Keller City Council tables request for salon suites, retail in Old Town Keller

A proposed craft brewery and pizzeria are no longer coming to the city of Keller, and now the owner of the property at 207 S. Elm St. is looking at options to fill those spaces in the building.

Brian Palfrey requested a specific use permit to allow spa uses in the building at the Nov. 3 council meeting. The new plan presented a retail option facing Elm Street and individual salon suites on the first and second floors.

Keller City Council ultimately decided to table voting on the request after discussion in its work session. Mayor Ross McMullin asked Palfrey to talk with city staff about the vision of the building, as well as the parking limitations and entry and exit issues.

The item was tabled until the Nov. 17 council meeting.

Some context

The Keller House Collective was announced following the approval of an economic development agreement at the March 4, 2025, council meeting. The plan was a brewery on the first floor and a pizzeria on the second floor.

Council agreed to cover the cost of the brewery’s gas line and meter, reimbursement for building permit fees and a portion of sales and personal property taxes over its first five years in operation. Staff analysis anticipated a 100% return on investment for that estimated $72,632 incentive package by its fourth year of business, according to a city social media post from March 2025.

City Manager Aaron Rector said he had not directly heard from the landlord or tenant on what caused the plan to fall apart. He said some issues included parking, a second entry and exit to the property and installing the electrical infrastructure needed in the building for a restaurant and brewery.

Gloria Palfrey spoke during the public hearing for the SUP request and stated she and her husband made extensive efforts to secure another opportunity after the brewery tenant withdrew.

The details

The updated plan included individual businesses and independent beauty professionals occupying suites. The presentation showed a barbershop with four stations and a salon spot with four stations on the second floor.

The first floor would include a concept of a coffee or ice cream shop in a 1,323-square-foot space, with a patio facing South Elm Street. Palfrey called the shop the "focal point of the development."

The remainder of the first floor would feature six individual suites, a laundry room and an employee break room.

Brian Palfrey said the suites would attract entrepreneurs from a variety of business services, such as hairstylists, barbers, estheticians and spray-tan technicians.

“Having the salon suites actually play a complementary role to the retail,” he said. “This concept offers something unique to Old Town Keller. It provides opportunities for small business owners, independent professionals and retail activity, while contributing to the continued development of the area. [207 Elm Street] has the ability to become the flagship building of Elm Street, helping drive future development.”

Sarah Hensley, Keller's director of development services, said there are 11 spa uses approved in Old Town Keller, which encompasses barbershops, hair salons and nail salons. She estimated there are 65 spa uses in the city.

Brian Palfrey mentioned there are six other salon suite businesses in Keller, two of which have no vacancies. He said there are only nine total suites available for rent as of the Nov. 3 meeting.

Zooming in

The site plan approved in June 2023 called for seven parking spaces and two handicap-accessible spaces instead of 35 parking spaces required by code, according to city documents.

Place 4 Council Member Jarrett “Doc” Armstrong questioned how parking would look with several salon suite operators, salon customers and retail customers in that spot.

“I see it as a business struggle,” said Armstrong, who is the owner of Armstrong Chiropractic Center. “My office has 10 spaces. It's just my wife and I and one extra person, so that leaves seven spaces all day for people to interchange. And it's a struggle with us having 10. I would like to see that he's not creating a problem for the existing things around, as well as residents and the [Keller Church of Christ] unless he's got an agreement of some kind.”

Brian Palfrey questioned why City Council approved the parking variance and now the parking spots configuration is an issue three years later.

“Respectfully, I believe it is inconsistent to approve the parking arrangement for the building and then use that same arrangement as a reason to deny its proposed use,” he said, adding Elm Street will have public parking spots available once it is complete.

According to previous reporting, the reconstruction of Elm Street will not be finished until the end of 2027.