Planning commission votes 5-1 to recommend PDD rezoning for proposed Lago Vista resort hotel, with conditions

The Lago Vista Planning & Zoning Commission voted 5–1 on March 12 to recommend that City Council approve a Planned Development District rezoning for a proposed resort hotel and 12 casitas on a 7‑acre property annexed in June 2024.

The recommendation follows a packed public hearing in which neighbors raised concerns about location, traffic, tree removal and the visual impact of a 42‑foot hotel on a hilltop. Developer representatives said the project would include a 78‑room hotel plus 12 casitas (90 rooms total), a restaurant, spa and event center, and estimated it would create 45–55 permanent jobs and generate about $370,000 in annual hotel‑occupancy tax revenue for the city.

Commissioners pressed the applicant and staff on technical details that appear in the PDD ordinance and exhibits: the total room count (clarified as 90 total: 78 in the main hotel and 12 casitas), impervious coverage (reported below the applicable 60% C‑2 threshold), stormwater detention and minor off‑site flows, and a tree survey showing 100 surveyed trees with 24 to be retained and 76 to be removed. The developer requested a tree‑mitigation fee cap of $10,000 per acre but acknowledged they will likely pay fees in lieu where on‑site replacement is infeasible.

Traffic and access were a central point of discussion. The developer said an independent traffic impact analysis (Friese Nichols) went through multiple rounds of review and concluded the project would add roughly 976 trips a day to studied intersections and would be a small share (about 7%) of projected intersection traffic. The developer committed to paying higher service‑area roadway impact fees (estimated at "north of $1,000,000") and to dedicating any necessary property for a deceleration lane; the commission added a condition requiring the deceleration lane be on developer property.

Commissioners also debated whether the project is consistent with the city’s comprehensive plan and the long‑term community character of the corridor. One commissioner argued the hilltop location and 11‑foot height variance (for a proposed 42‑foot building where 35 feet is typical) would create a skyline‑altering mass and suggested the future land‑use designation might be outdated; other commissioners and multiple public speakers emphasized economic benefits, visitor demand and the project’s consistency with the existing future land‑use map. Staff repeatedly noted that the PDD and ordinance language will constrain substantial changes and that any significant change must return to P&Z and council.

The commission’s recommendation includes multiple edits and conditions to the ordinance: correct the room‑count table to reflect 90 total rooms, remove or clarify the proposed tree‑mitigation fee cap, require the deceleration lane be located on the developer’s property, correct inconsistent ordinance references (including a reference to a unified development code not yet adopted), and bar any additional building height through grading/fill. The commission also accepted amendments calling for pool backwash to be routed to the project detention pond if allowed under TCEQ rules, and for a small set of vocabulary and exhibit corrections prior to council.

With the recommendation passed, the PDD ordinance and accompanying exhibits — as amended by the commission — will next be considered by the Lago Vista City Council. The council will make the final determination on rezoning and any binding conditions.

— Quotes from the record — "I'm not against the hotel...but I'm really worried about the location and how it's going to directly impact our neighborhoods," said Constance Mendez during public comment. "This is intended to be both a concept and a detailed plan submission," said the developer's representative, who stressed that "significant change" would require additional P&Z and council review.

The commission adjourned at 6:25 p.m.; the council will receive the commission's recommendation and the revised packet ahead of its next meeting.