Council separates the Dunbar and Heritage Neighborhoods for planning purposes

The San Marcos City Council voted to separate the Dunbar Neighborhood from the Heritage Neighborhood for the purpose of having separate area plans and approved the submission of Low Income Housing Tax Credits for two proposed developments at the regularly scheduled meeting Tuesday.

The council voted five to zero, with Council Members Alyssa Garza and Shane Scott absent, in favor of creating a boundary between the Dunbar Neighborhood and the Heritage Neighborhood. Previously the city considered the two neighborhoods to be one, but now each will have its own area plan to determine the individual needs of those specific neighborhoods.

Amanda Hernandez, San Marcos Development and Planning Services director, said a committee was formed for the purpose of deciding what to do about the boundary between the Dunbar and Heritage Neighborhood.

“The map on the screen indicates the new boundary. The committee, generally, put all of the homes that face San Antonio Street in the Heritage area plan and all of the homes that face MLK [Drive] in the Dunbar area plan,” Hernandez said. “This proposal received unanimous approval recommendation from the Planning and Zoning Commission in April. If approved by council this evening, staff will work to separate the plans and initiate outreach strategies.”

The council voted six to zero, with only Garza absent as Scott had joined the meeting by that time, to allow the submission of Low Income Housing Tax Credits to the Texas Department of Housing and Community Affairs for the proposed Blanco Basin Multifamily Housing Project, which would be located northeast of the intersection between East McCarty Lane and the Union Pacific Railroad.

Hernadez said the proposed development will be on 9 acres of land and would have one and two bedroom units. The project is tax exempt because the applicant is partnering with the Capital Area Housing Finance Corporation.

“The applicant is requesting an age restricted [55 years old or over] Low Income Housing Tax Credit,” Hernandez said. “All units will serve those making 60% or less of the area median income.”

Hernandez said the affordable housing criteria requires the property to be walking distance from certain services.

“The property is within half a mile of medical services, Target, which sells groceries, and private schools,” Hernandez said. “The final criteria relates to the services that will be provided on site, and the applicant achieved one point higher than the minimum requirement by TDHCA.”

The council voted six to zero with one absent to allow the submission of Low Income Housing Tax Credits to the Texas Department of Housing and Community Affairs for the proposed CenterPoint Depot Multifamily Housing project located at the intersection of Commercial Loop and the future Transportation Way.

Hernandez said the project would be tax exempt and would serve those that make 60% or less of the area median income.

“The applicant is proposing a payment in lieu of taxes also called a PILOT in the amount of $550,000 paid over 15 years or $400,000 as an upfront lump sum,” Hernandez said.

The council chose to receive a $400,000 one time payment in lieu of taxes.

Hernandez said city staff considered all of the other criteria in the affordable housing policy to be met other than being in the appropriate area on the Preferred Scenario Map or within half a mile from recommended services.