Lancaster approves up to $45,000 grant to help Kyoto Brew expand bakery and patios

Lancaster — The City Council approved a performance agreement with Kyoto Brew LLC to reimburse a portion of costs for phased patio and bakery expansion work, with total reimbursements capped at $45,000.

Shane Shepherd, the city's economic-development director, said Kyoto Brew is a local startup that opened on Historic Town Square in February 2025 and was previously recognized by local media. The owner, Estelle Hernandez, told council the business currently cannot meet demand and that the grant will help expand production and customer seating.

Staff described a three-phase schedule: Phase 1 (North patio) requires a minimum $30,000 investment completed by Dec. 31, 2026; Phase 2 (bakery expansion) requires $25,000 by Dec. 31, 2027; and Phase 3 (West patio) requires $20,000 by Dec. 31, 2028. Combined minimum investment across phases is $75,000; the LADC will reimburse actual expenses capped at $45,000 or 50% of actual cost, whichever is less. The facility and grant have ongoing maintenance and occupancy conditions through 2029–2030 as specified in the agreement.

Council members praised the business and moved to approve the grant; the motion carried.