Construction is officially underway on Kyle Park, a 101-acre mixed-use development at the northwest corner of Interstate 35 and Bebee Road, where city officials and developers held a groundbreaking Wednesday. The project is billed as a new retail and housing hub for South Austin and Hays County, with plans to pack the site with big-box anchors, restaurants, entertainment, office space and multifamily housing.
Groundbreaking and the pitch
The ceremony at 246 Republic Drive marked the formal start of construction and brought out city leaders alongside NewQuest Properties executives. The City of Kyle projects the development will create at least 800 full-time jobs and generate about $2.5 million in sales tax and $1 million in property tax revenue every year, according to City of Kyle.
Confirmed tenants and uses
"We're thrilled to bring Kyle Park to life for the residents of Kyle," said Andrew Alvis of NewQuest, according to the city's release, which lays out a long list of national retailers and restaurants. Confirmed tenants include Dick's Sporting Goods, T.J. Maxx, HomeGoods, Barnes & Noble, Burlington, BJ's Brewhouse, Raising Cane's, Chili's, EoS Fitness, Pacific Dental and Mister Car Wash, among others, the city notes.
Approvals, incentives and the long game
NewQuest's plan secured key city and county approvals along with a package of performance-based incentives that helped push the project forward. Local economic development coverage put the plan at an estimated $250 million in capital investment with roughly $41 million in incentives tied to benchmarks for retail build-out. As outlined by Kyle Economic Development, the agreements include a tax-increment financing zone and delivery milestones for retail square footage.
Roads, trails and traffic
Kyle Park is slated to rise alongside voter-approved road bond projects aimed at improving access on the city's east side, including the Bebee Road realignment and the Kohlers Crossing-to-Seton Parkway extension, which will feature an I-35 underpass and a new roundabout near the development. The road bond materials say those upgrades are intended to link the project into the city's Vybe Trail system and help ease traffic for nearby residents and shoppers, per the Kyle Road Bonds site.
What's next
Site work and grading began in late 2025, and the project is expected to roll out in phases as pads are leased and tenants open, according to local coverage of the development. The city's Kyle news site has a fuller rundown of confirmed tenants and project amenities, and NewQuest plans to announce specific store openings and construction milestones as leasing progresses, per KyleTXNews.
