Lakeway approves $2 million for historic resort, delays parts of marina funding
Posted: Thu, 23 Jul 2026 12:54 PM - 52 Readers
By: Diego Hernandez
The Lakeway City Council voted unanimously Monday to allocate $2 million from its hotel occupancy tax fund over three years to renovate and preserve the historic Lakeway Resort and Spa, which opened in 1963 and is viewed as foundational to the local community. The funds—$1 million this month followed by two $500,000 payments—will support remodeling aimed at reversing years of declining sales under previous owners and launching a membership program, according to Trestle Studios, the firm that acquired the property in May. Council members only partially approved a separate roughly $1.1 million request for the adjacent Lakeway Marina, approving some renovations while tabling items such as parking lot and boat launch work until an August meeting after questions about whether those projects qualified as historic preservation.
Separately, City Manager Joseph Molis proposed several fee increases to help close a projected $1.6 million gap in the 2027 fiscal year budget, driven by slowing development and rising service costs. Suggestions included raising special-use permit fees from $250 to $500, increasing stop-work order fines, passing credit-card processing fees on to residents for permits and court transactions, and hiking Parks and Recreation charges such as the annual Family Fun Pass at the Lakeway Swim Center.
