ADMINISTRATIVE REPORT
MEETING DATE: March 26, 2025 AGENDA CATEGORY: Public Hearings TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic & Community Development Director DATE: March 7, 2025
SUBJECT: Public Hearing to consider EOA Grant Agreement with Arts Council of Kern ($116,500) Economic Opportunity Area (EOA) Incentive Program grant agreement for site improvements associated with the installation of a fire sprinkler system, fire alarm, water connection fees/permits, and other related work as required at 1018 and 1020 18th Street. (Ward 2)
RECOMMENDATION:
Staff recommends approval of the grant agreement.
BACKGROUND:
Adopted in 2016, the City of Bakersfield’s Economic Opportunity Area Plan is a locally initiated program that uses public tax dollars to promote economic growth within specific geographic areas of Bakersfield.
Implementation of the Plan is anticipated to facilitate increased private sector investment that will in turn create more tax revenue, promote businesses growth, and generate new jobs.
The Economic Opportunity Area (EOA) Incentive Program offers resources to encourage business growth and redevelopment with financial assistance, such as grants and development assistance, for a business or non-profit within an EOA or planning to open or expand within an EOA. The EOA Incentive Program was created to encourage the redevelopment of vacant property or buildings with grants for site and building improvements, business expansion or moving costs, development fees, or costs of required public improvement projects.
The EOA Incentive Program meets City Council goals 1, 3, and 4 supporting economic opportunity for all, creating reliable infrastructure, and improving community character and quality of life. It makes targeted investments and provides incentives in strategic areas to increase economic activity and neighborhood revitalization.
On October 3, 2024, the City’s Economic & Community Development Department (ECD) released a Notice of Funding Availability (NOFA) for the Downtown EOA Business Improvement Grant Program. On January 27, 2025, the City’s Finance, Economic Development, and Jobs Council made grant award recommendations.
An application was received from Arts Council of Kern for their tenancy at 1018 and 1020 18th Street within the Downtown EOA. This business requested EOA funding for site improvements to cover the costs associated with the installation of a fire sprinkler system, fire alarm, water connection fees/permits, and other related work as required, which are eligible costs within the Downtown EOA Business Improvement NOFA. The sprinklers are needed to comply with increased use and occupancy that may occur with special events. The proposed improvements assist in supporting a longstanding nonprofit that provides essential services to the community and supports quality of life and safety
improvements for patrons and the public, which contributes to improved occupancy, preserves a historic building, and leads to cultural and economic growth for the community.
Per CA Government Code 53083, the City Council of the City of Bakersfield must hold a noticed public hearing and, prior to the public hearing, provide information on the economic development subsidy in written form available to the public through the City’s website. Notice was posted on March 12, 2025.
The proposed project enhances aesthetics, development, and investment in the community. The project is harmonious with the surrounding properties and uses, and offers goods and services deemed desirable and appropriate within the Downtown EOA. Therefore, staff recommend approval of the grant agreement.
FISCAL IMPACT:
Economic Opportunity Area projects were budgeted in the fiscal year 24-25 PSVS operating budget.
COUNCIL GOAL:
Economic Opportunity for All
WARD: 2
ATTACHMENTS:
Agreement