ADMINISTRATIVE REPORT
MEETING DATE: April 9, 2025 AGENDA CATEGORY: Consent Calendar - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic & Community Development Director DATE: March 26, 2025
SUBJECT: Economic Opportunity Area Grant Agreement with DV Therapy ($99,900) for tenant improvements including the costs associated with the purchase of equipment, materials and furnishings for a new business space that is open to the public. (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 incentives 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.
The City has received an application from DV Therapy, a California S Corporation, for their property at 208 Oak Street within the SR 99 Corridor EOA. This business is requesting EOA funding for site improvements consisting of property enhancements that include exterior preparation and painting, playground set, parking lot upgrade, roofing upgrade, landscaping, exterior lighting and a security fence.
The costs are eligible for SR 99 Corridor EOA per the EOA program guidelines.
The proposed façade and site improvements also support a local small business who envisions an upgraded modern facility to meet the needs of clients and serve special therapy needs of the community. Without the financial support of the EOA Incentive Program, these improvements may not be financially possible. The proposed improvements create a visual transformation for a prominent corridor and invite additional investment in the area.
The proposed project enhances aesthetics, development, and investment in the community as well as supports a small business that provides essential services for the community. The project is harmonious with the surrounding properties and uses, and offers goods and services deemed desirable and appropriate within SR 99 Corridor 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