AGENDA CAPTION:
Title
CUP-23-22 (North & Lindsey Street Student Housing) Hold a public hearing and consider a request by Shannon Mattingly, Drenner Group, on behalf of Peggy Taylor, Daryl Burttshell, and Matthew Kenyon for a Conditional Use Permit to allow a purpose-built student housing development generally located on the south side of Lindsey Street between N. Comanche St and North St, and southwest of the intersection between Lindsey St and North St. (J.Cleary)
Body
Meeting date: February 27, 2024
Department: Planning and Development Services
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☐ Economic Development - Choose an item.
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☒ Land Use - High Density Mixed Use Dev. & Infrastructure in the Activity Nodes & Intesity Zones (supporting walkability and integrated transit corridors)
☒ Neighborhoods & Housing - Housing Opportunities for Texas State Students in appropriate areas
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Vision San Marcos - A River Runs Through Us
Background Information:
In 2017, a SMART Code warrant for student housing at 410 North St was approved by City Council (Res 2017-128R).
In 2021, a subsequent zoning change and Student Housing Conditional Use Permit for part of the site located east of North St was denied by the Planning and Zoning Commission and withdrawn by the applicant (ZC-21-09/ CUP-21-15).
A Student Housing CUP will allow the project to be marketed specifically to students and would allow 4-bedroom units. Traditional multifamily is limited to a maximum of 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 which would result in a parking requirement of 788 spaces based on the applicant’s current plan for 5 & 7 story buildings. The applicant has indicated they will request fee in lieu to allow a parking ratio of 0.75 per bedroom and has provided a summary of the provided parking in other student developments within the City (included in the packet). Parking fee in lieu is processed during the site permit stage and is permitted in the Development Code. Staff are proposing a condition that would require a parking ratio of at least 0.85 spaces per bedroom which is consistent with the 2017 student housing approval conditions. The applicant must pay a fee for the remaining spaces.
In addition to this conditional use permit request the following applications have also been submitted by the applicant for this site:
• Preferred Scenario Amendment for the land west of North St from Existing Neighborhood to High Intensity (Downtown) - PSA-23-02
• Zoning Change request from MF-24/MF18 and MF-12 to CD-5D (ZC-23-19)
• Alternative Compliance request to allow for an increase from 5 to 7 stories (AC-23-09)
The Downtown Area Plan (<https://www.visionsmtx.com/downtown-plan/>) was adopted by City Council on November 6, 2023 after the application was submitted, 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).”
Staff are proposing a “neutral” recommendation in lieu of a “denial” because aside from the recommendations in the Downtown Area Plan, the site’s location next to the University is generally an appropriate location for Student Housing, and the Conditional Use Permit offers a tool to impose conditions on the development which would otherwise be unavailable should the applicant develop under a multifamily use which is already allowed by right on the site.
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Recommendation:
Due to varying factors including the conflict with the recently adopted 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-23-22, staff propose 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 existing High and Medium Priority structures identified in the Historic Research Survey shall not be demolished and shall be integrated into the development or relocated.
3. The Purpose-Built Student Housing shall comply with all other development code regulations. Back up materials are provided for informational purposes only.
4. The project shall not charge tenants a separate fee to utilize the parking garage.
5. The lease shall be made publicly available on the property’s website and shall contain the following language: “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 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.”
6. Where parking fee in lieu is allowed under Section 7.1.2.1.E.2 of the Code, the parking ratio for the project shall be at least 0.85 spaces per bedroom, in addition to any public parking requirements proposed under AC-23-09 (if approved).
7. This CUP shall expire within 3 years unless an application for a permit is submitted to the City.
8. The development shall offer both “rent by the bedroom” leases and conventional leases where the apartments may be rented in their entirety.
9. The development shall be a minimum of a silver in the LEED green building program. Evidence of certification shall be required prior to the issuance of a Certificate of Occupancy.
10. Current tenants of the existing residential structures shall be given a minimum of six (6) months’ notice to find other accommodations.