San Marcos City Council approves $10 million development deal

On Dec. 15, San Marcos City Council voted unanimously in favor of increasing the reimbursement to a developer from $20 million to $30 million. The developer, Paso Robles, is owned by Brookfield Residential.

The $10 million increase was an amendment to an existing project plan and reinvestment zone financing plan for the city's 1,338-acre Tax Increment Reinvestment Zone 4, also known as Kissing Tree—a community catering to adults age 55 and older.

During a Dec. 2 meeting, City Council voted 5-2 on the ordinance's first reading, with Council Members Shane Scott and Maxfield Baker dissenting. Scott and Baker withheld support during the first reading because benefits to San Marcos residents at Kissing Tree Golf Club and other development facilities—which Scott said were agreed upon several years ago—were not included within the development agreement with the city.

However, a representative for the developer stated the benefits were being provided as promised, despite not being in writing.

Scott said the agreement was supposed to include discounted prices at the golf club, and the developer told City Council that a planned clubhouse would include facilities available for public events such as weddings.

The benefits were not added to the agreement as of Dec. 15, but a verbal commitment from the developer to make the changes was enough to swing Scott and Baker in favor of the ordinance.

"We all heard it. We all know it's there," Scott said. "I'm sure they'll bring it back for us, but amended for it."

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.