The city of San Marcos continues to consider the processing of a now controversial annexation and zoning request for land east of FM 110, between State Highway 80 and the Union Pacific Railroad tracks.
During its Tuesday, May 2 regular meeting, Mayor Jane Hughson and the members of the city council listened first to a 30-minute public comment period where many residents came forward to ask pointed and often environmentally-directed questions about the proposed requests and to suggest changes be made before the city grants any kind of final approval on July 3.
According to the city, this land is part of a previously approved Development Agreement known as SMART Terminal, where SMART stands for San Marcos Air, Rail and Transportation. Since its inception in 2019, many questions have been received by city staff with respect to the change in the principal developer for the project The city has created information on its webpage for those interested in understanding what is quite a complicated series of land-related requests.
In addition to the public comment, council members heard a staff presentation by Director of Planning and Development Services Amanda Hernandez. She reviewed a series of slides that illuminated where the city has been in the process and where it is going with respect to providing direction on topics for discussion with the developer, looking to fine-tune what demands or criteria will be in place for the city to give approval to developer Franklin Mountain San Marcos I, LP in amending the SMART Terminal Development Agreement.
One by one, during the citizens comment time period, speakers came before Mayor Jane Hughson and the members of the city council to say, that as proposed, they have problems with various aspects of the new SMART Terminal Development Agreement now before the council.
Franklin Mountain San Marcos, I, LP.
Speaking during public comment was Mary Beth Harper, who said the “truck” terminal wasn’t “very smart,” in her opinion. She cautioned the council to carefully consider what would become of this huge tract of land. She said that those in front of her would not have to deal with the noise, dust and light pollution the development might bring.
“You’ll not have to live with Increased truck traffic, day and night,” Harper said. “You will not have to live with increased flooding, as farmland is converted.” She said that her research showed there are many alluvial wells in this area and that runoff would be a problem.
She said two-lane country roads are part of the landscape—roads shared with school buses and farmers.
For Harper, the development is “Just an accident waiting to happen,” she said. How much is this going to cost.
Also speaking was Noah Brock who thanked the council for agreeing to a delay in any final approval, noting this was the first time for many members of the public to speak to them specifically about the project proposals.
He said that he and others had worked for three months to compile research about the area and the changes in acreage that prompted so much concern.
“We did the community outreach that we wished the developer had done,” Brock said.
He requested that the council consider a full member approach to looking at the approval and that it should not be rushed through.
“We need to have some back and forth,” Brock said.
Then Dr. Ana Juarez, a retired Texas State University professor shared her thoughts with the council.
'Thank you for agreeing to delay,” the zoning change vote, she said, adding that this is the largest and most complicated agreement to ever come before the city council.
“It means a lot to me and to others in the community,” Juarez said, noting that she also encouraged the entire council to consider acting not just a subcommittee. She called for a complete review of the development agreement.
'This development agreement is over three miles long and is about the size of 75 outlet malls,” she said, wanting to know what kinds of control the city will have for future roll backs or potential waivers of criteria that may be imposed on the developer.
“For something this massive, the city council needs to get it right for the community,” she said.
She said she is excited about the possibilities for sound economic development but she wants the city to “carefully weigh the need for profits, neighbors and the environment.”
Hernandez described the chronological progression of the SMART project, stating where the city may have an impact and where much is still unknown.
She said the property in question involves approximately 1,987 acres located along the railroad south of the San Marcos Regional Airport, and generally north of State Highway 80.
The SMART Terminal development agreement dates to March 2019 when the city council first approved the SMART Terminal 380/ Development Agreement along with annexation and zoning changes to heavy industrial for the first 880 acres. Then, on Jan. 17, council approved amendments to the Development Agreement increasing the acreage, and adding development waivers and removing certain incentives. On April 18, the council approved an annexation ordinance on first reading of approximately 600 acres and yet, postponed consideration of an associated zoning change request to Heavy Industrial to July 3. Hernandez said that the applicant, Franklin Mountain, I, LP, had requested postponement of the second reading of the zoning ordinance to align with the zoning change request and public questions.
Hernandez said questions about the construction impact fee and who would pay for infrastructure are being addressed. For wastewater, she said that the city knew that growth was inevitable. For the utility lines that will serve the development, the city will be involved in many ways. For example, the boundaries for for water service area is more on the west side of the development but wastewater will be at cost of the developer, she said. The city will be involved in making pipes larger and there will be costs to the city coming in the future.
Knowing what is required by city code is complex but much is based on the Watershed Protection Plan the city has. Hernandez said it is not in the city’s estimation an environmentally sensitive area. Nevertheless, the developer has made accommodation in changing some criteria from the plan’s original configuration.
The applicant submitted an amendment which was approved by the city that adds a 100-foot buffer adjacent to Reedville. There is also no limitation on the area where storage is permitted, up to 80 feet in height. Additionally, there is an increase in the buffer zones by 100%. The applicant has also agreed to 75% removal of total suspended solids from stormwater and discharge control on all detention ponds. Those two criteria are not eligible for administrative On the city’s webpage, comment letters with specific questions asked about potential uses of the site and these include: bio-medical facilities, electronic assembly/ hi-tech manufacturing, plastic products molding/ reshaping, stone/clay/ glass manufacturing, and other manufacturing.The applicant has not stated what will actually be going into the project in terms of economic development.
According to the city, Franklin Mountain San Marcos I, L.P. is on record for its request of an amendment to the SMART Terminal and Cotton Center Development Agreements in order to move +/‐660 acres from Cotton Center to the SMART Terminal. The 2023 amendment added the Cotton Center land as well as an additional +/‐470 acres acquired by Franklin Mountain. The current SMART Terminal agreement essentially now officially covers approximately 2,020 acres of land.
The applicant stated that it hopes to attract corporate tenants that will provide quality jobs and make significant capital investment in the community.
The site is located just east of the alignment for the new FM110 loop which is jointly financed by the city, Hays County and the Texas Department of Transportation through a Transportation Reinvestment Zone or TRZ.
What makes the site advantageous for development is its proximity to the San Marcos Regional Airport and the FM 110 roadway which is expected to provide easy access to rail, major highways and air transport.
The city stated that at this time the applicant is requesting annexation into the city limits and heavy industrial zoning for some of the land now covered by the agreement.
The annexation and zoning are requirements of the agreement.
Land which is covered by the agreement but is not being annexed at this time is within what is called the Cotton Center Municipal Utility District, and this condition thus limits the city’s ability to annex land. However, what it does not limit is the city’s ability to apply in‐city development standards, officials stated.
Without city annexation and zoning, the development could occur in the city’s Extraterritorial Jurisdiction with limited regulatory city oversight, making annexation more attractive to those who wish to demand more oversight.
If the project were to remain in the ETJ, only Caldwell County standards would apply.
Since there is a development agreement and the applicant has requested annexation, the city has the ability to require standards for development of the project that exceed current standards adopted under the development code, and which would not apply if the development occurred outside the city limits in the ETJ.
These higher standards include: Floodplain development and stormwater management standards that protect adjacent and downstream property owners; a 70% overall impervious cover limitation when 80% would have otherwise been permitted; water quality standards; and land uses that are considered potentially significant sources of pollution to the river are prohibited.
The developments is expected to comply with adopted international fire and building codes; there is a dedication of necessary right‐of‐way for installation of reclaimed/ reuse water infrastructure. Similarly, a Traffic Impact Analysis is required with the first subdivision plat, if any, before any development occurs. The Daily Record will provide additional coverage of the SMART Terminal project as the city continues to address its role and criteria moving forward.
