Agenda — Escalon City Council, May 18, 2026 (part 2 of 2)

the Property Owner for breach of this Agreement. The obligation secured by this Agreement includes, in addition to the amount of the Fee and any Interest Payment due, all costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by the City in successfully enforcing the obligation secured by this Agreement, all to be taxed as costs and included in any judgment rendered.

7. Successors in Interest. Each Property Owner who is a party to this Agreement is jointly and severally liable for compliance with its terms. This Agreement binds the Property Owner's heirs, successors, assigns, and any other person claiming under them. If there is more than one successor in interest, all successors will be jointly and severally liable for all obligations under this Agreement. This section does not limit the effect of Section 8, below.

8. Assignment. This Agreement may not be assigned or otherwise transferred to a person or entity not a party to this Agreement without the express prior written consent of the City. Any person or entity seeking assignment or transfer of this Agreement shall meet all of the terms and conditions of this Agreement. Assignment is not effective until the proposed assignee executes an assignment and assumption agreement, in a form acceptable to the City Attorney, assuming all duties and obligations of Property Owner under this Agreement. Any assignment or transfer not in strict compliance with this provision will: (1) be null and void; (2) constitute a material breach of this Agreement; and (3) cause the Fee to become due and immediately payable at the time of the attempted assignment or transfer.

9. No Third Party Beneficiaries. There are no third party beneficiaries to this Agreement.

10. Applicable Law; Venue. This Agreement is governed by and construed in accordance with the substantive laws of the State of California without regard to its conflict of laws rules. The venue for any legal action pertaining to this Agreement shall be San Joaquin County, California.

11. Waiver. If either City or Property Owner at any time or times waives any breach of this Agreement by the other, such waiver will not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or any other covenant, condition or obligation. Waiver is not effective until and unless signed by the waiving party.

12. Severability. If any provision of this Agreement is for any reason held to be invalid or unenforceable, the remainder of this Agreement will not be affected and remains valid and folly enforceable.

13. Indemnity. Property Owner agrees to defend, indemnify and hold harmless the City, its officials, employees and agents for any and all actions, proceedings, damages, claims, costs and attorneys' fees arising out of, or related to, this Agreement.

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14. Notices. All correspondence regarding this Agreement must be directed to the following persons at the following addresses:

CITY:

City of Escalon
2060 McHenry Avenue
Escalon, CA 95320
Attn: Finance Director
PROPERTY OWNER:

Midstate 48 Holdings, LLC.

Attn: Jeff Sales
5607 Lily Court
Riverbank CA 95307

15. Entire Agreement. This Agreement contains the entire agreement between the parties and all prior understandings or agreements, oral or written, regarding this matter are superseded. This Agreement may not be modified except by written mutual agreement signed by the parties.

CITY OF ESCALON PROPERTY OWNER
Midstate 48 Holdings, LLC.

By: By:

Jaylen French, City Manager Jeff Sales, Member

PROPERTY OWNER SIGNATURES MUST BE NOTARIZED

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EXHIBIT A
Legal Description
PARCEL 2, AS SHOWN ON THAT CERTAIN PARCEL MAP ENTITLED "A SUBDIVISION OF LOT 1 AS SHOWN ON SUBDIVISION MAP FILED FOR RECORD IN BOOK 37 OF MAPS AND PLATS, AT PAGE 85. SAN JOAQUIN COUNTY RECORDS, SITUATED IN SECTION 4, T2S, R9E, M.D.B.&M.", FILED FOR RECORD JUNE 21, 2023 IN BOOK 27 OF PARCEL MAPS, PAGE 67, SAN JOAQUIN COUNTY RECORDS.

APN: PORTION OF 227-320-230-000 (OLD); 227-032-032-000 (NEW)

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EXHIBIT B
Midstate 48 Holdings, LLC
Operating Agreement

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[Exempt from recording fee per Gov. Code § 27383] (Space Above This Line for Recorder's Use Only)

AGREEMENT AFFECTING REAL PROPERTY AND CREATING A LIEN

TO SECURE PAYMENT OF CERTAIN DEFERRED A N D R E D U C E D

DEVELOPMENT IMPACT FEES FOR RESIDENTIAL DEVELOPMENT PROJECT This development impact fee deferral and reduction agreement (the "Agreement") is entered into as of March 19, 2025 (the "Effective Date"), by and between Midstate 48 Holdings, LLC. ("Property Owner") and the City of Escalon (the "City").

RECITALS
A. Property Owner owns and intends to develop that certain real property commonly known as Countrywood Cottages at 1495 Countrywood Lane and more fully described in Exhibit A, which is attached and incorporated by reference ·into this Agreement (the "Property").

The development is a deed restricted, senior, multi-family residential development project (the "Project"). The Project consists of one parcel and eighteen (18) residential units.

B. The City is authorized to levy development fees to offset the impacts of development on the local system of infrastructure such as roads, water facilities, wastewater facilities and community facilities.

C. Property Owner has requested a reduction and deferral of the payment of certain development impact fees for the Property from the time of issuance of a building permit to a later time.

D. City desires to allow the fee deferral and reduction subject to the execution of a fee deferral agreement authorized by Government Code Section 66007(c).

E. All City of Escalon Development Impact Fees listed in Section G shall be deferred in accordance with Section 1.

RECORDING REQUESTED BY
2060 McHenry Avenue
Escalon, CA 95320

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F. The following development impact fees, in the following amounts, are to be reduced under this Agreement:

Development
Impact Fee
Category
Original
Impact
Fee
50% Reduced
Impact Fee
Number of
Residential
Units
Total
Reduced
Amount
Parks $ 6,453.00 $ 3,226.50 18 $ 58,077.00
Recreation $ 6,453.00 $ 3,226.50 18 $ 58,077.00
The total amount of Parks and Recreation development impact fees to be reduced under this Agreement is One Hundred Sixteen Thousand One Hundred Fifty-Four Dollars and Zero Cents ($116,154.00) (the "Reduced Fee").

G. The following development impact fees, in the following amounts, are to be deferred under this Agreement:

Development Impact Fee
Category Impact Fee
Number of
Residential
Units
Total Deferral
Amount
Transportation Mitigation $ 791.00 18 $ 14,238.00
Police $ 1,999.00 18 $ 35,982.00
City Hall $ 886.00 18 $ 15,948.00
Public Works $ 945.00 18 $ 17,010.00
Parks $ 3226.50 18 $ 58,077.00
Recreation $ 3226.50 18 $ 58,077.00
Library $ 120.00 18 $ 21,600.00
Admin Fee $ 529.00 18 $ 9,522.00
2” Domestic Water Connection $ 61,784.00 N/A $ 61,784.00 1” Landscape Water Connection $ 19,822.00 N/A $ 19,822.00 4” Fire Line Water Connection $ 34,768.00 N/A $ 34,768.00 Sewer Connection $ 6,205.00 18 $ 111,690.00
The total amount of development impact fees to be deferred under this Agreement is Four Hundred Fifty-Eight Thousand Five Hundred Eighteen Dollars and Zero Cents ($458,518.00) (the "Fee").

H. The Property Owner agrees to give significant preference to applying residents that are aged 62 years old or older by reviewing those applications that meet this criteria first.

I. The Property Owner agrees to give significant preference to applying residents that:  currently live in the City of Escalon; or  have lived within the city for more than half of their lives; or

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 currently work in the City of Escalon; or  have worked within the city for more than half of their lives J. The Property Owner will set an initial rent for each available unit at $1,600 per month or lower and will maintain this lease rate for a period of twenty-four (24) months after each unit is leased. The Property Owner will further limit the annual lease rate increase to five percent (5%) for a period of sixty (60) months after each unit is leased.

