SMART Terminal / AXIS Logistics Park Q&A

From the developer’s website: AXIS Logistics Park is a planned industrial park strategically located in San Marcos, TX and Caldwell County offering industry-leading access for distribution, manufacturing and logistics solutions. Co-developed by Texas-based Scarborough Lane Development and Partners Real Estate, the site spans approximately 2,000 acres of land, with access to utilities and regionally connected infrastructure. This will be one of the largest master-planned industrial parks in the nation and currently offers 735 acres of industrial zoned property in the city of San Marcos.

Q: Who is “Citizens Against SMART/AXIS” aka “CASA.SMTX”?

We are a small group of citizens doing our best to spread awareness to the community about the "AXIS Logistics Park" formerly known as "SMART Terminal" project in San Marcos, TX. We are not affiliated with the City of San Marcos nor the Developer. To contact us, please scroll to the bottom of this document for a link to email.

Q: What is the SMART Terminal? Didn’t the project stop a while ago?

A: Back in 2019, a developer named Mike Schroeder purchased and proposed a rail and manufacturing park known as the San Marcos Air, Rail, and Truck (SMART) Terminal that encompassed 735 acres located east of I-35 on Highway 80. The developer had a corporate backer, Katerra. The developer requested Heavy Industrial Zoning specifically because they wanted to incorporate rail service and was undergoing conversations with Union Pacific to make it reality. Despite community pushback, San Marcos City Council voted to approve zoning the acreage to Heavy Industrial. Later, Katerra left the project and the SMART development never happened.

Q: Why are we talking about SMART Terminal now and what is AXIS Logistics Park?

A: Here is a brief timeline:

• 2021 & 2022 - DFW-based developer named Scarborough Lane Development purchases the acreage from Schroeder under the name Franklin Mountain San Marcos. They slowly start to buy more land, totaling a little over 2,000 acres.
• 2021 - the new developer approaches city council and asks to re-negotiate and amend the Development Agreement that was created when the first iteration of SMART was proposed.

• Council agrees and creates a Council Committee consisting of Maxfield Baker, Mark Gleason, and Mayor Hughson.
• Baker has many concerns about the project that is now more than double the size of the original Heavy Industrial proposal.
• Baker requests to bring in Community and Subject Experts but is outnumbered by Gleason and Hughson who do not share the same concerns.
• A committee vote never passes to bring Baker’s concerns to full council because Gleason and Hughson (the majority) deny Baker’s requests.

• 2022 (winter) - Baker was replaced by Jude Prather on the council committee after the council election.
• Jan 17, 2023 - Council votes to Approve the Amended Development Agreement despite opposition from the public and the San Marcos River Foundation
• Jan 30, 2023 - Residents adjacent to SMART property receive notices of a Zoning request to Heavy Industrial
• Feb - Today - Concerned citizens from San Marcos, Martindale, Reedville, and Maxwell gather to learn more about the massive 2000+ acre heavy industrial project and to spread awareness about this development. They attend every City Council Meeting to this date. Citizens learn from the Developer that they have no specific plans for Air or Rail connection or services.
• May 2023 - The developer rebrands SMART to AXIS Logistics Park
• The rebranded AXIS Logistics Park consists of approximately: 735 acres currently zoned Heavy Industrial in SMTX City Limits, 660 acres in the Cotton Center MUD, and 589 acres in the SMTX ETJ, which the developer is requesting to be annexed and zoned into SMTX City Limits as Heavy Industrial.
• June 23, 2023 - The developer withdraws their annexation and zoning to heavy industrial applications.
• Jan 16, 2024 - The developer dedicates 3 acres of land to the City of San Marcos within the Martindale ETJ and within Caldwell County ESD. This land is located just north of Memory Lawn Memorial Park on SH-80 and FM1984.
• March 20, 2024 - The developer puts in an annexation request to annex +/- 7.331 acres of land to build a Right of Way (ROW) to connect FM110 and FM1984. The proposed roadway is 120 feet wide and will be 4-lanes intended for truck traffic. Proposed name for the road is Energy Parkway. Click here to view a projected map visual.

Q: What does Heavy Industrial Mean and Why do I need to be Concerned?

A: Heavy Industrial as defined by the City of San Marcos’ Development Code page 4.10, Table 4.7 Special Districts: “HI, Heavy Industrial - HI is intended to accommodate a broad range of high impact manufacturing or industrial uses that by their nature create a nuisance, and which are not properly associated with or are not compatible with nearby residential or commercial uses.”

• By its definition, Heavy Industrial is not suitable next to residential use.

• The SMART / AXIS property surrounds residential neighborhoods and the city of Martindale.
• There are over 1000 people living within a 1 mile radius, and over 5000 people living within a 5 mile radius.

• A majority of the property sits in flood plain.

• It sits on top of multiple streams and creeks that flow straight into the San Marcos River.
• Large amounts of impervious cover (parking lots and buildings) will change the flood maps and may cause extensive flooding in the area.

