San Marcos City Council Approves Annexation, Rezoning Request Of SMART Terminal On First Of Two Readings
By, Terra Rivers, Managing Editor
On Tuesday, January 16, the San Marcos City Council considered the annexation and approval of a rezoning request for approximately 934.34 acres near the San Marcos Regional Airport on the first of two readings.
The city council chamber was full of concerned residents Tuesday night to discuss the proposed site of a SMART Terminal with an industrial rail and manufacturing park.
According to Adriana Cruz, President of the Greater San Marcos Partnership, the Smart Terminal stands for San Marcos Air, Rail and Truck terminal.
In November 2018, the property owner filed a request for annexation into the City of San Marcos and a rezoning request to have the property zoned Heavy Industrial.
According to the city, the project, which is comprised of six tracts of land, will invest $45 million in infrastructure improvements and an estimated $3 to $4 billion in increased property values.
In October 2018, Katerra Inc established a 380 Economic Development Incentive Agreement with the City of San Marcos. Katerra is expected to encompass 66 acres of the SMART Terminal project.
Katerra will bring 552 new jobs to San Marcos with a minimum wage of $16.50 an hour as well as medical benefits. The company intends to locate an automated component manufacturing and distribution facility on the site.
According to Matthew Ryan, Katerra Project Manager, the manufacturer is considered light industrial and specializes in building prefab housing components such as trusses, windows, roof supports, cabinets and walls.
City Council considered the annexation of the property before holding a public hearing on the zoning request.
In December 2018, Council held two public hearings on the annexation. During public comments, residents spoke in opposition of the project citing concerns regarding runoff, proximity to the river and traffic on Hwy 80 and FM 1984.
However, City Staff and several city council members observed the annexation of the property would allow the city more control over the development; the developer would be required to comply with the city’s development code, which addresses flood management and water quality.
According to Assistant City Manager, Steve Parker, the Texas Department of Transportation will begin construction on FM 110 in early Fall 2019. When completed, the road is projected to help alleviate traffic issues on Hwy 80 and 20 and FM 1984.
Shannon Mattingly, Director of Planning and Zoning Services, said Caldwell County has indicated improvements will be made to Hwy 80 to help address current traffic concerns. After a lengthy discussion, the council voted 6-1 to approve the annexation of the property with councilmember Dr. Joca Marquez voting against.
Dr. Marquez said, “I’m voting in favor of the people. The people don’t want this with the majority I’ve spoken to, those who live close to the area.”
Many residents of the Blanco River Village neighborhood and others were present to speak at the public hearing on the proposed zoning change.
Several residents said they did not feel the city was following its development code by putting a heavy industrial district so close to neighborhoods.
Staff noted while “Heavy Industrial is indicated as “not preferred,” due to the property’s location between the airport and two major highways and its adjacency to rail,” the zoning of HI was “suitable for the location.”
Also, residents expressed concerns regarding the potential pollutants a heavy industrial district could potentially introduce to the San Marcos River and the potential companies who could come into the project in the future.
Currently, Katerra Inc is the only company to have completed a 380 agreement with the City of San Marcos.
According to the developer, several other companies have expressed interested in joining the project and are currently in discussions with the developer; the companies are similar to Katerra and include a distillery and automobile manufacturer.
Parker said, “The business park rail prospect needs heavy industrial in order to justify the capital investment needed to put in this rail service. These rail services are a dual service with BSNF and UP (Union Pacific), which is very, extremely rare, and this is one of the only sites available for that rail service.”
During the council’s discussion, several city council members showed interest in an adjustment to the zoning.
Councilmember Lisa Prewitt asked if it would be possible to zone the portion of the property heavy industrial where it needs to be for the rail and zone the rest light industrial.
City Attorney Michael Cosentino said the council could potential add such restrictions into a development agreement with the developer.
City Council has already begun to work on a 380 Economic Development Incentive agreement for the SMART Terminal.
Councilmember Prewitt proposed an amendment to postpone the second reading of the zoning request until council had been able to discuss the “details of land use through a contractual 380 agreement and a development agreement.”
The amendment passed with a 7-0 vote.
City Council voted 5-2 to approve the rezoning request on the first of two readings with councilmembers Dr. Marquez and Mark Rockeymoore voting against.
City Council will discuss details regarding a development agreement during council’s work session on January 29. The meeting will be open to the public to attend; attendees will be able to watch the meeting in the city council chambers or online as council will meet in its usual conference room.
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