NOW, THEREFORE, Property Owner and City agree as follows:

1. Payment of Fee. Property Owner agrees to pay to the City the amount of $342,364.00 (the "Fee") on an annual basis, as follows. Twenty percent (20%) of the Fee is due and payable immediately upon securing the first Certificate of Occupancy (CofO) and twenty percent (20%) of the total fee is due each year, on the date of the issuance of the first CofO, until the fee is paid in full. Any unpaid Fee balance is immediately due and payable upon the sale of the entire Property.

2. Deferral Period. The deferral period for the Fee is forty-eight (48) months from the date of issuance of the Project's first CofO (the "Deferral Period"). Any portion of the Fee that remains unpaid at the start of the Deferral Period is immediately due and payable per the terms of this agreement.

3. Lien Created. This Agreement, when recorded, is a lien against the Property that guarantees the payment in full of the Fee, and the cost of collection of the Fee if applicable.

4. Release of Lien. Upon full payment of the Fee and complete satisfaction of all terms and conditions of this Agreement by Property Owner, the City will promptly release the lien created hereunder by executing a lien release.

5. Interest. No interest will be assessed on the Fee during the Deferral Period. If the entire amount of the Fee has not been paid at the expiration of the Deferral Period, the following are immediately due and payable: (1) the unpaid Fee balance; and (2) an amount equal to interest accrued on the unpaid Fee balance (the "Interest Payment"), computed from the Effective Date of this Agreement to the expiration of the Deferral Period. The interest rate on the Interest Payment will be the annual rate of interest earned by City on its investment of pooled funds. On and from the expiration of the Deferral Period, interest shall accrue on the balance of the unpaid Fee, and on the Interest Payment, at the rate set forth in Code of Civil Procedure Section 685.010.

6. Default. If Property Owner fails to pay any amount owing under this Agreement, the City has the right to exercise all rights and remedies and to maintain any action in law or equity to enforce the terms and covenants of this Agreement. The City may pursue collection through all available legal and administrative means, including but not limited to judicial foreclosure of the recorded lien against the Property and civil judgment against

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9. No Third Party Beneficiaries. There are no third party beneficiaries to this Agreement.

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14. Notices. All correspondence regarding this Agreement must be directed to the following persons at the following addresses:

CITY:

City of Escalon
2060 McHenry Avenue
Escalon, CA 95320
Attn: Finance Director
PROPERTY OWNER:

Midstate 48 Holdings, LLC.

Attn: Jeff Sales
5607 Lily Court
Riverbank CA 95307

CITY OF ESCALON PROPERTY OWNER
Midstate 48 Holdings, LLC.

By: By:

Jaylen French, City Manager Jeff Sales, Member

PROPERTY OWNER SIGNATURES MUST BE NOTARIZED

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APN: PORTION OF 227-320-230-000 (OLD); 227-032-032-000 (NEW)

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EXHIBIT B
Midstate 48 Holdings, LLC
Operating Agreement

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ITEM NO. 14

COUNCIL AGENDA ITEM
FOR MAY 18, 2026
Prepared By: Trevin W. Barber, Development and Community Services Manager Date: May 4, 2026
Subject: Grant Agreements for Businesses Recommended by the Economic Development Committee Through the Business Incentive Program Recommendation:

Consider business incentive grant agreements with Party Shed, Sensory Dough by Kelsie, Tacos De Nieve, and Marcos Ristorante Italiano, as recommended by the Escalon Economic Development Committee; and authorize the City Manager to execute the grant agreements.

Strategic Plan Priority:

This item directly advances the City Council’s 2025–2026 Strategic Plan, Priority Area #1, Economic Development by investing in businesses to further a strengthened economy. The New Business and Business Expansion Grant Programs were created as a core implementation tool for this priority, providing targeted financial assistance that encourages private investment, accelerates business growth, and improves the overall vitality of Escalon’s economy.

Background
Beginning in late 2025, staff-initiated development of a comprehensive suite of economic development incentive policies to support business attraction, expansion, and entrepreneurship in Escalon as part of the Council’s 2025 - 2026 Strategic Plan. The Economic Development Committee (EDC) first reviewed the conceptual framework in November 2025, followed by Council direction in December and formal adoption of the final 2026 Economic Development Incentive Policies on January 20, 2026. The New and Expanding Business Incentive program was designed to provide targeted financial assistance to businesses that demonstrate readiness, community benefit, and alignment with the City’s economic development goals.

The City Council authorized an initial $40,000 for the program budget. With Oak Valley Community Bank’s $20,000 Community Reinvestment Partnership contribution, the City began the 2026 cycle with a total $60,000 incentive pool.

The first round of awards, totaling $38,800, were approved by Council on April 6, 2026. $21,200 in program funding remained available for the second intake cycle. Staff reviewed all new submissions

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for completeness and eligibility using the scoring matrix before forwarding qualified applications to the EDC for scoring and recommendation The EDC met on April 28, 2026, to review the newly submitted applications and make funding award recommendations.

Discussion:

The Committee acknowledged that demand for grant funding in this intake cycle far exceeded the remaining program balance, requiring a difficult set of decisions. After careful review, members prioritized smaller, tightly scoped requests that could be implemented quickly and deliver immediate community benefit, and felt that too few funds were available to be impactful for the higher-cost proposals. If there are future funding rounds, these businesses/requests could be good fits. As a result, the Committee recommended awards for Party Shed, Sensory Dough by Kelsie, and Tacos de Nieve, and deferred further consideration of: Pencie & Ginger Boutique; Hope Float Wellness Center; EscalonFIT; and Marco Ristorante Italiano.

Party Shed – Request $5,670; EDC Recommendation $4,300
Party Shed is a woman-owned, Escalon-based event rental business operating on a “grab-and-go” model that provides affordable, professional-grade entertainment packages for families, schools, and community groups. The EDC determined that the request—focused on expanding rental inventory and acquiring essential administrative tools—was tightly scoped, immediately implementable, and directly tied to increased revenue capacity.

The business has demonstrated early traction, including rentals from Modesto, Stockton, and Merced, indicating strong regional demand. The Committee found the investment to be low-risk and high-impact, supporting a business that draws customers into Escalon and strengthens the local event ecosystem. The award is structured to fund the core line items identified in Party Shed’s budget for equipment, but not marketing and administration.

As a condition of the grant, Party Shed shall review and confirm its California sales tax filing approach for rental/lease transactions, including whether to obtain a seller’s permit and use a resale certificate for equipment purchases. Staff recommends Party Shed consult a tax advisor with the SBDC or the CDTFA for a written determination and include a brief summary of that guidance with the documentation.

Further, Party Shed shall consider offering suggestive sales of party favors and consumable items such as plates, napkins, utensils, favor bags, single‑serve snacks, and similar goods that complement rental packages and generate taxable retail sales for the community. For example for the nerf battle package, age appropriate party favors with team themed bandanas, safety glasses, a snack, and stickers would provide convenience to the party planner and support safe play, while generating more revenue.

Sensory Dough by Kelsie – Request $3,500; EDC Recommendation $3,000 Sensory Dough by Kelsie is a home-based artisan business producing handmade sensory dough products for children, educators, and neurodiverse users. The proposal seeks to start a new business feature— sensory boot camps geared towards providing educational play opportunities for groups of young children. The EDC found the proposal to be a strong fit for the program’s intent to support small-scale makers transitioning toward higher-volume production.

The request focuses on equipment, packaging, and production tools that will allow the business to scale output and participate in additional markets. The Committee noted the high-margin nature of the product

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line, the strong regional demand for sensory-based educational goods, and the business’s potential to expand into online and maker-market channels.

As a condition of the grant, Sensory Dough by Kelsie shall consider offering packaged product sales bundled with experiences and promotional incentives (for example: a take‑home sensory dough kit sold with an in‑studio mini‑session, or coupons/discounts for future classes) designed to increase purchases with the point-of-sale in Escalon. The City also encourages the business to pursue vendor registration with charter school networks so that home‑schooled families may use their educational funds toward eligible sensory‑based learning opportunities offered by the business.

