PRESENTER: Presenter
Christopher J. Looney, AICP, Neighborhood & Community Planning Department Director
Applicant/Owner: Jeremy Coburn
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SUBJECT: Title
Public hearing and first reading of an ordinance, requested by Jeremy Coburn, to rezone approximately 0.16 of an acre out of City Block 5092, Lot E, eastern part of Lot 25, from C-1 (Local Business District) to C-1 SUP (Local Business District with a Special Use Overlay to allow Short Term Rental of a residence), currently addressed at 242 East Austin Street.
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DEPARTMENT: Neighborhood & Community Planning
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COUNCIL DISTRICTS IMPACTED: 5
BACKGROUND INFORMATION:
Case No: SUP26-287
Applicant/Owner: Jeremy Coburn
Staff Contact: Colton Barker, Planner | cbarker@newbraunfels.gov | (830) 221-4274
The subject property comprises approximately 0.16 of an acre on the southeast side of East Austin Street. Adjacent properties to the south, and across North Houston Avenue and East Austin Street are zoned C-1 (Local Business District) and have been developed primarily as commercial offices and medical clinics including the Christus Santa Rosa hospital campus ½ block to the southwest. Other properties to the northeast and across East Austin Street are zoned R-2 (Single-Family and Two-Family (Duplex) District) and are developed primarily as single-family residences.
This mixed-use block along East Austin Street provides a unique transition between medical uses to the south and southwest, and the Schlitterbahn Headquarters just over 700 feet to the northeast. Additionally, the subject property shares its northeast property line with a parcel that was rezoned to C-O (Commercial Office) with an SUP to allow short-term rental of the residence in August of 2026.
ISSUE:
The 1920’s residence on the subject site is roughly 732 square feet with 2 bedrooms and 1 bathroom. The applicant is requesting a Special Use Permit (SUP) overlay to allow the short-term rental (STR) of the existing home. Although the C-1 base zoning district allows overnight lodging, the existing structure was originally constructed as a residence; New Braunfels’ Zoning Ordinance requires a Special Use overlay to allow the short-term rental of a house regardless of whether the underlying zoning district allows STRs.
Under the currently adopted Zoning Ordinance, the maximum occupancy of a short-term rental (STR) with a total of 2 bedrooms and 1 bathroom is 5 occupants, and the minimum off-street parking is 2 paved spaces. There is sufficient room to meet the minimum off-street parking requirements, however the existing gravel driveway will need to be improved with either asphalt or concrete to satisfy the off-street parking standards.
Short-term rental standards in the Zoning Ordinance help to ensure proper measures are in place to protect public health, safety, and neighboring properties. If this rezoning request is approved, the registration of the short-term rental and online payment of hotel occupancy taxes will be required; and the STR would be subject to the SUP conditions adopted by City Council, short-term rental standards of the Zoning Ordinance, and all other applicable City codes and ordinances.
COMPREHENSIVE PLAN REFERENCE:
Actions from Envision New Braunfels related to this request include:
• Action 1.3: Encourage balanced and fiscally responsible land use patterns.
• Action 1.14: Ensure regulations do not unintentionally inhibit the provision of a variety of flexible and innovative lodging options and attractions.
• Action 3.1: Plan for healthy jobs/housing balance.
• Action 3.3: Balance commercial centers with stable neighborhoods.
• Action 3.6: Pro actively provide a regulatory environment that remains business and resident friendly.
Future Land Use Plan: The subject property is located within the New Braunfels Subarea, within an Existing Medical Center, and near Existing Outdoor Recreation, Tourist/Entertainment, and Civic Centers.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
• Economic Mobility - Objective: Incentivize mixed-use developments and redevelopments in targeted locations to create a built environment with integrated housing, commercial centers, and opportunities for improved connectivity.
• Economic Mobility - Objective: Support Confluence, the New Braunfels Chamber of Commerce Economic Development Strategic Plan, by helping to ensure a community that supports the targeted industries and increases the diversity of job opportunities in the community.
