Kerrville council weighs scaling Chapter 380 incentives to help small businesses

Kerrville staff on Tuesday told the City Council workshop they want to revise the city's Chapter 380 economic development program so it can offer smaller, tiered incentives aimed at retaining and expanding local small businesses.

Kelly Hagemeyer, a city staff member, told the council that Chapter 380 agreements "authorize municipalities to offer loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activities," and that Kerrville's current program was adopted in 2014 and is due for review.

The issue matters because the current program’s eligibility thresholds and minimums were set for larger projects and may exclude smaller, locally owned businesses. Changing the program could let Kerrville offer scaled incentives — for example, tax breaks tied to equipment purchases or modest hiring — that staff say could be tailored…