Tacos de Nieve – Request $20,000; EDC Recommendation $9,750 Tacos de Nieve is a long-standing Escalon catering business with a strong community presence. The applicant identified a fully permitted concession trailer available for immediate acquisition, eliminating the typical delays associated with health department approvals.

The EDC determined that supporting a portion of the trailer purchase would significantly expand the business’s event capacity, improve operational efficiency, and strengthen its ability to participate in community events. The Committee found the investment to be low-risk, with clear and immediate economic benefit. The approved funds would provide the downpayment required to access the San Joaquin Revolving Loan Fund.

Marcos Ristorante Italiano – Request $25,000; EDC Recommendation $4,150 Marco Ristorante Italiano submitted a request for $25,000 to support tenant improvements and equipment purchases associated with a significant restaurant build-out totaling approximately $75,000.

While the Committee was unable to fund the full request due to limited remaining program dollars, the Committee expressed strong support for the project and recognized the substantial private investment being made in the region.

To ensure the City could still contribute meaningfully within available resources, the Committee recommends allocating $4,150 to reimburse eligible building and health permit fees associated with the project. These fees represent one of the most burdensome and unavoidable early-stage costs for new businesses, and reimbursing them allows the City to directly offset a portion of the regulatory expenses required to open the restaurant.

This targeted reimbursement approach ensures that funds are used for clearly eligible, documentable costs tied to business establishment, while remaining proportional to the City’s remaining program capacity. It also directs support toward a project with demonstrated readiness, clear community benefit, and strong entrepreneurial commitment. Although modest relative to the applicant’s overall investment, the award serves as a meaningful gesture of appreciation for the applicant’s initiative and aligns with the program’s goals of encouraging business growth and economic vitality.

The Committee views this allocation as an appropriate and fiscally responsible use of the remaining program balance, while still honoring the applicant’s investment and contribution to the local economy.

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Standard Conditions of Approval
All grant agreements include the following standard conditions:

1. Six-Month, One-Year, and Two-Year Reporting: Awardees must submit progress reports documenting use of funds, business performance, and community impact.

2. Letter of Intent to Operate in Escalon: Awardees must commit to operating within the City for a minimum of two years, depending on the project.

3. Verification of Permits and Compliance: Any improvements requiring building, zoning, or health permits must be verified before disbursement.

4. Use of Funds Restrictions: Funds must be used only for the approved equipment or project components identified in the grant agreement.

5. SBDC Participation: Awardees are encouraged to engage with the Small Business Development Center for business planning, financial management, or growth strategy support.

6. Performance Conditions (if applicable): Businesses should demonstrate measurable outcomes such as increased sales, expanded customer geography, or enhanced community benefit.

7. Direct Payment: Funds may be disbursed as direct vendor payments, consistent with program guidelines and must be approved before expenditures, improvements, or investments made.

8. Non-Transferability: Grants are non-transferable and may not be reassigned to another business or individual.

9. San Joaquin County Revolving Loan Fund Consultation: Awardees should consult with the San Joaquin County Revolving Loan Fund (RLF) to evaluate whether low-interest financing is appropriate for additional capital needs associated with expansion, equipment acquisition, or facility improvements.

10. Compliance With Local Business Licensing and Seller’s Permit Requirements: Awardees must maintain an active City of Escalon business license and comply with all applicable local, county, and state permitting requirements, including seller’s permits where required. Grant funds may not be disbursed until all required licenses and permits are verified as current and in good standing.

Fiscal Impact:

The remaining program balance prior to award of this second cycle awards was $21,200. The EDC’s recommended second cycle awards total $17,050, leaving just $4,150 remaining.

Sufficient funding is not available to open a further funding cycle. Staff will bring forward a recommendation during the FY 2026–27 budget process to allocate additional General Fund resources to continue the momentum of the City’s economic development initiatives.

Attachments:

1. Party Shed Grant Agreement

2. Sensory Dough by Kelsie Grant Agreement

3. Tacos De Nieve Grant Agreement

4. Marcos Ristorante Italiano

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ATTACHMENT 1
82108.00000\44866625.1

CITY OF ESCALON

NEW AND EXPANDING BUSINESS GRANT AGREEMENT

FOR PARTY SHED

1. PARTIES AND DATE
This Grant Agreement (“Agreement”) is entered into between the City of Escalon (“City”) and Party Shed (“Grantee”) for the purpose of providing financial assistance through the City’s New and Expanding Business Grant Program on May 19, 2026.

This Agreement becomes effective on the date of the City Manager’s signature.

2. RECITALS.

2.1 City. City is a municipal corporation organized under the laws of the State of California with the authority to administer economic development programs that support local businesses and strengthen the community’s economic vitality.

2.2 Grantee. Grantee has applied for funding under the City’s grant program and has represented that it meets all eligibility requirements, holds all necessary licenses and permits to operate in the State of California, and will comply with all applicable laws and regulations.

2.3 Public Purpose. The City desires to award grant funds to the Grantee to support a high-functioning, local small business economic ecosystem with targeted eligible business startup or expansion activities as described in this Agreement and in the Grantee’s approved application.

3. TERMS.

3.1 Grant Award.

3.1.1 Amount of Grant. The City shall award the Grantee a grant in the amount of $4,300 (“Grant Funds”).

3.1.2 Approved Use of Funds. Grant Funds may be used only for the specific equipment, materials, or project components approved by the City and listed in Exhibit A – Scope of Work.

3.2 Period of Performance.

3.2.1 Term. The term of this Agreement shall begin on the effective date and continue for twenty-four (24) months, unless extended in writing by the City.

3.2.2 Performance. Grantee shall perform and complete the Proposed Project under this Agreement within the term set forth in section 3.1.2 above (“Term”).

Grantee agrees that if the Proposed Project is not completed within the aforementioned

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ATTACHMENT 1
82108.00000\44866625.1
term, it is understood, acknowledged and agreed that the grant funds will be reimbursed to the benefit of the City.

3.3 Standard Conditions of Approval.

3.3.1 Reporting Requirements. The Grantee shall submit brief progress updates at six (6) months, twelve (12) months, and twenty-four (24) months. The City intentionally designed these reporting requirements to be simple, low burden, and achievable for small businesses without specialized software or complex documentation.

Grantees may provide information in plain language, using basic records they already keep, such as receipts, screenshots, order confirmations, or short written summaries. Each report should include the following:
(a) Basic Business Update (Short Narrative) A simple description of:
• Whether the business is operating, expanding, or still in development.
• What progress has been made since receiving the grant. • Any challenges encountered and how the business is
addressing them.
• How to provide it: A short paragraph or bullet list is sufficient. (b) Use of Grant Funds. A brief summary of how the funds were used, including:
• What was purchased
• How it supports the business
• How to provide it: Upload or email photos of receipts, screenshots of online orders, or a simple list of purchases. (c) Sales & Customer Reach (Flexible). A general sense of:
• Whether sales have increased
• Whether the business has gained any customers from outside Escalon (if applicable)
• How to provide it: A rough estimate, a short written summary, or a screenshot from Square, Shopify, Venmo, QuickBooks, or similar tools. Exact accounting is not required.
(d) Community Benefit (Plain Language). A short description of how the business has contributed to the community, such as:
• Serving local schools, teams, or nonprofits
• Providing services to residents
• Creating or sustaining jobs (including part time or contract work)
• How to provide it: A few sentences or examples—no formal documentation required.
(e) Licensing & Compliance Check. Confirmation that:
• The business license is current
• Any required permits or seller’s permits remain active • How to provide it: A simple “yes, all licenses are current” or a photo/screenshot of the license.
(f) Optional: Technical Assistance Participation. If the Grantee participated in SBDC advising, workshops, or financial literacy sessions, they may briefly note:

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ATTACHMENT 1A
82108.00000\44866625.1

CITY OF ESCALON

NEW AND EXPANDING BUSINESS GRANT AGREEMENT

FOR PARTY SHED

This Agreement becomes effective on the date of the City Manager’s signature.

