AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public hearing to receive comments for or against Resolution 2025-76R, approving a request for a Conditional Use Permit in Case No. CUP-25-02, to allow a purpose-built student housing development generally located between West Hutchison Street and Pat Garrison Street and between North Comanche Street and North Fredericksburg Street; authorizing city staff to issue a conditional use permit consistent with this resolution; and declaring an effective date; and consider approval of Resolution 2025-76R.
Body
Meeting date: April 15, 2025
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]
N/A
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N/A
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
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Vision San Marcos - A River Runs Through Us
Background Information:
The application is being submitted as part of a series of requests for redevelopment of an existing commercial and residential site to a 7-story purpose-built student housing complex south of the Texas State University campus.
The Student Housing Conditional Use Permit (CUP) would allow the project to be marketed specifically to students and would allow more than 3 bedrooms per unit. Note: “rent by the bedroom” leases are not regulated by the City.
Per Chapter 7, Article 1 of the Development Code, 1.05 parking spaces are required per bedroom for Purpose Built Student Housing. The applicant has indicated they will request fee in lieu to allow a parking ratio of 0.70 spaces per bedroom. Parking fee in lieu is permitted in the Development Code to reimburse up to 50% of minimum required parking spaces in CD-5D zoning. Parking fee in lieu is processed during the site permit stage.
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-25-02)
• Traffic Impact Analysis (2024-53317)
• Demolition Permit for 209 Pat Garrison St. (2024-52537)
• Demolition Permit for 213 and 215 Pat Garrison St. (2024-52540)
The Downtown Area Plan was adopted by Council on November 6, 2023, and any new purpose Built Student Housing would not meet the intent of the adopted Area Plan. 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:
At their March 25, 2025, regular meeting, the Planning & Zoning Commission voted 9-0 to recommend denial of CUP-25-02.
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 City Council.
Should City Council choose to recommend approval, 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 and shall contain the following text “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”
3. The development shall offer both individual leases and conventional leases where units may be rented in their entirety.
4. The development shall comply with a parking calculation of 0.70 spaces per bedroom.
5. The developer shall not sell the property to a non-taxpaying entity for 7 years from the effective date of the Conditional Use Permit. The condition prohibiting sale to a tax-exempt entity for seven years from the date of this approval be memorialized in a restrictive covenant approved by the city attorney that is recorded in the Official Public Records of Hays County.
6. 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.
7. This CUP shall expire within 3 years unless an application for a permit is submitted to the City.
8. The development shall comply with all other development code regulations. Packet materials are provided for informational purposes only.