A quilting supplies company is preparing to expand into a $31 million, 208,000-square-foot facility in Kyle, where the headcount could eclipse more than 300 people — which would make it one of the largest employers in the city.
That's according to an April 21 announcement from the Greater San Marcos Partnership, which said Fat Quarter Shop LLC intends to depart its Buda facility and move to 425 Plum Creek Meadows, part of the Plum Creek master-planned development, after it's completed in January 2024.
The company intends to retain its more than 250 employees while adding 78 additional personnel, with an average wage of at least $46,500, according to GSMP. That would rank it among Kyle's five largest private-sector employers, a group that also includes Ascension Seton, FedEx Corp. and Lowe’s Cos. Inc., according to the city.
"We are excited for the opportunity to move to Kyle and certainly stay in Hays County," Fat Quarter Shop co-owner Kevin Jolly said in a statement. "The new space will allow us to expand our operations and improve efficiencies in ways that just aren’t possible currently. We’re also very happy that we won’t be moving very far, and it will not be a major change for our employees, most of whom live in the immediate area."
Jolly told the ABJ that the numbers related to the expansion are preliminary and that the company is not subject to any specific job and investment benchmarks.
Kimberly Jolly founded the Fat Quarter Shop in 2003. She began the shop as a side business while working in the corporate world, cutting, packing and shipping out of her house during evenings and weekends. As the business grew, Kimberly and husband Kevin opted to make it a full-time operation.
The company now sells fabrics, quilt kits, needles, patterns and other sewing and quilting materials, catering to experienced quilters and beginners alike, according to its website. Its current location is at 2899 Business Park Dr. in Buda.
"We congratulate Fat Quarter on their expansion efforts," GSMP President and CEO Jason Giulietti said in a statement. "The diversity and innovation along our corridor continue to amaze us. Expansion and diversification like this help shift increasing productivity, creating jobs and providing the base for sustained growth."
The Hays County Commissioners Court on April 11 unanimously approved a Chapter 381 incentives agreement with Fat Quarter Shop LLC, under the codename Project Create. There was no public discussion and the commissioners did not reveal any details about the agreement.
While county officials have not responded to multiple requests to provide additional details about the incentives agreement, a copy of the agreement obtained by Austin Business Journal noted that Fat Quarter Shop intends to make a $31 million investment in capital improvements at the site by Dec. 31. In return, the county will provide a 25% property tax abatement each year from 2024 through 2028, not to exceed a total of $121,652. The company is required to maintain its current job totals and add at least 78 jobs, while also opening the facility by Dec. 31, 2024.
Victoria Vargas, Kyle's director of economic development, told ABJ that the city has not entered into any incentives agreement with the company.
"I’m happy Kyle had the space available for the Fat Quarter Shop to relocate and expand," Vargas said in a statement. "The city has spent several years working with the Plum Creek developer to have shovel ready sites like this for businesses to build or relocate. I’m just glad we were able to keep these jobs in Hays County."
Plum Creek, west of I-35, has more than 2 million square feet of commercial space, in addition to 5,000-plus homes, according to online information about the community. The development has attracted other businesses such as low-carb bread maker Outer Aisle Gourmet LLC and urban farming company Infarm.
Kyle, which is about 22 miles south of downtown Austin, is in the heart of one of the fastest-growing regions in the country, and has seen its population grow from 28,016 in 2010 to an estimated 51,789 in 2021, according to U.S. Census Bureau figures. That population growth has attracted a slew of new employers.