AGENDA CAPTION:
Title
CUP-26-04 (The Vault & Saké) Hold a public hearing and consider a request by Marshall Hogan, on behalf of The Vault & Saké, for renewal of a Conditional Use Permit to allow on premise consumption of Mixed Beverages, located at 100 W Hopkins St. (C. Garrison)
Body
Meeting date: February 10, 2026
Department: Planning and Development Services
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Background Information:
The Vault & Sake has held a “Restaurant (Eating Establishment)” Conditional Use Permit (CUP) since 2009. Both the Vault and Saké operate under the same TABC license and existing Restaurant CUP. In accordance with the Development Code, a “Restaurant (Eating Establishment)” located within the Central Business Area (CBA) must meet certain standards related to kitchen equipment, meal periods, advertisement, and cleanliness outlined in Section 5.1.5.5.B.4.b.
2009: The business submitted a Restaurant CUP which was approved by the Planning and Zoning Commission for one year.
2009-2022: The business has been through multiple administrative renewals of the CUP along with renewals at the Planning and Zoning Commission level.
2022: The renewal of the Restaurant CUP was approved by the Planning and Zoning Commission for three years with conditions. This permit expired May 24, 2025.
August 2025: The renewal of the Restaurant CUP was approved by the Planning and Zoning Commission for six months with conditions. The six-month approval was to allow the business to come into compliance with the Development Code’s Downtown CBA Restaurant requirements.
Restaurants serving alcohol within the downtown CBA are subject to the standards in Section 5.1.5.5.4.b of the Development Code. After inspection, the Vault & Sake does not appear to be meeting two of the requirements as indicated in the staff report.
Staff previously recommended approval in August 2025 “to allow the business time to come into compliance.” Since the approval in August of 2025, Planning department staff has been working closely with the Neighborhood Enhancement Department. On January 22, 2026, an inspection was conducted by Neighborhood Enhancement, and found that food was not available, and multiple health concerns were reported. While the business has the required kitchen equipment, per Section 5.1.5.5.4.b.2, the business was not being used or maintained as a Restaurant as is required by the San Marcos Development Code, Section 5.1.5.5.4.b.4.
Due to the above analysis and after multiple inspections and attempts from the City of San Marcos to work with the business, it is viewed that the business was conducting itself as a “Bar Use,” rather than a “Restaurant Use.”
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
Consistency with Land Development Code:
• Staff finds the request consistent with the following:
Criteria 1, 2 3, 4, and 5 in Section 2.8.3.4 and Criteria 8, 9, 10, and 11 in Section 5.1.5.5.
• Staff had a neutral finding on the following:
Criteria 6, 7, and 8 in Section 2.8.3.4.
Section 5.1.5.5.4.B is to be applied when reviewing a Conditional Use Permit request for a Restaurant within the Central Business Area:
• Staff finds the request consistent with the following:
Criteria 1, 2, 5 and 6 in Section 5.1.5.5.4.B.
• Staff had a neutral finding on the following:
Criteria 3 in Section 5.1.5.5.4.B
• Staff had a inconsistent finding on the following:
Criteria 4 in Section 5.1.5.5.4.B
If the Planning and Zoning Commission recommends approval Staff recommends the following conditions:
1.The permit shall be valid for one (1) year, provided standards are met;
2.Food shall be available to patrons in all areas of the restaurant in a manner that meets the requirements of Section 5.1.5.5(4)(b), Eating Establishments - Downtown CBA Boundary;
3.The permit shall be posted in the same area and manner as the Certificate of Occupancy.