Council Greenlights Incentives to Sustain Legacy Austin Businesses

AUSTIN, TX —  Austin City Council on October 22 approved four economic development agreements through Austin Economic Development’s Placed-Based Enhancement Program, providing more than $1.2 million in City support for longtime local businesses and community-serving spaces.

The agreement will support Esther’s Follies, Escuelita del Alma, Royal Blue Grocery, and Waverly North. Together, the projects reflect the City’s commitment to helping locally rooted businesses and organizations remain in Austin as they face rising costs, redevelopment pressures, and other challenges that can make it harder to stay and grow. 

Three of the agreements support the preservation of longtime local businesses through the program’s Cultural Preservation category. A fourth agreement will help provide affordable space for a nonprofit organization delivering housing-stability services.  

Esther’s Follies

Esther’s Follies, located within the Red River Cultural District, has served as an Austin creative anchor since 1977. Known for its mix of political satire, magic, music, and live performance, the theater has entertained generations of Austinites and supported local performers for nearly 50 years. 

The City approved up to $182,664 over five years to help Esther’s Follies remain at its longtime downtown location. The support will help fund improvements to the building and preserve the theater’s archive, including decades of costumes, scripts, video footage, and photography.   

Escuelita del Alma

Founded in 2000, Escuelita del Alma was Austin’s first Spanish-immersion preschool and has provided high-quality childcare and early education to Austin families for more than two decades.

Due to redevelopment and transportation projects, the school has relocated and its new property will serve about 230 students. The City approved up to $84,390 over five years to help the school manage these costs, reestablish at its new, expanded location, and continue providing childcare for Austin families. 

Legacy businesses play an important role in Austin’s economy because their impact goes far beyond the businesses themselves - Austin Economic Development Director, Mac Cummins

Royal Blue Grocery

Royal Blue Grocery is a locally owned urban grocery business that has served downtown Austin for approximately 20 years. Its stores serve Austinites while also providing shelf space and promotional opportunities for local Austin brands. 

In recent years, Royal Blue has faced challenges from changing economic conditions, including increased construction activity and high office vacancy rates..

The City approved up to $82,077 over five years to help Royal Blue Grocery remain downtown and continue serving the surrounding community.  

Waverly North

A community housing development known as Waverly North, a historic adaptive-reuse development in Austin’s North University neighborhood, will receive $864,210 over 10 years to help offset the cost of providing and maintaining that nonprofit office space. In partnership with the Housing Support Services Alliance, the project will provide income-restricted affordable apartments and person-centered community services and resources, including eviction prevention, case management, and additional resident programming.

“Legacy businesses play an important role in Austin’s economy because their impact goes far beyond the businesses themselves,” said Austin Economic Development Director Mac Cummins. “They are the places where people meet, where neighborhoods build their identity and where many of the experiences we associate with Austin take shape. By bringing together people, place and business, they create economic activity while also strengthening the sense of community that makes Austin a place people want to live, work, visit, and invest in. That connection is at the heart of economic development.” 

Altogether, the four projects are expected to provide approximately $1.92 million in net financial benefit to the City over their respective agreement terms, in addition to broader community benefits such as preserving local businesses, maintaining childcare capacity, and expanding access to community services.

These approvals are products of Austin Economic Development’s Place-Based Enhancement Program, a real estate incentive that provides commercial affordability relief to Austin’s small businesses, legacy businesses, nonprofits, cooperatives, and those in the creative sector. To learn more about city incentives, business expansion, or relocation resources, visit austintexas.gov/edd.

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About Austin Economic Development 
Austin Economic Development supports business growth, creative industries, and local communities. These programs build an equitable, sustainable economy to improve the lives of all Austin residents. To learn more, subscribe to our newsletter or connect with us @AustinEconDev on Facebook, @AustinEconDev on X, and @AustinEconDev on YouTube.   

Sobre la Secretaría de Desarrollo Económico de Austin  
La Secretaría de Desarrollo Económico de Austin apoya el crecimiento empresarial, las industrias de la fuerza laboral y las asociaciones comunitarias locales que ayudan con el crecimiento económico y con nuestra identidad. Estos programas fomentan una economía equitativa y sostenible para mejorar la calidad de vida de todos los residentes de Austin. Para obtener más información, suscríbase a nuestro boletín o conéctese con nosotros en @AustinEconDev en Facebook, @AustinEconDev en X  y @AustinEconDev en YouTube.