2. RECITALS.

3. TERMS.

3.1 Grant Award.

3.1.1 Amount of Grant. The City shall award the Grantee a grant in the amount of $4,300 (“Grant Funds”).

3.1.2 Approved Use of Funds. Grant Funds may be used only for the specific equipment, materials, or project components approved by the City and listed in Exhibit A – Scope of Work.

3.2 Period of Performance.

3.2.1 Term. The term of this Agreement shall begin on the effective date and continue for twenty-four (24) months, unless extended in writing by the City.

3.2.2 Performance. Grantee shall perform and complete the Proposed Project under this Agreement within the term set forth in section 3.1.2 above (“Term”).

Grantee agrees that if the Proposed Project is not completed within the aforementioned

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ATTACHMENT 1A
82108.00000\44866625.1
term, it is understood, acknowledged and agreed that the grant funds will be reimbursed to the benefit of the City.

3.3 Standard Conditions of Approval.

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ATTACHMENT 1A
82108.00000\44866625.1
• What they attended
• How it helped
• How to provide it: One or two sentences is sufficient. (g) Flexibility Clause. The City recognizes that small businesses vary widely in their record keeping practices. The City will accept any reasonable form of documentation that demonstrates progress, including:
• Photos
• Emails
• Screenshots
• Informal summaries
• Point of sale exports
• Handwritten notes
The City will work directly with any Grantee who needs help preparing their report.

3.3.2 Business Location Commitment. The Grantee intends to maintain operations within the City of Escalon for a minimum of (2) years.

3.3.3 Compliance With Local Licensing and Permitting. The Grantee must maintain: A valid City of Escalon business license; A valid California seller’s permit, if applicable; Compliance with all zoning, building, health, and fire regulations; Grant Funds will not be disbursed until all required licenses and permits are verified as current and in good standing.

3.3.4 Use of Funds Restrictions. Grant Funds must be used solely for the approved equipment, materials, or project components identified in Exhibit A. Structural improvements to personal residences are not eligible unless expressly approved in writing by the City.

3.3.5 SBDC Participation. The Grantee is encouraged to engage with the San Joaquin Small Business Development Center (SBDC) for business planning, financial management, or growth strategy support.

3.3.6 Revolving Loan Fund Consultation. The Grantee is encouraged to consult with the San Joaquin County Revolving Loan Fund (RLF) to evaluate whether low‑interest financing is appropriate for additional capital needs associated with expansion, equipment acquisition, or facility improvements.

3.4 Disbursement of Funds.

No funds will be disbursed until all required permits, licenses, and documentation are verified. Grant Funds will be disbursed directly to the Grantee.

3.5 Delays in Performance.

3.5.1 Excusable Delays. Any delays in Grantee’s work caused by the following shall be added to the time for completion of any obligations of Grantee: (1) the actions of City or its employees; (2) the actions of those in direct contractual relationship with City; (3) the actions of any governmental agency having jurisdiction over the Project; (4) the actions of any parties not within the reasonable control of the Grantee; and (5) any act of God or other unforeseen occurrence not due to any fault or negligence on the part of Grantee. Neither the City nor the Grantee shall be liable for damages, liquidated or otherwise, to the other on account of such delays.

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ATTACHMENT 1A
82108.00000\44866625.1

3.6 City’s Representative.

The City hereby designates Trevin W. Barber, Development and Community Services Manager, or his designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Grantee shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.7 Maintenance of Records.

Grantee shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable.

Grantee shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Grantee shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of payment under this Agreement.

3.8 Laws and Regulations.

3.8.1 Knowledge and Compliance. Grantee shall keep itself fully informed of and in compliance with all applicable local, state and federal laws, rules and regulations in any manner affecting the performance of the Project, and shall give all notices required of the Grantee by law. Grantee shall be liable, pursuant to the standard of care and indemnification provisions of this Agreement, for all violations of such laws and regulations in connection with this agreement. If the Grantee performs any work knowing it to be contrary to such laws, rules and regulations, Grantee shall be solely responsible for all costs arising therefrom. Grantee shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.9 Assignment.

Grantee shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination of this Agreement.

Notwithstanding the foregoing, Grantee may freely and without consent assign this Agreement to an affiliate or to an acquirer of all or part of Grantee’s business or assets provided that such assignment shall only be effective upon no less than thirty (30) days prior notice to City and only in the event that such assignment does not materially impair the interests of City.

3.15 Indemnification.

To the fullest extent permitted by law, Grantee shall defend (with counsel of City’s

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ATTACHMENT 1A
82108.00000\44866625.1
choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Grantee, its officials, officers, employees, subcontractors, Grantees or agents in connection with the performance of the Grantee’s business, this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Grantee, the City, its officials, officers, employees, agents, or volunteers.

3.18 Governing Law.

This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Joaquin, State of California.

3.19 Verification of Employment Eligibility.

By executing this Agreement, Grantee verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all sub-Grantees and sub-Grantees to comply with same.

3.20 Notice.

Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

CITY: GRANTEE:

City of Escalon Party Shed
2060 McHenry Avenue 2505 Nathaniel Ct
Escalon, CA 95320 Escalon, CA 95320
Attn: City Manager Attn: Meagan Meredith
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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3.21 Third Party Rights.

This Agreement shall not create any rights in, or inure to the benefits of, any third party.

3.22 Equal Opportunity Employment.

Grantee represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or any other classification protected by federal or state law. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Grantee shall also comply with all relevant provisions of City’s minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.23 Successors and Assigns.

This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Grantee shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. Notwithstanding the foregoing, Grantee may freely and without consent assign this Agreement to an affiliate or to an acquirer of all or part of Grantee’s business or assets, provided that such assignment shall only be effective upon no less than thirty (30) days prior notice to City and only in the event that such assignment does not materially impair the interests of City.

3.24 Non-Waiver.

None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.25 Time of Essence.

Time is of the essence for each and every provision of this Agreement.

3.26 Severability.

Should any provision in the Agreement be held to be invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.27 Prohibited Interests.

3.27.1 Solicitation. Grantee maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Grantee, to solicit or secure this Agreement. Further, Grantee warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide

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employee working solely for Grantee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

3.27.2 Conflict of Interest. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.28 Counterparts.

This Agreement may be signed in counterparts, each of which shall constitute an original.

3.29 Entire Agreement.

This Agreement, with its exhibits, represents the entire understanding of City and Grantee as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto.

3.30 Termination
This Agreement may be terminated (1) by either Party for convenience, with 30 days written notice to the other Party; or (2) for cause or default as determined by the City if the cause or default is not cured within 30 days of the City’s notice; or (3) for nonappropriation of funds as determined by the City and immediately upon notice from the City to Grantee.
[SIGNATURES ON FOLLOWING PAGE]

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ATTACHMENT 1A
82108.00000\44866625.1

SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ESCALON

AND PARTY SHED
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF ESCALON Party Shed
By:

JAYLEN FRENCH
By:

MEAGAN MEREDTIH
City Manager Owner
ATTEST:

By:

Michele Bates
Deputy City Clerk
APPROVED as to Form:

By:

FRANK SPLENDORIO
Best Best & Krieger, LLP

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ATTACHMENT 1A
82108.00000\44866625.1
EXHIBIT “A”

ACCEPTED SCOPE OF PROJECT
Party Shed – $4,300 (Equipment Only)
Project Summary: Grant Funds will be used to purchase core event-rental equipment necessary to expand Party Shed’s capacity to deliver themed children’s parties and mobile experiences. The project focuses on durable equipment that increases service reliability, supports new package offerings, and enhances customer experience.

Grantee is encouraged to pursue at least $1,000 in sales to customers outside Escalon within one year to support the City’s traded-sector goals and report back on progress.

Grantee shall consult with the San Joaquin County Revolving Loan Fund for any additional capital needs related to future expansion. Grantee shall consult with the Small Business Development Center for coaching related to future expansion.

