An image of how The Vistas at San Marcos would look on completion. Image from the City of San Marcos.
An incentive of as much as $610,000 for a downtown apartment complex is back on the San Marcos City Council agenda next week after the council deadlocked on the matter last week.
The applicant, 401 North Fredericksburg Acquisition, LLC, is asking for five years of property tax rebates to demolish an old building and construct the apartment complex in the city’s central business district between Fredericksburg and Comanche Streets and between Lindsey Street and Pat Garrison Street.
The project, called The Vistas at San Marcos, would include about 200,000 square feet with 593 beds in 257 units. The complex would employ five people full-time at an annual payroll of $208,000, according to a city staff memo to the city council.
The matter was neither approved nor denied in a 3-3 vote at last week’s city council meeting. Mayor Susan Narvaiz voted with Councilmembers Kim Porterfield and Fred Terry in favor of the proposal. Councilmembers Gaylord Bose, John Thomaides and Ryan Thomason voted against it. Councilmember Chris Jones abstained.
The item had been on the consent agenda before Thomason asked to have it pulled for discussion in open session. Thomason said future developers in the neighborhood are likely to ask for incentives if the council were to grant incentives in this case.
“I believe it’s moving forward whether we support it or not,” Thomason said, explaining his opposition to the grant. ” … It starts a bad precedent and creates a negative competitive advantage.”
The staff memo to council said the developer would spend $950,000 on the project to obtain Leadership in Energy and Environmental Design (LEED) certification. The developer would spend another $775,000 for street improvements, including underground burial of cable, telephone and electrical lines, new sidewalks and landscaping, among other features.
The staff memo to the council said the development “supports the City Council’s goal of Smart Growth by creating a walkable community near multiple amenities such as Texas State University, Downtown, Entertainment, Shopping and Restaurants. The development would also include elements that support the goal of beautifying San Marcos with landscaping and aesthetics.”
Under the proposal, the city would rebate a portion of the added property tax collection from the property improvements back to the developer for five years.
The staff memo said the city presently collects $12,194.00 in property taxes on the 2.7 acres and would, even with the rebate, collect $29,107.00 per year after the improvements.
The facility would be scheduled for completion on or before Aug. 15, 2011.Email | Print