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San Marcos OKs conceptual planning agreement with Upward Communities for downtown city hall project

San Marcos City Council · October 21, 2025
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Summary

Council approved a conceptual planning agreement with Upward Communities to study a downtown redevelopment that could include a new city hall, parking garage and mixed-use development. The agreement authorizes a conceptual-phase budget not to exceed $767,970 and directs staff to pursue feasibility, site due diligence and financing options.

San Marcos City Council voted unanimously Oct. 21 to enter a conceptual planning agreement with Upward Communities to explore a public-private redevelopment that could include a new downtown city hall, parking garage and other mixed uses. The resolution (2025-208R) authorizes an amount not to exceed $767,970 for the conceptual-planning phase; the motion passed 7–0.

Hayden Migle, the city’s director of administrative services, summarized the city's prior work on the new city hall project and said the conceptual phase will evaluate feasibility, property procurement, site due diligence, financial feasibility and community engagement. "This is only approving the conceptual planning phase this evening," Migle said, adding that funding for the next steps would come from city funds previously set aside for the project.

Key Henik of Upward Communities presented the developer’s vision, describing a multi-phase mixed-use project along the Hopkins Street corridor that would "meet city hall space needs along with parking" and could activate downtown with new meeting and event venues. "This is something near and dear to our heart because we did grow up here," Henik said, emphasizing local ties and the project's intent to align with the downtown area plan and the arts master plan.

Presenters said the project could remove vacant land, improve corridor connectivity to Texas State University and the river, and create new venues for conferences and events. Upward Communities has sent letters of intent to purchase the Bank of America and Wells Fargo properties downtown as part of initial outreach to existing building owners.

Council members pressed staff and the developer on location, impervious cover, road and alley impacts, elevation differences between parcels and how existing downtown businesses would be handled. Staff said the conceptual phase will consider options (referred to as Options A, B and C in materials), evaluate grading and impervious-cover issues, and produce financing scenarios. "All of those aspects would be coming out of this conceptual phase," Migle said.

Council did not approve a development agreement or property sale at this meeting; it approved the planning-phase work to further assess feasibility. The motion passed unanimously 7–0.