AGENDA CAPTION:
Title
Hold a discussion regarding the possibility of refunding to the owner of Jorge’s Mexican Restaurant at 2550 Hunter Road the application fee for a distance variance associated with the conditional use permit to serve alcoholic beverages at this location, and provide direction to staff.
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Meeting date: November 18, 2025
Department: Requested by Mayor Hughson
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Background Information:
On November 5, 2025, Ana Del Toro, a Small Business Specialist with Rupert and Associates, sent a request on behalf of Jorge’s Mexican Restaurant at 2550 Hunter Road to consider adjusting or refunding the application fee of $750.00 for a distance variance that the business pays each year it also applies for renewal of its Conditional Use Permit (CUP) to serve alcohol.
The business is located within 300 feet of Miller Middle School and city ordinance requires that a business serving alcohol that is located within 300 feet of a school must obtain a variance in order to obtain its CUP. The City’s ordinance is authorized by state law as explained below.
Municipalities in Texas are given the authority under section 109.33 of the Texas Alcoholic Beverage Code to adopt local ordinances prohibiting the sale of alcohol within 300 feet of churches, schools, daycares, residences, and hospitals.
If a city adopts an ordinance authorized under section 109.33, the law also specifies that the city may grant a variance to the distance requirements.
In accordance with the statute, the City of San Marcos regulates the distance between a business serving alcohol and a school and allows for a business to request a variance.
A business requesting a variance must submit an application with the city and pay a variance application fee of $750.00. This application is typically submitted in conjunction with an application for a conditional use permit. An associated conditional use permit may not be issued for the business unless the application for a distance variance is also granted.
Jorge’s has indicated in it’s request that it is the only business in the City that is annually required to renew its CUP to serve alcohol and apply for a distance variance at an annual cost of $750.00 for the variance application, plus another $750.00 for the CUP application. This is in contrast to most other such businesses only being subject to renewal of their CUP’s every three years.
If a majority of the Council so directs, an item may be placed on a future agenda to consider approval of a full or partial refund of the application fee.
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Alternatives:
Council may consider a waiver or reduction of the distance variance application fee.
Recommendation:
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