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  • Writer's pictureBonnie Palmer

What's The Big Deal About Kyle, Texas?

Perhaps nowhere in the budding metroplex is the manufacturing boom more pronounced than in Kyle, which is just south of Austin.

Alliance Industrial Co., the new industrial wing of one of the Austin metro’s most active residential developers, has announced it will build the first-ever speculative project of 1 million square feet or more in the region between Austin and San Antonio in Kyle.

To put that into perspective, it’s like building a footprint of more than a dozen H-E-B stores.

The Houston-based company received incentives from both the city of Kyle and Hays County that will aid with the development of Kyle/35 Logistics Park just off I-35 near the corner of Logistics Drive and South Goforth Road.

Codenamed in economic development discussions as “Project Fire Engine Red,” the development will include five state-of-the-art logistics facilities ranging in size from 140,000 square feet to 475,000 square feet.

Officials said the project has initiated a $115 million capital investment and is estimated to bring approximately 1,500 jobs with an average pay of around $41,600.

Other large employers that have moved into the city recently include Redbird Flight Simulations Inc., manufacturer of flight simulation equipment; Plastikon Industries Inc., a plastic parts manufacturer that supplies Tesla Inc. and Toyota Motor Corp.; Simwon North America Corp., also reportedly a Tesla supplier; Inc., Lowe’s Cos. Inc. and ENF Technology Co. Ltd.

Soon, Sovereign Flavors — a beverage development and flavoring company from Santa Ana, California — will plant its flag in the city. Sovereign Flavors will move into an 80,000-square-foot headquarters, according to an announcement from Gov. Greg Abbott. The facility will also house the company’s manufacturing, quality assurance and research and development departments.

For California-based Outer Aisle Gourmet LLC, moving into a Kyle facility means it can ramp up production of its cauliflower low-carb bread, potentially increasing revenue six-fold.

The consumer packaged goods company expects to bring in $50 million this year using its Santa Barbara manufacturing plant. But Outer Aisle has signed a lease in Kyle for a 117,000 square-foot manufacturing facility — triple the size of its Santa Barbara plant — that is expected to increase revenue to $300 million.

Construction will begin in January. It will take between nine to 12 months for the facility be operational, estimated Jeanne David, founder and CEO of Outer Aisle.

The Plum Creek Industrial Center, where Outer Aisle’s facility is located, is a hub for a variety of large manufacturing operations.

Also in the Plum Creek Industrial Center, a fast-growing, billion-dollar urban farming company based in Europe is ramping up its second U.S. growing center in Kyle. Infarm occupies a 73,000-square-foot space at 19200 Marketplace Ave. That’s roughly the size of an H-E-B grocery store. The facility is expected to grow more than 75 plants and will produce more than 2.2 million pounds of salad every year.

Kyle also is in the eye of Elon Musk’s team at The Boring Company.

The tunneling startup has gotten the go-ahead to start working on an underground pedestrian tunnel in the city. On May 3, it was approved by Kyle City Council for a $50,000 professional services agreement to begin engineering work.

While it marks a significant milestone for the company, many approvals remain before Boring Co. can begin work on the tunnel, which would connect the Plum Creek subdivision to the $90 million, 39-acre second phase of the Kyle Crossing mixed-use development that is expected to bring destination dining and retail to the city.

One of the biggest new neighborhoods on the city’s horizon is coming courtesy of Continental Homes of Texas LP, a subsidiary of Arlington-based D.R. Horton Inc. It is developing about 1,000 acres for a community that will be called Prairie Lakes and ultimately have about 2,200 lots for single-family-homes, as well as apartments and duplexes.

Popular eateries are also eager to capitalize on Kyle’s booming population — and some of them are getting subsidies to set up shop.

Kerbey Lane Cafe, Mighty Fine Burgers and barbecue joint Smokey Mo’s have projects in the works.

And Austin icon Z’Tejas Southwestern Grill is headed to Kyle under an incentives program designed to attract more sit-down restaurants to the city. Walk-On’s Sports Bistreaux also took advantage of the program recently.

The incentives program was designed to fill the gap of sit-down restaurants missing from the city’s food scene.

“Our residents currently deal with a lot of frustrations in regards to being a rapidly growing city,” Kyle Council Member Yvonne Flores-Cale said. “The need for new and different food options has always been high on the priority list for the same residents.”

Courtesy of Austin Business Journal. See the full article here.

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