Fredericksburg City Council Regular Meeting – March 3, 2026

The Fredericksburg City Council held its first regular meeting in the new City Council chambers at New City Hall at East Campus, 2818 E. U.S. Hwy. 290, beginning at 9:00 AM. Mayor Jeryl Hoover presided. The agenda included a presentation on the new chambers, ceremonial recognitions, consent approval, adoption of updated ICC building and fire codes, reconsideration of 2026 Hotel Occupancy Tax (HOT) funding, approval of the Warehouse Row Makers Market street closure, an Economic Development Commission quarterly update, and an executive session.

Ceremonial Matters & Presentations

• Garret Bonn, Assistant City Manager, presented the new council chambers project, explaining that the former Hill Country University science lab was converted into a 70-person chamber (expandable to 85) with overflow viewing. He credited SKT Architects, Keener Engineering Services, Integrity Contractors, and city staff. Substantial completion is targeted for March 26, 2026, with City Hall operations moving to the facility in mid-April. The project also includes a rainwater harvesting system and a Purple Martin nesting structure approved January 20.
• Mayor Hoover presented a proclamation honoring the American Red Cross, Hill Country Chapter. A Red Cross representative accepted, mentioning their smoke alarm installation program and the city/county partnership.
• City Manager Clinton Bailey recognized City Secretary Leticia Vacek for recertification as a Texas Registered Municipal Clerk, her 35-year International Institute of Municipal Clerks membership, service as Region Four Director, and Master Municipal Clerk designation.
• Fire/EMS Chief Lynn Bizzell, volunteer fire department president Glenn Priest, and Amy Burrier honored Frank Stead upon his retirement with a helmet presentation, recognizing his 23 years of service and mentorship. Stead thanked the department and council.

Council Comments

• Mayor Hoover reported that the high school Building Trades program won a Best in American Living Award and that interviews for a new CBB CEO were ongoing. He also reminded everyone that March 3 was election day.
• Councilmembers thanked first responders for responses to a fire and a suspicious package, shared positive feedback heard while in Washington, D.C., and reminded residents of the city/school election in 60 days and the 30-day voter registration deadline.

Consent Calendar

• Approved the minutes of the February 17, 2026 regular City Council meeting by unanimous consent.

Public Comments & Testimony

• Anna Hudson, with Landmark Planning and Development Advisors, spoke during the economic development update. She said Fredericksburg tends to benefit when international travel feels unsafe and encouraged the city to use zoning and incentives for in-fill/redevelopment rather than sprawl. She asked the city to address rumors that it was incentivizing HEB to relocate from downtown, noting such a move would conflict with the comprehensive plan. She also suggested a tourist district/TIF to unify business groups and proposed naming the chambers after former Mayor Linda Longerhans.

Discussion Items

• 2026 HOT Funding Reconsideration: Mayor Hoover said he, not the applicants, requested reconsideration of two 2026 HOT applications because the National Museum of the Pacific War (listed on the agenda as the National Memorial of the Pacific War) and Oktoberfest are unique in generating HOT receipts and, based on CBB place data, qualify for more than they applied for. Previously approved HOT allocations totaled $458,000 across 25 applicants, leaving about $23,000 unallocated. The Council unanimously approved adding $10,000 to the Admiral Nimitz Foundation for the National Museum of the Pacific War and $5,000 to Oktoberfest, for a $15,000 increase.
• Warehouse Row Makers Market Street Closure: Jill Elliott, from Black Chalk Home and representing Lincoln Street merchants, requested approval of a street closure on S. Lincoln Street from the north side of the Barons Creek bridge to E. Creek Street, 7:00 a.m. to 7:00 p.m. on Saturday, May 9, 2026, with a possible second fall event. The event would be a biannual, family-friendly maker/artisan market with 75–100 vendors, a $100 vendor fee, and proceeds intended to benefit nonprofits or Lincoln Street improvements. She asked for the closure to be expanded north of Creek Street. Staff supported the first event and recommended approving only the May 9 date, with a revised plan for the expanded closure. The Council approved the street closure request unanimously; a fall 2026 event will be considered separately later.

