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Residents urge caution over Upward Communities downtown city hall plan, flagging contract and environmental risks
Summary
Public commenters at Tuesday's San Marcos work session flagged three main concerns about the downtown proposal: financial exposure from P3 terms, a perceived exclusivity in the city's agreement with Upward Communities, and environmental/floodplain risks that staff said require engineering study before site selection.
San Marcos — Several residents told the San Marcos City Council on Tuesday that the downtown city hall proposal and related consultant-developer agreements raise legal, financial and environmental questions that need independent review before the city advances the plan.
Abigail Mason told the council the city’s agreement with Upward Communities contained three alarming features: (1) the city was paying a consultant that is also the developer; (2) an exclusivity clause could bar the city from considering alternative proposals; and (3) termination penalties could leave the city liable for large planning fees if it backs out. "We are essentially paying a private company to design a project that they will turn around and profit from," Mason said.
City Manager Annette Reyes and staff responded that the conceptual agreement with Upward Communities had been narrowed after council direction, and that neither the steering committee nor council had authorized construction or final financing. Staff said a refined scope and cost accounting would be posted to the project web page and brought to council for review.
Environmental and flood concerns were raised by multiple speakers. Virginia Parker of the San Marcos River Foundation said downtown parcels are outside the floodplain while alternative Hopkins sites sit within it, but she urged groundwater and stormwater studies before final decisions. Gina Fleming pointed to a known contamination site near Edward Gary and warned increased impervious cover from garages could worsen runoff.
Council members asked staff to publish the refined Upward Communities scope, post contract summaries and current spend figures, and to plan neighborhood‑based town halls so more residents can review the materials and ask questions. No contract amendments or site approvals were made at the session.
Next steps: staff will post the refined scope for Upward Communities, place steering‑committee materials online, and carry out a phased public engagement program. Council emphasized that any further contract commitments would return to council for formal action.
