To: Aaron Rector, City Manager
From: Ana Erwin, Assistant Director of Economic Development
Subject:
Title
Consider a resolution approving a Chapter 380 Economic Development Program Agreement, pursuant to Chapter 380 of the Texas Local Government Code, and pursuant to the city's economic development policy, with The Hive & Holding Co. LLC at 128 and 136 Bates St.; and authorizing the City Manager to execute said documents on behalf of the City of Keller, Texas.
Background:
The Hive & Holdings Co. LLC is pursuing a phased redevelopment of 128 and 136 Bates Street in Old Town Keller under The Keller Depot concept. The applicant's plans pair rehabilitation and commercial use of the existing properties with gathering space and small-business activity intended to add activity along Bates Street.
The applicant has submitted a request for City assistance: a Chapter 380 Economic Development Program Agreement supporting a commercial grease trap at 136 Bates Street and publicly accessible restrooms at 128 Bates Street. Together, the requests total an amount not to exceed $61,740.
The applicant describes the project as a phased effort, with the request to the City only applying to Phase 1. Phase 2, The Keller Depot Platform, would include pop-up vendors, food trucks, small-business showcases and communal seating. Phase 3, The Depot Marketplace, remains a conceptual small-business incubator whose timing and scope would depend on construction costs, permitting, tenant demand, partnership opportunities and available resources.
Applicable City Incentive Policies:
The $61,740 incentive request would be considered through a Chapter 380 Economic Development Program Agreement under Resolution No. 4471, adopted January 18, 2022. The request remains subject to the eligibility, approval, documentation and reimbursement requirements of the program.
Request Details:
The applicant is requesting an amount not to exceed $61,740 from the City.
Applicant Investment:
The applicant reports approximately $125,000 in planned Phase 1 investment. Property acquisition is separate from this amount. The applicant anticipates that total investment could reach approximately $250,000 if future phases proceed; those future phases are conceptual and are not included in the current requests.
Proposed Reimbursement and Performance Requirements
City funds would be disbursed as a reimbursement only after the applicable improvements are completed, required inspections and approvals are obtained, and the applicant submits paid invoices and proof of payment acceptable to the City. Reimbursement would be limited to verified eligible costs actually incurred and paid by the applicant, up to the approved amount for each request.
The applicant has proposed operating, cleaning, maintaining and supplying the restrooms at their expense and keeping them available to the public daily from 8:00 a.m. to 10:00 p.m. for 10 years, subject to accessibility and transfer requirements established in the agreement. The applicant has also proposed funding the grease trap upfront, with reimbursement becoming available only after providing an executed lease with a food or coffee tenant for 136 Bates Street and initiating pop-up programming at The Keller Depot. Final agreement terms remain subject to legal review and City Council approval.
Potential Economic and Community Impact:
The applicant states that the commercial grease trap would broaden potential food-and-beverage uses at 136 Bates Street, while the restrooms at 128 Bates Street would support visitor access, later operating hours and expanded activity along Bates Street.
The applicant anticipates that the coordinated improvements could support additional private investment, tenant attraction, new taxable sales and increased activity in Old Town Keller.
The proposed restrooms would remain privately operated and maintained while being accessible to the public under the terms of the Chapter 380 agreement.
The current requests do not include funding for Phase 2 programming or the conceptual Phase 3 marketplace. Any economic or community benefits associated with those future phases are not presented as guaranteed outcomes of the three requests currently before the City Council.
Keller Economic Development Board Recommendation:
At its September 14, 2026 meeting, the Keller Economic Development Board will consider the request and will vote on a recommendation to the City Council.
The City Council is asked to consider approving, approving with conditions or denying each a Chapter 380 Economic Development Program Agreement in an amount not to exceed $61,740 for eligible improvements at both properties. Approval and reimbursement of each request would remain subject to its applicable program requirements and City verification.