TO: Honorable Mayor and City Council
FROM: Ernie Hernandez, City Manager
SUBJECT: CONSIDERATION TO ADOPT RESOLUTION NO. 2026-XX ESTABLISHING THE COMMERCE ADVANTAGE BUSINESS GRANTS PROGRAM MEETING DATE: August 25, 2026
RECOMMENDATION:
It is recommended that the City Council consider:
Adopting a resolution to:
Establish the Commerce Advantage Business Grants Program Authorize a budget appropriation of $1,437,500 for Commerce Advantage Business Grants from the Food & Brewery District Fund; Authorize the City Manager, or designee, to develop and adopt policies and procedures for distributing funds for qualified expenses, eligibility criteria, allowed expenses, and application process, among others; Authorize the City Manager, or designee, to make any necessary amendments, as needed, to an existing on-call agreement with Avant Garde Inc. to increase the budget, scope and term for the implementation and administration of the Commerce Advantage Business Grants; Authorize the City Manager, or designee, to take necessary actions to implement Commerce Advantage Business Grants; and Take any additional related actions as deemed necessary.
BACKGROUND:
The City of Commerce prioritizes economic development initiatives aimed at attracting new businesses and enhancing the City’s regional appeal. While the Citadel Outlets and Commerce Casino remain popular destinations, there is a need to expand the City's offerings to attract both residents and visitors by redeveloping other areas of the City beyond the Telegraph Road commercial corridor. Interest in attracting new businesses and revitalization is what led to the following City Council actions:
On May 13, 2025, the City Council designated two (2) Food and Brewery Districts (“Districts”) within the City and created a Food and Brewery Development District Ad Hoc Committee.
On June 24, 2025, the City Council advanced its economic development efforts through the approval of a dedicated fund to spur redevelopment and offer business incentives within the districts. The funding approval included allocating approximately $75,000 per month to the Food & Brewery District Fund from lease revenue generated from 7025 Slauson Avenue to establish a fund for the Districts. The amount available within the Fund is $1,437,500.
On January 13, 2026, the City Council authorized the City Manager to execute professional service agreements with North Star Aliances and Deodate to provide services related to the implementation of a regional multi-jurisdictional coalition called The Big 4, which includes Commerce, Industry, Santa Fe Springs and Vernon.
On April 14, 2026, the City Council adopted the Commerce Economic Opportunity Zones (C.E.O.z) Program which is a City-wide incentive program to implement the City’s economic development vision, increase sales tax generation, create jobs, and establish the City as a top destination for business investment, among others.
Small businesses are the backbone of the City because they create jobs, support the local economy, generate tax revenues and add a diverse mix of businesses that create vibrancy and make Commerce unique. Unfortunately, small businesses are often jeopardized and vulnerable to changing market conditions, economic downturns, rising operational costs and labor shortages, among others. Providing targeted City programs and actions geared towards supporting small businesses are important to preserve and strengthen resiliency for Commerce businesses.
DISCUSSION:
In alignment with the City's vision, the intent of the recommended action is to create a program, called Commerce Advantage Business Grants, using the previously approved funding to support small businesses and startup businesses to advance economic development efforts and community revitalization.
Under the Commerce Advantage Business Grants, there are two types of grants for:
Existing Commerce businesses established before January 1, 2025; and Start-up businesses established on or after January 1, 2025, or looking to open their business within the City of Commerce.
Program Goals:
The goals of the Commerce Advantage Business Grants include:
Strengthen Local Economy: Attract diverse businesses in the realm of retail, restaurant and service industries to complement Commerce’s industrial hub and high performing outlet mall to strengthen the City’s tax base, create quality jobs and encourage business investment.
Small Business Retention and Expansion: Help existing small businesses thrive by providing funding to enhance and expand their current operations and take proactive measures to keep them in business in Commerce.
Encourage Start-Up Businesses: Create a supportive business environment that will attract start-up companies that can benefit from seed funding to help them establish their businesses within the City of Commerce and fill existing vacancies.
Jobs Retention and Creation: Support businesses that provide or create quality jobs opportunities for the Commerce community.