• The San Marcos river is less than 1280 feet from the closest edge of the property (three and a half football fields away).
• There is a Superfund Site at the Gary Job Corps facility / San Marcos Airport located less than a mile from the property.

• The EPA found that the Superfund site contaminated the drinking wells located on the SMART/AXIS property as well as the alluvial aquifer that lies 15-20 feet underground.
•  The EPA never removed the lead, heavy metals, and other contaminants at the Superfund Site. Without a proper study it’s possible breaking ground would release these contaminants and poison drinking water and air.
• The EPA strongly recommends that if annexed and zoned, the developer test the soil for heavy metal and other chemical contamination prior to each and every time they break ground to build.

• What is a Superfund Site?
• More info about the San Marcos Landfill Superfund Site

Q: If this doesn’t get annexed and zoned, the developer will build whatever they want in the county!

A: This isn’t entirely true. See bullet points below:

• 735 acres of the land is already annexed and zoned Heavy Industrial in the San Marcos City Limits. It cannot easily be removed from the City Limits nor the ETJ.
• The remaining 1282 +/- acres are in the San Marcos ETJ
• ***What is an ETJ? Sec. 42.021 … “The extraterritorial jurisdiction of a municipality is the unincorporated area that is contiguous to the corporate boundaries of the municipality….”
• There are many regulations that the City of San Marcos oversees in the ETJ. Scroll down a little further to see the Development Agreement vs City vs ETJ Comparison.

Q: What about SB 2038? Can’t the developer just leave the ETJ and build in the County?

A: SB 2038 (the ETJ Bill) allows landowners to petition to remove themselves from a city’s ETJ. Keep in mind that state law requires ETJs to be contiguous.

• If the SMART / AXIS land is removed, it will also remove properties they do not own from the ETJ.
• In order to leave the ETJ, the developer will need signatures providing consent from other property owners to remove ALL the properties in question from the ETJ.
• The acreage off FM1984 and Highway 80 is valued at $186,000 due to the current Ag Exemption.
• Adjacent properties with homes are valued much higher, upwards to $340,000 for 1.5 acres and more for homes with more acreage.
• Why does this matter? Properties that are valued higher have more leverage when it comes to signatures. If the developer cannot get the signatures they need, they cannot leave the ETJ.

Q: What does building in the ETJ look like for the Developer?

A: It looks the same or similar as building within the San Marcos City Limits minus land use (zoning) regulations. See comparison graph here.

• Building in the ETJ is better in some regard as waivers provided in the development agreement would no longer apply and instead default to City Code where it applies:

• Example 1: The massive 10,000 foot block perimeter waiver in the development agreement will default to the city’s code of 5,000 feet. (Section 3.6.2.1: Blocks)
• Example 2: The Cut / Fill waiver for 15 - 20 feet w/o administrative approval will default to the city’s code of 4 feet by right. (Section 6.1.1.1: Applicability, Exceptions, Authority, and Findings and Section 6.1.2.2: Cut and Fill Standards)
• The City of San Marcos is currently already extending their Wastewater CCN to the SMART / AXIS land so that they can tap into it. A fear is that the developer will build a package plant…. Why would they if all they have to do is opt into the CCN if they’re in the city or not? It costs way less money and they don’t have to deal with treating the wastewater themselves.

• What is a Wastewater CCN?
• San Marcos CCN Info

The developer asked to be in the city for a reason. If they wanted to “build in the county / ETJ” they would have already started.

Q: If this doesn’t get annexed and zoned, what happens?

A: If not annexed and zoned, the 589 acres the developer is requesting to be annexed and zoned would remain in the ETJ. The acreage hypothetically would also be removed from the re-negotiated development agreement from January 17th. (Since the developer withdrew their request, it is the city’s job to tell the developer they did not uphold their agreement. This, however, has not happened.)

The original 735 acres (that were annexed and zoned in 2019) and the 660 acres purchased from the Cotton Center would remain in the San Marcos City Limits and the re-negotiated development agreement from January 17th. This includes the 100 ft buffer for Reedville and the other minor amendments and promises the developer made. See Development Agreement (Minor amendment info is at the bottom of the page).

Because some of the land is in the city limits, some is in the ETJ, and some is in a M.U.D with the Cotton Center, it will be difficult for the developer to follow through with their advertised plans and provide consistency across the board.

The land is not all consecutive and will be cut up into different jurisdictions and codes, which will make it confusing and difficult for them to develop according to their timeline.

Some options the developer has now that they withdrew their annexation request:

• Wait and put in another full annexation request in a few years or more
• Annex land little by little
• Give up and sell to someone else (they did promise they aren’t going anywhere so this is less likely)

Q: What does this mean for SMCISD Recapture Payments?

A: Any increase in ISD property tax revenue (without additional student enrollment) theoretically impacts ISD recapture payments in the future.

• AXIS may create a huge area of HIGH VALUE property without adding any additional children or students. This will make us a property rich district, resulting in recapture or some of our tax dollars going to the state for distribution to property poor school districts.
  

