Agenda Item No. 3
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 10, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Budget Appropriation for Economic Development and Communications Needs
RECOMMENDATION
Approve budget appropriation of $35,000 for economic development and communication needs related to business grants and promotion for West Grand Avenue along with promotion of the community donation program for the Ramona Garden Park rehabilitation project.
BACKGROUND
On February 11, 2025 the Council approved $424,541 in mid-year budget appropriation changes in departments given unforeseen needs including $245,041 from the General Fund. Since this approval, staff has identified a need for additional General Fund funding for specific economic development and communications needs as identified in this report.
West Grand Avenue Business Grant Program
The Council on January 27, 2025 approved a business grant program to support businesses affected by the West Grand Avenue streetscape construction project due to the extensive scope and duration of this construction project. This program is open to businesses along West Grand Avenue and surrounding block between Highway 1 and 10th Street who have experienced a loss of sales during the project construction time. The grant provides up to $2,000 in funding to individual businesses to cover employee costs, rent, utilities, or other operating expenses. The application period opened on February 14 with promotion by both the City and South County Chambers of Commerce (Chamber). The application period will close on March 7 which will be followed by a review process to determine funding awards with Council approval of funding scheduled for the April 14th Council meeting.
The Council approved a mid-year budget appropriation change of $45,000 for this program which included up to $5,000 in reimbursable administrative costs from the Chamber to coordinate the program. However, there have been more applications received than projected and thus the allocated grant funding of $40,000 will likely not be sufficient pending the grant review process.
Staff is recommending an additional $20,000 in funding to provide a total of $60,000 in grant funding available for this program.
West Grand Avenue Promotion
The West Grand Avenue streetscape project has temporarily blocked street and driveway access for businesses at various times which has impacted customer access. However, an equally significant factor based on business grant applicants as well as anecdotal information is that some people are choosing not to travel through the construction zone to get to businesses until the work Staff Report: Budget Appropriation for Economic Development and Communication Needs Page 2 March 10, 2025
is completed given real and perceived parking and traffic impacts. Customers can travel at this time through the entire West Grand Avenue corridor though access is currently blocked for businesses on the north side of the street given the work underway and upcoming work with installing decorative crosswalks may further impact access.
To address this concern, staff recommends an allocation of $10,000 in funding for additional promotions work to encourage customers to visit West Grand Avenue businesses. The City has done such work periodically during the project construction but this would be an enhanced effort particularly once the project is completed in May. The City would plan to work with its communication contractors along with the Chamber on this effort which could involve social media posts, customer spending promotions, and other actions.
Ramona Park Community Donation Program Promotion
The Grover Beach Community Foundation (Foundation) is currently working on a community donation program related to the Ramona Garden Park Rehabilitation Project Phases 1 and 2.
This project is funded by $3.3 million in Community Development Block Grant funds which covers approximately 90% of the estimated project cost of $3.7 million leaving a gap of approximately $400,000. In the short term, the funding gap will be covered by General Fund reserves and other funding to allow the City to move forward with this project with a construction contract anticipated for Council award in April. The community donation program is intended to help close this funding gap and allow the public to support these improvements to the park. Donation opportunities include pavers to be installed near the playground ($250/$500 based on size), benches ($5,000), tables ($7,000), and other items under consideration such as bike racks and drinking fountains.
The Foundation has requested City support for promoting the donation program since the Foundation is a nonprofit, volunteer organization that uses funds raised to support community events and organizations. Examples of this promotional work could include a mailer sent out to businesses, organizations, and others along with social media posts. Given this request, staff recommends an allocation of $5,000 to the Foundation for this promotional effort since the success of the donation program reduces the City’s costs in fully funding this park project.
FISCAL IMPACT
The fiscal impact of these budget appropriation changes is $35,000 from the City’s estimated General Fund surplus in FY 2024-25.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve budget appropriation of $35,000 for economic development and communication needs related to business grants and promotion for West Grand Avenue along with the community donation program for the Ramona Garden Park rehabilitation project; or
2. Do not approve budget appropriation; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.