Approved Uses:
 Purchase of event‑rental equipment such as inflatable play units, party décor fixtures, storage racks, transport containers, and play equipment Not Eligible:
 Marketing, advertising, or administrative expenses
 Payroll, rent, utilities, or other operating expenses Additional Direction:

The City encourages Party Shed to explore suggestive sales of party favors and consumable add-ons (e.g., favor bags, snack packs, themed plates/napkins) to increase taxable point-of-sale activity within Escalon.

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EXHIBIT “B”

GRANTEE PROPOSAL

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C I T Y O F E S C A L O N · B U S I N E S S E X P A N S I O N G R A N T Party Shed
Grab-and-Go · Pro-Grade Party Rentals
Owner: Meagan Meredith | Location: Escalon, CA | Request: $5,670 party-shed.com

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BUSINESS CONCEPT
What is Party Shed?
Party Shed is a female-owned, Escalon-based
event rental company built on a Grab-and-Go
model.

Customers pick up commercial-grade party
equipment directly from our Escalon location —
no delivery fees, no rigid windows, no hassle.
"Mom-Run, Pro-Grade" -- every item is
meticulously maintained, safe, and impeccably
clean.

The Problem We Solve
Traditional rentals charge:

High minimums · Delivery & setup fees · Rigid time
windows
Our Solution:

Professional entertainment that fits in an SUV or
truck. Customers save money, control their
timeline, and host unforgettable events.

Serving Escalon, Modesto, Manteca & Stockton

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EARLY TRACTION & MARKET PROOF
Already
Operational
Live website, active bookings,
inventory in-hand
2+
Proven Packages
Nerf War & Karaoke — validated by
real customers
4+
Markets Served
Escalon, Modesto, Manteca &
Stockton
"The Central Valley market is hungry for affordable, high-quality, DIY entertainment options."

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USE OF FUNDS — $5,670 GRANT REQUEST
Rental Equipment $4,292
76%
Nerf War (×2), Laser Tag, Karaoke, Lawn Party, Backyard Bar Games, VIP Entrance, Coolers Administrative $878
15%
Laminator for checklists + Booqable online rental software subscription Marketing $500
9%
Targeted launch campaign to drive awareness in Escalon and surrounding communities TOTAL GRANT REQUEST: $5,670 | 100% allocated to business growth — no administrative overhead to grantors

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COMMUNITY BENEFIT & STRATEGIC ALIGNMENT
Drives Foot Traffic to Escalon
Our pickup-only model draws customers from Modesto,
Stockton & Manteca into Escalon, boosting local
commerce.

Female-Owned Local Business
Meagan’s venture directly supports the City’s 2025–2026 Economic Development priority to grow existing
businesses and invest in business startup funding with a magnifying impact on the local economy.

Accessible Community Events
Affordable pro-grade rentals help families, schools, and nonprofits host quality events without out-of-town
vendors.

Job Creation Potential
Growth trajectory points to needing a storefront and
employees — keeping jobs and tax revenue local.
✓ Directly fulfills Escalon’s 2025–2026 Strategic Priority: Economic Development — “Increase Strategic Economic Development Spending” through business startup funding

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READINESS TO LAUNCH
01 Operational NOW
Website live · Inventory in-hand · Active customer bookings underway 02 Suppliers Identified
Purchase carts finalized — ready to execute orders upon fund receipt 03 14-Day Fulfillment
New packages received, inspected & listed online within 14 days of delivery 04 Marketing Launch
Targeted campaign deployed simultaneously to drive demand across service area Team: Meagan (Catering & Operations Mgmt) + Austin (MBA · Nuclear Safety & Operations) — Pro-Grade by design

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The Ask
A $5,670 investment to scale a proven, community-rooted business. 6 New Packages Launched
Tripling our rental inventory
14 Days to Market
From funding to live listings
$0
Wasted
100% to revenue-generating assets
party-shed.com · Escalon, CA · Female-Owned & Family-Operated

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NTENTIONALLY LEFT BLAN

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ATTACHMENT 2A
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CITY OF ESCALON

NEW AND EXPANDING BUSINESS GRANT AGREEMENT

FOR SENSORY DOUGH BY KELSIE

1. PARTIES AND DATE
This Grant Agreement (“Agreement”) is entered into between the City of Escalon (“City”) and Sensory Dough by Kelsie (“Grantee”) for the purpose of providing financial assistance through the City’s New and Expanding Business Grant Program on May 19, 2026.

This Agreement becomes effective on the date of the City Manager’s signature.

2. RECITALS.

3. TERMS.

3.1 Grant Award.

3.1.1 Amount of Grant. The City shall award the Grantee a grant in the amount of $3,000 (“Grant Funds”).

3.1.2 Approved Use of Funds. Grant Funds may be used only for the specific equipment, materials, or project components approved by the City and listed in Exhibit A – Scope of Work.

3.2 Period of Performance.

3.2.1 Term. The term of this Agreement shall begin on the effective date and continue for twenty-four (24) months, unless extended in writing by the City.

3.2.2 Performance. Grantee shall perform and complete the Proposed Project under this Agreement within the term set forth in section 3.1.2 above (“Term”).

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Grantee agrees that if the Proposed Project is not completed within the aforementioned term, it is understood, acknowledged and agreed that the grant funds will be reimbursed to the benefit of the City.

3.3 Standard Conditions of Approval.

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sessions, they may briefly note:
• What they attended
• How it helped
• How to provide it: One or two sentences is sufficient. (g) Flexibility Clause. The City recognizes that small businesses vary widely in their record keeping practices. The City will accept any reasonable form of documentation that demonstrates progress, including:
• Photos
• Emails
• Screenshots
• Informal summaries
• Point of sale exports
• Handwritten notes
The City will work directly with any Grantee who needs help preparing their report.

3.3.2 Business Location Commitment. The Grantee intends to maintain operations within the City of Escalon for a minimum of (2) years.

3.3.5 SBDC Participation. The Grantee is encouraged to engage with the San Joaquin Small Business Development Center (SBDC) for business planning, financial management, or growth strategy support.

3.4 Disbursement of Funds.

No funds will be disbursed until all required permits, licenses, and documentation are verified. Grant Funds will be disbursed directly to the Grantee.

3.5 Delays in Performance.

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damages, liquidated or otherwise, to the other on account of such delays.

3.6 City’s Representative.

3.7 Maintenance of Records.

Grantee shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable.

3.8 Laws and Regulations.

3.9 Assignment.

3.15 Indemnification.

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To the fullest extent permitted by law, Grantee shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Grantee, its officials, officers, employees, subcontractors, Grantees or agents in connection with the performance of the Grantee’s business, this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Grantee, the City, its officials, officers, employees, agents, or volunteers.

3.18 Governing Law.

3.19 Verification of Employment Eligibility.

3.20 Notice.

CITY: GRANTEE:

City of Escalon Sensory Dough by Kelsie
2060 McHenry Avenue 2409 California St
Escalon, CA 95320 Escalon, CA 95320
Attn: City Manager Attn: Kelsie Van Rys
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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3.21 Third Party Rights.

This Agreement shall not create any rights in, or inure to the benefits of, any third party.

3.22 Equal Opportunity Employment.

3.23 Successors and Assigns.

3.24 Non-Waiver.

None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.25 Time of Essence.

Time is of the essence for each and every provision of this Agreement.

3.26 Severability.

Should any provision in the Agreement be held to be invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.27 Prohibited Interests.

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has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Grantee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

3.28 Counterparts.

This Agreement may be signed in counterparts, each of which shall constitute an original.

