The city of Kyle aims to create more jobs in the city through an economic development project with Hays County and RSI Inc., a distributor of electro-mechanical parts and services.

According to a Jan. 10 news release from the city of Kyle, RSI specializes in developing technology related to the military, oil and aerospace industries. The firm’s corporate office has been based at 1670 Kohlers Crossing, Kyle, since 2007 and employs 60 people locally. The agreement among the city, county and company will create 82 more jobs with a median salary of $42,000 over the next 10 years, Kyle Economic Development Director Diana Blank-Torres said in the release.

In exchange for job creation, Kyle will incentivize RSI’s expansion with $480,000 from the city—$246,000 as a forgivable grant and $234,000 in the form of an interest-free loan, Blank-Torres said in the release. The city of Kyle will forgive 10 percent of the outstanding grant balance for each year that RSI continues to meet the agreement commitments.

“Providing the incentive to expand its operations is a positive way for Kyle to continue to attract firms that will bring high-quality jobs and more sales tax to the city,” Kyle City Manager Scott Sellers said.

Hays County will also aid in RSI’s expansion by reimbursing the city $123,000 over 10 years if RSI meets its goals, most of which are related to job creation, Blank-Torres said in the release. According to the deal, RSI must not only create 82 jobs over the next decade, but also retain a minimum of 50 existing jobs.

“Over 85 percent of our population leaves town every day to go to work,” Blank-Torres said. “Our goal is to create those kinds of jobs here in Kyle so they don’t have to drive out of town if they don’t want to and still support their families.”

In September, Kyle City Council voted to approve an agreement between RSI and the city for the company to pay back a combined $430,000 in property taxes that RSI was mistakenly not billed for by both the city and the county. Between 2011 and 2016, RSI tried to pay, but the company was told it did not owe property taxes by officials.