Title
Conduct a Public Hearing and Consider/Discuss/Act on a Project Grant Application Submitted by Hugs Café, Inc. (4B26-08) in the Amount of Six Hundred Eighty-Two Thousand Four Hundred Sixty-Seven and NO/100 Dollars ($682,467.00) for Expansion and Site Improvements Including Entry Gate, Security, Driveway, Added Heaters in Work Barn, Relocation of Septic System, Three New Greenhouses, One New Propagation House, Irrigation, Propane Tank, and Walkways, at Hugs Greenhouse Located at 1151 East Cottage Hill Parkway in the McKinney ETJ. Amount Represents 58.6% of Total Project Cost.
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: April 23, 2026
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
• McKinney Community Development Corporation will conduct a public hearing on a project grant application in an amount of $682,467, submitted by Hugs Café Inc. Project elements include:
o automatic entry gate to improve site access, security & logistics;
o improved driveway and site access;
o addition of heaters in the work barn for year-round productivity;
o relocation of septic system to optimize land use & planned expansion;
o installation of 3 new greenhouses and 1 propagation house;
o upgrade irrigation system;
o upgrade to larger propane tank to support expanded operations; and
o improved walkways for accessibility and safety.
• Expansion of the business will facilitate increased productivity and sales and job creation to include four positions in 2026 and nine positions in 2027.
• Projected revenue annually for the project at the Greenhouse is $150,000 and here is the breakdown in additional products to be produced:
o Bedding Plants-additional 5,600 flats annually
o Poinsettias- additional 3,000 plants annually
o Perennials- additional 12,000 pots annually
o Hanging baskets-additional 1,200 baskets annually
• Applicant has expressed interest in applying for annexation into the City of McKinney.
BACKGROUND INFORMATION:
• The goal of Hugs Café and Hugs Greenhouse is to provide a place of competitively-paid training and employment for adults with special needs - that teach valuable skills and provide an ability-conscious career pathway.
FINANCIAL SUMMARY:
• In FY 2025, MCDC awarded Hugs Café $970,000 for the construction of the new Hugs Headquarters and Training Academy.
• The request is eligible for MCDC consideration under Section 501.152 of the Texas Local Government Code - definition of “project.”
SUPPORTING MATERIALS:
• Application Packet
• Presentation