Lago Vista council authorizes staff to prepare contracts to buy Highland Lakes golf course amid wastewater planning debate

The Lago Vista City Council on July 16 authorized the city manager to prepare purchase contracts for the Highland Lakes Golf Course property — a combined 111.62 acres — with a not‑to‑exceed price of $1,100,000, sending the final contracts back to council for review at the next meeting.

City Manager Charles West told the council the city had commissioned an appraisal that placed the property value at about $1.4 million and that staff had negotiated a purchase opportunity below that figure. West said the property includes a separate two‑acre parcel that holds pump stations and other effluent infrastructure and that prior deeds include restrictive covenants reserving certain irrigation and reuse rights for the city.

The matter prompted lengthy legal and technical discussion. City attorney Brad (city attorney) reviewed the 2019 special warranty deed, saying it contained two restrictive covenants: one requiring the Highland Lakes parcel to remain a public golf course unless the council approves a change in land use, and another reserving the city’s right to dispose of excess reused water on the property and to access and maintain irrigation facilities. Brad said those covenants “run with the property in perpetuity,” but also warned the council that future councils could change the property’s status and that ownership offers additional options such as designating the land as parkland to add voter approval protections.

Council members and residents debated whether the city already had adequate effluent disposal capacity and whether ownership was necessary. Councilor Prince said buying nearby land now could avoid far larger infrastructure costs later: "If we gain additional capacity without increasing taxes, it may allow us to postpone the need for a future bond issue," he said. City staff and residents who had long experience with the site said portions of the irrigation and pump infrastructure had been sold or fallen into disrepair, and some speakers urged the council to reclaim the pump station and storage tank to preserve capacity.

Members of the public offered mixed views. Several emailed statements read into the record urged that, if the city buys the property, it adopt and publish an explicit restoration and stewardship plan with timelines and budgets. Other residents opposed the purchase, saying the city’s capital improvement plan does not project a near‑term need for the parcel and warning of ongoing maintenance costs and lost tax revenue.

Councilor Benfield moved to authorize the city manager to prepare purchase contracts for both parcels for a combined acreage of 111.62 and a total amount not to exceed $1,100,000; Councilor Hall seconded the motion. The motion passed 5–1. The city attorney and staff said any material title, survey, environmental or access defects identified during the due‑diligence period would be brought back to council before closing.

The council also asked staff to return with an initial stewardship and wildfire mitigation plan that includes estimated annual costs and to report back on any required permit clarifications from TCEQ related to effluent application on the site.

Next steps: Staff will complete title and environmental due diligence, finalize the purchase contract language, and return the item to the council for final action.