11-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to adopt Resolution No. 24-48 – A Resolution authorizing the City Manager to execute Agreement File No. 1055, in a form approved by the City Attorney, with Craiger’z Entertainment LLC for the granting of funds for sales tax debt under the Bellflower Economic Development Business Assistance Plan Chapter 2.3 Downtown Restaurant Assistance Program for Regulatory Requirements.
DATE: August 12, 2024
EXECUTIVE SUMMARY
Adoption of Resolution No. 24-48 would authorize the City Manager to enter into an agreement with Craiger’z Entertainment LLC, authorizing grant funding for sales tax debt of an existing Downtown dining establishment under the City’s Economic Development Business Assistance Plan (the Plan) Chapter 2.3 Downtown Restaurant Assistance Program for Regulatory Requirements.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, consider adopting Resolution No. 24-48 authorizing the City Manager to enter into Agreement File No. 1055 with Craiger’z Entertainment LLC, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The total annual grant amount is $20,000 each year conditioned on review and confirmation that all grant requirements have been met. Among other requirements, Grantee must 1) use the funds to service sales tax debt or debt incurred to service sales tax debt ; 2) remain current with ongoing quarterly sales tax payments; and 3) not suspend or cease operations for longer than two weeks. Under no circumstances will the amount of the grant exceed $100,000 based on the policies and procedures of Chapter 2.3 of the Plan. Funds for the Plan are available and have been budgeted in Account No. 510-44410-4002.
1 1: BELLF
{‘1 O LOR’GQ
0 Y» ROWING T009159
fill.- staqepo"
0E BELLFLO off“ vQ
0 v- ROWING TooE'V‘fi
an» stafteport
Staff Report – Resolution No. 24-48 – Downtown Restaurant Assistance Program for Regulatory Requirements (Chapter 2.3) – Craiger’z Entertainment LLC August 12, 2024
DISCUSSION
On July 11, 2022, the City Council amended the Economic Development Business Assistance Plan, which consolidated several business assistance programs into one Business Assistance Plan, making it more efficient for staff and the City Council to offer assistance to business and property owners.
On April 8, 2024, the City Council adopted Resolution No. 24-19 which set forth policies and procedures for distributing economic development funds to business and/or property owners participating in the Plan. This resolution included Chapter 2.3 - Downtown Restaurant Assistance Program for Regulatory Requirement s. The Program provides assistance to existing restaurants that may have expanded too rapidly or been challenged with unexpected federal, state, or local government requirements. In such circumstances, the City’s a ssistance is necessary to ensure that otherwise successful businesses do not prematurely close.
On July 31, 2024, Craig Frisinger of Craiger’z Entertainment LLC (the Applicant), submitted his completed application for Chapter 2.3 of the Plan for Fronk’s Restaurant. Economic Development Department staff reviewed the application and determined that the Applicant qualifies for the Program. The Applicant has requested a grant of $20,000 annually to assist with the payment of delinquent sales tax obligations.
The City will disburse funds to the Applicant annually in a lump sum after review and confirmation that all grant requirements are met, and the Applicant will be required to provide proof that the grant disbursement was applied to the Applicant’s tax debt. Under no circumstances will the City grant more than a total of $100,000 to any individual applicant/grantee.
ATTACHMENTS
Resolution No. 24-48 ....................................................................................................... 3 Agreement File No. 1055 ................................................................................................. 6
2 CITY OF BELLFLOWER
RESOLUTION NO. 24-48
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENT FILE NO. 1055, IN A FORM APPROVED BY THE CITY ATTORNEY, WITH CRAIGER’Z ENTERTAINMENT LLC FOR THE GRANTING
OF FUNDS FOR SALES TAX DEBT UNDER THE BELLFLOWER ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE PLAN CHAPTER 2.3 DOWNTOWN
RESTAURANT ASSISTANCE PROGRAM FOR REGULATORY
REQUIREMENTS
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On October 8, 2013, the Governor signed Senate Bill No. 470 Community Development: economic opportunity, in an effort to promote economic development on a local level so that communities can enact local strategies to increase jobs, create economic opportunity, and generate tax revenue for all levels of government;
B. On June 28, 2023, City Council approved the City’s Operating Budget for Fiscal Years 2023-24 and 2024-25, in which $330,000 was approved in fiscal year 2024-2025 for special economic development programs related to marketing, business retention, tenant improvements, web/social media business support, façade/sign improvements, restaurant attraction, and other financial assistance to business operators and developers;
C. On April 8, 2024, the City Council adopted Resolution No. 24-19 to approve policies and procedures for distributing Economic Development funds to attract or retain customers to business and/or property owners participating in the Economic Development Business Assistance Plan (the Plan);
D. In July 2024, Craig Frisinger of Craiger’z Entertainment LLC submitted a completed application for Chapter 2.3 of the Plan for Fronk’s Restaurant at 16922 Bellflower Boulevard, which provides qualified business owners with a total annual grant amount of $20,000 with a not to exceed amount of $100,000, per the Plan policies and procedures;
E. Economic Development staff carefully reviewed the Application and determined that the Applicant qualifies for an annual $20,000 (Twenty Thousand Dollar) grant with a not to exceed amount of $100,000 based on the policies and procedures of Chapter 2.3 of the Plan;
F. On August 12, 2024, the City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code § 6066; and
3 City of Bellflower
Resolution No. 24-48
G. After careful consideration, including a review of the documentary and testimonial evidence submitted during the public hearing, the City Council finds it is in the public interest to adopt this Resolution.
