Kyle seeks restaurateur to turn city-owned site into destination

View of Kyle, Tx's Heroes Memorial Park at sunset with watertower in background
Projects
Nov 05, 2024
Sahar Chmais – Staff Writer, Austin Business Journal

The city of Kyle is on the hunt for a restaurant operator to take over a site in one of its busiest hubs.

A request for proposals for a restaurant to infill a roughly 1-acre, city-owned pad site in Kyle's Brick and Mortar District has been issued, with submissions due by 3 p.m. on Dec. 6. Victoria Vargas, Kyle's director of economic development, said the goal is to create an attraction that not only provides city residents with a place to dine out but also attracts people from across the region.

Kyle, located south of Austin, has more than 62,000 residents.

The pad site would support a maximum building size of 5,000 square feet. The Brick and Mortar District has a height restriction of 65 feet, or about five stories, according to Will Atkinson, director of planning for the city of Kyle.

Aside from bringing in a unique dining concept, the restaurant operator ideally would enhance the pedestrian-friendliness of the area, Vargas said. The Brick and Mortar District, developed by Momark Development LLC, is home to Heroes Memorial Park and La Verde park, and more venues and attractions are planned.

The Brick and Mortar District is slated to have about 2,500 residences, 150,000 square feet of retail space, 250,000 square feet of office space and 35 acres of parkland and trails. Terry Mitchell, president of Momark Development, previously estimated that the total cost will end up being between $500 million and $600 million.

The city wants the restaurant to have outdoor patio dining and be a place that’s "unique and upscale, yet family-friendly," according to the RFP. Additionally, the restaurant operator would show strong financial backing for construction and operation with a proven track record for success and stability. Lastly, the city wants to attract a seven-days-a-week operator that at least offers lunch and dinner, with weekend brunch as an added benefit.

The project would start out with a long-term lease. But there could be an opportunity to own the property eventually if the operator is successful and demonstrates longevity, Vargas said. Financial incentives also could be brought into play, such as the possibility of property or sales tax rebates for certain periods of time, depending on the nature of the project.

The Brick and Mortar District is nestled at the intersection of Farm to Market Road 1626 and Kohlers Crossing — an area booming with projects, such as a retail center anchored by Sprouts Farmers Market that has an additional 18,000 square feet for other retail tenants.

An RFP for a restaurant at the location has been long-planned, Vargas said.

The Brick and Mortar District development agreement conveyed certain parts of the 138-acre mixed-use district to the city for economic development purposes, she said. That includes includes Heroes Memorial Park that the restaurant overlooks, as well as an approximately 11-acre sportsplex, a nearly 2-acre property for a convention center/hotel and a nearly 2-acre tract for offices, according to a presentation by Momark Development.

“Heroes Memorial Park is a beautiful park dedicated to veterans and first responders, and so it was always envisioned to have a restaurant that would overlook the park, and it's beautiful,” Vargas said.

“We intentionally held the RFP until Sprouts broke ground, and we had our ceremonial groundbreaking, because then restaurateurs and developers could see, OK, this is going to be a very active intersection and corner of the Brick and Mortar District,” she said.

Submissions under the RFP must be sent to the city in the form of four hard copies and one digital copy.

Find more information here: https://www.cityofkyle.com/purchasing/bids-rfp/rfp-2025dd-12-heroes-memorial-park-restaurant-pad-site

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