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500,000 Square Feet of New Industrial Space Expected in Kyle

Kyle, Tex - Los Angeles based Majestic Realty Company plans to develop over 500,000 square feet (SF) of speculative industrial space in Kyle, Texas, just 30 minutes south of Austin. As one of the fastest growing cities in the "Innovation Corridor" between Austin and San Antonio, the City of Kyle and Hays County are actively investing in the infrastructure needed to accommodate future growth. 

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, office, 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. 

The City of Kyle entered into a Chapter 380 agreement June 19th and Hays County Commissioners Court voted to approve a Chapter 381 agreement Tuesday, June 26th. The City and County agreements are performance-based rebates of new property taxes generated once the building is completed payable over 5 years. The maximum amount of rebate is estimated at $662,507 from Kyle and $435,564 from Hays County over the life of the agreement. However, the agreements would expire as tenants are secured, which means the inventive could be significantly less should the property lease quickly. 

Majestic will be investing approximately $39,700,000 with construction estimated to being Q4 2018. The performance-based incentive is estimated to generate $3 million in net new property tax revenue to the city of Kyle and Hays county combined after the rebate over the next 10 years. 

"The City of Kyle is thrilled to partner with Majestic Realty on their new industrial park. The facility will help attract new jobs and will stimulate the economy of our growing city." said Travis Mitchell, Mayor of Kyle. "For years, Kyle has been pursuing these types of projects. The revenue generated from large-scale industrial developments helps offset the tax burden traditionally placed on our homeowners. Thanks in part to our new status as a Triple-Free 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.

 

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About Majestic Realty Co. 

Celebrating its 70th anniversary in 2018, Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. With more than 84-million-square-feet in its portfolio, Majestic provides real estate solutions for tenants large and small, creating jobs, tax revenue, and community benefits from across the country. Headquartered in Southern California, Majestic has regional offices in Atlanta, Bethlehem, Dallas, Denver, Fort Worth and Laredo, Las Vegas, Portland, and Phoenix. 

About the City of Kyle 

The City of Kyle's Economic Development department is committed to quality job growth and economic opportunity for the City of Kyle. Kyle is located 20 miles south of Austin and 50 short miles from San Antonio along Interstate 35 and has experienced unparalleled growth of more than 700% over the past 15 years. The City of Kyle benefits from a pro-business climate with a committed, progressive, and collaborative community. Kyle has an affordable and growing workforce, quality education base, and is strategically located in the heart of one of the fastest growing corridors in the nation. For more information, contact the Economic Development department at 512-262-3926 or email diana@cityofkyle.com

About Greater San Marcos Partnership

The Greater San Marcos Partnership (GSMP) is the 501c6 regional economic development organization serving the City of San Marcos, and Hays and Caldwell Counties focused on positioning the region for a wider diversity of quality jobs for all with higher wages. 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. 

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