San Angelo City Council to Vote on $1.4M Rail Yard Expansion Deal, Housing and Zoning Changes

SAN ANGELO, TX — The City of San Angelo could finalize a $1.4 million land sale Tuesday morning that would enable the expansion of a regional rail yard and potentially pave the way for a new industrial park.

City Council will consider authorizing the San Angelo Development Corporation (COSADC) to purchase approximately 252 acres of city-owned land east of the existing South Plains Lamesa Railroad (SPLRR) yard and resell it to SPLRR for $1 million.

The remaining $400,000 would be carried as a loan by COSADC and repaid over five years. The deal includes an economic development agreement that requires the land be used exclusively for rail-related purposes for at least 10 years solely as a rail facility or rail-served industrial park for a minimum of 10 years.

According to city documents, SPLRR intends to use the site to expand its rail yard. COSADC may offset up to 50% of the loan through eligible infrastructure improvements made by the railroad.

"The COSADC Board, at their meeting on March 26, 2025, approved a project to purchase a portion of the City property and in turn convey it to SPLRR by means of an economic development agreement," information from the city states. "This will enable SPLRR to expand and diversify its current operation and allow for the potential development of a rail served industrial park." 

The item appears on the consent agenda for the council’s regular meeting, which begins at 8:30 a.m. Tuesday at the McNease Convention Center, 501 Rio Concho Drive.

Also on the consent agenda are two zoning ordinance changes. One would rezone a 2-acre portion of land at 4673 Christoval Road from Heavy Commercial to a Planned Development with an underlying Mobile Home Subdivision zoning. The property currently has a frame house, and the family recently placed a manufactured home on-site. Planning staff noted the area has been commercially zoned for more than 40 years, and the change represents a compromise with the property owners, who plan to use the land for residential purposes. The rezoning was approved by the Planning Commission in a 5-1 vote and includes eight conditions, including fire access, skirting compliance, and a restriction on future residential construction.

The second zoning request would reclassify two properties at 502 and 504 West Avenue V from single-family residential to neighborhood commercial. The property owner plans to build a small-scale brake and lube shop. The site is located along S. Bryant Boulevard and fits within the city’s long-range land use plan. Staff said the change is compatible with surrounding development.

On the regular agenda, council members will consider awarding a $361,189 contract to Denton & Bradly Metal Solutions, Inc. to replace garage doors at the city’s Fleet Services and Water Distribution facilities. The project will be funded in part by a $151,890 federal Energy Efficiency and Conservation Block Grant, along with $170,290 from the Fleet Services fund balance and $39,009 from the Water Department. The new doors are expected to reduce energy consumption through improved insulation and weatherstripping.

Another item up for discussion is a possible expansion of the city’s Open Structure Overlay zoning. Originally created to regulate carport design and setbacks in older neighborhoods, the overlay district cannot be expanded without limitations due to House Bill 2439, which the Texas Legislature passed in 2019. That law prevents cities from enforcing certain architectural and material standards in areas outside of historic or established districts. Staff said expanding the overlay could lead to mismatched structures and a drop in neighborhood cohesion and property values. Council is expected to provide direction on whether to pursue the issue through a broader update to the city’s zoning and comprehensive plan.

The meeting will conclude with a closed session to discuss a landowner’s request for removal from the city’s extraterritorial jurisdiction.

Proclamations recognizing April as the Month of the Military Child and Fair Housing Month will also be presented. Public comment is scheduled near the top of the agenda. Individuals who wish to speak must sign in before the meeting begins.

Agenda: cosatx.us/councilagenda

Download the public comment request form: tinyurl.com/9paz33ru

Reminder about public comment:

• People wishing to speak at the City Council meeting must sign in prior to 8:30 a.m.
• Speakers are limited to 3 minutes.
• Applicants/proponents/appellants speaking on an item are limited to 5 minutes.
• Comments must be relevant to the authority of the City.
• Please state your name, address or single-member district before beginning your remarks.
• Citizens bringing materials for distribution to City Council members during the meeting must bring a minimum of 12 copies.