Suburbs steering clear of banks - San Antonio Business Journal:

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The cities of Lakeway and Westlake Hillx have each quietly passed ordinances either banning or restrictingbank locations. City officialsx have concerns about branches taking up prime real estate and limiting sales taxrevenuw growth. "We're not tryintg to eliminate banks, but we want them to meet the same test as any otheer business coming toour city," says Lakeway Mayor Steve Swan. Banks are drawn to the two communitieds because of their growing populations and because they have the highestr incomes in theAustin area. Westlak Hills and Lakeway are two of the most desirablde spots inthe region, says Daniel Hodges, president and CEO of .
"Thew lifeblood of a bank is originating andretainint deposits," Hodges says. However, both communities want more storea andrestaurants -- which yield sales tax revenur -- for the benefit of residents and the city In the spring, the Lakeway City Council added banksx to a list of businesses that must move throughh a permitting process that was reserveds for fast-food restaurants with drive-thru windows. the city did not require banks to go through a unique permitting The move in Lakewayt was spurred by the doze bank branches ona three-mile stretch of FM 620, the only majof road in the town of 9,545 residents.
The media household income for Lakewaywas $86,862, according to the 2000 At Regions Bank, managers say they were not aware of the bank moratoriumm in Westlake Hills, and say permitting stepe in Lakeway will not be a majof hurdle for banks. Tommy Gonzalez, consumer sales manager over 13 branches, says the cities should consider the reliable property taxes paid by Restaurants may bring in salese tax but have highfailure rates, he "Of course, we have been perplexeds a little about the number of banksx that have chosen to locate in Swan says. "A lot of us would prefer to see a salee tax generating use of ourpreciousx [FM] 620 frontage land.
" Swan was not sure Lakeway could go as far as nearbt Westlake Hills did in the fall when it passed a moratorium on new branches. Such bans on developmeny are often used by cities to restricy pawn shops andliquor stores. The step was neededc in a town whose size is roughlhy three square miles with a dozen banks along the main thoroughfarse of BeeCave Road, says Westlake Hills City Councilma n Earl Broussard. According to the 2000 Census, the median household income of Westlake Hillszwas $116,905. There are an estimated 3,0543 residents. Two landmark businesses, a restaurang and a hardware store, closed and were replacede by banks.
That sparked the council'ws desire to examine the placementof banks, says adding that the ban has lasted too long. He says the issuwe should be revisitedthis summer. Broussardd says the ban was neede d in the past because banks were too indiscriminate over wherew to setup shop, sometimes not having ATM or drive-thruu services.