Council ends negotiations with civic corporation, moves to keep Rebel and Sailfish parks and seek election to sell submerged portions

Lakeway city council on Feb. 18 directed staff to end cooperative negotiations with the Lakeway Civic Corporation over Rebel Park and Sailfish Park, and voted to retain the parks while preparing an election to consider segregation and sale of the submerged portions if required.

The mayor summarized staff and legal work conducted after prior meetings, saying the Lakeway Civic Corporation had declined a joint-deed modification approach and instead intends to pursue converting the property and selling it. “It is my belief that the city council and the residents do not wish to give up these parks and are greatly disappointed that the Lakeway Civic Corporation has put its own financial interest over the goodwill of the residents of the city of Lakeway,” the mayor said in presenting the staff recommendation.

After executive-session briefings, the council voted 6-0 to discontinue the joint-negotiation effort and to maintain Rebel Park and Sailfish Park as city parks. The council directed staff to prepare educational materials explaining the segregation process and to place a proposition on the next practical general election to authorize segregation and sale of submerged portions of the parks, as allowed under Texas law. The council also authorized staff and the city attorney to proceed with the election preparations and related public outreach.

The city did not indicate any immediate sale of land or conveyance; the council’s action preserved park status and authorized a future election on a narrowly defined legal mechanism (segregation and sale of submerged portions) if required to resolve title or maintenance issues.