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Reinvestment Zone No. 2 referenced above is expected to generate increased interest from
developers seeking opportunities in pedestrian‐oriented districts in both Old Town and north
along Hwy. 377, where the Center Stage development is under construction.

Enhancements along the South Main Street corridor, utilizing the TxDOT Green Ribbon Program,
will further the city's revitalization efforts in creating a cohesive Old Town district. The project,
which includes native Texas plantings and decorative hardscapes, is aimed at beautifying the area
and renewing commercial interest along Main Street. The city hopes to continue utilizing the
Green Ribbon program to improve other commercial corridors in the city, including North Main
Street and Keller Parkway.

As estimated, Keller saw around $15 million in construction activity during Fiscal Year 2022‐23,
with another $2 million expected to finish up by the end of the year. Although there has been a
significant decline in construction activity, with Center Stage and Keller ISD accounting for a large
portion within the past few years, we expect increased interest in the undeveloped properties
along the Hwy. 377 corridor due to the increased traffic generated by the Center Stage project,
revitalization of Old Town Keller and improvements to be determined within TIRZ No. 2.

Strategy 2.5: Review and Update the Incentive Policy to Promote Economic Development

City Council approved an update to the Façade Improvement Grant Policy in June 2021 and to
the Comprehensive Incentive Policy in January 2022. These updates demonstrate the city's
commitment to attracting desirable businesses and development. This policy update has
equipped the city to prioritize the attraction of businesses that fulfill Strategy 2.3, such as KCS
Hospitality Group, which will include three unique restaurants surrounding the community lawn
of the Center Stage development, ensuring the best experience for customers. The policy also
prioritizes development within TIRZ No. 2. City Council has approved two incentive agreements
under the new policy, both of which are located in this high‐priority geographic area. Prioritizing
new development in TIRZ No. 2 also supports Strategy 2.1, as this area's new ad valorem revenue
will fund improvements in Old Town Keller.

In FY 2022‐23, the first effects of the Façade Improvement Grant Policy update were realized, as
the program received a record number of applicants. Year to date, $40,000 in awarded grants
have been approved by City Council, contributing to over $100,000 of private investment to
improve commercial building facades. City staff will continue to review this policy and
recommend any updates to maintain the momentum gained in encouraging private investment
to revitalize older commercial buildings within the city.

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