Lakeway planning commission backs PUD changes for Tuscan Village but rejects drive‑through by‑right

The Lakeway Zoning and Planning Commission on March 5 recommended multiple amendments to the Tuscan Village Section 2 planned unit development, approving three of the requests and recommending against allowing a restaurant drive‑through to be permitted by right.

The commission voted 4–3 to delete a PUD requirement that 50% of the multifamily units in Parcel D be age‑restricted to 55 or older and to instead make the units "age targeted." The body unanimously approved deleting the option to hold the cluster cottages as rental units (they will be for sale) and unanimously approved allowing cut and fill up to 25 feet for retaining walls around the municipal water tank site. The commission voted 6–1 to recommend that City Council not allow a drive‑through by right in Parcel F; a drive‑through would still be possible later if the applicant seeks a special use permit.

Why it matters: The package of changes touches housing type, financing and site engineering. Developers said zoning text tied to an explicit 55‑plus requirement is constraining their ability to secure permanent financing for a project that the developer markets to older adults. Commissioners and residents raised concerns about parking, enforcement of age restrictions, traffic and future resale or repurposing of the project.

Developers and staff described the specific changes and why they were requested. City planning staff said the amendment would remove the option to rent the 21 cluster cottages and make those units for sale; the 39‑unit condominium building had always been proposed for sale. Developer Bill Hayes said steep site grades around a proposed water‑storage tank require taller retaining walls so roads and building pads meet code, and that the PUD should expressly allow up to 25 feet of cut or fill in that area so the engineering can be authorized during plan review. "The best alternative is to create a taller retaining wall to make all those puzzle pieces fit together," Hayes said.

Taylor Wilson, a representative of Wilson Capital and the Jovi Lakeway development, told the commission the Jovi product is marketed to older adults and that lenders treat an explicit 55‑plus zoning restriction differently from a market targeting. "What we're asking for is instead of the zoning document saying required, it says targeted... it allows us when this construction loan rolls off that I'm actually able to get it refinanced and not put in a really, really bad bind," Wilson said. He and staff also described a parking plan that yields about 1.1 parking spaces per unit across the parcel (231 spaces for 210 units), leaving roughly 21 spaces beyond a 1:1 ratio; staff said some of those extra spaces are expected to be used by employees and guests.

Several commissioners said they were sympathetic to financing difficulties but worried a change now would remove a design commitment that helped secure earlier approvals. Commissioner Dan (Zoning and Planning Commission) said, "We have a process. This has been discussed many times in formal proceedings," and cautioned against removing a long‑standing PUD condition without broader consideration. Other commissioners said the product will largely self‑select older residents given price, amenity level and parking constraints.

Public commenters expressed mixed views. Resident Taylor Nelms said the finished project did not match public illustrations she recalled and urged the commission to step back and review cumulative impacts on Lomans Crossing and surrounding streets. Several nearby property owners spoke in favor of the amendments; one adjacent landowner told the commission he had no objections.

Votes at a glance (Tuscan Village Section 2 PUD amendments): - Delete rental option for cluster cottages (Parcel C): recommended to City Council, vote: approved unanimously (yes 7, no 0). Motion: not specified. Note: Changes the cottages to for‑sale only; 21 cottages affected. - Change 50% age‑restricted requirement to "age targeted" (Parcel D): recommended to City Council, vote: approved 4–3 (yes 4, no 3). Motion: not specified. Note: The multifamily parcel includes roughly 210 units; the current PUD text required 50% age restriction; this amendment changes the wording to target rather than require 55+ occupancy. - Allow restaurant with drive‑through by right (Parcel F): commission recommended against allowing a drive‑through by right, vote: recommended disapproval 6–1 (yes to disapproval 6, no 1). Motion: not specified. Note: Drive‑through would still be possible later if the applicant pursues a special use permit (SUP). - Allow cut and fill up to 25 feet for retaining walls (Parcel G, water tank area): recommended to City Council, vote: approved unanimously (yes 7, no 0). Motion: not specified. Note: Staff and the developer said the change responds to site topography with more than 30 feet of grade fall between some parcel boundaries and requires taller retaining walls to meet road and pad geometry.

Key clarifying details and numbers mentioned in the hearing: 21 cottages and a 39‑unit condominium building were discussed; the multifamily parcel totals about 210 units. Staff stated a 1.1 parking ratio would yield about 231 parking spaces for 210 units, leaving about 21 spaces beyond a strict 1:1 ratio; the parcel includes spaces expected for staff and visitors. The developer referenced comparable Jovi projects in Belterra and Pflugerville and cited typical rents in those projects of roughly $2,700–$3,000 per month for similar units. The timeline: this is a recommendation to City Council; the commission's actions do not change the ordinance until council acts.

What’s next: These recommended PUD amendments will be forwarded to Lakeway City Council for final consideration. The commission recorded its recommendation on each amendment and the rationale for approving or opposing each item.

"The best alternative is to create a taller retaining wall to make all those puzzle pieces fit together," said Bill Hayes, developer. "What we're asking for is... targeted... it allows us when this construction loan rolls off that I'm actually able to get it refinanced," said Taylor Wilson, Jovi representative. Resident Taylor Nelms told the commission the project's scale and traffic impacts warranted further review.

The commission meeting record shows citizens' concerns about parking, traffic on Lomans Crossing and the enforceability of age‑targeting. The commission's split vote on the age‑targeting amendment signals those issues will likely receive further scrutiny at the City Council review.