The Kyle City Council recently approved a new development agreement for a 45-acre mixed-use development east of I-35.
Known as “Project Two Step,” the development will be split into two tracts of land along FM 150 East between Hill Street and Mikey Court: 15-acres to the east of FM 150 and 30-acres to the west. According to the city, each tract will then be broken into three parcels consisting of retail and dining options, office space, multi-family residences land, as well as amenities including an amphitheater, dog park, Vybe trail construction, and a parking garage structure.
“This project is going to bring a lot of new, exciting attractions to the east side of Kyle. Filling an ongoing need for our residents, attracting new businesses, and creating a destination location for visitors,” said City of Kyle Economic Development Director Victoria Vargas.
Over the next 20 years, expected revenue is estimated at $5.3 million in sales tax, along with an additional $10 million in property tax.
To help fund the project, the Kyle City Council approved a performance-based Chapter 380 agreement with Capella, the commercial real estate and development firm spearheading the project, granting a 50% rebate on the property and sales tax generated over the next 20 years.
As per the agreement, Capella must hit a number of benchmarks for the project’s first phase, including construction of a ne parking garage structure prior to any multifamily units coming online.
The agreement also outlines the possibility of halting payments should improvements not be completed by the performance deadlines.
