SAN MARCOS — The San Marcos City Council unanimously approved a new application this week for 46 townhomes along South Santa Fe Avenue, replacing a previously-approved project with 50 apartment units.
The project is proposed for a vacant site at the northwest corner of South Santa Fe Avenue and North Las Flores Drive in the college area. Back in 2023, the city approved a project with 50 for-rent apartment units for the site, and rezoned the site from light industrial/commercial to multifamily residential.
However, the apartment project did not pencil out, prompting the developer, Santa Fe Flores LP, to pursue a for-sale project with three-bedroom townhomes spread between seven three-story buildings.
“This was approved just as interest rates started spiking, and unfortunately, we were not able to finish that project off,” said project consultant Rick Gittings.
City staff also said the market conditions are currently more partial to for-sale products.
“Under the current market, there is a greater demand for for-sale condominiums rather than rental apartments, as previously approved, or commercial space,” said Associate Planner Sarah Cluff.
Compared to the initial project, the townhomes development will have more amenities and more parking.
The site is right next to a liquor store. Santa Fe Flores LP plans to acquire a 0.36-acre parcel of land currently owned by the liquor store to expand the townhomes project, while the liquor store will remain where it is.
This project is right by the railroad tracks and is surrounded by residential uses, such as the Vista Meadows Mobile Home Park to the south and Las Flores Village and Rancho Santalina to the east. There are also industrial and commercial buildings to the north and west.
Gittings said the site presents challenges due to steep slopes and a change in elevation of around 48 feet. The landlocked site also only allows for one access point from South Santa Fe Avenue.
However, a major benefit is the project’s proximity to transit options, with a bus stop for Route 305 along the project frontage. The site also provides immediate access to the Rail Trail, where residents can walk and bike.
“This is an urban infill project with transit orientation,” Gittings said.
The project will have a total of 107 parking spaces, including 15 guest spaces and 92 ground-floor garage spaces. There will also be electric vehicle chargers for each home, rooftop solar, courtyards in all the buildings, and extensive landscaping, including planting over 100 trees.
Each home will also have its own balcony, and amenities will include tot lots, turf play areas and game courts, pet areas, and barbecue and seating areas.
Council members unanimously approved the project and said this form of workforce housing is highly needed in the area.
“This is very much needed and it’s a great location for it,” said Councilmember Ed Musgrove.
The developer will pay an in-lieu fee to the city instead of providing affordable units in the project. This is a change from the previous project, which was planned to include some lower-income rental units.
Councilmember María Nuñez said she was disappointed that lower-income units would not be included in the new project.
“I definitely prefer for the units to be built because of the great need that we have for those housing units,” Nuñez said.
However, Mayor Rebecca Jones said it can be better for developers to pay in-lieu fees, as this allows the city to develop affordable housing projects on its own. Trying to sell homes to lower-income families can also take a very long time because so few people qualify for them, she added
Jones also said she was glad not to see the developer propose a density bonus project at the site.
“That would be a lot more development on this project,” Jones said.
