Keller City Council approves economic incentive for Las Palapas Mexican restaurant

Keller Town Hall and Town Hall Lake
Las Palapas applied for incentives through the city's Chapter 380 Economic Development Program Agreement. (Kira Lovell/Community Impact Newspaper)

Las Palapas applied for incentives through the city's Chapter 380 Economic Development Program Agreement. (Kira Lovell/Community Impact Newspaper)

The city of Keller will offer an economic development agreement to bring Las Palapas, a Mexican restaurant, to town—expecting a 381% return on investment.

City Council voted July 6 to approve a four-year agreement recommended by city staff. Under that agreement, the city will reduce a portion of the restaurant’s sales and ad valorem property taxes each year, for a total of $83,448.10, according to a presentation by Director of Economic Development Mary Culver.

According to Culver, the restaurant is estimated to generate $105,000 annually through property tax, sales tax and mixed beverage tax.

The Las Palapas franchise at 455 Keller Parkway will be a full-service Mexican restaurant with a drive-thru, according to city documents. Other Las Palapas restaurants are located in San Antonio, New Braunfels and Selma, Texas, according to city documents.

Projections by the city show that the restaurant could generate the second most sales tax revenue of any restaurant in Keller, Culver said.

The company initially applied for a grant through the city’s Chapter 380 Economic Development program. Chapter 380 of the Texas Local Government Code allows cities and other municipalities to establish economic incentive programs that will promote business activity, according to the office of the state comptroller of public accounts.
By Kira Lovell
Kira Lovell is a reporter covering Grapevine-Colleyville-Southlake and Keller-Roanoke-North Fort Worth. Before joining Community Impact, she majored in journalism at the University of Missouri and covered education and local arts for the Columbia Missourian and Vox Magazine.


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