City Manager’s Report – EDC Quarterly Update

• Tim Lehmberg, EDC Director, presented year-end 2025 and current data. His annual work-plan priorities include maintaining business mix on Main Street, labor force growth, development regulation, and airport development; affordable housing was dropped as a separate priority.
• Airport fuel sales set a record in 2025, exceeding 51,000 gallons, up about 9% from 2024; jet fuel sales were up about 10%.
• Sales tax results: city sales tax was down 0.4% for the 2025 reporting year, while the county was up 0.58%; 9 of 12 months were down for the city and 5 of 12 were down for the county. Five months into fiscal 2026, the city was down 2.57% and the county about 0.4%. In the February report (December actual sales), the city was down 5.16% and the county 3.16%; in the January report (November sales), the city was up 0.7% and the county down 0.3%. A December 2025 11.05% spike was attributed to a Comptroller audit adjustment/true-up.
• Development metrics: residential building permits down 12%, commercial permits down 46%, total permits down 20%; county septic permits down 20%; well permits down 29%; CTEC new meter installations down 27%; DRC pre-application conferences declined to 77 in 2025 from 90 in 2024.
• Real estate was stronger: transactions up about 6% and dollar volume up about 7%. Average land prices fell about $5,400 per acre, dipping below $20,000 per acre for the first time in four years. Average city home sale price rose from about $587,000 to about $592,000 in 2025, below the 2022 peak; Lennar homes were not in MLS data, while DR Horton was.
• Apartment occupancy recovered to about 94% after 611 units were added in 2024; two apartment projects, 305 and 240 units, are likely to break ground within five or six months.
• Gross lodging revenues in 2025 were approximately $123.506 million, down about 4%; visitor center attendance fell 16%, partly due to the 2024 eclipse. Hotel/motel revenue share rose from 24% to 30% while short-term rental share fell from 76% to 70%; about 179 STR units were added last year, all in the county.
• Lehmberg said he is not overly concerned, describing the figures as a settling to a new norm after post-COVID distortions and citing economic uncertainty and slightly lower visitation. CBB place data estimated city visitation fell by 300,000 people from 2022 to 2025 and county visitation by 400,000; each fell 100,000 in the last year, and Main Street geofenced visitation fell by 100,000.
• In response to the mayor’s question, business owners Carol and Jill Elliott said last year was difficult but early 2026 had been much stronger. Jill Elliott said wine-tasting visitors who leave Main Street reduce evening shopping, but staying open later has been profitable and more shops should do so; she also requested signage and parking help to draw visitors to Lincoln Street.

Items for Future Agenda

• City Manager Bailey reviewed upcoming meetings: March 17, 2026 will include a storm-ready designation, SOB/tattoo/gaming parlor/multifamily ordinances, development services fee adjustments, an Atmos interim rate adjustment, a JM Pipeline contract renewal, and the tabled brush and leaf collection ordinance. April 7, 2026 will include a FISD presentation on the May 2, 2026 bond election for a new high school, a Native Plant Society Main Street native-plant project, and an executive session on water rights. A special joint meeting with the Historic Review Board and a strategic planning session are planned for April 21.
• A council member questioned holding a strategic planning session before possible new council members were seated; City Manager Bailey explained the strategic plan would be updated annually with each new council’s input.

Executive Session

• The Council recessed to executive session under Texas Government Code Sections 551.071 and 551.074 for a legal matters update and discussion of the position of City Attorney. No action was reported in open session before adjournment.

Key Outcomes

• Approved consent minutes unanimously.
• Approved Ordinance 2026-10 unanimously, adopting the 2021 ICC Codes.
• Approved an additional $10,000 in HOT funding for the National Museum of the Pacific War and $5,000 for Oktoberfest unanimously.
• Approved the May 9, 2026 Warehouse Row Makers Market street closure unanimously; staff will revise the expanded closure plan, and the fall event will need future approval.
• Received the EDC quarterly update; no formal action taken.
• Held executive session; no open-session action announced.