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Thursday, March 19, 2026 at 3:33 PM
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Kyle City Council hears Crossroad District proposal

Kyle City Council hears Crossroad District proposal
The Crossroad District is a proposed development on the east side of Kyle, near Ascension Seton Hays hospital. In the graphic, the yellow represents the mixed-use area, amounting to 56.18%, and the red is the location for retail and services at 43.82%.

Author: GRAPHIC COURTESY OF CAPLAND DEVELOPMENT

KYLE — Kyle City Council heard plans for a proposed mixed-use development at its March 3 meeting.

The Crossroad Development, also known as the Philo Project by city staff, was initially annexed and zoned in 2002, but discussion surrounding the potential mixed-use zoning district occurred in January 2023.

Because of challenges “in getting the property to work within the zoning code itself,” the property owner began considering a planned unit development (PUD) instead, said Jason Lutz, assistant director of Planning & Zoning. The PUD was then submitted in August 2023, with a development agreement (DA) a year later in 2024.

The development is planned to have 177,000 square feet of commercial space and 536 multi-family units, along with a 0.22-acre donation of a right-of-way for a roundabout.

Capland Development, which is working on the Crossroad Development, previously created the Parkton Square residential community in Kyle.

Michael Lineham, president of LSI and Capland representative, explained that the development site is located off of Kyle Parkway and Dacy Lane, near Ascension Seton Hays hospital. A traffic study would be conducted at the time of the site plan, he said.

“You can see that on the north side of the property, along Kyle Parkway, we’re locating retail services immediately adjacent to the hospital to serve the patrons of that area and on high frequency traffic areas for that development to the west,” said Lineham. “We also have additional commercial development that also contemplates hotel sites. There has been interest in this property for hotel sites [to the west] and the city does benefit from hotel occupancy tax on that.”

Additionally, there will be an interior greenbelt for residents and connectivity throughout the site.

Lineham also noted that there are no requests for financial incentives and no significant variances to code.

Council member Lauralee Harris began the discussion by stating that the plans are significantly improved, compared to their previous plans.

She first asked the developers to consider a parking garage, rather than street parking, and water conservation, which council member Michael Tobias also supported.

Lineham stated that the economic feasibility would have to be considered for a parking garage and that they have constructed other projects that have rainwater recapture, purple pipe, grey water use and more.

“In the mixed-use area that we have, is there any way that we can consider having affordable workspaces built in? It’s something that I am really wanting for the city to start pushing because we do have a lot of development and a lot of businesses and, at the same time, we want to make sure that we’re prioritizing opportunities for local business owners to be able to expand into these newer, nicer areas,” said council member Claudia Zapata, to which Lineham replied that it is a possibility.

The representative also shared that the 13,000 square-foot area designated for office facilities could be transformed into retail space, if those plans do not work out.

One of the lots on the site, Lot F, could be a library, posed Tobias.

A little bit more hesitant on the project was Mayor Yvonne Flores-Cale, who wants more information, due to its proximity to Fuentes Elementary School.

“I’m not asking for schematics because I know that costs money and I’m not going to ask you guys to do that, but I need a better idea of, like, it says greenbelt, but what does that look like? What does that entail,” asked Flores-Cale. “We can’t control what you guys stick in there; we only do the zoning, but I would hope if we gave you this guidance and we approved this, that you guys would bring some things that are unique to Kyle, [such as a YMCA].”

Council member Courtney Goza added to this idea, suggesting a Mediterranean restaurant or a small Asian grocery store.

Following council direction, the item will come back to council in the future for a formal approval.

To listen to the discussion, visit bit.ly/40r4Z1l.

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