City of Kyle enters a $2.5 million agreement for multi-story building downtown

With a 6-1 vote, Kyle City Council agreed to a building contract with Cadence McShane Construction for  a $2.5 million project at 104 S. Burleson.

The multi-million budgeted project will be a multi-story commercial building across the street from west-facing Krug Activity Center. Design plans include a first floor restaurant, second floor office space and a third floor event venue with a covered outdoor component.

“When city council approved the budget for this fiscal year, it included this amount in our general fund,” City Manager Scott Sellers said about the seemingly high price tag. “Not knowing if or when we were going to receive money from (Kinder Morgan Texas Pipeline), we preemptively included the $2.5 million. Since we received that check much sooner than expected ... there’s now more money in the budget.”

The $2.7 million Kinder Morgan settlement fund and the $2.5 million budget surplus will cover both the redesigning of Mary Kyle Hartson Park and the new building construction. A plan for how the council will reimburse the remaining amount in the general fund is up to future budgetary conversations.

As part of the city’s efforts to improve the downtown square, the building will add new mixed-use space to foster commercial and pedestrian traffic as well as contribute to Kyle’s branding as a regional tourist destination, according to Communications Manager Rachel Sonnier.

A taskforce has been assigned to meet with the Cadence McShane team and regularly update city council with design concepts. Current members of the taskforce include councilmen Dex Ellison and Robert Rizo, City Manager Scott Sellers and Assistant City Manager James Earp. The city also plans to collect public feedback once a detailed schedule and design is generated.