3.29 Entire Agreement.

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ATTACHMENT 2A
82108.00000\44866625.1

SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ESCALON

AND SENSORY DOUGH BY KELSIE
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF ESCALON Sensory Dough by Kelsie
By:

JAYLEN FRENCH
By:

Kelsie Van Rys
City Manager Owner
ATTEST:

By:

Michele Bates
Deputy City Clerk
APPROVED as to Form:

By:

FRANK SPLENDORIO
Best Best & Krieger, LLP

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ATTACHMENT 2A
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EXHIBIT “A”

ACCEPTED SCOPE OF PROJECT
Sensory Dough by Kelsie – $3,000 (Equipment Only)
Project Summary: Grant Funds will be used to expand Sensory Dough by Kelsie’s capacity to produce handmade sensory dough and to support the business’s ability to host children’s sensory‑play stations at community events, parties, and pop‑ups. The project focuses on acquiring sensory‑medium materials, production tools, and portable tables that allow the business to safely and efficiently set up interactive sensory experiences for children. Grantee is encouraged to pursue at least $1,000 in sales to customers outside Escalon within one year to support the City’s traded-sector goals and report back on progress. Grantee shall consult with the San Joaquin County Revolving Loan Fund for any additional capital needs related to future expansion. Grantee shall consult with the Small Business Development Center for coaching related to future expansion.

Approved Uses:
 Purchase of sensory‑dough production materials such as flour, salt, oils, colorants, and storage containers
 Purchase of small equipment and tools used in dough preparation, batching, and packaging
 Purchase of portable tables, folding stations, or lightweight surfaces used for children’s sensory‑play setups
 Purchase of bins, trays, and containers used to organize sensory stations at events
 Purchase of packaging supplies for finished sensory dough products Not Eligible:
 Marketing, advertising, or promotional expenses
 Administrative costs, software, or subscription services  Payroll, rent, utilities, or other operating expenses Additional Direction:

The City encourages Sensory Dough by Kelsie to consider offering bundled product‑and‑experience sales, such as take‑home dough kits paired with sensory‑play mini‑sessions or coupons/discounts for future classes, to increase on‑site purchases and maintain point‑of‑sale activity in Escalon. The City also encourages the business to pursue vendor registration with charter school networks so that home‑schooled families may use their educational funds toward eligible sensory‑based learning opportunities offered by the business.

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EXHIBIT “B”

GRANTEE PROPOSAL

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City of Escalon – Start-Up Pitch
Kelsie Van Rys
Sensory Bootcamp

1. Business Overview
This summer, I am launching a program for children called Sensory Bootcamp. This will be a child-led, immersive play experience, designed to introduce children aged 18 months-6 years old to a variety of sensory materials and play opportunities.

This will be a service-based extension of my existing business, Sensory Dough by Kelsie, where I make and sell sensory playdough and play kits.

Sensory Bootcamp will be a unique opportunity for local children and parents, emphasizing hands-on, open-ended play for young children in an outdoor environment.

2. Target Customers & Market
My ideal customer is a parent who values the benefits of hands-on play and exploration for their child(ren). They aren’t afraid to get a little messy, but appreciate the opportunity to have someone else plan, provide, and clean up that mess. They love the idea of spending time outdoors with their child, allowing the child to lead the play and explore with their senses.

3. Business Model & Revenue
Sensory Bootcamp will be structured in sessions which include 4 classes, once a week, for a month. For example, every Tuesday morning from 9am-10am for the month of June. I plan to offer sessions in June and July, targeting the communities in Escalon, Oakdale, and Ripon.

Customers will purchase their session online ahead of time, and they will be included in the 4 classes of the session they choose. I may also be able to provide “drop-in” options, depending on enrollment, where a parent could pay to attend only one specific class during a session. Pricing will be $100/child for a 4-class session, or $30/child for one drop-in class (if available).

4. Community Benefit
Sensory Bootcamp will benefit Escalon by providing community members with a new opportunity for young children. Most local sports, art, and collaboration groups do not cater to very young families; Sensory Bootcamp will be an opportunity to meet, network, and play with other local families with young children. I am also interested in collaborating with local businesses to see if they are interested in providing promotional material to participants, which could encourage the families to visit and shop locally before or after classes.

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5. Use of Grant Funds
This grant will help me launch Sensory Bootcamp by allowing me to purchase the necessary materials and insurance to provide this service. I would also use the funds for a more comprehensive advertisement strategy.

Materials to be purchased would include: sensory tables, sensory accessories (scoops, funnels, bowls, etc.), sensory mediums (rice, sand, beans, etc.), aprons for participants, and signage/markers for class area.

Amount requested: $3,500

6. Readiness to Launch
I have scheduled a trial class with a local moms group to allow me to practice the setup and flow of a class, work out any issues, and gather content for advertisement. The class is scheduled for May 5th at 10am, at a park in Oakdale. After this class, I will begin to advertise for the summer sessions in Escalon, Oakdale, and Ripon

7. About You / Team Background
My background and passion lie in sparking curiosity and a love for learning in young children. I graduated from the University of the Pacific with a degree in Early Childhood Education, and taught preschool for 15 years. For the last seven years, I’ve run my sensory dough business, connecting with local parents and caregivers who value the benefit of sensory play in children’s learning. Research shows that sensory play is crucial for early development- it boosts brain connections, motor skills, language development, and cognitive growth. I’m excited to provide a fun and beneficial opportunity for the young children and parents in our community.

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SENSORY

BOOTCAMP
Kelsie Van Rys

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Child-led immersive
play experience
Ages 18 months -
6 years old
Each class includes a
theme, and 4-6 sensory
play stations within the
theme
4-class sessions:
once a week, for one month

WHAT IT IS
Hands-on, open-ended play in an outdoor
environment

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Parents who:
value hands-on play and exploration
aren’t afraid to get messy (but
appreciate someone else taking care
of that mess)
want to spend time playing outside
with their child
value the idea that sensory play is
the number one way to benefit child
development
Who is it for?

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WHY ME?
Passion for sparking curiosity and a love for learning
Degree in Early Childhood Education
Preschool teacher for 15 years
Sensory play-based business for the last 7 years
Excited to bring a new opportunity to young families
in our community
Existing customer base of parents with young
children

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Structure Location Pricing
Business Model & Revenue
4 classes within a
one-month session,
one class per week
Each class
approximately
45-60 minutes
Community parks
with ample grass
space and shade
$100/child for 4-
class session
$30/child for
possible drop-in
option for single
class

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USE OF FUNDS
Requesting $3,500 to purchase materials,
insurance, and advertising
Materials include sensory tables, sensory
mediums, table accessories, aprons,
signage/class markers

READINESS TO LAUNCH
Free trial class planned for May 5 in Oakdale, in collaboration with The Mom Walk Oakdale. This class will give me practice on set up and flow, as well as content for advertising.
th

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Community Benefit
Collaboration with local businesses
Bring in visitors and funds from
neighboring communities
Opportunity for networking
among parents with young
children
New play and
learning support for
young children

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THANKS
FOR YOUR TIME!

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ATTACHMENT 3A
82108.00000\44866625.1

CITY OF ESCALON

NEW AND EXPANDING BUSINESS GRANT AGREEMENT

FOR TACOS DE NIEVE

1. PARTIES AND DATE
This Grant Agreement (“Agreement”) is entered into between the City of Escalon (“City”) and Tacos de Nieve (“Grantee”) for the purpose of providing financial assistance through the City’s New and Expanding Business Grant Program on May 19, 2026.

This Agreement becomes effective on the date of the City Manager’s signature.

2. RECITALS.

3. TERMS.

3.1 Grant Award.

3.1.1 Amount of Grant. The City shall award the Grantee a grant in the amount of $9,750 (“Grant Funds”).

3.1.2 Approved Use of Funds. Grant Funds may be used only for the specific equipment, materials, or project components approved by the City and listed in Exhibit A – Scope of Work.

3.2 Period of Performance.

3.2.1 Term. The term of this Agreement shall begin on the effective date and continue for twenty-four (24) months, unless extended in writing by the City.

3.2.2 Performance. Grantee shall perform and complete the Proposed Project under this Agreement within the term set forth in section 3.1.2 above (“Term”).