Grant Details:
Existing Commerce Businesses
Grant Amount:
Grant of up to $50,000, subject to repayment if business closes within 3 years from grant issuance Number of Grants
Approximately 15 businesses, as determined by City Council Business Type/Operations:
Operate a retail, restaurant or service-related business that is physically located within the City of Commerce, operating within the City before January 1, 2025. Exclusions apply.
Max. Number of Employees:
Employ less than twenty (20) full-time equivalent (FTE) employees at the time of application.
Required Licenses/ Good Standing:
Holds all required licenses, permits, and a current City business license. Must be in good standing with the City and must be up to date on payments.
Eligible Activities:
Building improvements, equipment purchases, limited inventory/supplies, accessibility improvements, and licensing/permit fees, among others.
Priority Corridors
Priority consideration will be given to existing Commerce businesses located along Washington Boulevard or Atlantic Boulevard.
Start-Up Businesses
Grant Amount:
Grant of up to $25,000, subject to repayment if business closes within 3 years from grant issuance Number of Grants
Approximately 14 businesses, as determined by City Council Business Type/Operations:
Operate a retail, restaurant or service-related business that is physically located within the City of Commerce or is seeking to open a start-up business within the City of Commerce, operating on or after January 1, 2025. Exclusions apply.
Max. Number of Employees:
Employ less than twenty (20) full-time equivalent (FTE) employees at the time of application.
Required Licenses/ Good Standing:
Holds all required licenses, permits, and a current City business license. Must be in good standing with the City and must be up to date on payments.
Eligible Activities:
Building improvements, equipment purchases, initial inventory/supplies, accessibility improvements, and licensing/permit fees, among others.
Priority Corridors
Priority consideration will be given to existing Commerce businesses located along Washington Boulevard or Atlantic Boulevard.
Draft program guidelines, which contain greater detail regarding the proposed Commerce Advantage Business Grants, are included in Attachment 1. City staff recommends that the City Council authorize the City Manager to finalize and adopt the draft program guidelines and develop and adopt policies and procedures for distributing funds for qualified expenses, eligibility criteria, allowed expenses, and application process, among others.
PROGRAM BUDGET AND ADMINISTRATION:
A budget appropriation of $1,437,500 from the Food & Brewery District Fund is being requested to fund the Commerce Advantage Business Grants.
City staff, with the assistance of consultants as needed, will handle program implementation and administration, including:
Program development and implementation;
Outreach;
Application processing and review;
Grant document preparation;
Payment coordination; and
Reporting.
Avant Garde Inc. currently administers various City grant programs and is under contract with the City for on-call services. The City may seek assistance from Avant Garde Inc. to help with program administration and implementation, as needed. Cost for consultant services that may be needed to implement the program will be paid from the appropriated funds in the Food & Brewery District Fund. A proposal from Avant Garde Inc. for program administration is included in Attachment 3.
FISCAL IMPACT:
Approval of the recommended action will authorize a budget appropriation of $1,437,500 from the Food & Brewery District Fund to establish and implement the Commerce Advantage Business Grants Program. Grant funding will be used to provide financial assistance to eligible existing and start-up businesses in accordance with the program guidelines adopted by the City Council. Program administration will be performed by City staff, with consultant assistance utilized as needed. Any costs associated with outreach, application review, grant processing, reporting, and compliance monitoring will be funded from the appropriated Food & Brewery District Fund allocation.
ALTERNATIVES:
Approve recommendation
Reject recommendation
Provide staff with further direction
STRATEGIC PLAN GOAL:
This item relates to the 2016 Strategic Action Plan’s goal of: Economic growth - Guiding Principles 1 to “Create and strengthen our identity, as a community that promotes opportunity and success for business that meets the strategic focus for economic growth, will have a positive impact on the quality of life and the City’s financial sustainability.” Recommended by: Jessica Serrano, Director of Community Development Reviewed by: Alvaro Castellon, Director of Finance
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
ATTACHMENTS
Draft Commerce Advantage Business Grants Guidelines
Resolution
Avant Garde Inc. Proposal
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CITY OF COMMERCE
AGENDA REPORT
Item No.