Agenda Item No. 12
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: January 27, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: West Grand Avenue Business Grant Program
RECOMMENDATION
Receive an overview of a potential grant program for businesses in the West Grand Avenue streetscape construction project work zone and adopt a Resolution to approve and implement the program.
BACKGROUND
On January 13, 2025 the Council directed staff to schedule an agenda item at the January 27, 2025 meeting regarding a grant program for businesses within the West Grand Avenue streetscape construction project zone from 9th Street to Highway 1. The Council expressed a desire to help businesses within this project area who have been experiencing loss of sales during the project construction time through providing direct City financial assistance. Such assistance would align with the City’s previous methods of supporting these businesses through Buy Local, Business Bingo, and Shop and Win programs carried out from June through December 2024.
Staff would note that the City also provided grants in 2020-2021 to businesses citywide experiencing financial hardships during the unprecedented COVID pandemic using a mix of funding sources including CARES Act funds, SB 1090 Diablo Canyon closure funds, American Rescue Plan Act funds, and the City’s General Fund.
Public funding for business support must be strictly limited to circumstances with a clearly defined and specific public purpose to avoid setting broader precedents. In this unique case, any consideration of a business grant program would be solely predicated on the unprecedented scope and duration of the West Grand Avenue streetscape project, the most extensive singlestreet improvement undertaking in the City’s history, and the distinctive impacts of this project on adjacent businesses. The extraordinary nature of this project and its prolonged effects on these specific businesses creates a narrowly defined situation that would justify contemplating such assistance.
This project is far more complex than a typical street repair project as it has involved extensive utility work both scheduled as part of the project scope such as the storm drain installation and unscheduled including several water main breaks due to aging infrastructure. There have been paving challenges as well given the need for adequate paving foundation for a street with 15,000- 20,000 car trips daily. As a result, the project has frequently blocked street and driveway access to numerous businesses at various times which has impacted customer access. In addition, nearby businesses outside of the direct construction zone (4th to 8th streets) have reported loss of sales from customers not wanting to travel in or through the construction zone to get to their business. While the project is anticipated to be completed by April, there is concern among businesses about lingering financial impacts from the construction and reticence by some customers in returning to this area.
Staff Report: West Grand Avenue Business Grant Program Page 2 January 27, 2025
Pursuant to Council direction, staff proposes a grant program where, similar to the COVID grant and other business support initiatives, the City would work with the South County Chambers of Commerce (Chamber) in coordinating, promoting, and administering this program. The Chamber would create an online application form that businesses could complete and submit similar to the online applications used for the COVID grants. Any business in the project area could apply with a recommended priority given to businesses that are public facing such as restaurants, cafes, and personal care services.
The recommended grant amount is up to $2,000 and is intended to cover employee costs, rent, utilities, or other operating expenses. Staff proposes that the City provide up to 20 grants through this program with applications reviewed by a City-Chamber review committee, including at least one member of the Council. Applications should include documented examples of financial hardships which would be the primary criteria for determining grant awards. Recommended recipients will then be brought to the Council for approval with checks distributed shortly afterwards with grant reporting at a later date. Recipients must have a valid Business Tax Certificate. Funding for this grant program will come from General Fund reserves as a mid-year adjustment brought to the Council for approval in February.
Below is a summary of potential timeframes for this program if approved by the Council:
• Open application process: Week of February 10
• Close application process: March 7
• Review applications: Mid-Late March
• Recommend recipients for approval: April 14
• Disburse checks to recipients: April 30
• Grant reporting deadline for recipients: June 30
FISCAL IMPACT
The fiscal impact of this program is estimated to be $45,000 assuming $2,000 per grant for 20 recipients along with reimbursement of administrative costs to the Chamber. The funding for this program is recommended to come from General Fund reserves.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive an overview of a potential grant program for businesses in the West Grand Avenue streetscape construction project work zone and adopt a Resolution to approve and implement the program; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution Approving Business Assistance Grant
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, ESTABLISHING A ONE-TIME BUSINESS ASSISTANCE GRANT
PROGRAM FOR BUSINESSES IMPACTED BY THE WEST GRAND AVENUE
STREETSCAPE PROJECT
WHEREAS, the City of Grover Beach (“City”) is undertaking the West Grand Avenue Streetscape Project from 9th Street to Highway 1, representing the most extensive single-street improvement project in the City’s history; and
WHEREAS, this extraordinary infrastructure project has involved complex utility work, including both planned storm drain installation and emergency responses to multiple water main breaks, along with substantial paving requirements to accommodate daily traffic volumes of 15,000-20,000 vehicles; and
WHEREAS, the unprecedented scope and duration of this project has resulted in unique and substantial impacts to businesses located within and adjacent to the project area through restricted access, disrupted operations, and decreased customer traffic; and WHEREAS, the City Council recognizes that the extraordinary circumstances of this specific project have created distinctive hardships for affected businesses that warrant consideration of targeted assistance; and
WHEREAS, any public funding to support private businesses must be strictly limited to circumstances with a clearly defined and specific public purpose to avoid setting broader precedents; and
WHEREAS, the City Council finds that maintaining the economic vitality of the West Grand Avenue corridor during and immediately following this unprecedented public infrastructure project serves a specific and narrow public purpose.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grover Beach, California as follows:
1. The City Council hereby establishes a one-time West Grand Avenue Business Assistance Grant Program specifically limited to businesses located within or immediately adjacent to the West Grand Avenue Streetscape Project area that can demonstrate financial impacts directly related to the project construction.
2. The program parameters shall include:
a. Individual grants not to exceed $2,000 per business; b. A total program allocation not to exceed $45,000 from General Fund reserves; c. Eligibility limited to businesses with valid Business Tax Certificates; d. Priority consideration for public-facing businesses such as restaurants, cafes, and personal care services;
e. Required documentation of financial hardship directly related to the project; and f. Final approval of grant recipients by the City Council.
Attachment 1
Resolution No. 25- Page 2
3. The City Manager or designee is hereby authorized and directed to:
a. Develop and implement program policies and procedures consistent with Council’s intent and direction in creating this program;
b. Create necessary application forms and documentation requirements; c. Enter into an agreement with the South County Chambers of Commerce for program administration; and
d. Take all other actions necessary for program implementation consistent with this Resolution.
4. This Resolution shall take effect immediately upon its adoption.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 27TH day of January 2025.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK