Home builder joins lawsuit against warehouse facility in Bee Cave

AUSTIN (KXAN) --- A legal battle against a warehouse facility continues with another group joining the lawsuit. The facility under construction is near the intersection of State Highway 71 and Serene Hills Drive in the city of Bee Cave's extra-territorial jurisdiction.

Online plans show the property would have three buildings with 80 docking bays that could hold big rigs, warehouse space and offices. However, neighbors in the area and city leaders want to stop the project.

'It was gigantic'

The nearly 270,000 square foot business park is under construction next to a residential area.

"In two days, I think that building was up. It seemed like it was so fast," said neighbor, Barbara Marzean. "Once we saw it come up, it was gigantic."

This area was meant to be a peaceful place to retire for Marzean and her husband. However, its now become a source of some stress because of the unwanted neighbor.

"I can just imagine that there will be trucks coming in and out. I don't know how we're gonna get out of our neighborhood," Marzean said. "I'm sure there's gonna be trucks backed up at the light and even coming in."

Ultimately, she and others in the neighborhood are left hoping it gets torn down.

"We don't want to have to live with this."

Barbara Marzean, neighbor

The lawsuit

The city of Bee Cave and others want to stop the project as well. In August, the city council voted to file a lawsuit blocking the development.

"We are seeking to not only stop construction, but to tear down what has already been built," said city of Bee Cave Communications Director Crystal Cotti.

Lakeway City Council voted to join. Most recently, a nearby housing developer added its name to the suit as well.

"Residents have expressed to us concerns about noise pollution, light pollution, and probably the biggest concern is traffic safety of these 18 wheelers coming into contact with residential drivers trying to come and go from their neighborhood," Cotti said.

The lawsuit alleged the developer violated a development agreement it signed with the city back in 2015.

"We needed to be provided with construction documents. We needed a site plan. It wasn't just notice. We needed to approve these documents. Unfortunately, the developers never gave us that opportunity," Cotti said. "So a lot of residents wanted to know, how did this happen? How did this come up so quickly? It's because we were kept in the dark."

Cotti said its injunction hearing is set for Nov. 12. An injunction is a court order that says construction must stop.

Land developer's response

WS-COS Development is the land developer who sold the property to the group building the project.

It claimed that back in November 2023, the city was notified that this property was being sold and developed as a warehouse facility with 18-wheelers and commercial vehicles.

The business park under development is far from a nuisance as the project will benefit both businesses and residents who need both office and warehouse-type space in the area.  The landowner has complied with all applicable regulations. The project should not be interrupted in direct violation (opposition) of a fairly negotiated Development Agreement.

WS-COS Development

In response to that statement, Cotti said the city never approved this industrial project and has still not received a site plan.