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Council considers Chapter 380 agreement and budget amendment to support proposed rooftop Tex‑Mex restaurant
Summary
A developer proposed a 7,000‑sq‑ft Tex‑Mex concept with a rooftop bar and asked the city/RDA for $330,000 in assistance; council moved to authorize the Nassau Bay Redevelopment Authority to negotiate a Chapter 380 performance agreement and introduced a budget amendment to free funds, but the transcript does not record a final vote.
An applicant identified as James, presenting himself as an owner/operator associated with 'Stella's,' proposed converting a 7,000‑square‑foot shell at 1740 Nassau Road 1 into a Tex‑Mex restaurant with a rooftop bar and asked council for $330,000 in support. He said the funds would help secure an SBA loan and cover predevelopment and soft opening costs. The applicant projected 65–80 jobs and estimated annual city tax revenues from the project between $96,000 and $160,000.
City staff (Jaime) explained the proposed funding plan: the Redevelopment Authority (RDA) currently pays a 2017 debt service payment of $358,000; an amendment drafted by the RDA's attorney would defer $330,000 of that payment and free those funds for the developer now, with the RDA expected to make the city whole in fiscal year 2028. Staff said the city would cover the payment in 2026 out of reserves if the RDA deferred its payment.
A council member moved to approve Resolution No. 2026‑0112‑1 authorizing the Nassau Bay Redevelopment Authority to negotiate and approve a Chapter 380 performance agreement with Estelle's Cantina LLC and to approve an amendment to the interlocal agreement between the RDA and the city. A motion to approve Ordinance 2026‑0112‑1 amending the FY26 budget to reflect the transaction was also introduced. The transcript captures the motions and staff explanation of the funding mechanics but does not include the final roll‑call vote on these items.
Staff said projected reserves and unaudited figures showed the city would maintain adequate reserves after the interim fund transfer: staff estimated roughly $524,000 in excess reserves (unaudited) and said the charter requires a 90‑day reserve level of approximately $1,780,000. Jaime indicated the RDA would reimburse the city in FY2028 when property tax revenues and the RDA's obligations settle out.
Next steps: the Redevelopment Authority will negotiate the Chapter 380 agreement and return the negotiated terms to council; staff will prepare any necessary ordinance language and document the interim fund transfers and repayment schedule.
