American Ventures Seeks Tax Breaks for San Marcos Mixed-Use

An Austin-based developer is proposing a 100-acre mixed-use district in San Marcos, and to get there it’s asking the city to cut it a break.

American Ventures’ plans for the $557 million project include 1,200 multifamily units, a 130-room hotel, 84 single-family homes, 44 townhomes, 120 build-to-rent homes and 144,200-square-feet of office and retail space at Rattler Road and East McCarty Lane, the Austin Business Journal reported.

The San Marcos City Council will consider final approval next month of a public improvement district, which would create a taxing authority, which could fund things like infrastructure and amenities. The developer also needs a zoning change to build between two and five stories.

American Ventures is also negotiating an economic development agreement with the city for tax abatements, but the details haven’t been disclosed.

The buildout would take place across three phases, wrapping up in 2031. Documents estimate the project could eventually generate $66.1 million in sales and property taxes for Hays County and $145 million in property, sales and hotel taxes for the city.

The location for the project would be yet another development filling in land within the rapidly growing Austin-San Antonio corridor. A tourist destination for river recreation, San Marcos is home to Texas State University and is located about 30 miles south of Austin and about 50 miles north of Downtown San Antonio. Industrial builders, data centers, entertainment districts and major Amazon warehouses have found homes in San Marcos in recent years.

American Ventures’ previous developments include The Draper, at 217 Garland Avenue in the Dallas suburb Garland. That 155-unit project was funded with a 2.96 percent interest rate HUD loan with a term of 40 years, according to the firm’s website.

It also gained local approval a year ago for a 350,000-square-foot retail center on 60 acres in the Austin suburb Elgin.

— Eric Weilbacher