The Lago Vista City Council voted to table Resolution No. 25-2164, which would have corrected a prior deed error and accepted additional parkland dedications in the DeSaron/Lake Travis subdivision, after a multihour discussion about contractual obligations, unresolved liens and limitations tied to PID bonds.

The item addressed a long-standing development agreement that requires the developer to dedicate roughly 10 acres of parkland as part of the community buildout. Council and city attorneys said a scrivener’s error in earlier documents had described the pool parcel as roughly 7 acres when the actual dedicated area beneath the pool is about 1.28 acres. The resolution on the table would have corrected that mistake and accepted an ADA ramp, the pool area and associated parking while deferring trail dedications because the developer reported outstanding mechanics and materialmen liens on several trail parcels.

Why it matters: legal counsel told the council the city’s obligations are contractual and that some of the park improvements were paid for with PID bond proceeds, which under state rules must remain public assets unless the bonds are retired or a voter referendum approves otherwise. City Attorney Brad said development agreements create binding obligations: “Development agreements in Texas are considered, well, they create binding, contractual obligations on the part of the city,” and noted that PID bonds used to construct public facilities impose conditions on how those assets may be repurposed.

Council members and residents questioned whether the parcels designated as parkland are practical park use (some include detention areas or steep topography) and pushed the developer and staff to better explain how future trail dedications would be completed. City staff and the developer told the council they are working to clear mechanics and materialmen liens affecting trail parcels; without lien releases the city cannot accept dedication. The developer’s representative said resolving the lien issues across multiple legal parcels takes time.

Action taken: Councilmember Roberts moved to table Resolution 25-2164 and Councilmember Owen seconded. The motion passed 4–1. Council directed staff and legal counsel to coordinate follow-up with the developer, and to return the item for council consideration at a later date when outstanding lien work and any clarifying documents are available.

What was not decided: The council did not accept the trail dedications tonight, nor did it require the developer to exchange park pieces or build alternative amenities (such as an additional pool) in lieu of the dedicated parcels. City attorney briefing and bond counsel commentary made clear that, because PID bond proceeds funded some facilities, a unilateral reversion of dedicated parkland is not a simple administrative action and would likely require bond payoff and/or voter approval before any change could take effect.

Next steps: Staff will continue to coordinate with the developer on lien resolution and will return to council with updated documentation and a recommended schedule for acceptance of tendered parcels. Councilmembers requested materials be provided to the coming council so newly elected members can review the file before further action.