EDC/CDC approve Pioneer grant for Function Coffee with contingencies after executive session

The Economic Development Corporation (EDC) and Community Development Corporation (CDC) for NorthlakeTown voted to approve a phased Pioneer Grant for Function Coffee on a motion that incorporated provisions discussed in executive session.

Function Coffee’s owners presented a two-part request: a $15,000 immediate grant to be issued upon certificate of occupancy (CO) to cover final café furnishings, equipment and staff training; and a $20,000 grant contingent on moving the company’s roastery back to Northlake within 18–36 months. Owner/Presenters (Function Coffee Co / Function Northlake LLC) described the phased approach during the public hearing and Q&A, saying the immediate funds would support the cafe’s opening months while the larger roastery award depended on securing local space and meeting the relocation timeline.

The presenters said Northlake already accounts for nearly 30% of their sales despite shipping beans to 38 states and outlined growth projections: roughly $65,000 in revenue during a start-up year, ramping to six-figure and eventually seven-figure targets over five years. They told the board they had extended offers to eight hourly employees and expected cafe year-one top-line revenue of about $500,000–$600,000.

On the roastery specifics, presenters said the business is operating in Justin but would seek space in Northlake (including Northlake Texas Business Parks or Northlake Commons) and described equipment needs: a full-size roaster costs about $27,000 and a recently purchased extender allows 44-pound batches taking about 2.5 hours per roast. They said wholesale and ecommerce channels drive the roastery revenue while the cafe generates retail sales and local sales tax.

Board members questioned the combined application totals (presenters described a combined ask that staff clarified as a phased/graduated request), rising build-out costs for the cafe and how retail/ecommerce receipts would be allocated between the two LLCs. Presenters acknowledged increased construction and shipping costs and explained the planned legal/financial structure: Function Northlake LLC will handle consumer-facing sales and pop-ups, while Function Coffee Co (the roastery) will operate ecommerce and wholesale.

Before the vote both boards recessed into executive session citing Section 551.087 for economic development negotiations. After returning to open session, the boards moved to approve the Pioneer Grant with the provisions referenced in executive session; the board subsequently approved a related item (listed in the minutes as CBC) with one member recorded as opposed.

Next steps: staff will implement the provisions as discussed in executive session and issue the immediate grant upon the café’s CO. The roastery grant is conditional on the relocation and the applicants meeting the contingency terms.