The first of two movie theater developers that had proposed to build entertainment complexes in Kyle has pulled out citing market concerns.

Schulman Partners entered an incentive agreement with the city of Kyle on June 20 to build what would have been Kyle's first movie theater in the Village at Kyle, located at Kyle Parkway and I-35.

Two months later, Texas Cinema announced plans for a similar 75,000-square-foot project at Kyle Town Centre near Kohler's Crossing and I-35.

Mark Schulman, owner of Schulman Partners, told Community Impact Newspaper on Jan. 9 that Texas Cinema's announcement to build a similar entertainment complex (without the incentive package) forced the company's hand.

"We are going to respectfully back out of the deal," Schulman said. "There is no reason to go forward with the process.

"This saves the city money in tax incentives and allows everybody to enjoy some type of entertainment. It won't be us, but I'm sure [Texas Cinema] will do a good job."

When reached by phone Jan. 9, Kyle Mayor Lucy Johnson had not heard of Schulman's plans to withdraw its project.

She wishes the company the best and is looking forward to Texas Cinema's project, she said.

"I'm sorry to hear him leave," Johnson said. "For many years, Kyle has been trying to get a movie theater for the city's residents. We really struggled. Schulman was there from the beginning and was willing to work with us when others weren't."

While the city made the economic development agreement with Schulman under the assumption that one entertainment complex was coming in, Johnson said the city believes Kyle can sustain more than one entertainment complex.

The incentive package was contingent on the revenue the movie theater would have produced; therefore, no payouts were ever made to the company, the mayor said.

Texas Cinema is securing its final round of permits from the city and is hoping for a November opening, Vice President Mitchell Roberts said.