Title
Consider/Discuss an Updates from Hugs Café Related to Project 4B25-01, New Hugs Headquarters, and Project 4B26-08, Expansion of Hugs Greenhouse.
Summary
COUNCIL GOAL: 1: Direction for Strategic and Economic Growth
1.3 Maximize partners and the pursuit of Workforce Development Programs to encourage training and employment options for McKinney residents
MEETING DATE: November 19, 2026
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
• Hugs will provide an update on two projects.
o 4B25-01:
§ In February 2025, MCDC awarded a total of $970,000 to Hugs Café, Inc. for infrastructure for the new Hugs Headquarters.
§ Hugs staff will discuss transferring the deed to Hugs Headquarters from Hugs Café to Hugs Real Estate Holding Co., as well as their commitment to grant compliance.
o 4B26-08:
§ In June 2026, MCDC awarded a total of $683,467 (50% as a grant and 50% as a loan) to Hugs Café, Inc. for expansion and site improvements at Hugs Greenhouse.
§ Hugs staff will discuss status of fundraising goals and their commitment to grant compliance.
BACKGROUND INFORMATION:
• The mission of Hugs Café Inc. is to enhance the lives of adults with special needs through training and employment.
• The goal for both Hugs Café and Hugs Greenhouse is to provide a place of training and competitively-paid employment for adults with special needs - teaching valuable skills and providing an ability-conscious career pathway.
• Hugs utilizes its training and job readiness model to create meaningful employment opportunities in North Texas and across the country. It is a nationally acclaimed nonprofit with over a decade of experience in fostering opportunities for adults with disabilities.
FINANCIAL SUMMARY:
• In February 2025, MCDC awarded a total of $970,000 to Hugs Café, Inc. for infrastructure for the new Hugs Headquarters.
• In June 2026, MCDC awarded a total of $683,467 (50% as a grant and 50% as a loan) to Hugs Café, Inc. for expansion and site improvements at Hugs Greenhouse.
SUPPORTING MATERIALS:
• Presentation