ICYMI: Kyle City Council approves retail development for property at Yarrington Road and IH-35

The 47.74 acres of land on the edge of Kyle and San Marcos have been rezoned for retail services.

The 47.74 acres of land on the edge of Kyle and San Marcos have been rezoned for retail services.

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Yarrington concept plan 1_18_17
After several months of discussion, Kyle City Council approved a development agreement with PGI Investments, LLC for its 47-acre property at Yarrington Road and IH-35 on Oct. 4.

Discussed under the name ‘Project Teal,’ the new development could feature office spaces, an anchor store, such as a grocery store or a department store, a national chain hotel, a gas station and restaurants.

Kyle’s Economic Development Director Diana Blank-Torres said development will start immediately.

In 2016, the city considered turning the land into a large truck stop, but it was ultimately the proposal was struck down after nearby residents voiced their concerns.

“We partnered with the developer and auxiliary consultants to bring together a package that would be more desirable and palatable to residents of Kyle and San Marcos,” Council Member Travis Mitchell said.

For the new development under PGI Investments, the city of Kyle will provide economic development incentives in accordance with Chapter 380 of the Texas Local Government Code. According to the code, only developments that “serve the purpose of promoting state or local economic development by stimulating business and commercial activity within the city” can apply for the incentive.

PGI Investments will have to provide at least 200 jobs, build 300,000 sq. ft. of office, retail and hotel space and construct the public infrastructure necessary for development, but if all guidelines are met, Kyle will reimburse PGI Investments with at most $5.2 million to construct a new roadway through the property and install water and wastewater improvements.

Over the next 15 years or for a total of $5.2 million, whichever comes first, PGI Investments retail business will only have to pay 50 percent of the city’s sales tax. However, Mitchell said that the city will still collect 100 percent of the property taxes.

“I believe the development agreement with PGI is the best outcome for all parties involved," Mayor Todd Webster said.