AGENDA CAPTION:
Title
Consider approval of Resolution 2026-120R, determining costs of the proposed public improvements in the River Bridge Ranch Public Improvement District (PID); approving a proposed assessment roll for Improvement Area #1; and making related findings and determination with respect to an increase in the estimated cost of authorized improvements from $10,000,000.00 to $60,000,000.00, in accordance with Chapter 372 of the Texas Local Government Code; authorizing the City Manager, or her designee, to execute said documents on behalf of the city; and declaring an effective date.
Body
Meeting date: July 7, 2026
Department: Economic, Finance, and Planning and Development Services
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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 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.
The amended River Bridge Ranch PID and related documents have been finalized, and the item has been placed for consideration on the July 7th 2026 City Council meeting.
Council Committee, Board/Commission Action:
PID Committee provided recommendations on community benefits
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Recommendation:
Recommend approval of resolution and related documents