Decision on controversial Bee Cave construction project to be made soon

BEE CAVE, Texas - A Travis County judge could soon decide whether to resume, or shut down for several months, construction of a controversial warehouse facility in Bee Cave.

That ruling is expected following a hearing over a lawsuit brought by the city to shut down the project. 

"The city of Bee Cave is asking for a Travis County judge to halt construction on this industrial development until a full trial can be had some time in spring of 2025," said Crystal Cotti, Director of Communications for Bee Cave. 

Wednesday was the second and final day of a hearing about the West Austin Business Park, a warehouse and distribution center in the works along SH 71. 

The partially-completed warehouse being built by developer Velocis is at the center of a lawsuit filed by Bee Cave. City officials say they were blindsided by the project, which has been on hold for a month pending this hearing.

"It is an unlawful development that the City of Bee Cave should have been notified," said Cotti. 

Some residents are also concerned about traffic, as well as noise, light and runoff from the site, which Bee Cave says violate city ordinances. 

"It is already having a big impact on the neighborhood," said Cotti. 

"An 80-bay semi-truck installation is not great for traffic," said Lakeway Mayor Pro Tem Gretchen Vance. 

Bee Cave wants the warehouse torn down, but Velocis argues the city has no right to make them do that, pointing to the fact that the site is not within Bee Cave city limits, but rather within the city's extraterritorial jurisdiction. 

"I think it's complicated. I think the development agreement from 2015 is a really important guide and words matter," said Cotti. "It is very clear that site approval and review needed to be provided by the City of Bee Cave. 

That 2015 agreement stated the land would be used for commercial and retail space, before it was sold to Velocis in 2023. 

"That was never slated to have any industrial usage there. Commercial, yes, but industrial, no," said Vance.

Lawyers for Velocis pushed back during the hearing, saying the facility is "not a hub for 18-wheelers" and "not the bogeyman that the plaintiffs make it out to be," also vowing to limit construction going forward to between 7 a.m. and 7 p.m. 

The decision coming out of this hearing will only be temporary with a final ruling expected in the spring trial. 

"When we get to the trial, of course we would hope that a permanent halt to the construction would result," Cotti.

In a statement Wednesday evening, a spokesperson for Velocis said: "Our team is thankful for the opportunity this proceeding has provided to demonstrate Velocis' commitment to the site’s development guidelines and address the misleading claims surrounding the West Austin Business Park. We look forward to presenting further information to the court, aiming for a swift resolution and the timely completion of our project."

As for the expected trial this spring, an exact date has not been set.