Lewisville council weighs density limits, citywide cap as short‑term rental prohibition nears end

City staff briefed the Lewisville City Council on a range of density and zoning options for short‑term rental (STR) regulation and told the council the interim prohibition on new STRs expires March 4, 2025.

The presentation summarized enforcement and mapping work since the council approved an ordinance and temporary ban. Staff reported 90 addresses positively identified as eligible for permits, a 93 percent compliance rate for those addresses, 77 permitted STRs in single‑family zones and 26 additional properties that were identified during the interim prohibition period. Staff said eight properties have active enforcement cases in court and that, to date, the city has not initiated permit revocations under the ordinance.

Why it matters: the council must decide whether to allow STR permits citywide without additional density limits when the ban ends, adopt a cap on the total number of permits, or pursue zone‑ and density‑based restrictions that would limit where new STRs can be established.

Staff presentation and options Staff said the city is using software and GIS to track listings and map permitted, in‑process and enforcement cases. Dakota Buchanan, Senior Business Analyst, told the council, “We found 30 cities in Texas that do zoning or density based regulations,” and summarized three common approaches used elsewhere: minimum distance buffers, limits by block or block face (percent or fixed number), and zoning‑based limits that allow STRs only in certain districts.

Examples shown to the council included: a 12.5 percent or “one per block” limit used by multiple Texas cities; block‑face limits (San Antonio and Corpus Christi examples at about 12.5–15 percent); and minimum‑distance buffers ranging from 100 to 1,000 feet. Staff showed how each method would affect sample neighborhoods in Lewisville using maps and rounding rules (truncation versus rounding up).

Enforcement, current inventory and special cases Chris (staff) told council members the city had positively identified 90 addresses that could be permitted, and that the mapping shows permitted units (green), applications in process (yellow) and enforcement cases (red). “Of the locations that we positively have identified an address for, we currently have a 93% compliance rating,” Chris said. Staff explained some listings are removed, some are reclassified as long‑term (stays over 30 days) and some are slow to take down listings from third‑party platforms such as Airbnb and Vrbo.

Staff noted 11 multifamily listings surfaced during the interim prohibition; none of those multifamily units had an STR permit issued. In several cases staff said the listings were posted by occupants subleasing units rather than by owners or building managers.

Public engagement and survey Staff said a public survey remains open and that the city has contracted with the vendor Zen City to help clean duplicates and gather input; the survey will remain open through Feb. 28 (staff said) and results will inform any council action. Staff recommended additional outreach including postcards and public meetings modeled on Denton’s and Plano’s multi‑month processes.

Council reaction and next steps Council members expressed a range of preferences: some said they do not favor a 12.5 percent/block rule and voiced interest in a minimum‑distance buffer around 500 feet; others favored limiting the total number of permits and asked staff for options in the 90–150 range (suggested numbers mentioned in debate included 90, 100, 120, 125 and 150). Several members emphasized the need for more analysis before a final decision and for protections so existing permitted operators are not unfairly removed.

Staff said they are prepared to bring a recommendation and follow‑up analysis to the council on March 3, 2025 — before the March 4 expiration of the interim prohibition — that could include a temporary citywide cap on permits while density options are developed further.

Process, software and legal note Staff said implementing block‑face or minimum‑distance rules would require updated GIS mapping and potentially new software to identify affected parcels automatically. The council recessed into closed session under Texas Government Code Section 551.071 for consultation with the city attorney during the meeting and then returned to regular session to continue the STR discussion.

Ending Councilmembers directed staff to return with detailed analyses, public‑engagement plans and draft language so the council can consider a cap and density approaches at the March 3 meeting; no formal ordinance or vote was adopted during the session.