Commission asks staff and city attorney to draft criteria for dealing with dormant entitlements

The Lago Vista Planning & Zoning Commission on Oct. 23 voted to have staff, in coordination with the city attorney, develop criteria and a review process to identify and classify dormant or partially dormant entitlements, including planned development districts (PDDs), and to outline the legal risks and boundaries for any action.

Commissioners and staff discussed the difference between straight zoning and development agreements or PDDs that include utility commitments and vesting. Several speakers said PDDs and development agreements may vest rights that are difficult to rescind without legal exposure. Commissioners asked for a legal memorandum on down‑zoning case law, takings risk and vesting practices, and for staff to propose a clear checklist and thresholds that would trigger reconsideration or rezoning review.

Motion and vote: The commission voted to refer the issue to staff and the city attorney for a legal opinion on down‑zoning, for drafting criteria to identify dormant entitlements, and for a proposed process to review entitlements standing on the city’s books. The motion passed by majority vote with language to return the results to the commission for review.

Background and rationale: The referral grew from council concern about older entitlements and PDDs that have not moved forward and that may reserve substantial utility capacity or development rights. Commissioners said phasing and expiration language in development agreements is one tool to manage future capacity, but a consistent, legally defensible process is needed to address long-dormant approvals.

Next steps: Staff will prepare legal analysis and a proposed approach for classifying and reviewing dormant entitlements, separating PDDs and straight zoning where necessary, and will return the draft criteria and legal memo to the commission for consideration.