On Dec. 2, San Marcos City Council voted 5-2 in the first of two readings to amend the project plan and reinvestment zone financing plan for the 1,338-acre Tax Increment Reinvestment Zone 4, also known as Kissing Tree.

The proposed changes would increase the reimbursement to the developer—Paso Robles, which is owned by Brookfield Residential—by $10 million, bringing the total to $30 million. The amended plan will also allow for the reimbursement of eligible project costs for water testing of up to $265,000 over a five-year period.

According to city documents, the city is expected to annually collect roughly $4.7 million in new sales and use tax revenue and new ad valorem tax revenue from residential and commercial development over the 33-year life span of the TIRZ.

Hays County would collect $5.2 million annually through sales tax revenue. Council Members Shane Scott and Maxfield Baker were the dissenting votes.