Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 22-34 – A Resolution adopting policies and procedures for distributing economic development funds to business and/or property owners participating in the Economic Development Business Assistance Plan, and superseding Resolution No. 17-36; approve a budget amendment to fund the marketing and implementation of the additional programs; and designate the northwest corner of Bellflower Boulevard and Oak Street for the Designated Block Downtown Façade Improvement Program.
Agenda Item 11-A
1 July 2017 – City Council adopted Economic Development Business Assistance Plan
Chapter 1 – Downtown Business Alcohol Licensing Assistance Chapter 2 – Downtown Restaurant and Retail Assistance, Expansion, and Modernization Chapter 2.1 – Restaurant Assistance Loans
Chapter 2.2 – Building Modernization for new retail or restaurant uses Chapter 3 – Commercial Façade Improvements
Chapter 3.1 – Citywide Matching Loan
Chapter 3.2 – Downtown Corridor Matching Loan
BACKGROUND
2 Chapter 3.3 – Designated Block Downtown Façade Improvement Program
Chapter 4 – Downtown Artisanal Manufacturing Rental Assistance Program
Chapter 5 – Small Business Microloan Program
3 PROPOSED ADDITIONS
3 Chapter 3.3 – Designated Block Downtown Façade Improvement Program City Council designates specific blocks in the downtown
Participating property owners grant City a Façade Easement authorizing City to:
Construct/Maintain the façade improvements
10-year term
$175,000 from unallocated moneys in the Economic Development Fund
First recommended designated block
Northwest corner of Bellflower Blvd. and Oak St.
4 Chapter 4 – Downtown Artisan Manufacturing Rental Assistance Program Helps Artisan Manufacturing Start-ups or Scale-ups adjust to Downtown Brick and Mortar Rents
24-months of assistance beginning at 60% of the starting rental amount
Assistance amount is reduced by 1/24 each month over the 24-month period
Maximum monthly assistance is $1,000
Total maximum assistance is $12,000
Business owner is reimbursed monthly after confirmation of paid rent
Initial funding of $125,000
5 Chapter 5 – Small Business Microloan Program
Microloans from $5,000 to $30,000
Prime Rate plus 2% for terms of up to 10 years
Working capital, equipment/machinery, inventory, start-up capital, and/or direct business expenses
Secured on a “best efforts” basis with a co-signer or collateral, and a personal guaranty
Must create or retain one full-time equivalent job
Initial funding of $125,000
6 Notable Minor Updates to the Overall Plan
1-year time limit with a 6-month extension for applicants to complete improvements
Limit Chapter 1 – Downtown Alcohol Licensing Assistance Program, south of 91 Freeway
7 Recommendations
OPEN THE PUBLIC HEARING, TAKE DOCUMENTARY AND TESTIMONIAL EVIDENCE; AND AFTER CONSIDERING THE EVIDENCE, ADOPT RESOLUTION NO. 22-34; APPROVE A BUDGET AMENDMENT TO INCREASE THE ALLOCATION FOR ACCOUNT NO. 510-44410-4002 BY $420,000 FOR CHAPTERS 3.3, 4, AND 5 OF THE PLAN, AND TO INCREASE THE ALLOCATION FOR ACCOUNT NO. 510-41310-4002 BY $40,000 FOR MARKETING AND PROMOTION USING $175,000 FROM UNENCUMBERED FUNDS IN THE ECONOMIC DEVELOPMENT FUND AND $285,000 FROM THE BUDGET SAVING RESULTING FROM THE ARPA FUNDS RECEIVED BY THE CITY;
DESIGNATE THE BLOCK OF BUILDINGS THAT OCCUPY THE NORTHWEST CORNER OF BELLFLOWER BLVD. AND OAK STREET FOR THE DESIGNATED BLOCK DOWNTOWN FAÇADE IMPROVEMENT PROGRAM; OR
ALTERNATIVELY, DISCUSS AND TAKE OTHER ACTION RELATED TO THIS ITEM
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