Construction crews have begun grading and utility work within the Main Street right-of-way as Lakeway's long-running City Center project moves into another infrastructure phase.

The city's August 2026 development update says Joe Bland Construction received a notice to proceed for Main Street improvements. The contractor has mobilized, grading is under way, and crews have started trenching for underground electric and gas infrastructure.

Approved pond improvements are also moving forward. These works are foundational: they support later development but do not mean every proposed building, business or public space is ready to open.

Where the City Center project sits

Lakeway describes City Center as three large projects in an area bordered by the police department to the south, Lohmans Crossing Road to the west, The Oaks shopping center and H-E-B to the east and southeast, and Lakeway Elementary School to the north.

Main Street and Lohmans Spur form part of the wider plan. Development began in 2022, and different landowners or project areas have progressed on separate schedules. That makes it important to distinguish a road or utility milestone from completion of the whole district.

The eastern portion of Main Street, closest to H-E-B, advanced earlier in 2026 with bridge girders installed and concrete work following. The August report concerns continued infrastructure progress and the western project area's next steps.

Utility approvals remain the main constraint

The developer's report identifies utility infrastructure as the project's biggest current challenge. It says approvals and implementation involving Water Control and Improvement District No. 17 and a lift station affect the timetable for water and wastewater service to Jovie and the first phase of The Square at Lakeway.

That issue is described as the critical path for continued development. In practical terms, visible grading can proceed while later occupied development still depends on utility capacity, approvals and completed connections.

The report says the project team is coordinating with the district and other stakeholders. It does not provide a confirmed date for resolving the lift-station issue, so residents should treat any broader completion timetable as subject to change.

Permits and an incentive agreement

The update says previously identified deficiencies in a stormwater pollution-prevention inspection have been addressed. Updated permit packages and a preliminary-plan application are being prepared to respond to procedural points raised during the city's grading review.

Work also continues on a possible economic-development incentive agreement. City Council authorized further review in July, and consultants were revising the draft for possible council consideration during the September meeting cycle.

A draft under review is not an approved agreement. Any eventual council agenda should provide the current terms, staff analysis and opportunity for public scrutiny. Residents comparing proposals should look for the duration, performance conditions, public costs, projected revenue and consequences if milestones are missed.

What happens next

Priorities listed for the coming months include continued Main Street and pond construction, permit resubmittals, preliminary-plan approvals, stormwater compliance, utility coordination and revisions to the incentive agreement.

People travelling near the work should follow posted traffic controls and avoid entering construction areas. For the wider timetable, the most reliable records will be current city updates, permit documents and council agendas rather than older renderings or promotional material.

The August report, project map and earlier monthly milestones are available on the official City of Lakeway City Center page.