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Report: Elon Musk's The Boring Company eyeing development in city neighboring Austin

According to the report, the proposal is still in its infancy with many hurdles to cross.

KYLE, Texas — Much attention has been placed on Austin’s runaway growth, but nearby cities aren’t getting left behind in that conversation. 

The City of Kyle is reportedly considering an agreement with Elon Musk’s The Boring Company for a project that would see the construction of a pedestrian tunnel in the city.

RELATED: 100-mile trail planned to connect Austin to San Antonio enters next phase

If approved, that tunnel would connect the Plum Creek subdivision to the Kyle Crossing mixed-use development. That development has been labeled by some as Kyle’s equivalent of The Domain, an area with destination dining and retail. Some reports anticipate the development will generate some $1.2-$1.6 million in annual tax revenue.

According to a report by the Austin Business Journal, the proposed pedestrian underpass would “accommodate multimodal transportation options both slow and fast moving,” per a preliminary engineering report.

RELATED: Could an underground tunnel by The Boring Company come to Austin?

The proposal is intended to encourage movement of the area’s residents using bicycles, electric options and walking. It’s part of a broader effort to connect the region to park spaces, offices and retail.

The proposal is in its infancy and Kyle Mayor Travis Mitchell told the Austin Business Journal that there are still many “hurdles to cross,” but added that The Boring Company initiated the discussions with Kyle and several neighboring cities after Musk relocated to the Austin area.

"It seems like it's going to be quite economical and it's going to achieve a real piece of connectivity for the city of Kyle," Mitchell told the ABJ.

Mitchell said the City was able to secure private developer funding for the tunnel project, which is estimated to be roughly $3 million.

The Boring Company has office space in Pflugerville, which is referred to as the company’s headquarters.

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