AGENDA CAPTION:
Title
Receive a Staff presentation and hold a public hearing to receive comments for or against Resolution 2026-115R, approving a Development Agreement with JLCB 710 Investments, LLC providing standards for the development of approximately 643 acres of land, including an approximately 25-acre tract owned by the city for a new water reclamation facility, generally located northeast of the intersection of State Highway 123 and Farm to Market 1978; authorizing the City Manager, or her designee, to execute the Development Agreement on behalf of the city; and declaring an effective date; and consider approval of Resolution 2026-115R.
Body
Meeting date: July 7, 2026
Department: Planning and Development Services
Amount & Source of Funding
Funds Required: N/A
Account or Project Number (C = CIP funds): 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]
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Master Plan:
Vision San Marcos - A River Runs Through Us
Background Information:
Sedona South is an approximately 643-acre site located primarily within Guadalupe County and is bounded by SH-123 to the west and FM 1978 to the south. It abuts the Cottonwood Creek neighborhood and “Sedona North” which was annexed into the City in 2022 and is currently under construction. The property is subject to a funding agreement with the City for the second wastewater treatment plant (2024-78R) approved in 2024, which allows developments to receive city wastewater service outside the City limits and ETJ subject to agreed financial contributions and, in the case of Sedona South, the contribution of land for the construction of the second wastewater treatment plant, which will serve properties both within and outside the city limits. The 25.013 acres of land was transferred to the City of San Marcos on October 30, 2024, meaning that the City is now officially also an "applicant" in this Development Agreement.
The property is proposed as a mixed-use development, with approximately 47 acres of commercial/industrial and multifamily proposed along SH-123, a 50-acre open space/ greenway with a trail encompassing the floodplain, approximately 530 acres of single family, and the approx. 25-acre wastewater treatment plant site. There is also an approx. 1-acre historic cemetery surrounded by the site - no development is proposed within the cemetery. Except for the wastewater treatment plant site, the development will not be annexed into the City and will remain in the unincorporated area of Guadalupe County and will also be subject to the interlocal agreement with Guadalupe County regarding the processing of plat applications. The development will include 2 Municipal Utility Districts (MUDs) which will finance and maintain the infrastructure - Council approved ordinances consenting to the creation of these MUDs in 2024 (Ord.2024-034 & Ord. 2024-033).
Please note that staff are currently in the process of making adjustments to the Land Development Code in response to the code updates approved by Council on June 16, 2026, which may impact the numbering of code sections cross referenced in this agreement. While every effort has been made to ensure that the code sections are correctly referenced in the agreement, minor staff corrections to the numbering may be required after the agreement has been approved by Council in order to accurately reflect to updated code.
Council Committee, Board/Commission Action:
This item was recommended for approval by the Sedona South Council Committee which is comprised of Councilmembers Gonzalez, Mendoza, and Scott. In addition, the agreement was presented for informational purposes to the Planning and Zoning Commission on June 9, 2026. No action was required from the Commission, although it should be noted that P&Z Commissioner Agnew recommended that Council add “Waste Related Services” as a prohibited use in the agreement. The applicant (JLBC 710 Investments LLC) has indicated to staff that they would not object to this exclusion should Council choose to add it during the meeting.
Alternatives:
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Recommendation:
Staff recommends approval of PDA-22-03 as presented.