Costco to build in Kyle


Kyle Mayor Pro-Tem Rick Koch announces that Costco will build in Kyle. He is surrounded by council members and city staff.





In a big announcement at the Kyle Chamber of Commerce luncheon, city staff and council announced that Costco will be opening a new location in Kyle.

The new location, on I-35 next to the EVO Cinema and Home Depot, will have approximately 150,000 square feet. The 65-acre mixed use commercial development is in the are call the Dry river District Development.

City incentives were voted on by the council Tuesday morning at a special called meeting.

“We have been working to make Kyle a hub for high-paying and high-quality jobs along the I-35 corridor and having a company like Costco invest in our city is a valuable opportunity for our strong and always growing workforce” City Manager Scott Sellers said. “Costco is not only one of the top retailers in the world, but they also have a proven track record of taking care of their employees with very competitive wages and benefits.”

Costco, as of early 2021, raised its minimum hourly pay to $16. The average wage for hourly Costco employees across the U.S. is about $24/hour. 

Kyle City Council and Hays County Commissioners Court officially signed Chapter 380 and 381 Economic Development agreements with Costco on Tuesday, July 27.

In general, the county agrees to Chapter 381 economic incentive to be paid via sales tax received from sales at the local Costco over 15 years in the amount of $2,506,100; Kyle enters into a Chapter 380 economic incentive for $5,012,200, not to exceed 15 years, whereby the city pays that amount to Costco from sales tax received from the retailer.

In exchange, Costco has to meet all the terms of the agreement, which includes building a space of 150,000 square feet or more valued at a minimum of $15 million, including hard and soft construction costs. The building must be built to city approved specs.

The agreement between Hays County, the city of Kyle and Costco is final only upon signature by all parties.

While not part of the agreement, the city is expecting that there will be 225 jobs at the new facility.

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