Developer presents revised ‘Project Sahara’ plan; council presses for stronger retail and phasing safeguards

City of Kyle staff and the developer of “Project Sahara” (also called Sahara Grove) returned to the City Council on Jan. 21 with a revised development plan that would add a new mixed-use neighborhood east of I‑35 and fund key road and utility projects with a Public Improvement District (PID).

The developer, represented by Abby Gilfillan of Lionheart Places and managing partner Joel Pollock of Streamline Advisory Partners, asked council to authorize a PID and a CCN swap that the city would need to accept to route water and wastewater services to the site and to allow the city to construct the South Go Forth road extension through the tract.

Why it matters: The project proposes regional transportation and utility improvements meant to relieve congestion on FM 150 and to create an East Kyle commercial and civic hub. Council members said that how the development is phased and financed will determine whether residents actually see the promised retail, parks and roads or only housing.

The plan summary presented to council included: about 400 fee‑simple single‑family units, 300 affordable multifamily units and 300 market‑rate multifamily units; roughly 96,000 square feet of commercial and civic space (including a three‑acre civic parcel the developer said it would dedicate to the city); more than 10 acres of parks and open space; and a proposed PID with a 2.7 tax rate, a maximum authorized PID‑funded improvement cap of $25 million and gross estimated PID bond proceeds of $8.5 million.

Developer commitments and financing: The developer told council it would dedicate the South Go Forth right of way up front; dedicate a three‑acre civic site; provide at least 20,000 square feet of commercial space in phase 1; and increase its upfront commercial contribution from $750,000 (shown to council in October) to $3,000,000 payable up front, with an additional annual payment starting in year 16. The developer said tourist‑tax (hotel tax/TOT) funding would not be used for the project because the city will build Go Forth.

Council concerns and requested safeguards: Multiple council members voiced a long‑standing concern: past projects in Kyle that promised retail nodes have delivered housing while leaving the commercial promises undone. Councilmember Rizzo said, “history … of people coming in and building multifamily, promising us a lot of retail and not delivering that part,” and asked for “a lot of safeguards” so retail pad sites, park deliverables and the road come as promised.

Councilmember Zuniga and Mayor Pro Tem Heizer pressed the developer on transit and water reuse: Zuniga asked whether reclaimed (“purple pipe”) water could serve irrigation for parks and the Vibe Trail; the developer said rainwater catchment and drought‑tolerant landscaping were planned and that staff and the developer would investigate reclaimed water availability with utilities staff.

Affordable housing structure: The developer and its managing partner explained the affordable vs. market‑rate multifamily structure. Pollock said financing constraints require separate compliance structures for the affordable portion; the developer said the buildings will be indistinguishable in design and quality but must be managed under separate financing and compliance arrangements.

Phasing and commercial performance triggers: The developer said the market‑rate multifamily would not be built until at least 20,000 square feet of commercial is delivered in phase 1. Several council members asked the developer to go further: ask that more commercial square footage be committed up front and that retail delivery be tied to each development phase so the project cannot finish all residential phases before supplying additional retail.

Staff next steps: City staff told council they will continue negotiating the development agreement, the PID terms, CCN transfer language and other documents. Staff recommended bringing back the development agreement, PID authorization and related instruments for formal consideration only after further refinements and council feedback.

Quotes

“We will be dedicating that right up front,” Abby Gilfillan said of the South Go Forth right‑of‑way, adding the developer would provide water‑ and wastewater‑infrastructure and regional detention to serve both the project and the new road.

“I’m worried about building the affordable family and only 20,000 square feet of the commercial,” Councilmember Rizzo said. “I want … those safeguards where certain projects, earmarks have to be hit in certain times.”

“We share that thought” on water reuse, the developer replied when asked about rainwater catchment and drought‑tolerant landscaping for park irrigation.

Ending

Council did not take final action on the PID or development agreement at the Jan. 21 meeting. Instead, members asked staff and the developer to return with tightened phasing commitments, clearer guarantees for retail delivery tied to residential phases, and clearer language on utilities and water‑reuse feasibility. Staff will continue negotiations and bring final development and financing documents back to council for formal approval.