Fredericksburg City Council Regular Meeting - October 21, 2025

The Fredericksburg City Council met in regular session on October 21, 2025, at New City Hall at East Campus. The council approved routine consent items, the city's Title VI Plan, two conditional use permits, and a three-part PUD approval for a mixed-use project, and tabled the Hollmig Lane annexation package until the November 4 meeting. The council also heard updates from the Texas Historical Commission and the Economic Development Corporation.

Consent Calendar

• Approved the City Council minutes for the regular meetings of September 16, 2025, and October 7, 2025.
• Approved the purchase of Water Department equipment included in the FY 2026 budget, not to exceed $560,115.57.

Public Comments & Testimony

• Cory Keller, speaking for Horizon Development on the proposed Hollmig Lane annexation, said the developer was 100% in favor of regional detention and asked the council to help arrange a facilitated workshop with neighbors to reach a solution; he noted pending bank loans, contracts, and homebuilder commitments.
• Neighboring residents and other speakers raised drainage, school-child safety, traffic, and infrastructure concerns. Marshall Effley said Hollmig Lane was never designed for current traffic and asked the council to slow development; David Mellon said the issues had grown; Deb Youngblood of the Pedernales River Alliance asked to be included in the discussions and suggested using native plants and a detention area to slow and clean runoff; Tom Musselman, a Planning & Zoning commissioner, recommended adding a water/sewer capacity check to the Development Review Committee process; and Janet Barns Baird suggested requiring rainwater collection on future homes.
• During the Yano Estacado public hearing, George Tudor asked on behalf of Duncan Holmes that ADA and accessibility needs be fully incorporated into the project; staff said ADA requirements would be reviewed and met.

Discussion Items

Title VI Plan (Resolution 2025-27) City Secretary Leticia Vacek explained that the Title VI Plan is TxDOT's non-discrimination plan required for municipalities seeking federal pass-through funding. The council approved Resolution 2025-27.

Hollmig Lane Annexation Package (Items 6B-6D) Cliff Cross, Development Services Director, said the item was the third stage of the voluntary annexation process, following earlier hearings on Sept. 16, Oct. 1, and Oct. 7. Cory Keller asked for time to work with the city, county, and neighbors. Councilmembers discussed stormwater drainage from the surrounding area, potential Texas Water Development Board funding for a drainage plan, and the need for a city-county approach. Commissioner Yansky stated that county engagement had begun and committed to help involve the county. Mayor Hoover and Councilmember Tony Klein proposed tabling the item to the Nov. 4 meeting; the council then also tabled the related land-use and zoning ordinances (2025-38 and 2025-39) and the right-of-way annexation ordinance (2025-40) to the same date. The city manager said staff would work to schedule meetings as early as the following week to address both drainage and the underlying concerns. Also discussed were potential traffic signals on Friendship Lane at $500,000 to $700,000 each, possible school crossing guards, and long-term water supply and recharge possibilities.

Conditional Use Permit - 977 Kerr Road (Z-2518) The applicant was not present. Staff said the original CUP approved in August 2023 had lapsed because the extension request came after the two-year deadline, and the Planning & Zoning Commission recommended approval of a new CUP for general warehousing/distribution and light manufacturing. The council approved the new CUP.

Conditional Use Permit - Golden Hub Club/Lodge (Z-2519) Architect Stan Klein presented a proposal for the Golden Hub at 648 and 652 Post Oak Road, adding to the existing building with a new kitchen, activity rooms, and an outdoor venue on a 5.2-acre C1 site. Planning & Zoning had recommended approval and also approved the site plan. The council approved the CUP.

Yano Estacado Mixed-Use PUD (Z-2520) Ross Hamilton, owner's representative for Yano Estacado, and the design team presented a proposed mixed-use development at 108-116 E. Ufer St. and 306-308 S. Llano St., including a 41-room hotel, restaurant, wine tasting room, retail, public parking improvements, and streetscape work. Whitney of Mustard Architects described buildings arranged around courtyards, a large central lawn, continued hike-and-bike trail access, and use of about 68% of the property footprint, with buildings elevated to address floodplain and floodway constraints. Staff noted the PUD includes language limiting manufacturing to accessory uses, and the Planning & Zoning Commission recommended approval. Councilmember Kirchner disclosed a personal friendship with Yano Estacado operating partners and stated she had no ownership interest before voting. The council approved Ordinance 2025-43 (conditional use permit), Ordinance 2025-44 (land use change), and Ordinance 2025-45 (zoning change to PUD).

