San Marcos council reviews heritage tourism grant, signals intent to use $375,000 for Dunbar building

Rebecca Ybarra, director of destination services, told the San Marcos City Council on Nov. 18 that staff has drafted a heritage tourism and preservation grant program funded from hotel occupancy tax revenue and modeled in part on Austin’s program.

The draft would allow funding for capital, planning, experiential and marketing projects that “promote or enhance our local history and heritage,” Ybarra said. Staff described category limits as follows: capital projects up to 80% of eligible costs (maximum $100,000); planning up to 80% (max $30,000); marketing up to 50% (max $10,000); and experiential up to 50% (max $20,000). “This year, we have $375,000 available, to fund projects,” Ybarra said.

Staff said the program would be administered by the Arts and Heritage Division and that applicants may include for-profit, nonprofit and governmental organizations that have operated at least two years in San Marcos. Ineligible projects listed in the draft include properties that are not open to the public, owner‑occupied properties, projects funded by other hotel-occupancy-tax (HOT) programs, schools and activities outside city limits. Non-capital awards would be required to dedicate 15% of the award to paid advertising targeted to a radius outside the city (staff described the working radius as 50 miles).

The proposed application timeline calls for an annual cycle of workshops, applicant presentations, panel review and awards; staff described a 2026 timeline with an application window in mid‑January through late February and contracting in May–June. Staff also said awardees must submit an end-of-project report within 60 days of completion and follow city permitting requirements.

Councilmembers pressed staff about program details and local priorities. A councilmember asked whether historic properties that add fencing for safety (the example given was Centro) would be disqualified; staff said eligibility would turn on whether fencing obscures historic character and noted the review panel and code requirements would factor into determinations. Rodney Gonzales, assistant city manager, told the council the draft policy contains staff-recommended limits that the council may change by direction or amendment.

When discussion turned to city-owned assets, Mayor (presiding) asked how much of the current $375,000 the council wanted held for a municipal project — specifically the Dunbar Home Economics building. Councilmembers varied in their preferences, but several voiced support for prioritizing Dunbar this year. The council clarified that the $375,000 currently available would be allocated to Dunbar as the council’s intent for this year, and staff agreed to provide the total estimated renovation cost to inform future allocations.

Staff emphasized that the draft is flexible and that the council can amend funding limits or reserve a portion of future funds for city projects. Ybarra said the city would post the finalized grant details on the SMTX arts grant portal and coordinate communications through the city’s communications department.

The work session discussion amounted to council direction and consensus-building rather than a formal vote on the grant policy. Staff will return with any requested refinements and with cost estimates for Dunbar before the council enacts a final policy.