Celina Approves $20,000 Chapter 380 Incentive for 219 W. Pecan Patio Project

CELINA, Texas. The Celina City Council on June 9, 2026 considered an Economic Development and Performance Agreement with ATRH, LLC, providing $20,000 in combined city and Celina Economic Development Corporation reimbursements in exchange for at least $50,000 in qualified investment at 219 W. Pecan Street. The agreement is structured under Chapter 380 of the Texas Local Government Code.

What Chapter 380 is

Chapter 380 of the Texas Local Government Code authorizes Texas municipalities to make loans and grants of public funds to promote local economic development. The statute is one of two primary tools Texas cities use to provide direct cash incentives to private developers (the other being Chapter 381, available to counties). Chapter 380 agreements typically require specific performance milestones such as minimum investment, square footage built, or jobs created.

The deal terms

• Developer minimum investment: $50,000 in qualified expenditures
• City reimbursement: $10,000 upon issuance of certificate of occupancy
• Celina EDC reimbursement: $10,000 upon issuance of certificate of occupancy
• Total public assistance: $20,000
• Project scope: patio and site improvements including drainage, awnings, and fencing
• Property: 219 W. Pecan Street, Celina, Texas 75009
• Deadline to complete and obtain certificate of occupancy: December 31, 2026
• Minimum jobs to maintain: two full-time equivalent positions at the property

Under the agreement structure, the developer must first meet the $50,000 qualified expenditure threshold and obtain a certificate of occupancy before any reimbursement is disbursed. The city and EDC each cover half of the incentive.

Why a 2 to 1 leverage ratio matters

The agreement is structured so that each public dollar leverages at least 2.5 dollars of private qualified investment ($50,000 versus $20,000). That ratio is on the conservative side for Texas Chapter 380 deals, where leverage ratios on small downtown projects often range from 1 to 1 up to 10 to 1, depending on the project size and the specific performance milestones tied to the incentive.

Sources

Celina City Council Regular Meeting agenda and packet, June 9, 2026, item IX.H (CivicClerk public portal). Texas Local Government Code, Chapter 380.