Lakeway Resort facing foreclosure

After opening back in 1963, the Lakeway Inn became the image and origin of what Lakeway became. Now the Lakeway Resort and Spa is facing foreclosure and could be auctioned off next week.

Long before the iconic golf ball water tower and the Lakeway road signs off RM 620 were built there was the Lakeway Inn. Over the years it changed ownership a couple of times and eventually became the Lakeway Resort and Spa back in 2005.

Lakeway city manager says the resort provides a lot of jobs for the community. Steve Jones says, "Lakeway resort and Spa is one of our biggest employers and they've been an icon in Lakeway since the beginning"

The resort, which went throught a multimillion dollar renovation in 07, is having a great summer so far claiming near full occupancy. They're even holding and extra long 4 ^th of July celebration which includes live music, food and games.

"This Saturday through the following Sunday, we have activities for the family", says Jack Bickart, Director of Sales, "We activities for adults, programming all the way through and it's very extensive and that's paid off for us"

But the bounce back in business has a cloud hanging overhead. The 174 room resort has been posted for foreclosure with an outstanding balance of $21 million dollars on a loan and it's not clear who will hold the keys to the resort come July 3rd.

The Lakeway resort has been open for almost 50 years, they say now matter who ends up owning it or who ends up managing it, it's still going to operate the same way it has been for decades".

Laura Mitchell of the Lake Travis Chamber of Commerce says the resort has a lot of history and has always been an important part of the community. "As our main and major hotel in the area, it's very important, you know we are a destination location for people to come and visit" says Mitchell, "Its certainly very important for them to continue to operate as they have and we know that they will".

And what are the resorts plans in light of this situation? Business as usual says Bickart, "were fully funded, the staff is entirely engaged, were doing all the marketing that we normally would do, really on property there's no evidence at all"