Seabrook council sends $41,400 business incentive for new coffee shop back to EDC after resident objections

Seabrook City Council on June 3 unanimously voted to send a proposed Economic Development Corporation (EDC) business development agreement — up to $41,400 for a coffee shop at 1305 Main Street — back to the EDC for reconsideration after several Old Seabrook residents and business owners raised concerns about unfair competition and details of the agreement.

The matter, listed as consent agenda item 3.3, was pulled for discussion after public comment. The EDC had approved the business development agreement for Sol Freak (listed in the EDC packet as Sol Free Holdings LLC) at its May 7, 2025 meeting. Councilman Hammond moved to refer the item back to the EDC; Councilman Tillett seconded, and the referral passed unanimously.

Why it matters: EDC incentives are intended to spur local investment, but four speakers during public comment — local residents and owners of nearby coffee and food businesses — told the council the grant would subsidize a direct competitor less than a four-minute walk from established businesses and flagged potential negative effects on existing local merchants’ revenues and employment.

Multiple commenters described long-term local investment and hardships endured to keep businesses open. Mel Jarnigan, who identified himself as owner of Dan Pine Coffee and Fried Pies, said, “I’m worried about my family’s future, my livelihood,” and said he and his wife spent about $200,000 of personal funds to build and expand their business. Diane Gao, who said she co-owns the same business, asked for clarity about operational details for the proposed site, saying, “how is the drive thru going to work at that location?” and asking the council to delay any vote so the EDC could reconsider.

Resident Carol Reed questioned the economic rationale behind the incentive: “Why would a new coffee shop want to open in Old Seabrook? It simply doesn't make good business sense.” Kelly Stewart, who said she seconded earlier speakers’ remarks, called the EDC award “unfair competition.”

City staff and council members clarified the scope and limits of the proposed funding. According to the EDC item text read into the record, the $41,400 was for capital improvements to the building at 1305 Main Street and not for labor or operating expenses. A city staff member explained that the landowner was not a party to the EDC agreement as proposed and that the city does not control private lease terms: “No. We don't control, lease options at all.” Council discussion also noted that, while contingencies can be attached to incentive funds, the current agreement did not include such conditions.

The council did not approve the business development agreement. Instead, it directed that the matter be returned to the Seabrook Economic Development Corporation with the comments made at the June 3 meeting and asked the EDC to bring the item back to council after considering those comments.

Next steps: The EDC will reconsider the approved agreement and may add conditions (for example, tying funds to specific capital work or including lease protections) before returning to council. No schedule for the EDC reconsideration was provided at the June 3 meeting.