AGENDA CAPTION:
Title
CUP-25-71 (325 N. Comanche St. Student Housing) Hold a public hearing and consider a request by Shannon Mattingly, Drenner Group, on behalf of 202 Hutch, LLC, for a Conditional Use Permit to allow a purpose built student housing development, for the property located at 325 N. Comanche St. (L. Clanton)
Body
Meeting date: May 12, 2026
Department: Planning and Development Services
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: N/A
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☒ Land Use - Direct Growth, Compatible with Surrounding Uses
☒ Neighborhoods & Housing - Housing Opportunities for Texas State Students in appropriate areas
☒ Parks, Public Spaces & Facilities - Well maintained public facilities that meet needs of our community
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☐ Core Services
☐ Not Applicable
Master Plan: Vision SMTX Comprehensive Plan
Background Information:
The application is being submitted as part of a series of requests for redevelopment of an existing commercial site to a 7-story Purpose-Built Student Housing complex south of the Texas State University campus. In April, 2025, City Council approved a Conditional Use Permit (CUP-25-02) for Purpose-Built Student Housing and an associated Alternative Compliance (AC-25-02) to allow up to 7 stories in height for an adjacent block bounded by Pat Garrison St., N. Comanche St., W. Hutchison St., and N. Fredericksburg St. (see the “Nearby Approvals Map” for reference). The current request will represent Phase 2 of the abovementioned project.
A Conditional Use Permit for the use of Purpose-Built Student Housing would allow the project to be marketed specifically to students and would allow more than 3 bedrooms per unit. “Rent by the bedroom” leases are not regulated by the City.
In addition to this Conditional Use Permit request the following applications have also been submitted by the applicant for this site:
• Alternative Compliance request to allow for an increase from 5 to 7 stories (AC-25-09)
• Replat of Lots 1, 2, and 3, Block 3 of P. C. Woods Addition (PC-26-01)
• Demolition Permit for 323 & 325 N. Comanche St. & 305 Pat Garrison St. (2024-52542) - issued
The request is not considered to be in compliance with the “Recommended Housing Types” on page 58 of the Downtown Area Plan which states “Multi-family and mixed-use housing types are the primary products recommended in and near Downtown and should be marketed to all demographics (not just or primarily to students).”
Council Committee, Board/Commission Action:
N/A
Alternatives:
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Recommendation:
Due to various factors including conflict with the housing type recommendations of the Downtown Area Plan, staff is providing a neutral recommendation and leaves a decision of approval, denial, or approval with conditions up to the Planning and Zoning Commission.
Should the Commission choose to recommend approval of CUP-25-71, staff proposes the following conditions:
1. The development shall register with the City of San Marcos Long Term Rental Registration program per Chapter 34, Article 7, Division 3 of the City’s Code.
2. The lease shall be made publicly available on the property’s website.
3. The lease shall contain the following text:
In accordance with Development Code Section 5.1.4.9 Purpose-Built Student Housing, B Use Standards, 1 Student Leases, any residential dwelling lease that is executed and effective before the issuance of a certificate of occupancy by the City enabling the tenant to occupy the premises shall include a late delivery provision providing as follows:
“In the event the Leased Premises are unavailable for occupancy on or before the commencement date of this Lease, Landlord shall offer Tenant the choice of: 1) accepting temporary safe, decent, and sanitary housing, provided by the Landlord, at an alternate location within the City of San Marcos, or within a seven mile radius of the Leased Premises, with Tenant remaining bound by the terms of the lease; or 2) terminating the Lease with no financial penalty and with full reimbursement to Tenant of all deposits and pre-paid items within 10 days”
This condition will no longer apply to any lease for a unit with a move in date that is on or after the date the City has issued a certificate of occupancy enabling the tenant to occupy the unit.
4. The development shall offer both individual leases and conventional leases where units may be rented in their entirety.
5. The development shall comply with a parking calculation of 0.60 spaces per bedroom.
6. The developer shall not sell the property to a non-taxpaying entity for 12 years from the effective date of the Conditional Use Permit. The condition prohibiting sale to a tax-exempt entity for 12 years from the date of this approval shall be memorialized in a restrictive covenant approved by the city attorney that is recorded in the Official Public Records of Hays County.
7. Right-of-way shall be dedicated to the extent that the standards of the San Marcos Design Manual Section B.4.1.4, Downtown Cross Sections, and the Development Code are met.
8. This CUP shall expire within 3 years unless an application for a permit is submitted to the City.
9. The development shall comply with all other development code regulations. Packet materials are provided for informational purposes only.
10. The number of bedrooms shall be limited to 5.