San Marcos City Council Consider Lantana On Bastrop Multifamily Housing Project

Staff Reports

The San Marcos City Council considered providing no objection for a low-incoming housing project for the proposed Lantana on Bastrop Multifamily Housing Project.  

The project is currently located in the city’s ETJ. However, according to staff, the applicant has expressed interest in pursuing annexation and a CD-4 zoning designation.

The proposed project site is located at the intersection of Old Bastrop Hwy and Rattler road approximately.

Lantana on Bastrop met six of the eight criteria for local tax exemption consideration. 

The two criteria the proposed project did not meet being located with ½ mile walking distance of grocery, medical service and schools and redeveloping or renovating an existing multi-family complex.

The project will include a total of 216 income and rent-restricted units with 22 of those units restricted to households making 30% or less of Area Median Income (AMI), 22 units restricted to households making 40% or less of AMI, 60 units restricted to households making 50% or less AMI, and 112 units restricted to those making 70% or less AMI.

The project will include 11 ADA accessible units and a mix of 1,2, and 3-bedroom units.

Council Member Melissa Derrick said the council has already approved six projects in the last year for affordable housing, but she has had a lot of difficulty with this one.

“The definition of affordable housing is sixty percent AMI,” Derrick said. “Most of our residents are 30 or 40 percent AMI, maybe 50 percent AMI, that need the housing, and…more than half of the units are at the 70 percent which is not affordable to the people in our community.”

Derrick said it was huge for the City of San Marcos to take a property off their tax rolls as it impacted the city’s general fund.

“So, if we’re going to do that, we want it to provide housing for the people it’s intended to,” Derrick continued. “With half of the units being at 70 percent, which our population can’t afford, and we know that from our housing study, I can’t support this.”

Mayor Jane Hughson noted that the property is currently in the ETJ, and the city would be losing future tax base not current.  

A motion to approve the project failed 2 to 4 with council member Ed Mihalkanin and Mayor Hughson voting yes.

Councilmember Saul Gonzales was out of town and did not attend Tuesday’s meeting.