KYLE, Texas (KXAN) — Tesla is setting up shop in yet another Central Texas city. The City of Kyle is welcoming the company to the area.

The announcement came at the 2023 State of the City Address, hosted by The Kyle Area Chamber of Commerce.

Kyle Mayor Travis Mitchell said he doesn’t know exactly what Tesla’s plans are just yet.

“It’s roughly a million square feet, just under a million square feet of space,” Mitchell said. “They’re just moving forward with their construction. So we don’t have a lot of details. But this is an extremely exciting announcement.”

Businesses, restaurants coming

Tesla was just one of the big announcements at Tuesday’s event.

“We have projects going on in the city, east and west, north and south,” he said. “The City of Kyle has more to offer its residents than just a place to sleep.”

Mitchell said what was once believed to be just a bedroom community is quickly turning into a hub for development.

New businesses/restaurants coming:

  • Nothing Bundt Cakes
  • Snooze A.M. Eatery
  • Spoon & Fork
  • Black Rock
  • Sprouts
  • CAVA
  • Crumbl Cookies
  • Walk-Ons Sports Bistreaux
  • Waffle House
  • Texas Roadhouse
  • Rudy’s
  • Z Tejas
  • Academy

New businesses/restaurants recently opened:

  • Hobby Lobby
  • Chipotle
  • Costco
  • Einstein Bros Bagels
  • Torchy’s Tacos
  • Willie’s
  • VIA 313 Pizza
  • Denny’s

The city also just approved a 600,000-square-foot lifestyle center bringing big box retailers and stand-alone restaurants.

the kyle state of the city address
The Vybe Park project would be located on the east side of Interstate 35 on Bebee Road. (Photo: KXAN)

Along with businesses and restaurants, Mitchell said the city is growing its medical hub as well. He announced St. David’s HealthCare is coming to the area. He said it’s a $300 million investment that is expected to create 200 jobs.

“Massive, prosperous, thriving and respected level two Trauma Center, Ascension Seton Hays and on the west side will be a fantastic seven-story St. David’s [HealthCare],” the mayor said.

‘Thousands of new homes’

Dustin Allan and his family have called Kyle home for nearly a decade now.

“We’ve seen it grow exponentially,” Allan said. “Texas Roadhouse coming… all kinds of different sit-down restaurants, which I think was something that was needed here.”

Allan is also the team lead for the Allan Home group with Compass Real Estate. He noticed more people wanting to move to the area.

Allan said the housing inventory is expanding to keep up with the demand.

“There’s thousands of new houses going up in Kyle,” Allan said. “I think the plan is for the city to get a lot bigger.”

Keeping up with growth

With the growth, comes growing pains. Mitchell said they are addressing road and water concerns people have.

When it comes to water, he said they are working on a project over the next 24 months to double the water supply.

“That’s starting to come online next year and then directly to the City of Kyle the following year,” Mitchell said.

The plan is to start using water from the Carrizo-Wilcox Aquifer in Gonzalez County.

Regarding roads, he said they are currently rehabilitating old streets and paving new ones.