Kyle’s Southern Gateway to get Master-planned Development

Regional collaboration between the City of Kyle, the City of San Marcos, Hays County and the Greater San Marcos Partnership has led to an agreement between City of Kyle and PGI, the owners of the land at Yarrington Rd and I-35, to develop the property without a truck stop.

“We believe we now have a common vision to move forward that addresses the economic development needs of the Kyle community and the desires of the property owner,” Kyle Mayor Todd Webster said. “We are grateful to PGI for their cooperation and compromise, as well as for the trust PGI has placed in us.”

“Throughout all of our meetings with the City of Kyle and Hays County we have stressed the investment in this area and the need to make this gateway to our community an area we can all be proud to showcase,” said San Marcos Mayor Daniel Guerrero. “This agreement is a step in the right direction, and an affirmation in the power of regional planning and cooperation.”

With this new agreement between PGI and the city, the development on the site would include a PGI-owned and operated 10,000-square foot convenience store with an eight-pump gas station. Webster said additional development on the property could also include office space, hotels, restaurants and retail shopping, but a truck stop or a sexually-oriented business would not be allowed.

“At this point, we are still discussing those details,” he said. “We will continue working with PGI to decide on the type of development that comes to fruition at that location.”

Kyle’s city manager Scott Sellers said a concept plan will serve as a blueprint for future development.

“Much of what is developed at that location will come from a conceptual plan that will be created by a consultant with expertise in this kind of business,” Sellers said.

He said the city will utilize the services of Catalyst Commercial and Gateway Planning to design a conceptual plan that is part of the Sustainable Kyle Initiative approved by Kyle City Council in February.

“That document will guide the city in terms of businesses that would have the highest potential for success at any given location,” he said.

The zoning of the property at Yarrington Rd. will be decided once the concept plan is complete. Sellers said the plan would also involve extending a wastewater line to that area. “Kyle estimates spending about $900,000-$1,000,000 to extend a wastewater line to that area, made possible through a partnership with the City of San Marcos, which will bring in an estimated 1,000 LUEs,” he said.

“This allows us to postpone the need for an approximately $2 million lift station for anywhere from 5 to 7 years.” That $2 million is part of an estimated $6 million plan to bring wastewater service to the I-35 Corridor south of Center Street, according to Assistant Kyle City Manager James Earp. He added that Kyle would recoup capital investment dollars through recovery fees as more businesses are developed on the PGI and surrounding properties.

Sellers said Kyle will participate with additional infrastructure in and around the location including road construction, utilities and site preparation in exchange for a more prominent development role in the project.

“The past several weeks have been encouraging in terms of the exchange of ideas and cooperation among many entities, including PGI, the City of San Marcos, Hays County and the Greater San Marcos Partnership,” he said. “This was truly a regional effort to bring the highest quality development to that area.”

Hays County Commissioner Ray Whisenant said he is pleased with the direction of the new development agreement. “This new agreement offers an attractive and viable business plan for that property. It is good for the county, for Kyle and for San Marcos,” he said.

“The intersection of Yarrington Road and IH-35 is a vital intersection for Hays County, and acts as a gateway between San Marcos and Kyle,” said Adriana Cruz, President of the Greater San Marcos Partnership. “The partnership between the two municipalities, Hays County and the landowners, is a strong example of the collaboration that creates a competitive region for job creation and prosperity.

This plan will provide highly beneficial information that will help guide the development of this area into a fruitful economic hotspot for the corridor, leading to opportunities for the creation of high quality jobs and enhancing the quality of life for all residents in the area.”