To: Aaron Rector, City Manager
From: Ana Erwin, Assistant Director of Economic Development
Subject:
Title
Consider a Chapter 380 Economic Development Incentive Request for 201 East Vine Street, Keller, TX 76248.
Background:
HAPPY is a proposed locally owned café concept from the owners of HUSH and HOPS. The project involves the redevelopment of a former residential property, located at 201 E Vine Street, into an approximately 2,500-square-foot, single-story café offering specialty coffees, teas, matcha, baked goods and desserts in a family-friendly environment.
The applicant has submitted a request for City assistance to offset demolition, impact and permit fees, and infrastructure costs associated with the redevelopment.
Applicable City Incentive Policies:
The proposed incentive request would be considered under the City's Chapter 380 Economic Development Program, established by Resolution No. 4471, adopted January 18, 2022. The request remains subject to applicable program requirements and City Council approval.
Request Details:
The applicant is requesting the following assistance from the City:
• $40,000 in demolition assistance.
• 100% reimbursement of eligible water, wastewater and roadway impact fees.
• 100% reimbursement of eligible building permit, plan review and inspection fees.
• City participation in eligible infrastructure improvements.
• $100,000 cash grant toward eligible development and infrastructure costs, including required grease interceptor, plumbing, utility and associated site improvements.
Applicant Investment:
The applicant anticipates investing approximately $750,000 to $1.2 million in redevelopment, excluding the cost to acquire the property.
Proposed Reimbursement and Performance Requirements:
City assistance would be subject to applicable program requirements, verification of eligible costs and documentation acceptable to the City.
Final reimbursement terms, performance requirements and conditions would be established through a Chapter 380 Economic Development Program Agreement, subject to legal review and City Council approval.
Potential Economic and Community Impact:
The proposed redevelopment would introduce a new locally owned café to Keller while converting a former residential property into a commercial use in Old Town Keller.
The applicant anticipates creating 4-8 full-time and 10-15 part-time jobs, with projected annual taxable sales of approximately $500,000.
The project would also represent additional private investment and contribute to the City's commercial tax base.
Keller Economic Development Board Recommendation:
At its November 16, 2026, meeting, the Keller Economic Development Board will consider the request and vote on a recommendation to the City Council.