Tax Increment Reinvestment Zone 3

The City of Kyle established Tax Increment Reinvestment Zone No. 3 (TIRZ #3) effective April 19, 2022 for 40 years terminating on December 31, 2062 on a 201-acre undeveloped area for a residential master planned community within city limits for the purpose of providing public improvements to be financed by the Zone.

The planned public improvements to be financed by the Zone include roads, water, sanitary sewer, storm drainage, parks and open space, professional services, and associated financing and interest costs (the “Public Improvements”), as depicted on Exhibit H, and detailed on Exhibit C of the Project & Finance Plan as made part of the City’s Creation Ordinance. The City is obligated to deposit into the TIRZ Fund beginning in 2023 an amount equal to thirty-six‐point‐seven‐four percent (36.74%) of the ad valorem taxes collected and received by the City on the Captured Appraised Value in the Zone (the “City Tax Increment”).

Based on the Participation Agreement with the Hays County, the County is obligated to deposit into the TIRZ Fund beginning in 2023 an amount equal thirty‐six‐point‐seven‐four percent (36.74%) of the ad valorem taxes collected and received by the County on the Captured Appraised Value in the Zone (the “County Tax Increment”).

For additional details, refer to the attached City of Kyle Creation Ordinance dated April 19,

2022.