City council defers rezone vote, cites potential threat to San Marcos ‘gem’

The San Marcos City council voted to put a local developer’s plans on hold, over fears the development might take away from the “gem” of San Marcos.

City council held the first public hearing on WUSD Properties’ application to rezone 42.51 acres at the Northwest corner of E. McCarty Lane and Leah Ave. intersection from “GC” General Commercial to “LI” Light Industrial on Tuesday.

Diane Bernal with DB Land Consulting LLC filed the application on behalf of the Wimberley-based developer Oct. 12. The developer’s plans for two 10,000 square foot warehouses directly behind and beside Embassy Suites were of concern to the Planning and Zoning Commission, which recommended against the rezone by a vote of 8-1, according to Councilmember, and former commission member, Matthew Mendoza.

“We were really concerned about the gem,” Mendoza said. “We were really concerned about Embassy Suites.”

The application represents WUSD’s second attempt to gain city council approval, after the council took no action during its July and August meetings on WUSD’s request to rezone the land tract as “HC” Heavy Commercial.

Mendoza said that he and his colleagues “were all on board when it came to the restaurants, the retail shop, the office building and the garage.”

“It’s just those warehouses,” he clarified, “as tall as they are, and where they’re located at.”

Councilmember Mark Gleason concurred, adding that while other buildings included in the developer’s plans are “desperately needed, I’ve just kind of struggled with having larger structures up against the Embassy,” he said. “I’m like, ‘What would I like to see that would take me over that hump?’ And I don’t know exactly what that is.”

“There’s so much more you can do to move stuff around,” Councilmember Shane Scott said. “It just may take more planning and engineering to make that happen.”

JDHQ Hotels LLC, the owner and lessee of Embassy Suites, shared similar concerns over the proposed development in a letter sent to the city council on Nov. 7.

In his letter, JDHQ Vice President Christopher Pawelko said heavy truck activity, “including the grinding of gears and backup warning beepers,” would disturb hotel guests.

“As a hotel and convention center, it is fundamental that we provide quality overnight sleeping accommodations to transient guests,” he wrote. “The 2013 Comprehensive Plan envisions this area as a Medium Intensity Zone boasting a mix of commercial, retail, and service-oriented activity, and a variety of single family homes, duplexes, townhomes and multifamily projects.

“We do not see how a warehouse/distribution center, or the other uses permitted in an LI zone, further this objective better than the existing GC use,” the letter concludes.

Copeland Rhea with Clay Development and Construction, Inc., the builder for WUSD, defended the project, saying he “does not agree that an industrial park will create more noise pollution than I-35 already does.”

“In fact, I would argue that our development would be a positive attribute for our neighbors because of the landscaping requirements, Restricted Covenants on the park, and most importantly, new businesses located adjacent to the hotel and convention center,” he said.

Rhea added Clay Development has agreed to Restricted Covenants on all of its developments and does not allow landfill dump sites or salvage yards.

According to Rhea, the McCarty Lane Business Park will provide great economic value to the City of San Marcos by creating jobs and generating up to $60 million in city tax revenue.

“Our intent is to provide a well maintained, attractive, high-functioning and sustainable industrial park to attract major employers to the area,” he said.

City Mayor Jane Hughson asked City Attorney Michael Cosentino  whether it would be permissible to have a council committee review the proposal with a P&Z commissioner to determine what covenants to put in place.

“I would just caution that those discussions not include other input from other council members or P&Z members in numbers that would constitute a quorum,” he said.

Based on Cosentino's advice, councilmembers voted to form a council committee to come up with Restricted Covenants and to postpone the agenda item until the committee comes back with a final recommendation.

To view the full meeting agenda and minutes, visit https://sanmarcostx.gov/421/City-Council-Videos-Archives.