| Legislative Board: | City Council |
| Date: | September 15, 2026 |
| Contact: | Brian Dyer |
| Agenda Item ID / Number: | 2026-753 / K.1 |
Deliberation and possible action to adopt a Resolution, upon two readings, to approve financial incentives and a performance agreement in a form subject to approval of general counsel for Project KickFlip not to exceed a total amount of Fifty-Eight Thousand Five Hundred Seventy and no/100 Dollars ($58,570) in exchange for economic development obligations to the EDC and related budget amendment (Buda EDC CEO Jennifer Storm) [PUBLIC TESTIMONY]
Clayton Properties Buda LLC is requesting a Future Land Improvement Program (FLIP) incentive to convert the residential property at 102 Austin Street into commercial office space. The project is the EDC's second FLIP applicant and sits within the program's Phase 1 target corridor along Austin Street. Total eligible improvement costs are $97,617, and staff recommends a reimbursement of $58,570, well within the program's $250,000 cap. Construction is expected to begin end of August/September 2026.
The FLIP program reimburses up to 60% of eligible improvement costs, capped at $250,000, to convert existing residential properties in Buda to commercial use and grow the city's commercial building inventory. Clayton Properties Buda LLC has already secured rezoning to F4H to support the conversion of 102 Austin Street from residential to office use. The 2,900 square foot property carries a current assessed value of $528,540. Eligible costs include general construction, fencing, roof flashing, electrical, plumbing, and miscellaneous items.
The project advances the FLIP program's core goal of converting underused residential parcels into commercial inventory along Buda's Austin Street corridor, and it aligns with the target industries identified in the EDC's strategic plan, including Advanced Manufacturing, KIBS, Arts & Entertainment, and Entrepreneurship. The applicant has already secured F4H rezoning, removing a key approval risk before the incentive request reaches the Board. The request falls well within program parameters, both in eligible cost structure and the $250,000 program cap.
The FLIP incentive request totals $58,570, calculated as 60% of the $97,617 in eligible improvement costs. Disbursement would occur at 100% upon issuance of the certificate of occupancy. As a compliance safeguard, the EDC will place a lien on the property, and if the property is sold within five years, the owner must repay the EDC on a 20%-per-year declining schedule.
Pros: provides financial assistance to convert a property from residential to commercial use
Cons: none.