At its May 3 meeting, City Council approved the Chapter 380 economic development agreement with KCS Hospitality Group LTD to add three restaurants to the 38-acre mixed-use development at 1280 N. Main St. KCS will be the owner for the restaurants, while Realty Capital Management—one of the Center Stage developers—will purchase the land and build the restaurants, Jimmy Archie of Realty Capital Management said at the meeting.
The agreement follows Chapter 380 of the Texas Local Government Code, which allows cities to offer incentives that promote economic development projects, according to the Texas Comptroller’s website. The Chapter 380 agreement is also done in accordance with the city’s specific economic development policy.
The $848,089 incentive is based on a projected property value of more than $11 million, a projected private property value of nearly $1.84 million and projected annual sales from the restaurants of $14.75 million, according to a presentation by Keller Economic Development Director Mary Meier Culver. As part of the agreement, KCS must hit at least 50% of each of those projections.
The city expects the return on the investment to be nearly $2.4 million over 10 years, Culver said.
All three restaurants will be opening their first locations in Keller, according to the presentation. The first of the three restaurants is Osteria Toscana Pizzeria, which will serve a variety of Italian food and pizza. It will be joined by Los Caminos, a “modern style of Tex-Mex,” and BaseCamp, which will offer "mixed American food," according to the presentation.
In July 2021, Realty Capital Management and developer Greystar broke ground on the first phase of Center Stage Keller. At buildout, the Center Stage development’s appraised value is estimated at over $129.7 million, which will make it the city’s largest taxpayer, according to the city’s website.
The first phase of the project includes Greystar’s 24,000-square-foot commercial space, a community lawn and 475 multifamily residences called The Lyric at Keller Center Stage, according to AJ Glass, development partner at Realty Capital Management.
The restaurants will be part of a future phase of construction. The developer plans to break ground by the end of this year with the restaurants expected to open in fall 2023, according to city officials.
Council voted 6-1 in favor of the agreement with Place 5 City Council Member Chris Whatley being the lone vote against it.
“I think this is a win for us,” Mayor Armin Mizani said at the meeting. “I think a lot of residents will be excited with what this means for us going forward.”
Editor's note: The original post has been edited to correct some errors. The Keller Economic Development director is Mary Meier Culver. KCS will be the owner for the restaurants. The return on investment for the agreement is 10 years. The restaurants will be part of a future phase of construction. The developer plans to break ground by the end of this year with the restaurants expected to open in fall 2023, according to city officials.