FISCAL IMPACT:
The property is currently developed with a single-family residence and zoned for both residential and non-residential use. If approved, the request would allow the existing single-family residence to be utilized as a short-term rental, subject to applicable City code requirements. If operated as a short-term rental, the property would be subject to local and state hotel occupancy taxes (H.O.T.), as well as property taxes, and would retain its ability to alternatively develop with light commercial uses also allowed in C-1.
The Land Use Fiscal Analysis includes the following related statements/recommendations:
• Provide a mix of uses and building types, heights, and sizes in a more walkable context to produce more value and fiscal productivity.
• Mix of uses (residential and short-term rental) developed on a single parcel of land increases revenue to cover costs of services.
Recommendation
RECOMMENDATION:
The property is located on the edge of an established residential neighborhood and is also adjacent to numerous non-residential uses, including medical offices and clinics as well as the Christus Santa Rosa Hospital campus. While the property is currently residential, it is actually within and on the edge of the C-1 (Local Business) District.
C-1 is a light commercial/mixed-use zoning district intended for neighborhood scale commercial uses on the periphery or blending in with residential. Maintaining the current C-1 zoning on the subject tract keeps the existing C-1 boundary intact, preventing commercial from elevating in intensity in close proximity to residential, or from a more intense commercial zoning district that would negatively impact the current light mixed-use character.
Allowing an STR on the edge of the C-1 with a condition that the residential character of the property be maintained would allow an additional small scale commercial use without converting a residential structure to a commercial one, maintaining the existing mixed-use nature of the block and appropriate transition between the commercial and residential areas. Additionally, as noted above a similar zoning was very recently approved for an STR next door, so an STR at the subject location would be consistent with existing zoning on the blockface.
Therefore, staff recommends approval of the applicant’s request with the following SUP conditions:
• The existing gravel driveway and parking area be improved with asphalt or concrete.
• The residential character of the property must be maintained.
• The property will remain in compliance with the approved site plan and floor plan. Any significant changes to the site plan or floor plan will require a revision to the SUP.
The Planning Commission held a public hearing on October 7, 2026, and unanimously recommended approval (8-0-0).
Code of Ordinances Sec. 144-2.1 Changes and Zoning Amendments:
(b) Considerations for approving or denying a zoning change. In making a determination regarding a requested zoning change, the planning commission and the city council shall consider the following factors:
(1) Whether the uses permitted by the proposed change will be appropriate in the immediate area concerned, and their relationship to the general area and to the city as a whole;
(2) Whether the proposed change is in accord with any existing or proposed plans for providing public schools, streets, water supply, sanitary sewers, and other utilities to the area;
(3) How other areas designated for similar development will be, or are likely to be, affected if the proposed amendment is approved;
(4) Any other factors that will substantially affect the public health, safety, morals, or general welfare; and
(5) Whether the request is consistent with the comprehensive plan.
Mailed notification as required by state statute:
Public hearing notices were sent to owners of 17 properties within 200 feet of the request. To date the City has received four mailed responses in support* (21%), and one neutral mailed response.
*Please note the abutting property in favor, identified as number 6 on the attached map, is owned by the subject property owner.
RESOURCE LINKS:
• Chapter 144, Sec. 5.17 (Short Term Rental or Occupancy) of the City’s Code of Ordinances: <https://library.municode.com/tx/new_braunfels/codes/code_of_ordinances?nodeId=PTIICOOR_CH144ZO_ARTVDEST_S144-5.17SHTEREOC>
• Short Term Rental Map https://newbraunfels.maps.arcgis.com/apps/webappviewer/index.html? id=16f23a4b3c8a41ec89ef42a58185421a <https://newbraunfels.maps.arcgis.com/apps/webappviewer/index.html?id=16f23a4b3c8a41ec89ef42a58185421a>
• Chapter 144, Sec. 3.3-7 (C-1) of the City’s Code of Ordinances: <https://library.municode.com/tx/new_braunfels/codes/code_of_ordinances?nodeId=PTIICOOR_CH144ZO_ARTIIIZODI_S144-3.3ZODIREPRZOPRJU221987>
• Chapter 144, Sec. 3.6 (SUP) of the City’s Code of Ordinances: <https://library.municode.com/tx/new_braunfels/codes/code_of_ordinances?nodeId=PTIICOOR_CH144ZO_ARTIIIZODI_S144-3.6SPUSPE>