AGENDA CAPTION:
Title
Hold a discussion regarding the possible modification or elimination of the application fee for a distance variance associated with an application for an alcohol related conditional use permit that requires the variance in order to be approved, and provide direction to staff.
Body
Meeting date: November 18, 2025
Department: Requested by Mayor Hughson
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Background Information:
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.
While the Texas Alcoholic Beverage Code does not require a city to adopt ordinances related to distance, if a city to adopt 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.
The 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.
This discussion is brought before the city council following concerns expressed by the owner of Jorge’s Mexican Restaurant regarding the recurring expense of $750.00 it incurs for filing an application for a variance each time it applies to renew its conditional use permit (CUP) to serve alcoholic beverages. The CUP application also carries a fee.
Council is being asked to discuss the possibility of providing relief from the variance application fee.
Council may direct that a future agenda item to consider eliminating the variance application fee come back to council.
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