A new fine-dining steakhouse is angling to take over the former Tavern Littleton space at 2589 W. Main St., with owners eyeing a February 2027 opening and a $2.8 million buildout. Chachi's Italian-American, a project from Rachel and Eric Hyatt, is also asking Littleton for a sales-tax break to help cover the cost of overhauling the building before it welcomes diners.
According to WhatNow, the sales-tax incentive has not yet been approved, and Littleton City Council discussed the agreement during a study session on Nov. 10. City staff recommended rebating a portion of the restaurant's sales tax, subject to a cap and time limit, with a formal decision scheduled for Nov. 17. Per the same report, the restaurant is expected to occupy approximately 6,140 square feet of the building, according to the city council agenda — though a separate account from cfood.org describes the two-story structure as 6,100 square feet, so the exact footprint remains unsettled between the two figures.
The financial details of the incentive come from BusinessDen, which reports Chachi's owners are seeking an economic incentive tied to restaurant sales tax as they plan to spend $2.8 million to open inside the former Tavern Littleton restaurant. Council documents cited by the outlet note that current economic conditions have impacted original estimated costs by as much as 30%, leaving the applicant facing a funding gap.
What the Incentive Would Cover
Per cfood.org's account, the proposed incentive is capped at $350,000 over a five-year period and would rebate half of the restaurant's generated sales-tax revenue back to the owners. The same report notes that the architect and a group of investors purchased the two-story building in January for $2.4 million. Littleton's own Economic Partnership Incentive Policy, published by the City of Littleton, states that such agreements are not transferable, are subject to annual City Council appropriations, and require the business or property owner to be current on property taxes to even be considered.
Littleton has structured similar deals before. The city approved a temporary sales-tax refund for Scheels and its developer, RIG Mineral, in a 6-1 vote, agreeing to reimburse the retailer 54.75% of collected sales tax over a 30-year period, according to the Littleton Independent. That arrangement offers a point of comparison for how the city has used sales-tax rebates to draw big investment downtown, though the Chachi's proposal is far smaller in scale and duration.
A Steakhouse With Handmade Pasta
Rachel Hyatt described Chachi's as a fine-dining steakhouse with Italian-American flair, including handmade pasta, according to cfood.org's report. She and Eric Hyatt already co-own Grande Station, a Littleton restaurant located at 2299 W. Main Street that focuses on scratch-made cooking and a varied menu using locally sourced ingredients, just down the street from their new project.
The building itself sits at the corner of Main and Curtice streets in Littleton's historic downtown district and previously housed Tavern Littleton, which closed in 2024. Planned renovations include relocating the entrance, redoing the storefront and rooftop terraces, and installing new finishes and hardwood flooring throughout, the cfood.org report states. The space is expected to undergo substantial interior renovation before it can open.
Seating and Second-Floor Plans
Chachi's is planned to have around 235 seats, with possible additional upstairs seating, per the city council agenda cited by WhatNow. The second floor is expected to include additional dining and flexible private-event space, rounding out a layout designed to handle both everyday dinner service and larger gatherings in the heart of downtown Littleton.
Whether the sales-tax rebate ultimately clears the council remains to be seen, with the formal vote set for Nov. 17. Until then, the February 2027 opening date and the rest of the buildout hinge on how that decision plays out.
