Economic Vitality Committee Agenda and Packet 2024 10 02

Home Browse Search

Economic Vitality Committee Meeting Minutes September 4, 2024 Page 3 of 6 Councilmember Bierman appreciated the suggestion of rewarding businesses that have been in Louisville for a certain time period, but wasn't sure how to implement that. Chair Dickinson emphasized that the BAP program is a rebate program that only rebates additional sales tax revenue that the City would not have otherwise been receiving. However, he stated that any program that decreases the revenue of the city would be concerning. The only way that would make sense to him is if it prevents a business from leaving. For this reason, he would be supportive of additional incentives for businesses that are looking at relocating outside of Louisville but was hesitant about the time requirement. Loan Program Chair Dickinson commented that access to capital is traditionally a big hurdle for businesses so appreciates the impact that a lower interest loan would make. He also noted that there would be some risk to the City involved in this program but felt that there could be ways to mitigate the risk. Councilmember Bierman agreed that he likes this program and noted that property purchases could help mitigate the risk. Chair Dickinson asked whether remodels or inventory could be eligible for loans. Manager Zarate responded that expanding the inventory could potentially be eligible but noted that tenant improvements would likely need additional parameters for eligibility. Public Comment from Eric Reed: Mr. Reed stated that he supports the loan program and noted that it could be a form of retention support for existing businesses that are looking to grow. Public Comment from Mark Cathcart: Mr. Cathcart suggested that it may not make sense to include inventory in a loan program as many Louisville businesses are service -oriented. He urged the EVC to consider the makeup of the businesses that the City would be attempting to support. Rent Assistance Public Comment from Eric Reed: Mr. Reed wondered whether this should be a one-time program, intended only for use in case of emergencies. Chair Dickinson noted that he has been a proponent of this program and commented that smaller retail businesses often can't afford the existing rent prices in downtown Louisville. He added that the landlord doesn't necessarily care who is paying the rent so they have no incentive to rent to one business over another. He concluded that rental assistance from the City could help certain businesses afford rents in Louisville. He doesn't feel that rent assistance from the City would necessarily result in increased rents in Louisville. Manager