500,000 Square Feet Of New Industrial Space Expected In 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,” Mitchell said. 

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 incentive could be significantly less should the property lease quickly.

Majestic will be investing approximately $39,700,000 with construction estimated to begin 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-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.