Grantee agrees that if the Proposed Project is not completed within the aforementioned

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term, it is understood, acknowledged and agreed that the grant funds will be reimbursed to the benefit of the City.

3.3 Standard Conditions of Approval.

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• What they attended
• How it helped
• How to provide it: One or two sentences is sufficient. (g) Flexibility Clause. The City recognizes that small businesses vary widely in their record keeping practices. The City will accept any reasonable form of documentation that demonstrates progress, including:
• Photos
• Emails
• Screenshots
• Informal summaries
• Point of sale exports
• Handwritten notes
The City will work directly with any Grantee who needs help preparing their report.

3.3.2 Business Location Commitment. The Grantee intends to maintain operations within the City of Escalon for a minimum of (2) years.

3.3.5 SBDC Participation. The Grantee is encouraged to engage with the San Joaquin Small Business Development Center (SBDC) for business planning, financial management, or growth strategy support.

3.4 Disbursement of Funds.

No funds will be disbursed until all required permits, licenses, and documentation are verified. Grant Funds will be disbursed directly to the Grantee.

3.5 Delays in Performance.

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3.6 City’s Representative.

3.7 Maintenance of Records.

Grantee shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable.

3.8 Laws and Regulations.

3.9 Assignment.

3.15 Indemnification.

To the fullest extent permitted by law, Grantee shall defend (with counsel of City’s

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ATTACHMENT 3A
82108.00000\44866625.1
choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Grantee, its officials, officers, employees, subcontractors, Grantees or agents in connection with the performance of the Grantee’s business, this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Grantee, the City, its officials, officers, employees, agents, or volunteers.

3.18 Governing Law.

3.19 Verification of Employment Eligibility.

3.20 Notice.

CITY: GRANTEE:

City of Escalon Tacos de Nieve
2060 McHenry Avenue 2125 California St
Escalon, CA 95320 Escalon, CA 95320
Attn: City Manager Attn: Renee Snow
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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3.21 Third Party Rights.

This Agreement shall not create any rights in, or inure to the benefits of, any third party.

3.22 Equal Opportunity Employment.

3.23 Successors and Assigns.

3.24 Non-Waiver.

None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.25 Time of Essence.

Time is of the essence for each and every provision of this Agreement.

3.26 Severability.

Should any provision in the Agreement be held to be invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.27 Prohibited Interests.

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ATTACHMENT 3A
82108.00000\44866625.1
employee working solely for Grantee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

3.28 Counterparts.

This Agreement may be signed in counterparts, each of which shall constitute an original.

3.29 Entire Agreement.

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ATTACHMENT 3A
82108.00000\44866625.1

SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ESCALON

AND TACOS DE NIEVE
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF ESCALON Tacos de Nieve
By:

JAYLEN FRENCH
By:

Renee Snow
City Manager Owner
ATTEST:

By:

Michele Bates
Deputy City Clerk
APPROVED as to Form:

By:

FRANK SPLENDORIO
Best Best & Krieger, LLP

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ATTACHMENT 3A
82108.00000\44866625.1
EXHIBIT “A”

ACCEPTED SCOPE OF PROJECT
Tacos de Nieve – $9,750 (Equipment Only)
Project Summary: Grant Funds will be used to support the purchase of a fully permitted mobile concession trailer that will allow Tacos de Nieve to expand its capacity to serve community events, school functions, youth sports, and private gatherings. The project strengthens the business’s operational reliability, increases service throughput, and enables the business to meet growing demand for event‑based food service in Escalon.

Grantee is encouraged to pursue at least $10,000 in sales to customers outside Escalon within one year to support the City’s traded-sector goals and report back on progress. Grantee shall consult with the San Joaquin County Revolving Loan Fund for any additional capital needs related to future expansion. Grantee shall consult with the Small Business Development Center for coaching related to future expansion.

Approved Uses:
 Purchase of a fully permitted concession trailer suitable for food service operations
 Purchase of equipment or fixtures that are permanently attached to the trailer at the time of sale (e.g., sinks, refrigeration, built‑in storage, service windows)  Purchase of safety, sanitation, or compliance‑related components required for operation under county health regulations
 Purchase of towing or transport accessories necessary for safe movement of the trailer
Not Eligible:
 Marketing, advertising, or promotional expenses
 Consumable food inventory
 Payroll, rent, utilities, or other operating expenses  Major construction or modifications performed after trailer purchase  Stand‑alone equipment not included with the trailer at the time of sale Project Summary: The City encourages Tacos de Nieve to explore event‑based upsell opportunities such as packaged add‑ons or pre‑order options like corporate events that increase taxable point‑of‑sale activity within Escalon.

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ATTACHMENT 3A
82108.00000\44866625.1
EXHIBIT “B”

GRANTEE PROPOSAL

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Tacos de Nieve
Grant Proposal
Concession Trailer Expansion Project
Tacos de Nieve – Grant Proposal Update
Applicant: Renee Snow
Business: Tacos de Nieve
Location: Escalon, CA
Project Overview
Tacos de Nieve is a locally owned mobile catering business specializing in authentic Mexican cuisine for events and community gatherings. With increasing demand and consistent bookings, the business is ready to expand by acquiring a fully operational, health department-approved concession trailer.

Immediate Opportunity
A fully built and operational concession trailer has been identified and is already permitted within San Joaquin County. This allows for immediate use without delays, eliminating the time and uncertainty typically associated with the permitting process.

Project Cost & Funding Plan
The total cost of the concession trailer is $65,000.

Tacos de Nieve is requesting up to $20,000 in grant funding to contribute toward the purchase.

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The remaining balance will be financed through a low-interest business loan, with support and guidance from Trevin Balber and San Joaquin County.

This combined funding approach allows for immediate acquisition while maintaining longterm financial sustainability.

Justification for Grant Amount
While initial discussions focused on support for a portion of the deposit, this request reflects a broader goal of establishing a strong and sustainable financial foundation during expansion.

A higher level of initial support will:
 Reduce overall debt burden
 Lower monthly loan payments
 Improve cash flow during early expansion
 Allow for reinvestment into operations and growth
Any level of support toward this request will have a meaningful impact and directly contribute to the successful expansion of the business.

Use of Funds
Grant funds will be applied directly toward the purchase of the concession trailer, reducing the amount required to be financed.

Business Impact
This expansion will:
 Increase booking capacity and revenue potential
 Allow for larger and more frequent events
 Improve operational eƯiciency
 Strengthen long-term financial stability

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Tacos de Nieve already has an established customer base and proven demand, making this expansion a natural and strategic next step. Did I mention the trailers red!!? Community Impact
As a locally owned business, Tacos de Nieve actively supports local events, schools, and organizations.

This expansion will:
 Increase participation in community events
 Keep revenue circulating within the local economy
 Create opportunities for additional help as the business grows Closing
With a fully permitted trailer available and a clear path forward, Tacos de Nieve is ready to expand immediately.

Support from this grant at any level will play a key role in making this opportunity possible.

This is not just an equipment purchase it is an investment in a growing local business that is ready to take the next step.

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ATTACHMENT 4A
82108.00000\44866625.1

CITY OF ESCALON

NEW AND EXPANDING BUSINESS GRANT AGREEMENT

FOR MARCO RISTORANTE ITALIANO

1. PARTIES AND DATE
This Grant Agreement (“Agreement”) is entered into between the City of Escalon (“City”) and Marco Ristorante Italiano (“Grantee”) for the purpose of providing financial assistance through the City’s New and Expanding Business Grant Program.

This Agreement becomes effective on the date of the City Manager’s signature.

2. RECITALS.

3. TERMS.

3.1 Grant Award.

3.1.1 Amount of Grant. The City shall award the Grantee a grant in the amount of $4,150 (“Grant Funds”).

3.1.2 Approved Use of Funds. Grant Funds may be used only for the specific equipment, materials, or project components approved by the City and listed in Exhibit A – Scope of Work.

3.2 Period of Performance.

3.2.1 Term. The term of this Agreement shall begin on the effective date and continue for twenty-four (24) months, unless extended in writing by the City.

