinance. The change would strike both new and used vehicle sales as permitted uses under the city's general retail zoning districts.

Assistant City Manager Josh Selleck said the moratorium is not a ban on new auto sales. However, he said the measure is necessary because at least one developer is attempting to turn in a vehicle-sales business application before the city could complete its public process.

"This moratorium as proposed will preserve the normal public hearing and ordinance amendment process, allowing time for that public process to go forward before any new applications could come in of that type," Selleck said. "All other commercial activities will continue as normal and will be unaffected."

City Council will have a second public hearing for the moratorium on Jan. 28 and then a final hearing on Jan. 30 before the 90-day period begins.

Meanwhile, City Council is scheduled to hear the first reading and resident feedback regarding the zoning amendment during its Jan. 23 meeting.

In City Council's agenda packet, city staff wrote that they are concerned about auto dealers' interest in the burgeoning Toll 183A corridor, much of which is zoned for general retail use. City leaders have invested about $85 million in projects along Toll 183A that align with a particular development vision such as the Cedar Park Center, 1890 Ranch Shopping Center and Cedar Park Town Center, staff wrote.

During the Jan. 22 meeting, Mayor Matt Powell said city leaders want to ensure Cedar Park's general retail uses match the city's long-term goals as stated in the comprehensive plan.

"This is just to allow the normal process that actually started some weeks ago to go ahead and reach its logical conclusion, no matter what the vote may be," Powell said.