Lone Star Rail Information

City of Kyle Texas Official Website

The Kyle City Council took action at their May 20th city council meeting directing staff to continue working with the Lone Star Rail District to finalize an interlocal agreement that would make the City of Kyle a partner in the district.

The Kyle City Council approved the following motion at their May 20th council meeting:

"Execute an interlocal agreement with Lone Star Rail District, subject to the agreement being in compliance with state law, subject to further amendments to the agreement as agreed upon by the city and Lone Star Rail District, and subject to final approval by city council no later then January 1, 2015."

To that end, city staff is continuing to work with the LSRD on specifics of an agreement that would be brought back to the city council for final approval.

The LSRD has already reached preliminary agreements with the Cities of Austin and San Marcos.

In order to generate revenue to support the city's participation in the program, LSRD is asking the city to agree to create a special district around the station and use a portion of the revenue generated through property and/or sales tax in that district to fund our share.The current funding proposal being considered, but subject to change, is as follows:

  • 50% of all newly generated future property tax revenue within the 1/2 mile Tax Increment Zone (TIZ)
  • 50% of all newly generated future sales tax revenue generated within the 1/2 mile Tax Increment Zone (TIZ)
  • 100% funding by the City of Kyle for its one rail station's operations and maintenance costs
  • Payment of an annual membership fee, currently set at $49,500, which would grant the city a voting position on the LSRD Board of Directors.

The Planning and Zoning Commission heard the district's presentation at their regular meeting on March 11th and voted in favor of the program. The The Strategic Planning & Finance Committee and the Economic Development & Tourism Committee also voted in favor of the program. The Mobility Committee voted not to recommend the program. 

The LSRD is a public agency tasked with building a commuter rail system between the Austin and San Antonio metropolitan areas.

More information on the Lone Star Rail District is available on their web site at www.lonestarrail.com.

The information being presented to the committees is available as attachments below.

E-mail city staff if you have specific questions or would like to request a presentation for your group.