A 300,000 square-foot project that could house a grocery business, restaurants and perhaps a hotel in south Kyle was finally revealed by city leaders Oct. 4.
By a 6-0 vote, the city council approved “Project Teal”, a development project that encompasses approximately 47 acres northwest of Yarrington Road.
The project is a multi-use development that would focus on establishing businesses such as grocery or depot stores, restaurants, national chains and hotels.
“The idea behind this agreement is to reimburse the developer for some infrastructure, which would be for public roadway that would spine through the development and some water and wastewater (development) that would be required for public infrastructure,” said Diana Torres, Kyle Economic Developer director.
The project was originally proposed for warehouse zoning two years ago when the developers were looking to establish truck stops in the area.
However, the consideration was taken off the table as city leaders and staff wanted to create more beneficial development for residents. This followed several attempts by PGI Investment, LLC to create a truck stop in the area, which drew a wave of public outcry against it.
“We partnered with the developer and auxiliary consultants to bring together a package that would be much more desirable for the city of Kyle and much more palatable to the residents of Kyle and San Marcos,” said Council Member Travis Mitchell. “This project in particular represents the fruit of that effort.”
Mitchell said the project is a “homerun for the city of Kyle from a financial standpoint,” and added the project included a 50 percent sales tax rebate on the infrastructure that would be needed for the development area.
“It’s a 50 percent sales tax rebate on the infrastructure they are putting in and there is no soft cost,” Mitchell said. “The city will collect 100 percent of property tax generated from this substantial development and will keep 50 percent of the sales tax off the property for ten years.”
Kyle Mayor Todd Webster also praised the project and said he hoped that the cumulative growth in the area will become a positive asset for the city of Kyle.
“I think given the situation and circumstances this is really the best outcome we could come up with,” Webster said. “Hopefully this should allow any concern with what was happening to that corner to rest and at the same time allow it to develop and become a productive part of the city.”