After discussing several conditions at their April 15 meeting, council members approved two items related to the development planned near downtown next to the H-E-B on West Hopkins Street. The site sits at the intersection of West Hutchison and North Comanche streets, just east of H-E-B and within walking distance of the Texas State University campus.
The approvals included a conditional-use permit for a purpose-built student housing project and an alternative compliance request to increase the building height from five to seven stories.
The overview
The proposed development, referred to as 202 Hutch due to its address at 202 W. Hutchison St., would be built on a 2.2-acre site. The complex will offer a mix of one-to-five-bedroom units marketed as rent-by-the-bed student housing near Texas State University, according to the City Council presentation. Parts of the first floor will include commercial space such as office use and other services.
“We have a pretty good handle of the challenges that San Marcos faces, as well as its needs,” Kelly Quinn, CEO of EmergeHere, the developer of the project said. “One challenge I can’t help you with is reducing the amount of students in San Marcos. The students are here and will continue to grow...This project ... will pull students from neighboring communities and provide a living option for the students coming to San Marcos."
Council member Amanda Rodriguez raised concerns about the prevalence of student-focused apartments and expressed discomfort with rent-by-the-bed leasing, pointing to affordability and personal experience.
“I just want to feel more comfortable about this, and I don’t,” Rodriguez said. “As someone who has been in a rent-by-the-bed lease ... I probably can tell you four people off the top of my head, myself included, who were miserable in those leases.”
The developer argued the project will help meet the growing demand for student housing and provide more “attainable” options. The inclusion of five-bedroom units was also described as a way to reduce per-room costs for students.
Without City Council approval, the developer could still construct a multifamily apartment complex on the same site under existing zoning regulations. However, this would restrict the project to one-to-three-bedroom units, require one parking space per unit instead of per bedroom, and would not be subject to any conditions imposed by the city.
“Saying no to the CUP and alternative compliance does not stop the project, it does not stop students from living at the project [and] it does not stop rent-by-the-bed...” Quinn said. “However, saying yes to the project comes with additional benefits. It more than doubles the parking spots.”
According to a presentation to City Council, projected economic benefits of the project include:
- Redeveloping underutilized land and bringing more residents downtown to support local businesses
- Creating jobs, including hundreds of construction jobs and 10–15 permanent positions to manage the property
- Increased revenue from permits and impact fees
- Higher annual real estate tax revenue
More details
At their March 25 meeting, the Planning and Zoning Commission denied both the CUP and height exception. Commissioners expressed concerns about the project’s height, affordability, potential traffic impacts, the viability of the commercial space and its alignment with the Downtown Area Plan, according to previous Community Impact reporting.
Mayor Jane Hughson addressed traffic concerns, stating she believed student residents would likely walk to class or the grocery store and primarily use vehicles for work or weekend trips.
What happened?
According to the City Council presentation, the CUP was approved with the following conditions:
- The development must register with the City of San Marcos Long-Term Rental Registration Program.
- The lease must be made publicly available on the property’s website and include a clause stating that if units are not available for occupancy by the lease start date, the landlord must offer to house or refund the tenant.
- The development must offer both individual and conventional leases, where units are rented in their entirety instead of rent-by-the-bed.
- The development must comply with a parking calculation of 0.70 spaces per bedroom.
- The developer may not sell the property to a non-taxpaying entity for 12 years from the CUP’s effective date.
- Right of way must be dedicated to the extent that city code standards are met.
- The CUP will expire within three years unless a permit application is submitted to the city.
- The development must comply with all other applicable development code regulations.
- The pool deck must be screened from the view of the H-E-B parking lot.
According to the presentation, the alternative compliance request was approved with the following conditions:
- The development must meet city standards for activation and varied massing.
- A publicly accessible plaza must be developed at the intersection of Pat Garrison Street and North Comanche Street. The plaza must include a bike pump station, water bottle refill station, benches, shade canopy and a historic plaque commemorating the former San Marcos High School, which once stood on the site.
- The building façade along North Comanche Street must incorporate horizontal and vertical design elements within the first three floors.
- The height of the building must not exceed 75 feet.
- The development must comply with all other applicable code regulations.
The buildings that are currently on the lot will be demolished, with one demolition permit for 209 Pat Garrison St. ready to issue and another for 213 and 215 Pat Garrison St. in process, according to agenda documents.
It is unclear when construction will begin.
