Council approves 325 N. Comanche student housing CUP and seven‑story alternative compliance amid downtown compatibility debate

San Marcos City Council voted June 16 to approve a conditional use permit (CUP) and a companion alternative‑compliance request for purpose‑built student housing at 325 North Comanche Street, after weeks of review and public comment.

The project seeks to develop purpose‑built student housing on a parcel in the CD‑5 downtown character district. Planning staff and the Planning & Zoning Commission reviewed the application and recommended conditions; the applicant and several proponents described the proposal as matching a previously approved nearby development and stressed that the request increases floor count without exceeding the existing 75‑foot height limit.

Shannon Mattingly of the Drenner Group, representing the applicant, told council the project would keep the maximum allowed elevation but add floors to accommodate parking and additional bedrooms. "The proposal before you tonight would be to allow for student housing with a maximum of five bedrooms… and the request is to have additional stories, not height," Mattingly said during the public hearing. Supporters including development representatives also projected new revenue from property taxes and parking buy‑downs and noted unmet student housing demand tied to Texas State enrollment.

Opponents and some council members said the project is inconsistent with the downtown master plan's stated goal to diversify housing options beyond student‑oriented rentals and expressed concern over the rental-by‑bedroom lease model. Councilmember Amanda Rodriguez, who voted against the approvals, said she had concerns about long‑term downtown housing mix and protections for renters under bedroom‑by‑bedroom leases.

Council voted first on the alternative‑compliance item (allowing seven stories within the existing 75‑foot limit) and approved it 5–2. It then approved the CUP by the same margin. The CUP includes a set of conditions recommended by staff and the Planning & Zoning Commission: the development must register with San Marcos' long‑term rental registration program; the property must offer both rent‑by‑bedroom and traditional whole‑unit leases; the developer must make lease terms publicly available and include specific tenant protections (a late‑delivery provision and refund terms if occupancy is delayed); parking must meet stipulated per‑bedroom calculations; the development may not be sold to a non‑tax‑paying entity for 12 years; right‑of‑way dedication and other standard development‑code requirements apply; and the CUP expires within three years if no permit is obtained.

The council's split votes reflect ongoing tensions about downtown density, student housing concentration and how the city balances housing demand from a growing university population with broader downtown planning objectives. The permit approvals mean the applicant may proceed to finalize design, permit and construction under the listed conditions; staff said the next related contract and naming items tied to other projects will return to council in July and October as appropriate.