Lakeway council approves special-use permit for Hornet Capital office at airpark hangar after debate over 'commercial events'

Lakeway City Council on Sept. 15 approved a special-use permit allowing Hornet Capital to operate a small financial office in a hangar at 2910 Lakeway Boulevard in the Aviation District, but the vote followed extended public comment and changes to conditions originally recommended by the zoning commission.

The permit allows two to three employees to use an internal office within the hangar during standard business hours; the remainder of the hangar will continue to serve as aircraft storage. After public comment from airpark neighbors and a recommendation from the Zoning and Planning Commission, the council debated whether investor- or client-oriented gatherings at the hangar would qualify as prohibited “commercial events.”

Why it matters: The Aviation District zoning limits commercial activities to uses directly related to aircraft operations (fueling, maintenance, sales, storage). The council’s action preserves office use but narrowed the commission’s draft restriction on events — a decision that neighbors said could set a precedent for non-aviation commercial activity near residences.

What happened at the meeting

- Assistant City Manager Ashby Grama summarized the request and reviewed ZAPCO’s recommendation: approval with conditions including (a) access via Lakeway Boulevard, (b) no commercial signage, (c) no commercial events, and (d) a one-year term with re-review if complaints arise. ZAPCO’s vote was 4–1 in favor with two recusals.

- Applicant Brian Whitten told council his business, Hornet Capital, is an LLC that finances aircraft and leases hangar space; he said the interior office already existed and the request was to formalize office use after he purchased the hangar.

- Several residents and Airpark leaders testified. Pat Hall, president of the Airpark homeowners’ association, said the community had asked the applicant to close a gate and that the airpark leadership “have no problem with him having an office.” Others said two past investor-focused events at the hangar caused traffic and parking impacts and that an investor relations meeting should be considered a commercial use.

Council action and conditions

The council approved the special-use permit after amending the conditions. The final motion removed the ZAPCO recommendation that barred “commercial events” outright and instead approved a one-year permit that will automatically renew unless there are substantiated complaints. Council set the permit as follows: office use for two to three employees; no commercial signage; one-year duration with an automatic renewal provision that can be revoked if staff documents a substantiated violation.

Quoted by council

- “You can do all of that, but you can't have an investor relations event at your hangar,” Council members said in discussion about whether investor gatherings qualified as commercial events. That formulation was central to debate; the final vote removed an explicit prohibition on events but attached enforcement through the one-year review process.

Ending

The permit passed on a 6–1 vote. Council said the one-year review and a requirement that staff act on substantiated complaints would be the primary enforcement mechanism; the applicant said he would keep the gate locked and work with neighbors to minimize impacts.