San Marcos Mercury | Local News from San Marcos and Hays County, Texas

November 29th, 2012
Feuding bar, B&B reach settlement agreement

After opening in May 2011, Zelick’s quickly became one of San Marcos’ most popular nightspots, but the owners of next-door Crystal River Inn said music and noise were repeatedly driving away their guests. Now the two parties have reached an agreement which will presumably help Zelick’s win a permit it needs to operate from the San Marcos Planning and Zoning Commission. MERCURY PHOTO by JAMIE MALDONADO


The owners of Zelick’s Icehouse have reached a settlement agreement with neighboring Crystal River Inn, bringing apparent closure to a dispute that threatened to shut down one of the city’s most popular watering holes.

Under the agreement, bar owners Seth and Chase Katz will prohibit motorcycle parking on the premises between 11 p.m. and 3 a.m.; move noisy outdoor games like horseshoes to the other side of their property; and pay $4,530 to install sound-dampening insulation on one side of the 1883 Victorian inn. They also agreed to “not operate and sound equipment” that produces sustained noise or music louder than 75 decibels, as measured from the inn’s property, between 11 p.m. and 2 a.m. closing time.

In exchange, innkeepers Mike and Cathy Dillon said they would not oppose the Katz brothers’ application for a three-year conditional use permit they need from the city in order to sell and serve alcohol.

The Planning & Zoning Commission is scheduled to consider the permit renewal at its Dec. 11 meeting after twice granting temporary six-month permits in the past year. In June, commissioners approved the extension just hours before the permit was set to expire, giving the Katz brothers and the Dillons time to work out their differences.

The Katz-Dillon dispute took on a life of its own as a symbol of perennial tension between longtime San Marcos residents, Texas State students and the businesses that cater to them. Supporters and detractors of Zelick’s and Crystal River Inn lined up accordingly, with both groups crowding P&Z meetings to speak at public hearings on the permit.

The Dillons were represented in formal mediation by San Marcos attorney John McGlothlin. The Katz brothers had previously retained San Marcos attorney David Sergi.

Read more

Zelick’s, Crystal River Inn final settlement

CORRECTION 12/09/12: This story originally misspelled Cathy Dillon’s first name.

Email Email | Print Print


6 thoughts on “Feuding bar, B&B reach settlement agreement

  1. LMC, check the wording on that portion of the agreement again. In the first line it states that Katz will reimburse for “actual expenses” however the last line states a specific amount $4,530.31. If the work has already been done,is adequate and that was the bill, it’s fine. If not, there could still be an issue. Further it appears to be conditioned on Katz receiving a 3 year CUP. What if they only receive a 2 year CUP?

    Could have been worded much better.

  2. Would hope they don’t quibble, but that doesn’t appear to have been the story so far.

    TY, I shall. Yourself as well.

Leave a Reply

Your email address will not be published. Required fields are marked *