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Lago Vista council orders review of dormant development districts, moves to free up water capacity
Summary
After months of staff review, the council voted unanimously to direct staff to initiate rezoning of five of the oldest dormant planned development districts to TR1 and to pursue ordinance changes separating LUE (land‑use entitlement) reservations from zoning. The move aims to clarify water/wastewater capacity planning and allow the city to require reservation fees.
The Lago Vista City Council unanimously directed staff to begin city‑initiated rezoning of the five oldest dormant planned development districts (PDDs), moving those tracts back to TR1 zoning and opening a process to peel out utility LUE commitments that currently count toward the city’s water and wastewater capacity.
Council members and city attorneys said the action — recommended by city legal counsel and staff — is intended to remove long‑standing entitlements that inflate the city’s apparent water demand and force premature or unnecessary plant expansions. City Attorney Brad (last name not provided in the record) told the council that it is unusual for zoning text to include LUE commitments and that LUEs are typically handled through separate service agreements or reservation processes.
“Because some of these PDDs have been inactive for 15–20 years, we can make a credible case to begin the rezoning process,” Brad said, recommending a two‑pronged approach: (1) initiate rezoning or remove LUEs from the PDDs now identified as low‑hanging fruit, and (2) amend the ordinances going forward so LUE commitments are handled outside the zoning code.
Councilor Prince moved the motion to direct staff to identify and begin rezoning the five oldest PDDs to TR1 under the standard process; Councilor Hall seconded. The motion passed unanimously.
Council discussion emphasized protecting the city against legal risk while addressing planning and fiscal consequences. Speakers noted that state regulatory triggers tied to utility capacity (TCEQ thresholds) can force a city to begin costly plant expansion once counted capacity reaches certain levels. Brad and staff proposed implementing a reservation fee system for developers that would allow applicants to secure LUEs for a limited period (commonly two years) and would put the cost of reserving capacity on the party seeking it rather than on taxpayers.
Public commenters and former council members supported the move. Linda Aird and former councilor Paul Roberts urged clarity and urged the council to expedite revisions so Planning & Zoning and staff have clear guidance. Staff agreed to return with a memo identifying the five properties targeted, the expected gains in available capacity, and draft ordinance language to implement reservation fees and clearer dormancy definitions.
Next steps: staff will prepare the rezoning packages for those five identified PDDs, send required notices and route the items through Planning & Zoning per the city’s rezoning process. Staff was also asked to prepare draft ordinance language for council consideration to decouple LUE commitments from PDD zoning and to describe the reservation fee structure and renewal terms.
The council recorded no opposition to the motion; the vote was unanimous.
