The location of a large, new Hotel to be built in the area seems to be boiling down to money - with Bee Cave at a disadvantage with the impact (connection) fees proposed by the new PUA - a local source tells us.
The two possible locations are rumored to be the Hill Country Galleria and the LRMC land on 620 - the former is in Bee Cave, the latter in Lakeway - which has its own MUD based water system.
When contacted for a comment Adrian Overstreet of the Galleria confirmed by e-mail that the Galleria ownership group has the hotel site at the Lakeway Regional Hospital under contract. He also confirmed that the CEO of the Sonesta International hotel chain was in Bee Cave last week looking at sites at both the Galleria and the hospital.
Overstreet said that his group’s preference was and continues to be to build a hotel at the Galleria and that the input from neighborhood groups and city officials has been very positive, however he confirmed that a major obstacle to the Galleria site is the amount of Impact Fees charged by the West Travis County Public Utility Authority.
Overstreet said that water and sewer taps from Water District 17 are included with the hospital site while the same taps will cost almost Two Million dollars (his capitalization) under the new rates adopted by the PUA in October of 2012.
Overstreet also said that there is a PUA procedure in place to negotiate rates based on actual usage as opposed to a generic table, and that he still hopes the Galleria group and the PUA can come to an agreement to make a hotel in Bee Cave at the mall possible.