Large development vote postponed

After a discussion that touched on economics, academics and land use, among other topics, the San Marcos City Council decided Tuesday night to postpone a decision on the purpose-built student housing project proposed for the block of Guadalupe Street between San Antonio Street and Martin Luther King Drive. 

The 75 Sylvan Project was denied by the Planning and Zoning Commission. Though some changes were made to the plans — for instance, developers’ application to make it a seven-story building was withdrawn — concerns about actual student housing needs, the character of downtown and how to best breathe vitality and diversity into downtown led council to form a committee to talk with the developers and postpone a decision until the last council meeting in August or the first council meeting in September.

City planning chief Shannon Mattingly gave a presentation on the proposed development, noting that staff had 16 recommendations in order for the proposal to be approved. She also pointed out that with P&Z’s denial, a supermajority of six affirmative votes would be needed from the council for it to pass.

Thomas Rhodes of TKR, who applied for the Conditional Use Permit needed for purpose-built student housing in San Marcos, gave a short presentation during which he addressed some of the concerns that P&Z brought up during its discussion of the project. He noted that although some have said no more student housing is needed, university enrollment tends to increase steadily over time, with periods of plateaus. He also mentioned that Texas State University is planning to construct a new dorm because demand has outpaced supply for on-campus housing. Generally, first-year students are required to live on campus, according to the university. The new dorm is intended to provide more beds for those students and for sophomores who want to live on campus, the university’s Request For Qualifications for developers states.

‘The city will become vibrant’

During public comments on the development, a variety of people — including representatives from the developer, a college student, some lifelong residents and representatives from a real estate brokerage — spoke in favor of the development. 

Dan McReynolds said he lives downtown and was raised in San Marcos, though he spent some time living in Waco, where he said he saw the benefits of projects that promote density downtown. With San Marcos staples such as Valentino’s closed, he said, San Marcos needs that kind of density.

“If you will bring people down there with good incomes, those things will open and the city will become vibrant,” he said. 

John Collins with St. Croix Capital Advisers, a real estate brokerage firm, said that while the north side of the Square is densely populated and “quite full of vibrant activity,” the south side of the Square is “a bit of an eyesore” by comparison. Steven DePizzo, also of St. Croix, said he has been trying to find a tenant for the property at 111 Martin Luther King Drive for three years.

“There is zero activity down there,” he said.

Linda Peterson, who said she facilitated the land sales associated with the 75 Sylvan project, said that there is not enough housing in San Marcos. She also said that seven out of the nine property sellers are nearing retirement, and this sale is important to their finances.

“You’re holding their life in your hands,” she said.

Other speakers mentioned factors like increased property values, the importance of students to the San Marcos economy, and even safety in light of the recent series of sexual assaults against young women in San Marcos. 

Lee Porterfield, who used to be on the Planning and Zoning Commission, was among the longtime residents speaking for the project.

“This is a chance for us to take a part of the downtown vision of San Marcos and let somebody else pay for developing it,” he said. 

Porterfield also said that downtown is a good place to put students, who go out to bars and restaurants.

“Let’s contain them and let them have a good time,” he said.

‘I would love to live downtown’

Numerous residents, from retirees to college students, also spoke out against the development. 

“This company, they do affordable housing,” Roland Saucedo said of the developer, Gilbane. “Why can’t we have affordable housing?”

Rusty Cannaday said that she is a retiree and loves the quaint character of San Marcos.

“This town doesn’t need more student housing, no matter what you’re being told,” she said. “... What this city needs is more affordable housing for young families, business people, singles, young adults — people who would like to live downtown and maybe be able to walk to their place of business.”

Cannaday pointed out that students are not the only demographic group coming to San Marcos: Retirees such as herself are moving here as well.

Resident Ken Smith said he is a retiree living in an apartment complex with students, professionals and other retirees.

“I would love to live downtown,” he said. “It’s non-feasible.”

A lack of parking downtown means that driving in from where he lives and finding a place to park is a chore, and the lack of affordable housing downtown keeps him from being able to live a walkable distance from the shops and restaurants on the Square. 

‘People ... are very disappointed’

During the council’s discussion of the issue, Mayor Pro Tem Lisa Prewitt made the motion to postpone a decision until August or September. She then spoke about some of the points raised during comments in favor of 75 Sylvan, such as putting student housing downtown, safety for young women and other factors.

Though there was a rash of sexual assaults earlier this year, Prewitt pointed out, “Every problem that we've seen is predominantly at a student housing facility, because it’s not diversified housing and there’s not all sorts of people living in those apartments,” she said.

As far as diversifying the economy, Prewitt said, “You’re not going to get a diversified economy if you only have one age group of people living in our downtown. … I think it’s a bigger conversation about why some of our downtown businesses are struggling.”

Prewitt also said that for all the discussion of keeping university graduates in town, “They’re all leaving San Marcos because we don’t have housing to provide to them. We have student housing and housing that’s unaffordable to them.”

Though she said she would not vote for a student housing development like 75 Sylvan, she did see other possibilities.

“I think the people who are developing this probably can bring some really good information to the table. … I personally won’t approve a student housing only facility, but I definitely would like to talk to the developers to accommodate this development but have a deeper discussion about the health and well-being of San Marcos,” she said.

Council member Joca Marquez addressed the university enrollment numbers the developers presented and the economic realities that many students and longtime San Marcos residents face.

“The data that was presented on enrollment creates a very one-sided story, and I tell you this because I was a research analyst at the university working with freshman statistics,” she said.

Based on retention, persistence and graduation statistics, she said, “Our students are not staying at Texas State from Semester One to Semester Two,” meaning from the fall semester to spring semester of their freshman years. “... They’re going back home because they can’t afford to stay here, they can’t afford to live here.”

Fifty-two percent of freshmen are first-generation college students, Marquez said, “which means that their parents can’t help them to pay for an apartment.”

Moreover, she said from students’ freshman to sophomore years, only 60 percent are staying at Texas State. Meanwhile, long-term residents are frustrated and exhausted as more student housing projects get approved. Most of the population makes less than $48,000 a year, she said.

“People in this community are very disappointed,” Marquez said. “... Five thousand people voted for me to speak for them. Five thousand. They can’t all be here … so I’m speaking on their behalf.”

Marquez asked other council members, city staff and the developers what needs to be done to respond to the community’s needs.

“This is systemic,” she said of the housing issues. “Do we need to go to the state legislature? What is it that we need to do?”

Mayor Jane Hughson proposed forming a committee. She volunteered to be on it, as did Marquez and council member Melissa Derrick. 

The motion to form a committee and postpone the vote passed 6-1, with council member Saul Gonzales as the dissenting vote.