After helping to bring Kyle more than 1 million square feet of new development in 2018, Kyle’s Economic Development is looking to bid two newly constructed properties to large companies.
On Dec. 4, Diana Torres, Director of Kyle Economic Development, updated the department’s five-year plan as it reaches the halfway point. The one-million square feet of development projects include expansions at Seton Medical Center Hays, ALSCO Linens and Austin Community College. Torres also cited two new commercial pads that were constructed in 2018. These projects combined, totaled to a $172 million investment.
“We are 63 percent accomplished for that strategic plan,” Torres said at the meeting.
Hays Logistics Center is one of two open commercial spaces waiting to be filled. The center is to be completed and available for lease in 2019. The center is a 428,000-square-foot fulfillment facility and is expected to generate an estimated $50 million in real property tax revenue, said Torres.
The other open space will officially be on the market after a Tuesday groundbreaking ceremony. Majestic Kyle, which offers 530,000 square feet of commercial space located at Kohler’s Crossing and Kyle Parkway, is expected to serve multiple businesses. Torres estimated the total property tax revenue for Majestic Kyle is $40 million over 30 years.
Torres said Kyle ED is working to fill the spaces to provide revenue and jobs within Kyle, but both are currently empty and there is no expected date for them to be filled.
“We do marketing, recruiting trips and respond to requests for information, but there is no timeline per-se,” Torres said in a statement. “The buildings are also marketed by the companies building them. “
Kyle plans to offer a tax incentive to the companies who bid on Majestic Kyle or the Hays Logistics Center and build and own the properties. Once those properties house a company, however, Kyle Mayor Travis Mitchell said both have the capacity to bring in significant tax revenue.
“There will be large taxes for sure,” Mitchell said. The Majestic (Kyle) facility is 40 million in real property which is a substantial tax payment every year not to mention the business and the inventory that will be taxed and possibly a sales tax.”
The Hays Logistics Center was built in part with a Chapter 380 agreement which means the city will offer tax abatements to the developer in decreasing increments until the building is finally leased.