Kyle Takes the Reins in Innovation Corridor

KYLE, TX—As one of the fastest growing municipalities in the innovation corridor between Austin and San Antonio, Kyle and Hays County are actively investing in the infrastructure needed to accommodate future growth. However, this is something of a rarity. While developers regularly build speculatively in Dallas and Houston, it is an exception rather than the rule in the Interstate 35 Corridor between Austin and San Antonio, GlobeSt.com learns.

Los Angeles-based Majestic Realty Company plans to develop more than 500,000 square feet of speculative industrial space in Kyle. Majestic Plum Creek Business Park will be a mixed-use master-planned development situated on the southwest corner of Kohler’s Crossing and Kyle Crossing. The new development will include class-A concrete tilt wall industrial buildings used for manufacturing, light industrial, assembly, distribution, e-commerce, retail/wholesale sales and warehousing.

“Hays County is excited to partner with the city of Kyle and Majestic to bring this much-needed commercial infrastructure to this area. It is important to find opportunities to partner with our municipal counter-parts to encourage development in this county,” said Hays county commissioner Mark Jones.

Kyle entered into a Chapter 380 agreement June 19 and the Hays County commissioners court voted to approve a Chapter 381 agreement on June 26. The city and county agreements are performance-based rebates of new property taxes generated once the building is completed, payable over a five-year period. The maximum amount of rebate is estimated at $662,507 from Kyle and $435,564 from Hays County during the life of the agreement. However, the agreements would expire as tenants are secured, which means the incentive could be significantly less should the property lease quickly.

Majestic will be investing approximately $39.7 million with construction estimated to begin fourth quarter 2018. The performance-based incentive is estimated to generate $3 million in net new property tax revenue to Kyle and Hays County combined after the rebate during the next 10 years.

“The facility will help attract new jobs and will stimulate the economy of our growing city,” said Travis Mitchell, Kyle mayor. “For years, Kyle has been pursuing these types of projects. The revenue generated from large-scale industrial developments helps to set the tax burden traditionally placed on our homeowners. Thanks in part to our new status as a Triple-Freeport Tax Exempt community, we are finally landing world-class projects like Majestic. I could not be happier. It’s a great time to invest in Kyle.”

Under the Freeport Exemption, a company does not have to pay an inventory tax on qualified Freeport goods that leave Texas within a 175-day period. The passage of the Freeport Exemption by all three taxing jurisdictions designates the area as “Triple Freeport,” which makes the city and county more competitive for new jobs and investment.

Kyle is located along Interstate 35 and has experienced growth of more than 700% during the past 15 years. Kyle benefits from a pro-business climate with a committed, progressive and collaborative community.

Avison Young San Antonio facilitated the 46-acre industrial land sale to Majestic on behalf of its client, Plum Creek Development Partners. Tate Hinkelman and Marshall Davidson Jr. of Avison Young represented the seller in this transaction. Joe Birdwell of American Southwest represented the purchaser.

The Greater San Marcos Partnership/GSMP is the 501c6 regional economic development organization serving the San Marcos, and Hays and Caldwell counties. The GSMP mission is to promote sustainable, responsible and comprehensive economic development in the greater San Marcos region by implementing a five-year economic development strategic plan.