SECTION 2. Grant Approved, Findings. This Resolution declares Craig Frisinger of Craiger’z Entertainment LLC, Chapter 2.3 Grant Application for sales tax debt for Fronk’s Restaurant at 16922 Bellflower Boulevard as qualified. To be executed, the total grant amount granted to the Applicants is $20,000.00 (Twenty Thousand Dollars) annually with a not to exceed amount of $100,000 and is subject to the policies and procedures of the Plan and Agreement File No. 1055.
SECTION 3. Administration. The Economic Development Director or designee is authorized to administer the Plan. The Economic Development Department will monitor and enforce the terms of Agreement File No. 1055.
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. To the extent that any other resolution is incorporated into this Resolution, it is superseded or amended in its entirety.
SECTION 7. The City Manager will establish policies and procedures as necessary to carry out this policy.
SECTION 8. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 9. The Mayor, or presiding officer, is hereby authorized to affix her signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 10. This Resolution will become effective immediately upon adoption.
///
///
///
4 City of Bellflower
Resolution No. 24-48
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 12TH DAY OF AUGUST, 2024.
________________________________
Dan Koops, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
Karl H. Berger, City Attorney
________________________________________
By: Solange Fortenbach, Deputy City Attorney
5
AGREEMENT FILE NO. 1055
GRANT AGREEMENT
BETWEEN
THE CITY OF BELLFLOWER
AND CRAIGER’Z ENTERTAINMENT LLC
THIS AGREEMENT is entered into this 12th day of August 2024 by and between the City of Bellflower, a general law city and municipal corporation (“City”), and Craiger’z Entertainment LLC (“Grantee”) and lessee of property located at 16922 Bellflower Blvd. (“Property”). The Parties agree as follows:
1. RECITALS. This Agreement is made with reference to the following facts and objectives:
A. Grantee wishes to participate in Chapter 2.3 of the Bellflower Economic Development Business Assistance Plan (“Program”) which is made available to persons owning a business or property within the Program Boundary and who require assistance with federal, state, or local regulations as to sales tax.
B. The Program and Program Boundary are established in accordance with Resolution No. 24-19, adopted April 8, 2024, and the administrative policies and procedures established to implement the Program.
C. Based on the application and documentation provided by the Grantee, the Grantee is eligible for the Program. The grant total is $20,000.00 annually, with a not-to-exceed amount of $100,000 for the life of the grant.
2. DEFINITIONS. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Agreement. Undefined words and phrases will be those set forth within the Program Guidelines.
A. “Applicant” means a property owner or tenant currently operating a dining establishment within the program boundary as established with the Program;
B. “Application” means the form provided by the Program Manager to be filled out in its entirety in order for an Applicant to be considered for the Program ;
C. “Business” means the business for which the Grantee is seeking assistance from the Program.
D. “Director” means the Director of Economic Development, who is assigned as the City’s Program Manager;
E. “Grant” means funding provided by the City of Bellflower for which payback 6 City of Bellflower
Agreement File No. 1055 with Craiger’z Entertainment LLC
of the funds is not required;
F. “Maximum Annual Grant Amount” means not more than $20,000 per year;
G. “Program” means Chapter 2.3 - Downtown Restaurant Assistance Program for Regulatory Requirements;
H. “Program Boundary” means the Downtown Bellflower on Bellflower Boulevard from the southerly city boundary north to the former Pacific Electric Railroad Right of Way;
I. “Property” means real property owned or leased by Grantee;
J. “Property Owner” means the owner of property within the Program Boundary; and
K. “Tenant” means a renter or Lessee of real property within the Program Boundary.
3. UNDERSTANDING REGARDING THE PROGRAM.
A. By signing this Agreement, Grantee certifies that Grantee understands the manner in which the Program is funded and administered. Grantee further acknowledges that Grantee received written program materials regarding the Program and is fully informed regarding Grantee’s obligations if Grantee participates in the Program.
B. Specifically, Grantee agrees that:
i. The grant will be effective beginning August 12, 2024.
ii. Grant funds provided pursuant to Chapter 2.3 can only be used to service sales tax debt or debt incurred to service sales tax debt.
iii. The grant will immediately terminate upon any one of the following occurrences:
a. Grantee’s suspension or cessation of operations for longer than two weeks;
b. Any change of ownership;
c. Outstanding sales tax debt is satisfied by means other than the Program;
d. Grantee does not stay current with ongoing quarterly sales tax payments or any previously arranged payment schedules with California Department of Tax Fee Administration (CDTFA). 7 City of Bellflower
Agreement File No. 1055 with Craiger’z Entertainment LLC
iv. In the event of any of the occurrences above, Grantee must repay the Grant to the City.
v. Pursuant to Government Code § 52200.2, Grantee must
demonstrate that participation in the Program will result in the creation or retention of at least three full-time equivalent jobs.