3.2.2 Performance. Grantee shall perform and complete the Proposed Project under this Agreement within the term set forth in section 3.1.2 above (“Term”).

Grantee agrees that if the Proposed Project is not completed within the aforementioned term, it is understood, acknowledged and agreed that the grant funds will be reimbursed

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ATTACHMENT 4A
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to the benefit of the City.

3.3 Standard Conditions of Approval.

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• How it helped
• How to provide it: One or two sentences is sufficient. (g) Flexibility Clause. The City recognizes that small businesses vary widely in their record keeping practices. The City will accept any reasonable form of documentation that demonstrates progress, including:
• Photos
• Emails
• Screenshots
• Informal summaries
• Point of sale exports
• Handwritten notes
The City will work directly with any Grantee who needs help preparing their report.

3.3.2 Business Location Commitment. The Grantee intends to maintain operations within the City of Escalon for a minimum of (2) years.

3.3.5 SBDC Participation. The Grantee is encouraged to engage with the San Joaquin Small Business Development Center (SBDC) for business planning, financial management, or growth strategy support.

3.4 Disbursement of Funds.

No funds will be disbursed until all required permits, licenses, and documentation are verified. Grant Funds will be disbursed directly to the Grantee.

3.5 Delays in Performance.

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ATTACHMENT 4A
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3.6 City’s Representative.

3.7 Maintenance of Records.

Grantee shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable.

3.8 Laws and Regulations.

3.9 Assignment.

3.15 Indemnification.

To the fullest extent permitted by law, Grantee shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and

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ATTACHMENT 4A
82108.00000\44866625.1
agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Grantee, its officials, officers, employees, subcontractors, Grantees or agents in connection with the performance of the Grantee’s business, this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Grantee, the City, its officials, officers, employees, agents, or volunteers.

3.18 Governing Law.

3.19 Verification of Employment Eligibility.

3.20 Notice.

CITY: GRANTEE:

City of Escalon Marco Ristorante Italiano
2060 McHenry Avenue 2409 California St
Escalon, CA 95320 Escalon, CA 95320
Attn: City Manager Attn: Marco Baldieri
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.21 Third Party Rights.

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ATTACHMENT 4A
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This Agreement shall not create any rights in, or inure to the benefits of, any third party.

3.22 Equal Opportunity Employment.

3.23 Successors and Assigns.

3.24 Non-Waiver.

None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.25 Time of Essence.

Time is of the essence for each and every provision of this Agreement.

3.26 Severability.

Should any provision in the Agreement be held to be invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.27 Prohibited Interests.

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ATTACHMENT 4A
82108.00000\44866625.1
or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

3.28 Counterparts.

This Agreement may be signed in counterparts, each of which shall constitute an original.

3.29 Entire Agreement.

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ATTACHMENT 4A
82108.00000\44866625.1

SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ESCALON
AND OAK + EMBER SOURDOUGH
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF ESCALON Marco Ristorante Italiano
By:

JAYLEN FRENCH
By:

Marco Baldieri
City Manager Owner
ATTEST:

By:

Michele Bates
Deputy City Clerk
APPROVED as to Form:

By:

FRANK SPLENDORIO
Best Best & Krieger, LLP

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ATTACHMENT 4A
82108.00000\44866625.1
EXHIBIT “A”

ACCEPTED SCOPE OF PROJECT
Marco Ristorante Italiano – $4,150 (Reimbursement Only) Project Summary: Grant Funds will be used to reimburse eligible City and County building and health permit fees associated with the establishment of Marco Ristorante Italiano’s new restaurant location. Grantee shall consult with the San Joaquin County Revolving Loan Fund for any additional capital needs related to future expansion. Grantee shall consult with the Small Business Development Center for coaching related to future expansion.

Approved Uses:Reimbursement of documented, eligible building permit fees and health permit fees directly associated with the restaurant’s build‑out and required inspections.

Eligible fees must be tied to the project site and issued by the City of Escalon, San Joaquin County, or other applicable regulatory agencies.

Additional Direction: The City encourages Marco Ristorante Italiano to maintain Escalon as the point of sale for catered events, pre orders, and packaged goods where feasible, to support local tax revenue and strengthen the City’s business ecosystem. Prior to final disbursement, the grantee shall submit itemized permit invoices and proof of payment for verification.

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ATTACHMENT 4A
82108.00000\44866625.1
EXHIBIT “B”

GRANTEE PROPOSAL

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• City of Escalon
Business Expansion
Grant
• Marco Ristorante
Italiano

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Project Overview
Italian restaurant and specialty market
1730 Main Street, Escalon
Opening late summer 2026
Destination-focused concept

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Concept
Authentic Italian dining experience
Curated Italian retail market
Blends food and shopping
Unique to the area

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Opportunity
No comparable Italian market nearby
Closest options in major metro areas
Opportunity to draw visitors
Fills local market gap

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Community Impact
Increases Main Street traffic
Creates jobs
Supports local businesses
Enhances downtown

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Investment
$75,000+ equipment investment
Additional buildout and training costs
Owner-funded commitment
Long-term viability

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Funding Request
-Initial inventory
-Imported Italian goods
-Market setup
-Opening assortment
$25,000 requested
Dedicated to market launch
Supports new revenue stream
Ensures strong opening

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Closing
Unique concept for Escalon
Attracts local and regional customers
Supports economic growth
Built for long-term success

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ITEM NO. 15

COUNCIL AGENDA ITEM
FOR MAY 18, 2026
Prepared By: Jaylen French, City Manager
Date: May 7, 2026
Subject: Danny Fox Memorial Park Renaming Fiscal Impact Discussion; and Direction on City Financial Participation for Park/Facility Renamings Recommendation:

Discuss the City’s fiscal impact of the Danny Fox Memorial Park renaming; and consider direction to City Staff on the City’s approach to financial participation for future park/facility renamings.

Background:

On March 2, 2026, the Escalon City Council approved the renaming of Dinosaur Park to Danny Fox Memorial Park. In that staff report, I mistakenly indicated that, “There is no direct fiscal impact associated with renaming a City park.” However, the City purchased a bronze plaque for the last facility renaming, Greg Largent Field at Hogan-Ennis Park. The plaque cost approximately $1,000. Therefore, staff intended to follow that same approach for this renaming. Ultimately, the family of Danny Fox desired to install a larger size sign and indicated they would fund the difference in cost. This expenditure was not directly approved by the Council and therefore is being brought back for discussion.

Discussion:

This item, in an effort to be fully transparent to the public regarding the expenditures of city funds, is to facilitate a discussion regarding the fiscal impact of the Danny Fox Memorial Park renaming, and to seek direction from the City Council on the City’s future approach or financial participation in future park or facility renamings.

Council direction could include deferring financial participation for each park or facility at the time of renaming or setting a city financial participation level assumed with any future renaming.

Fiscal Impact:

If approved, the City’s financial participation for the Danny Fox Memorial Park would be $1,000. If council sets direction for future renamings, the City’s fiscal impact would be at that level for all future renamings.

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ITEM NO. 16

COUNCIL AGENDA ITEM
FOR MAY 18, 2026
Prepared By: Michele Bates, Deputy City Clerk
Date: May 14, 2026
Subject: Discuss Ideas to Celebrate/Recognize 250 Year of the United States of America
Recommendation:

Discuss ideas to celebrate and recognize the 250th year of the United States of America.

Discussion:

This topic was raised by Councilmember Strohman at the April 20th City Council meeting, and supported by Mayor Pro Tem Walker. The intent of the item is to facilitate a discussion on potential City/community projects/efforts to recognize and celebrate 250 years of the United States of America.

Fiscal Impact:

There is no fiscal impact associated with this discussion. However, there could be fiscal impacts should the Council choose to implement a project/feature.

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Escalon City CouncilMay 18, 2026

Escalon City Council
May 18, 2026