Business Retention and Development Committee Agenda and Packet 2020 09 14

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SUBJECT: RESOLUTION NO. 60, SERIES 2020 DATE: AUGUST 11, 2020 PAGE 2 OF 3 City accounts at time of application. To be eligible, the business must also have been in operation as of March 10, 2020. The Committee has recommended five program criteria, and an applicant would need to describe in the application how a project meets at least one criterion. The criteria were contemplated and designed to make investments in the local business community. The draft application also outlines project examples for each criteria to help applicants understand if the program is a fit for their project. This application is slightly more involved than the one employed for the Emergency Solutions Grant Program, because each applicant will need to provide project information, how it relates to recovering from the pandemic, as well as details about project costs. The structure of the program aligns with incentivizing businesses to take actions that will allow them to recover and stabilize. The City would provide 50% of an eligible project cost, up to $10,000—with funds disbursed at application approval. The business will also need to demonstrate or pledge the matching project funds. Each approved applicant would be required to enter into an agreement with the City, as drafted by the City Attorney. Applications and agreements would be administratively reviewed and approved by staff, with updates on the program progress provided to City Council. Also distinct from the Emergency Solutions Grant program, staff recommends receiving and processing applications on a rolling basis. Staff would advertise and promote the program for several weeks before opening in early September. The program would be anticipated to run through December 31, 2020, but could expire sooner if all program funding is allocated. Businesses are only eligible to be approved for one project under the program, and only future work is covered (expenses cannot be submitted for work already completed or in -process). Staff anticipates receiving a wide variety of requests —ranging from small awards to significant construction projects. The promotional period and rolling application will allow for both small and large projects to understand the program, design a project that meets the criteria, and submit required materials. Though awarding funding at project commencement will incentivize businesses who may otherwise lack the cash flow to perform work, it does mean the program will have additional steps after approval and carries some risk. Staff will need to track project process and at close-out ensure an accounting of the project expenses matches reasonably with what was approved. A large project approved under the Recovery & Improvement Program could also extend past the end of the year, if the business owner needs to obtain quotes, permits, and landlord approval. A business could also receive funds and then not be able to sufficiently recover to remain in business for the long- term —meaning the funds may be used appropriately but not sustainably. The LRC has considered the Recovery & Improvement Program at two of its recent meetings and discussed entering into a similar arrangement with the City as it did for the earlier grant program. However, at this time, the LRC is waiting to review the final CITY COUNCIL COMMUNICATION Agenda Packet P. 13