Kyle’s economic development strategic plan is in line for renovation, as the 2008 plan expires this year.
Economic Development Director Diana Blank said a new plan would identify the needs and wants of the growing community, it would address changes, strengths and weaknesses in Kyle, what business expansion trends look like today and how they would correlate with the city, what a natural fit would presently be in Kyle and how much property is available for business to come in.
Despite Kyle not having an economic development corporation that can kick-in forgivable loans or monetary gifts, like surrounding cities, Blank said businesses are attracted to Kyle because of its location on the I-35 corridor, logistics, affordability, transportation, competitive tax rate and excess of available property.
Also, Kyle can offer sales and property tax abatement, as well as waivers for development fees.
Here we present five development agreements Kyle used as incentives to attract businesses its 2008 plan calls for – bio-medical firms, technology companies, business headquarters and logistics, and retail.
Seton/SCC Project
Hospital complex and two medical office buildings on approximately 215 acres
Tax rebates of sales tax from businesses within the property: 2010-2012 – 67%, 2013-2024 – 33%
Effective: Sept. 25, 2007
Developer must:
• Build 200-bed hospital and at least two medical office buildings
• Voluntarily request annexation into city limits
• Plat and dedicate to public all right-of-way for extension of FM 1626 (Kyle Parkway) east of IH-35, public utility and drainage easements, and green space for public hike-and-bike trails
• Construct Kyle Parkway extension of IH-35 to Dacy Lane
• Contruct traffic signals, retention wall, drainage improvements, landscaping
RSI, Inc.
Manufacturing site purchased from city of Kyle for $762,300
City provides $100,000 interest-free financing for RSI
RSI’s annual $152,460 payments offset by FTE job credits. City provides $3,050 credit against annual payment for each FTE ($6,100 annual credit if FTE residents within Kyle city limits)
Effective: Feb. 16, 2007, five year agreement, with three one-year extensions available
Developer must:
• Construct 40,000 square foot manufacturing facility at cost of approximately $3 million
• Install up to $500,000 in furnishings and equipment
• Employ a minimum of 50 full-time equivalent employees
• Make annual payments to Kyle of $152,460 for property payment
• Create and maintain a local intern program and provide summer internships to at least two Hays CISD students each year
DDR DB Kyle, LP
Construction of retail development at southwest corner of IH-35 and Kyle Parkway
City pays developer incentive not to exceed $6,494,515:
• 50% of Kyle’s portion of sales tax resulting from city’s share of taxes collected from businesses developed on the site from Jan 1-Dec. 31, 2010
• 50% of sales tax for sales occurring each year thereafter for nine years
• If not enough taxes are collected during the first 10 years of contract to cover initial investment by developer, the remaining balance will be calculated as of Jan. 1, 2020 and then 40% of taxes will be paid to developer for total of five additional years.
Effective: Sept. 26, 2008
Developer must:
• Include one major retail department store having at least 100,000 square feet, a movie theater with a minimum of 34,000 square feet, and total aggregate square footage of 740,000
• Construct common public infrastructure
• Construct Marketplace Avenue
• Install water, sewer, and and drainage improvements
Image Microsystems
E-waste recycling plant
City rebate:
• 100% of city property taxes levied on all new equipment & machinery and on incremental increase in taxable value of all new real property improvements
• 100% of Kyle’s portion of sales taxes on sale of taxable items from Image Microsystems
• Rebates for fees for building permits and re-zoning application fees
Effective: Dec. 29, 2011 - Dec. 30, 2016
Developer must:
• Create at least 131 new full-time jobs in year one, additional 50 new full-time jobs in year two and maintain 181 full-time jobs for remainder of term of agreement, with pay no less than $16/hour and full time employees receiving full company benefits
• Image Microsystems will invest at least $3.375 million by Dec. 30, 2012 at 3700 Kyle Crossing in real property, improvements and new equipment and machinery
Nomoland Company, LP
Commercial retail
Maximum Grant Amount: $227,000
Effective: Feb. 21, 2012
Developer must:
• Deposit in escrow $162,367 for traffic signal improvements
• Construct traffic signal and roadway improvements at intersection
• Develop property including Walgreens and Sonic and additional retail and commercial space
• Make sure Walgreens opens by 9/30/12 and Sonic by 12/31/12
