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Council forwards draft home-based business ordinance to zoning commission following statute changes
Summary
City attorney explained state law changes (referred to in the record as HB 2464) that limit municipal regulation of no‑impact home-based businesses; council voted to send the draft ordinance to ZAPCO for consideration after questions about definitions, signage, deliveries and parking.
The city attorney summarized amendments needed to align Lakeway’s ordinance with recent state legislation (identified in the record as HB 2464), highlighting creation of a ‘no-impact home-based business’ category and limits on municipal regulation.
“The statute set out is, City can't adopt or enforce an ordinance… that prohibits the operation of a no impact home business,” the city attorney said, outlining that a no-impact business must not generate on-street parking, increase traffic, or have activities visible from the street.
Council members pressed staff on ambiguous terms such as how “compatible with residential use” is defined and whether signage or daily deliveries would impermissibly convert a business into a regulated activity. The attorney said signage visible from the street would likely be disallowed for no-impact businesses and that pickup/drop-off patterns could make a use noncompliant if they produced substantial on-street parking.
Public commenters urged clarity for examples such as daycares and piano teachers; one resident suggested adding language addressing pickup/drop-off schedules. Council moved to send the ordinance language to ZAPCO for review; the motion passed unanimously.