C. Grants are available to eligible dining establishments for not more than a Maximum Annual Grant Amount of $20,000, but not to exceed a total of $100,000.
i. Grants will continue on an annual basis, until either the sales tax obligation with the CDTFA is satisfied or the maximum total grant amount of $100,000 reached.
ii. Grant payments will be made in an annual lump sum upon the Director’s confirmation that the Grantee is complying with Chapter 2.3.
4. CONTROL OVER THE PROGRAM. Grantee understands and agrees that City has sole discretion over all aspects of the Program including, without limitation, scheduling the Program as it applies to the Property. Grantee should not expect, nor does Grantee have any right to demand, an immediate start to the Program upon signing this Agreement. City will use its best efforts to equitably and expeditiously implement the Program, but will not be liable for any failure to do so.
5. PROGRAM COORDINATION AND SUPERVISION. The Director of Economic Development is designated as City’s Program Manager and will monitor the progress and execution of this Agreement. Craig Frisinger is designated as Grantee’s Representative.
6. NOTICES. All communications to either party by the other party will be deemed made when received by such a party at its respective name and address, as follows:
City: Grantee(s):
City of Bellflower Craiger’z Entertainment LLC
Attn: Director of Economic Development Attn: Craig Frisinger 16600 Civic Center Drive 16922 Bellflower Blvd.
Bellflower, CA 90706 Bellflower, CA 90706
Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
8 City of Bellflower
Agreement File No. 1055 with Craiger’z Entertainment LLC
7. INSURANCE. Grantee will maintain commercial general liability insurance throughout the term of this Agreement in an amount not less than $1,000 ,000 per occurrence for bodily injury and property damage. Grantee agrees to provide City with copies of insurance certificates and endorsements showing coverage.
8. LICENSE TO AUDIT GRANTEE’S FOOD SERVICE AND ACCOUNTING PRACTICES.
A. Grantee grants City’s representatives the right to audit the Grantee’s food service and accounting practices subject to the following requirements:
i. Individuals permitted access to Grantee’s food service and accounting information are limited to City’s appointed officers, consultants, employees, and contractors that are directly concerned with administering the Program.
ii. City’s representatives will schedule appointments with Grantee to acquire or review documents pertaining to food service or accounting practices.
iii. Grantee will provide proof to the satisfaction of the Director that the funds paid by the City are being utilized to meet the restaurant’s ongoing debt obligation to the CDTFA.
9. HOLD HARMLESS.
A. Grantee will hold City, and its agents, harmless and free from any and all liability arising out of this Agreement, or its performance, including any such liability caused, in part, by the passive negligent act or omission of City, or its agents. Should City, or its agents, be named in any suit, or should any claim be against it, or any of its agents, by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, pursuant to this Agreement, Grantee will defend City (with counsel satisfactory to City), and its agents, and will indemnify them for any judgment rendered against them or any sums paid out in settlement or otherwise.
B. For purposes of this section “City” includes City’s elected officials, appointed officers, and employees.
C. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
10. CITY’S TERMINATION.
A. City may terminate this Agreement with or without cause. Except as provided herein, City will not be liable to Grantee for any damages that might arise from such termination.
9 City of Bellflower
Agreement File No. 1055 with Craiger’z Entertainment LLC
B. Grantee agrees that nothing in this Agreement is intended to, nor will it, obligate City to continue the Program should federal, state or local funding become unavailable. Should any funding sources become unavailable to City for continued funding of the Program, this Agreement will automatically terminate. City will notify Grantee as soon as practicable regarding such termination, but in no event later than 15 days following such an event.
11. ASSIGNABILITY. This Agreement may not be assigned without City’s prior written consent. Any attempt to assign this Agreement without City’s consent will result in immediate termination of this Agreement.
12. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of, the State of California and exclusive venue for any action involving this Agreement will be in Los Angeles County.
13. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement will bind and insure to the benefit of the parties to this Agreement and any subsequent successors and assigns.
14. WAIVER. In no event will any payment or any acceptance of payment by City hereunder constitute or be construed as a waiver by City or Grantee of any breach of covenants or conditions of this Agreement or any default which may then exist on the part of City or Grantee, and the making of any such payment while any such breach or default exists will in no way impair or prejudice any right or remedy available to City or Grantee with respect to such breach or default.
15. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. City’s City Manager may execute any such amendment on behalf of City.
[SIGNATURE ON NEXT PAGE]
10 City of Bellflower
Agreement File No. 1055 with Craiger’z Entertainment LLC
IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF BELLFLOWER
________________________________
Ryan Smoot, City Manager
Craiger’z Entertainment LLC
________________________________
Craig Frisinger, Owner
ATTEST:
_________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
Karl H. Berger, City Attorney
________________________________________
By: Solange Fortenbach, Deputy City Attorney
11