Texas Historical Commission Update

Chris Elliott, Director of Historic Sites for the Texas Historical Commission, reported on Fort Martin Scott operations, including thousands of visitors, the Frontier Fest and U.S. Cavalry competition with over 2,000 attendees, family movie nights, and a Pioneer Trail summer camp for youth. He outlined planned improvements: longhorn tours, a family-friendly soda-garden entrance, trail and interpretive panel work, electrical installation, and a new audio and sensory building experience. Elliott and THC Executive Director Joseph Bell proposed 'Texas Untamed,' an interactive, hands-on history experience for children at the former Texas Rangers facility, with potential partnership with the city and the Comanche Nation. They said the next step would be working with the city on an activation or lease arrangement and preparing a legislative appropriation request for the next session. Council members expressed consensus to continue discussions and to keep the site activated; no formal action was taken.

Economic Development Quarterly Update

Tim Lehmberg, EDC Director, presented the first quarterly EDC update. Key statistics included:

• For the most recently completed fiscal year, city sales-tax collections were up 1.81% and county collections were up 1.39%; the 10-month reporting-year figure for the city was essentially flat at up 0.03%, while the latest monthly report was down 2.65%. City sales tax grew 4.55% in the prior sales-tax year and has more than doubled over 10 years.
• Gillespie County net taxable value has nearly tripled over 10 years, up about $6.9 billion; the city's tax base has risen about 175% over 10 years and 372% over 20 years.
• Building permits set a record in 2024 at 719, compared with a 16-year average of 196; 2025 year-to-date permits are up 11%.
• 2024 real estate transactions were 432, down from 868 in 2021; dollar volume was $333 million, down from a $538 million peak. 2025 year-to-date transactions are down 1%, dollar volume is down 2%, and land sales are down 27%.
• 2024 gross lodging revenues were a record $128.8 million, up 10%; 2025 year-to-date lodging revenue is down 2%, with Q2 down 8%. Occupancy for 31 reporting properties was 56.6% year-to-date, while average daily rate rose to $138.74 from $129, and room-night demand rose from about 207,000 to 219,000.
• Geofenced visitation is down 3.9% for the county and 4% for the city year-to-date.
• Gillespie County unemployment was 3.6% in August, still the lowest among contiguous counties; about 400 jobs per year have been added on average.
• Winery G permits have grown from 33 in 2015 to 104 countywide, including 25 in the city, up from 7; unique wineries are estimated at 87.
• The EDC tracked 545 total contacts and 27 unique inquiries year-to-date, both the lowest since 2020, and DRC pre-application activity slowed through mid-year.
• The average home sale price in the city was about $574,000 for the first nine months of 2025, down from a peak of $660,000 in 2022.
• Pipelines include about 305 pending apartment units and roughly 882 proposed or active apartment units; 1,057 subdivision lots in various stages, with about 745 potentially priced at $550,000 or less; 834 hotel rooms across construction, approved, and proposed projects; and about 800 estimated new full-time jobs in the development pipeline.
• Taxable sales data show retail trade's share of taxable sales fell from 65.37% in 2009 to 52.87% in 2024, while accommodation and food services and other categories gained.
• Lehmberg described the local economy as slowing but resilient, with concerns about consumer uncertainty, year-end retail vacancies, labor supply, and demographic shifts in spending habits; he said growth is expected to remain manageable.

Key Outcomes

• Approved the consent calendar, including meeting minutes and the $560,115.57 water-department equipment purchase.
• Approved Resolution 2025-27, the City of Fredericksburg Title VI Plan.
• Tabled Ordinance 2025-37 (Hollmig Lane annexation), Ordinances 2025-38 and 2025-39 (land-use and zoning changes for the property), and Ordinance 2025-40 (right-of-way annexation), all to the Nov. 4, 2025 regular meeting.
• Approved Z-2518, a conditional use permit for warehousing, distribution, and light manufacturing at 977 Kerr Road.
• Approved Z-2519, a conditional use permit for club and lodge use at the Golden Hub, 648 and 652 Post Oak Road.
• Approved Z-2520, including Ordinance 2025-43 (CUP), Ordinance 2025-44 (land use change), and Ordinance 2025-45 (PUD zoning) for the Yano Estacado mixed-use project.
• Took no formal action on the Texas Historical Commission's 'Texas Untamed' proposal; council members expressed consensus to continue discussions and support near-term activation of Fort Martin Scott.
• City Manager reviewed future agenda items, including the Nov. 4 regular meeting, a Nov. 18 special meeting, and Dec. 2 items such as vehicle-for-hire ordinance amendments, fees, board appointments, and a CVB update.