Craig Hughes, the Town Center developer, told the Kennedale Economic Development Corporation on Aug. 26 that leasing at Kennedale Town Center has improved and that a taqueria called Don Pancho’s will take the former Dickies Barbecue space.

Hughes described Building 3 as the remaining anchor need and said the development is weighing whether to construct a building before securing a tenant. “If we could just get one tenant, we'd go full steam ahead,” he said, adding that building without a committed tenant is “a bigger risk.” He said the project faces a contractual requirement to build on a particular pad before May 2030 and that temporary uses for that site are being considered but may not be cost-effective.

The update matters to the EDC because the board is considering how Town Center investments, tenant mix and upcoming leases affect public incentives and budget planning. During the meeting staff tied the planned Dollar General remodel to a building-maintenance line in the proposed fiscal 2026 budget. The manager said the budget entry increased to approximately $758,000 to cover a projected remodel; the calculation the manager described included an estimated Dollar General remodel cost of roughly $400,000, a developer contribution of $180,000 and the remainder to be covered by grant funding.

Hughes described the proposed developer contribution this way: he agreed to offer up to $180,000 total toward the remodel, payable over the remaining term of an agreement and to be amortized over a 10-year lease if the EDC takes over the building. The city manager explained that the EDC would effectively make a loan to cover the remodel and then pick up its share of the amortization when it assumes the building. The $180,000 figure was described as a total contribution, not a per-year payment; the manager said interest would be added.

Hughes also said the YMCA has given a verbal commitment to lease space at Town Center and that the YMCA and remodeling work are moving toward construction; the manager said a grand-opening target for the YMCA could be in February (year not specified). The manager linked the remodel financing and leases to parking, foot traffic and potential benefits to other town-center tenants.

On a separate but related action following an executive session, a motion passed to authorize the city manager to enter into negotiations to purchase land identified in the meeting as 811 West Kennedale Parkway, Kennedale, Texas. Meeting minutes record the motion passing with one abstention; the transcript does not identify the names of members who voted yes, the abstention, or the second by name.

Other development items Hughes mentioned included outreach to Tesla about vehicle charging infrastructure (he said Tesla had not returned his calls) and interest from Verizon in building at the site. Hughes described construction costs as having peaked 2020–2023 and stabilizing since; he said subs had become more competitive and that pricing had retreated from earlier peaks.

The EDC’s action after executive session authorized the city manager to negotiate the purchase; the motion was recorded as passed with one abstention. No further purchase terms were disclosed in open session.

The meeting discussion combined leasing, tenant recruitment, developer contributions and budget updates; board members asked clarifying questions about timing, budget line items and whether construction timing could limit tenant types. Several clarifications given in open session — the $180,000 total developer contribution, the $400,000 remodel estimate for Dollar General, and the $758,000 budget line tied to the remodel — are reflected above exactly as described in the meeting records.