Q: This is on the East side of San Marcos, this won’t affect me! (Or, I live in Martindale / Maxwell, this won’t affect me!)

A: The City of San Marcos agreed in the Development agreement to pay for, build, and staff 2 fire stations for the developer.

• Annexing and zoning the land will lower the entire city of San Marcos’ Fire Insurance Rating (ISO) until the stations are built

• Lower Insurance Ratings = Increased Homeowner Insurance Rates
• Read: What is an ISO Rating? And Why It’s Important.

• San Marcos, Martindale WSC, and Maxwell SUD water bills will increase.

• Wastewater and Water capacity increases are needed to support the project
• Paid for by your increased water bill to cover the costs.

• Wastewater and Water capacity increases mean larger pipes.

• Taxpayers and water bills will pay for larger than standard piping for the developer.

• The flood maps will change due to impervious cover and change in ground elevation levels.

• In the 2015 flood, highway 80 was underwater and parts of the SMART / AXIS property were too.
• This area has not been studied due to it being farmland, so the effects are unknown

• Increased Truck Traffic / Wrecks

• More trucks driving on E Hopkins Street / Highway 80 from I-35, 110 / McCarty Lane / Yarrington Rd, I-10, and FM1984.

• Increased Trains, causing more traffic jams
• 20-30+ YEARS of construction
• Waiver to allow 85 decibels of noise all day from 10am-10pm and 75 decibels all night, 10pm-10am.

• 83 decibels is the level at which OSHA strongly recommends hearing protection
• Both 85 and 75 decibels will be allowed at residential property lines as they are not specifically zoned for “residential use” in the ETJ and potentially will damage civilian hearing and health. (This is happening in Granbury, TX)
• Vehicle horns and noises are exempt from this and can go “beep beep beep” all day and all night.
• There are neighborhoods in Martindale and Reedville less than a mile from the land in question that will be affected by the sound of trucks, trains, heavy machinery, etc that may be working on the land in question.

• Waiver to allow 15-20 feet of cut / fill (removing and piling dirt).

• Due to Superfund, the soil may be contaminated with tetraethyl lead, heavy metals, and other chemical contaminants. Disturbing the soil will release these into the air and water, poisoning water supplies and the air we breathe.
• Alluvial aquifer lies 15-20 feet below ground level. Potential for local residential and agriculture wells to go dry when they hit the water veins and drain them.

• Many allowed uses in the development agreement require use of toxic materials.

• The United States sees at least 1 chemical accident / spill every two days.
• Toxic chemicals will end up in the groundwater and the San Marcos River.
• Recreational tubing and floating companies like Texas State Tubes, Don’s Fish Camp, Great Gonzo’s, etc. put in, float through, and take out where these contaminants enter the river.
• Martindale’s water holes and swimming spots are downstream from where the Heavy Industrial runoff will enter the river.
  

Q: This is a great thing for San Marcos, it will bring tax dollars and offset some of our burden.

A: It is true that upon full build-out and full of businesses, the Heavy Industrial property will be valued high… however, there is no way to calculate when these tax dollars will start to offset the burden of tax payers.

• Estimated build out is 20-30+ years.
• Developer has no publicly known business contracts and no publicly known potential buyers or renters for land.
• Land is currently Ag-exempt and even after it is zoned HI, will continue to be Ag-exempt until it is developed. Land not developed keeps its Ag-exemption.

• As per the Caldwell CAD in the year 2023, the developer paid $1009.19 in tax dollars to the City of San Marcos for 1046 acres of land.
• Caldwell CAD links to properties: one two three four five six seven
• The developer is advertising themselves within the Texas Opportunity Zone which means businesses may qualify for large tax breaks or abatements, which will delay tax dollar funding going directly to the City.

Q: This is going to bring jobs to San Martians, Martindale, Reedville, and Maxwell!

A: The developer does not have a full build-out plan and no publicly known committed companies / businesses signed up to purchase or lease land / buildings. They don’t have a plan or a vision. They have no plan to use the rail and no plan to use the airport. They have no guarantees for local jobs, either.

• The developer nor any potential companies have guaranteed a minimum wage. Heavy Industrial jobs are typically dangerous and workers are exposed to hazardous materials on a daily basis. Heavy Industrial uses are also under-regulated in the state of Texas and known for violations.
• Many of the current Heavy Industrial businesses in San Marcos have high turn-over rates and are understaffed due to poor job quality.
• The developer wants a blanket zoning for 2000+ acres so that they can do whatever they want and profit at our expense. They want to break open a door that will allow them to purchase MORE land to zone Heavy Industrial in the future.

Still have questions? Send us an email and let us know! We are constantly updating the Q&A as we receive more questions so check back for updates.

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***DISCLAIMER: We have read city, county, and state codes and laws, requested public records requests, spoken with San Marcos City Staff, spoken with the developer, spoken to industry experts, and spoken with hundreds of people to bring you this Q&A. We do our best to base the answers and statements above off facts from extensive research and data from news articles, city and county codes, scientific studies, etc. If something seems off or needs further clarification / references, please do not hesitate to let us know.