AGENDA CAPTION:
Title
Receive a Staff presentation and hold a public hearing and consider approval of Resolution 2026-118R, amending the terms of the River Bridge Ranch Public Improvement District (PID), by reducing the PID boundaries and increasing the estimated costs for public improvements from $10,000.000.00 to $60,000,000.00; in accordance with Chapter 372 of the Texas Local Government Code; and declaring an effective date; and consider approval of Resolution 2026-118R.
Body
Meeting date: July 7, 2026
Department: Economic Development, Finance, and 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: October 29, 2020, City Council approved Resolution 2020-232R, that authorized the creation of the River Bridge Ranch Public Improvement District (PID) as part of a settlement agreement between The Mayan at San Marcos River, LLC, the City of Martindale, and the City of San Marcos. October 29, 2020, following a public hearing, City Council approved Resolution 2020-233R, that created the River Bridge Ranch PID. November 6, 2024, City Council appointed a three-member committee to review and make a recommendation on the River Bridge Ranch PID amendments submitted by Lennar Homes of Texas. December 2, 2025, City Council approved Resolution 2025-235R, accepting the petition to amend the PID and calling a public hearing on the proposed amendments for January 20, 2026. A public hearing was held on January 20,2026 and was to remain open and continue to a future meeting once community benefits are finalized. The PID Committee met on February 26, 2026 and reviewed and discussed community benefits and made additional suggested recommendations at their February 26, 2026 meeting to be presented and finalized with Lennar Homes of Texas prior to taking the item to the City Council in Executive Session. The City Council Executive Session was held on June 16, 2026.
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Background Information:
On April 18, 2008, the San Marcos City Council adopted Ordinance 2008-16 to annex a 563.797-acre property known as The Mayan Tract, along with a 13.069-acre connecting tract. The annexation was initiated at the request of the property owners, who sought out-of-city sanitary sewer service. Prior to annexation, the City of Martindale released a portion of the tract from its extraterritorial jurisdiction to allow full annexation by San Marcos.
In 2014, The Mayan at San Marcos River, LLC acquired the property and later filed a lawsuit in 2018 challenging the validity of the annexation. Martindale joined the suit, also seeking to invalidate the annexation and recover attorney’s fees. The trial court dismissed the annexation challenge but left some service plan claims pending. The dismissal was appealed, and proceedings were paused for settlement talks.
On October 29, 2020, City Council approved Resolution 2020-232R agreeing to the terms of the settlement. Under the terms of the settlement, the appeal was dismissed, the annexation validated, and all remaining claims, including attorney’s fees, dropped. Part of the settlement agreement required the creation of the River Bridge Ranch PID, which was created on October 29, 2020, pursuant to Resolution 2020-233R. The resolution authorized regional sewer and buffer public improvements at a cost not to exceed $10 million to be funded by PID bonds.
On December 30, 2021, Lennar Homes of Texas purchased the land within the PID from The Mayan at San Marcos River, LLC, prior to any development occurring.
In November 2025, Lennar Homes has submitted a petition requesting the following amendments to the PID:
Boundary Adjustment:
Reduce the PID area from 563.797 acres to 328.85 acres, removing land retained by the original owner and land north of FM110.
Increase in Authorized Cost for Public Improvements:
Increase the allowable costs for authorized public improvements to be funded by the PID from $10 million to $60 million. The increase accounts for inflation since creation of the PID in 2020 and an expanded scope of work, which now includes street improvements, drainage infrastructure, and water and wastewater systems.
Any PID bonds issued for the authorized public improvements will reimburse the costs after the work is completed and will be repaid solely through assessments on property owners within the PID. The City of San Marcos bears no financial obligation for the repayment of these bonds.
On November 6, 2024, City Council appointed a three-member committee to review Lennar Homes’ petition to amend the River Bridge Ranch PID and provide a recommendation. As part of this review, the committee and Lennar Homes agreed to the following community benefits:
1. Fire station support: dedication of an approximate 2-acre parcel of land on FM 110 for a future fire station. In addition, cost participation in the construction of the fire station.
2. Lennar Homes agrees to voluntarily comply with the following sections of the Development Code approved on January 21, 2025, pursuant to Ordinance 2025-01:
a. 7.2.3.2(B)(1)
b. 7.2.3.2(C)
c. 7.2.4.1(E)(1)
d. 7.2.4.1(J)(2) and (3)
e. 7.2.4.2(A), (B), and (C)
3. Transit stop shelter: installation of a shelter at Transit Stop #2, near the intersection of Staples Road (FM 621) and FM 110. The shelter will connect to a future multi-use trail provided by Lennar.
4. Public amenity center: construction of an approximately 2,000 sq. ft. enclosed, climate-controlled amenity center. The center will be managed by the Homeowners Association (HOA) and made available to the public through an agreement between the City and the HOA.
5. Enhanced landscaping: installation of larger trees than required around the amenity center entryways.
The PID Committee reviewed and discussed community benefits and made the following additional suggested recommendations at their February 26, 2026 that were further enhanced and updated:
1. Fire Station Support update: Dedication of 5.5 acres of land for a fire station and cost participation in the fire station in the amount of Funds an amount equivalent to 10% of the net proceeds of each series of PID Bonds, not to exceed $5 Million, to be built within 15 years and updated in the Agreement for the Fire Station.
4. Public amenity center update: Enclosed 2,000 sq. ft. amenity center with HVAC that will be made available for public use through an agreement. Amended Exhibit B Community Benefits states that the amenity center will be complete before homes are closed in Phase 3 (as defined in the plan) of the District.
5. Larger trees at the entry way of the amenity center. Amendment to Exhibit B. Community Benefits: Subject to adequate water for water supply sufficient to irrigate larger trees, the Petitioner will provide a minimum of six (6) shade trees around the entryway of the amenity center, in addition to street tree and landscaping requirements required by the Development Code at the time of construction. The shade trees will be of a species from the City’s Preferred Plant List and will be a minimum caliper of five (5) inches measured at six (6) inches from the root collar at the time of planting.
6. Includes a City Administrative Expenses amount, with escalator, over the life of the PID.
7. Lennar to buy down the interest rate for financing a home from the current rate of 6.5% to 3.75% reducing the homeowner’s mortgage payment.
The community benefit details have been finalized, and the item has been placed for consideration on the July 7th 2026 City Council meeting. The recommendation is to open the continued public hearing, review and discuss the finalized community benefits, and close the public hearing, whereby the City Council will consider the resolution to amend the PID.
Council Committee, Board/Commission Action:
The PID Committee reviewed and discussed community benefits and made additional suggested recommendations at their February 26, 2026, meeting to be presented and finalized with Lennar Homes of Texas prior to taking the item to the City Council in Executive Session. The community benefits were finalized and the City Council Executive Session was held on June 16, 2026.
Alternatives:
N/A
Recommendation:
City Council close the continued public hearing and approve the proposed Resolution to amend the River Bridge Ranch Public Improvement District.