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San Marcos, TX

San Marcos Rezones 4.6 Acres on Wonder World Drive for New VA Medical Project

San Marcos, Texas, City Council voted 7-0 to rezone about 4.6 acres on Wonder World Drive near State Highway 123 from Commercial to Business Park for a proposed Veterans Affairs medical development, a change that loosens where the site's parking can go.

By Morningline Research · November 3, 2026

A proposed Veterans Affairs medical development in San Marcos cleared its zoning hurdle last month. San Marcos, Texas, City Council approved the change with a unanimous 7-0 vote at its Oct. 20 meeting, Community Impact reported, rezoning approximately 4.6 acres near Wonder World Drive and State Highway 123 from Commercial (CM) to Business Park (BP).

Community Impact describes the project as a proposed VA hospital. The city's public notice for the case, ZC-26-07, calls it "Wonder World Medical" and lists approximately 4.64 acres on the north side of Wonder World Drive, approximately 450' northwest of the intersection with SH-123. The owner is SM Hwy 123 Landholdings, LLC, and the request was submitted by the Drenner Group.

Why the zoning had to change

The switch is mostly about parking. Commercial zoning in San Marcos limits where parking can sit on a lot, and Business Park zoning does not. Shannon Mattingly, director of land use and entitlements with Drenner Group, said more flexible parking options would make it easier for older patients and people with serious medical conditions to get into the clinic.

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City agenda documents found no significant environmental concerns with the property. It is not located within a floodplain or floodway, and it sits outside the Edwards Aquifer recharge zone and the San Marcos River corridor, according to Community Impact. The site falls in the city's Mixed Use Medium Place Type in the comprehensive plan.

Strong support on the dais

The San Marcos Planning and Zoning Commission recommended the change 9-0 on Sept. 22 before it went to council.

Council Member Amanda Rodriguez pointed to the trips local veterans make for care. "What do we do as a city to get people to San Antonio? What do we do about getting them to other VAs?" she asked. "This right here is a dream project for us, and for our people, so we deeply appreciate everybody involved," she said.

What's next

With the zoning in place, the project moves on to site planning and permitting on the Wonder World Drive property. Neither the city notice nor the news report gave a construction start date or building size.

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