When you consistently rank among the fastest growing cities in the country, you need places to work, shop, eat dinner and live outside of acres of single-family homes. That's been the story of Kyle for the last several years.
The city, which is about 25 miles south of Austin, has swelled to nearly 66,000 residents. That's prompted Kyle leadership to focus on quality of life projects, from large mixed-use developments, revamping its downtown or even retail hubs to secure sales tax dollars from travelers passing through.
But employers are also needed. Notable companies like Tesla Inc. and its suppliers have set up shop in Kyle. There are other companies like Fat Quarter Shop LLC and Sovereign Flavors Inc. Now, speculative industrial space is coming online to support even more of that.
The ABJ reached out to Victoria Vargas, Kyle's economic development director, about the needs of the growing city. Her answers, edited for length and clarity, are below.
What kinds of businesses or sectors are you courting?
Based on the research and analysis outlined in our economic development strategic plan, Kyle is focused on recruiting businesses in key target industries: medical and health care, higher education, business and professional services, and warehouse/logistics and manufacturing. These sectors align with our workforce strengths and regional market opportunities. In addition, we are actively pursuing family-oriented destination entertainment. Kyle is a young and vibrant community, and adding entertainment options that serve both residents and visitors is a priority to enhance quality of life and keep more activity local.
Differentiators can be important. How do you think your city, economically or socially, differs from others in the region?
Kyle stands apart in the region because we are only about 30% built out, which means there is significant room for intentional, high-quality growth and investment. Every morning, 73% of our talented workforce leaves the city for jobs elsewhere, which creates an incredible opportunity for employers to tap into a ready-made labor pool right here at home. The city is proactively investing millions of dollars into transportation, roads and parks infrastructure on both sides of I-35 to support this growth.
Kyle embraces density and encourages vertical development, which makes us an ideal location for mixed-use projects and employment centers. We are also uniquely positioned with higher education assets, our own Austin Community College campus in town and Texas State University just minutes away in San Marcos.
Can you give us an example of how local leaders there have helped businesses thrive or expand?
Local leaders in Kyle are very intentional about supporting projects that align with our target markets. Beyond offering monetary incentives, our City Council and staff focus on removing barriers to development by expediting permitting and plan reviews for projects that need to move quickly. We recognize that developments, especially those tied to road bond projects, zoning changes or public-private partnerships, can be complex, but the City is structured to professionally manage these efforts. Our team works side-by-side with developers, guiding them through applications, rezoning and negotiations, ensuring projects move forward without unnecessary delays. This hands-on approach demonstrates that our leaders not only invest financially but also dedicate time, expertise and resources to help businesses succeed and strengthen Kyle’s long-term economic vision. The opening of Sprouts Farmers Market in the Brick and Mortar District, supported by city incentives and infrastructure planning, is a recent example of how strong leadership can create an anchor project that catalyzes further growth in the district.
What are some of the barriers to economic development that the city is working through?
Kyle is proactively working with landowners and developers to bring more sites to a shovel-ready condition. That means identifying and addressing infrastructure needs up front, so when opportunities arise with our target industries, companies will find prime, development-ready sites. But it’s not just about the land, we are also showcasing the many assets that make Kyle an attractive choice, including our proximity to international and regional airports, strong east-west transportation connections across the state, and our access to talent with a college campus in our city and a major university just minutes away.