There’s a new Italian joint coming to Littleton. Its owners are hoping the city helps serve up the first course.
Chachi’s Italian-American is planning to spend $2.8 million to open at 2589 W. Main St. in February inside the former Tavern Littleton restaurant. On Tuesday, the Littleton City Council will discuss whether it can keep half the sales tax revenue it generates.
“Due to higher than anticipated costs, the applicant faces a funding gap and is at risk of depleting operating reserves needed to launch and grow a successful concept,” the council documents read. “Current economic conditions have impacted original estimated costs as much as 30%.”
The proposed incentive is capped at $350,000 over a five-year period.
The council is discussing the matter as part of a study session, a more informal gathering where members vote on topics to add to the agenda for future meetings. If approved Tuesday, the formal vote on the incentive will take place on Nov. 17.
At least one city council member has some heartburn about the proposal.
“It’s unclear to me in the presentation, what are we getting? What gap are we closing? What additional money or tax revenue are we going to get as a city from this versus an alternative user? I don’t know. I think it’s difficult,” Littleton Councilman Merrill Stillwell told BusinessDen.
“I love the business that’s applying … They’re local here, and so there’s nothing really wrong with the business. It’s just on whether we should be wading into this or not.”
Stillwell said downtown Littleton has some of the highest retail rents in the metro area, and he fears that future tenants may feel comfortable paying even more if they know the city will cut them a deal. The councilman has been a frequent dissenter on economic incentives to businesses, voting against deals with Scheels and another restaurant involving Peyton Manning.
“I am struggling because it’s difficult thinking these through one-off. We represent a lot of small businesses, and those other businesses are asking, ‘Well, what about me?’” he said.
“It’s just creating this really uncomfortable dynamic.”
The owners of the restaurant, Rachel and Eric Hyatt, declined to comment. The two co-own another Littleton restaurant, Grande Station, down the street from their new spot.
Last month, Rachel Hyatt spoke at Littleton’s State of the City meeting, where she described Chachi’s as a fine-dining steakhouse with Italian-American flair, including handmade pasta.
“What we want to do is bring that special occasion steakhouse polish right to downtown Littleton, but in the same environment that is comfortable and approachable that you all hopefully have come to love at Grande Station,” she said.
One of the building’s co-owners and project architect, John Matthews, spoke at the event, too.
“This building is going to be completely renovated on the inside,” he said.
Matthews, who runs M-A Architects, said the building was in a “little bit of disrepair.” Planned improvements included relocating the entrance, redoing the storefront and rooftop terraces along with installing all new finishes and hardwood flooring.
The architect and a group of investors purchased the two-story, 6,100-square-foot building in January for $2.4 million from mother-and-son duo Terry Papay and Frank Schultz, who ran one of their Tavern restaurant locations there. It closed in 2024.
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