Development approved at Yarrington & I-35 in Kyle

The development concept plan features a large retail space, hotel, convenience store, restaurants and more. PHOTO COURTESY OF THE CITY OF KYLE

Kyle City Council voted Wednesday to approve a development agreement with PGI Investments for their 47-acre property at Yarrington Road and Interstate 35. The motion carried 6-0; Council Member Daphne Tenorio was at a conference.

This development was called “Project Teal” for the past several months as the city staff negotiated the agreement with PGI.

“This property is planned for multi-use development including office space, an anchor store (either 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.

Now that PGI has council’s approval, Blank-Torres said she expects development to begin immediately.

Under the terms in the agreement, the city of Kyle will provide economic development incentives in accordance with Chapter 380 of the Texas Local Government Code. The programs that are eligible “must serve the purpose of promoting state or local economic development by stimulating business and commercial activity within the city” according to the code.

In this case, PGI will be reimbursed by the city a maximum amount not to exceed $5.2 million for constructing a roadway and installing water and wastewater infrastructure improvements. The reimbursement or incentive payments to PGI will be made by paying 50 percent of the city’s portion of sales tax collected from retail businesses located within the PGI development for a maximum period of 15 years or a total of $5.2 million, whichever occurs first.

“We will collect 100 percent of property taxes,” Council Member Travis Mitchell said from the dais Wednesday night.

Mitchell reminded the audience that the original plans from the developer for their property at Yarrington Road was to have Warehouse zoning and to build a truck stop. This sparked pushback from residents in San Marcos’ Blanco Vista subdivision, located about a mile from the location.

Kyle took the Warehouse zoning off the table and regrouped with PGI.

“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,” Mitchell said.

The concept plan for the development at Yarrington Road, which Kyle officials released earlier this year, serves as the blueprint for future development at the location.

Within the agreement are performance measures tied to incentives. For example, the development must accomplish the following to be reimbursed sales tax:

Build 300,000 sq. ft. of office, retail and hotel space

Provide at least 200 jobs

Construct the public infrastructure necessary for development (e.g., public roadway and water/wastewater lines)

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

This and other development agreements with the city of Kyle are available on the city’s website.

San Marcos Daily Record

(512) 392-2458
P.O. Box 1109, San Marcos, TX 78666