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Lakeway adopts ROI-based economic incentive policy with assignment and termination protections
Summary
Council approved a revised economic development incentive policy that replaces fixed thresholds with an ROI ("x" multiplier), expands eligibility to small-business redevelopment, requires necessity tests and adds clawback/breach language; council also insisted on city approval for assignment and fixed termination dates for nonperformance.
Assistant City Manager presented revisions to Lakeway's economic development incentive policy designed to shift from fixed eligibility thresholds to a flexible return-on-investment framework. Under the new approach, applicants must show that city participation materially affects project feasibility and that the city will receive a positive return relative to historical property performance; the policy uses an adjustable multiplier "x" to set expected returns on a case-by-case basis.
Council debated safeguards, assignment language and termination timelines. To address concerns about owner agents and transfers, the mayor asked that the policy require city approvals for sales or assignment of incentive agreements and require fixed termination dates for nonperformance or failure to acquire the underlying asset. Those two clauses were added as general terms before the final vote. The council approved the policy with the added language by a recorded 6-1 vote.
