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Council directs staff to propose changes to SUP/CUP rules after finding high approval rate

Lakeway City Council · April 20, 2026
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Summary

Staff reported about a 95% SUP approval rate and flagged duration and transferability as issues; council directed staff to draft code changes to remove fixed durations, allow transferability with guidance, and narrow the list of uses requiring CUP/SUP, then return materials to ZAPCO.

City Manager presented an analysis showing roughly a 95% approval rate for special use permits over recent years and urged code review to reduce unnecessary administrative burdens on existing commercial corridors.

“We've reached a point where I believe that we need to start thinking about do these requests make sense,” the city manager said, noting that many SUPs follow similar uses and that long durations (e.g., 25 or 99 years) create tracking and enforcement challenges.

Council debated keeping the council involved versus delegating more administrative approvals, weighed public‑notice interests, and discussed examples of denied SUPs that were drive‑through proposals. A motion directing staff to remove duration requirements, remove transferability constraints (or make use-based transfer rules), tighten the CUP/SUP lists, and return recommendations (with ZAPCO review) passed unanimously.

Staff will work with ZAPCO and the city attorney to draft proposed code amendments and return a packet for council review and potential placement on a future consent agenda.