KYLE — At its Oct. 2 meeting, Kyle City Council listened to a presentation regarding mixed-use development “Project Sahara,” or The Grove, on a 99acre tract at 1100 E. FM 150, between FM 150 and CR 158.
“We’ve been working really diligently over the past two years on this project to really — with staff and with stakeholders — try to understand this site and the community needs from land use, transportation and infrastructure perspective,” said Abby Gillfillan with Lionheart Places, representing Streamline Advisory Partners.
According to Gillfillan, on the city’s recently approved Future Land Use Map, this area was designated as a regional commercial center, which is included in the site, as well as “complete neighborhoods.” She goes on to explain that a complete neighborhood entails parks, gathering spaces, etc.
“We understand that this tract is located in a key spot within the town that has this opportunity to connect Goforth Road from East FM 150 all the way to Yarrington Road, which is also Loop 130, to provide an outlet to relieve traffic,” Gillfillan said, while specifying that this connection would include two roundabouts.
The project has several goals: • Creating an East Kyle commercial and civic hub by anchoring the development with commercial services and shared community spaces
• Infrastructure and amenities, including the Vybe Trail
• Creating an active, walkable and vibrant community
• Providing housing options that meet the needs of residents for a variety of ages and income levels Already planned for the development are 400 units of single-family townhomes in the west, 300 market rate multi-family units, 350 affordable multifamily units, 11.5 acres of commercial property, a 15,000 square-foot grocery store and 10.5 acres of parkland, with an indoor meeting space, restrooms, water facilities, water foundations, covered pavilion, sport court, playgrounds and more.
Some of the potential buildings within the commercial property have been schools, daycares and more, said Gillfillan.
“Our phasing plan really is starting at County Road 158, that’s because that is where our wasterwater is accessed,” explained Gillfillan. “The other reason for that is that the permitting of the intersection — both roundabout intersections — along Goforth at FM 150, will be permitted with [the Texas Department of Transportation] and just takes a little bit longer.”
Stressing that a mixed-income community is important, she said that the project will be partnering with the Capital Area Housing Finance Corporation, a tax exempt entity. In exchange for the tax exemption, the development will provide high quality housing to families earning less than 5060% of the median family income for all of the 350 affordable multi-family units.
There will also be smaller backyards for some homes in an effort to preserve water conservation and, instead, transfers the space to shared community spaces that can be managed by a homeowners association (HOA).
Speaking about the proposed financing structure, Director of DPFG Zach Crawford explained that they will be seeking approval of a Public Improvement District (PID) for the infrastructure costs, as well as approval for Tax Increment Reinvestment Zone (TIRZ) #4 to be used as a partial offset to the annual PID installments.
“What we have targeted as a participation rate from both the city and county is roughly 38% on an annual basis,” said Crawford. “Our targeted total equivalent tax rate, inclusive of the PID and the TIRZ, is roughly $2.67 per $100 [assessed value] … The incremental revenue to the city of Kyle after the TIRZ is roughly $630,000 per year.”
Other financial details include:
• PID bond term: 30 years
• TIRZ term: 30 years
• Minimum value to lien ratio is 3:1
• Maximum authorized improvements to be funded by PID bonds: $25 million
• Gross estimated PID bond proceeds: $19.2 million
• Total estimated gross TIRZ revenues from city applied to PID offset for Goforth Road inclusive of principal and interest: $10.2 million
• Total estimated Goforth Road costs to be funded via excess TIRZ revenues: $3.3 million “It’s important to keep in mind all the numbers that we’re talking about tonight are the high end of our ask,” Crawford stressed.
Beginning the discussion on the dais was council member Robert Rizo, who immediately requested an assurance that the entirety of Goforth Road be built: “Without roads, you’re stuck and making sure we have the entirety of this road is really, really important to me.”
“I just want to remind you that this project was brought to us because the assurance of a grocery store. When I see it in phase B, that’s concerning to me,” said Rizo. “One of the biggest things was making sure we get that grocery store … I think it’s a great project, [but] I’d love to see a lot more safeguards in place when it comes to all the infrastructure coming in, making sure that we’re protected as a city.”
Continuing on the concept of roads, council member Michael Tobias stressed the traffic that already occurs on FM 150 is aggravating to residents and those that use the road to get to Highway 21, so the addition of 400 single-family homes is only going to increase this issue.
“What’s going to happen to [FM] 150? What if the county bond doesn’t pass and there are no improvements to [FM] 150? … I know that there is going to be a connection between [County Road] 158 and [FM] 150, but that will still not alleviate any traffic,” said council member Daniela Parsley, agreeing with Tobias.
According to Gillfillan, a three-party traffic impact analysis has already begun, but the idea is that with the extension of Goforth Road, it will provide more options for individuals to drive in various directions, relieving traffic on FM 150.
Council member Bear Heiser questioned whether a tenant has been identified for the grocer, to which Gillfillan stated that the developer has been in discussions with Marigold Market.
According to a representative from the business, Marigold Market has been in the industry for more than 30 years.
“We really make sure that every store that we start really tailors the community where it’s in. So, Marigold Market is in Southwest Austin. Everything from the food selection to the design, we tailored to that neighborhood and that community … We plan on doing that here, as well, and then, obviously, keeping in mind anything that the neighborhood would need — a cafe, coffee — pretty much anything that we can provide, we’re happy to provide,” concluded the representative.
The same family also runs Garlic Creek Country Market in Buda.
Although she believes the store is 'cute,' Parsley emphasized that it is not the full grocery store needed: “I’m definitely a firm no for this one. I’m totally opposed to this type of development without the improvements of [FM] 150.”
“Is that something you could discuss with Marigold [Market] to see, if there were incentives on the table, if they would consider expanding in size?” asked Heiser. “I’ll just say to council, we’ve given out a lot of incentives that I balk at and this is a much needed incentive to be given if it would bring a substantial size [store].”
Council member Miguel Zuniga agreed with this statement.
Due to the fact that the development agreement has not yet been approved by council, all aspects remain up for negotiation.
If approved, Gillfillan stated that as soon as zoning is completed, the developer will begin the design process for Goforth Road, as that is the first step.
To listen to the full presentation, visit bit.ly/4eSL7to.
