AUSTIN, Texas — A new 45-acre mixed-use development is coming to Kyle.
On June 18, the Kyle City Council approved the construction of Project Two Step, a new development to be built on FM 150 between Mikey Court and Hill Street.
Project Two Step will be split into two tracts of land along FM 150: 15 acres to the east of FM 150 and 30 acres to the west. The development will be split into three parcels consisting of retail and dining options, office space and multifamily residential units, with a wide-ranging collection of amenities that include the construction of an amphitheater, dog park, additional park land, Vybe trail construction and a parking garage structure.
Requirements of the Development Agreement include acquiring pre-approved building materials, utility and capacity upgrades and TxDOT improvements to FM 150 east, which include new deceleration and acceleration lanes, an additional signal to allow pedestrian movement between developments, median modifications, turn lanes and enhancements to landscaping.
The City of Kyle Office of Economic Development said the expected revenue from this development is estimated at $5.3 million in sales tax and $10 million in property tax over the next 20 years. The money would go toward the City of Kyle’s Tax Increment Zone No. 6 to provide public improvements.
To help fund the project’s amenities, the Kyle City Council approved a performance-based Chapter 380 agreement with commercial real estate and development firm Capela, who will lead the project, granting a 50% rebate on the property and sales tax generated over the next 20 years.
One stipulation of the agreement requires the developer to complete the items listed in Phase 1, which include the parking garage structure before any multifamily units become available. The 380 agreement also outlines the possibility of halting payments should improvements not be finished by the performance deadline in following phases of development.
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