Kyle city leaders, along with Hays County officials, finalized an incentive agreement this month with an in-place high-tech manufacturer they believe will shepherd job growth in the area.
The agreement also alleviates a tax billing error in which RSI, Inc. was not billed for $430,000 in property taxes over a six-year period.
According to a Kyle press release, the agreement between RSI, Kyle and Hays County is a “business expansion and retention project” that could bring more jobs to the area.
The plan, which was passed by a 5-1 vote by the Kyle City Council in September, would incentivize RSI’s expansion with $480,000 from the city, which includes $246,000 in a forgivable grant.
In addition, the city is offering $234,000 in an interest free loan in exchange for job creation.
Per the agreement, for each year RSI meets the commitments of the agreement, Kyle will forgive ten percent of the outstanding balance of the grant.
Diana Blank-Torres, Kyle Economic Developer, said as part of a regional coordination effort, Hays County also passed an economic incentive to aid RSI’s expansion.
Hays County would reimburse the city $123,000 over a ten-year period, provided RSI meets job creation targets.
RSI is a high tech manufacturing and R&D firm based in Kyle specializing in the ruggedization of computer equipment and new technologies related to military applications, oil field and aerospace industries. The firm set up its headquarters in Kyle in 2007 and now has 60 employees.
“RSI is one of our top three target markets for economic development,” Blank-Torres said. She added the firm would create 82 additional jobs over the ten-year period, with jobs having a median salary of $42,000.
Blank-Torres added that RSI would begin 24-hour operations.
RSI will also provide high-level networking opportunities for Kyle through the company’s existing relationships, which could aid the city in recruiting other firms.
Kyle City Manager Scott Sellers said this business expansion and retention project is a strategic move by the city to continue to attract and retain high tech firms.
“Providing the incentive to expand its operations is a positive way for Kyle to continue to attract firms that will bring high quality jobs and more sales tax to the city,” he said.
In 2016, city officials discovered RSI had not been properly billed for property taxes between 2011 and 2016.
Sellers said the issue began in 2011 when the city transferred the property on which RSI had built its offices, to RSI, the Hays Free Press reported in September.
At the time, RSI’s certified public accountant reached out to local taxing entities regarding taxation, but was told RSI had no tax obligation. RSI made calls to the city and county over the years regarding the taxes, but were told the company didn’t owe property taxes.
