CITY OF
LONG
February 21, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Economic Development
411 West Ocean Boulevard, 10th Floor
Long Beach, CA 90802
562 570-6099
R-12
Authorize the City Manager, or designee, to execute all documents necessary to enter into contracts, including any necessary subsequent amendments, in an aggregate total amount not to exceed $100,000, with organizations that manage Business Improvement Districts to deliver programs funded by the Long Beach Recovery Act Visual Improvement Program. (Citywide)
DISCUSSION
Long Beach Recovery Act
On March 16, 2021, the City Council adopted the Long Beach Recovery Act (LB Recovery Act) becoming one of the first major cities to approve COVID-19 recovery programs made possible through the federal American Rescue Plan Act (ARPA) and other federal and State funding sources. Additional adjustments to the LB Recovery Act were made as part of the Adopted Fiscal Year (FY) 2022 Budget and periodic adjustments will be brought to the City Council as needed. Additional information about the LB Recovery Act is available at www.longbeach.gov/recovery. As part of the Long Beach Recovery Act, under the category of Economic Recovery, approximately $650,000 has been allocated for the Visual Improvement Program (VIP) to address the increase in property damages due to vandalism experienced by businesses during the pandemic.
Homelessness Emergency Proclamation: Small Business Recovery Support Programs On January 10, 2023, the City Council adopted the City Manager's proclamation of a local homelessness emergency. The declaration of a local emergency will strengthen the City of Long Beach's (City) preparedness and ability to respond to homelessness. As a part of the emergency effort, the City Council requested that City staff work on establishing grant funds for local businesses that have been affected by impacts potentially related to the homelessness crisis. As the City focuses efforts on creating and strengthening structures, programs, and resources to assist people before they enter homelessness or to support them back into housing if they start to experience homelessness, the City will continue to support small businesses that may be affected by the crisis as many are still recovering from the events of the last two years. Supporting small businesses at this time is also a form of upstream prevention as many small businesses work from tight margins, and during times of emergency and crisis can use assistance to keep their businesses operating and people employed.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Staff looked at the Long Beach Recovery Act (LB Recovery Act), a combination of State, local, and federal funds, to determine which programs could afford a portion of their funding to be repurposed to support both the LB Recovery Act and these additional local emergency efforts.
The city staff has identified $650,000 from repurposed LB Recovery Act funds to directly support small businesses through the VIP, including a total of $100,000 in funding for Business Improvement Districts (BID) to support sidewalk activation, special events, and clean and safe initiatives. Additional information regarding these programs was issued on February 1, 2023 through a memorandum from the City Manager to the Mayor and City Council and is also attached.
VIP BID Grant Funding
The VIP grants are available to BID Associations that have supported businesses and local economic recovery through the COVID-19 pandemic and that are/have been responsible for managing BIDs under contract with the City.
These VIP grants will be calculated to be proportionate with the previous LB Recovery Act BID Grant awards, accounting for the number of businesses served in each BID, and funding will be made available as quickly as possible. BID activities will be tracked through, reported on, and communicated via the LB Recovery Act website.
BID Organization Proposed
Belmont Shore PBIA $9,192.65
Bixby Knolls PBIA $11,803.30
Downtown PBIA $11,803.30
Downtown PBID $11,803.30
Fourth Street PBIA $6,743.01
Long Beach TBIA $10,020.70
Magnolia PBID $9,181.15
Midtown PBID $8,330.11
Uptown PBID $9,319.16
Zaferia PBIA $11,803.30
Total $100,000.00
This matter was reviewed by Deputy City Attorney Marsha Yasuda and Recovery and Business Services Manager Tara Mortensen on February 2, 2023, and by Recovery Budget Officer Dee Okam on February 3, 2023
TIMING CONSIDERATIONS
Approval for this item is requested on February 21, 2023, to enable grant agreement execution with each association and funding distributed in a timely manner.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
FISCAL IMPACT
The LB Recovery Act has identified $650,000 for the VIP. The contracts for the BID grants under this program will not exceed an aggregate total of $100,000 and will be funded through the VIP of the LB Recovery Act. Sufficient funding for the contracts is currently budgeted in the General Fund Group in the Economic Development Department. For administrative efficiency and for reporting and auditing purposes, the funding source for this program is the General Fund based on funds made available as a result of the City's approach to using the majority of federal ARPA funds to maintain existing City services in compliance with the U.S.
Department of Treasury's Final Rule, thereby freeing up General Fund monies for the LB Recovery Act programs. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
itted,
BO MA INEZ
DIRECTOR OF ECONOMIC DEVELOPMENT
Attachment- Memorandum: Small Business Recovery Support Programs APPROVED:
THOMAS B. MODICA
CITY MANAGER
CITY OF
LONG Memorandum
Date:
To:
From:
For:
February 1, 2023
Thomas B. Modica, City Manager 1-£
Meredith Reynolds, Special Deputy City Manager, Recovery -1Y'J I( R Bo Martinez, Economic Development Director ~
Mayor and Members of the City Council
Subject: Homelessness Emergency Proclamation: Small Business Recovery Support Programs
Background
Since the onset of the COVID-19 pandemic in 2020, small business support has been a critical component of Long Beach's recovery. The City of Long Beach (City) has conducted several support programs over the last two years, providing financial and guidance opportunities to small businesses, including: BizCare Business Resource Hotline, providing technical assistance to local businesses in multiple languages; Small Business Restart Grants, that provided relief to qualified businesses that sustained property damage and loss of inventory on May 31, 2020; Storefront Reopening and Board up Removal Program, that provided a grant to property and business owners for the removal and haul-away of boarding materials used to cover windows and storefronts in response to either the COVID-19 pandemic, State and local health orders or civil unrest that occurred; Small Business Transition and Technology Grants, that provided financial relief to Long Beach businesses impacted by the COVID-19 pandemic; Commercial Rental Assistance Grant Program, that provided grants to help businesses pay commercial lease payments that were outstanding in 2021; and Small Business and Nonprofit Relief Grants, recovery programs to help small businesses and nonprofits that experienced financial hardship due to the COVID-19 pandemic.
On January 10, 2023, the City Council adopted the City Manager's proclamation of a local homelessness emergency. The local emergency will strengthen the City's preparedness and ability to respond to homelessness. As a part of the emergency effort, the City Council directed City staff to work on establishing grant funds for local businesses that have been affected by impacts potentially related to the homelessness crisis. As the City focuses efforts on creating and strengthening structures, programs and resources to assist people before they enter into homelessness or to support them back into housing if they start to experience homelessness, the City will continue to support small businesses that may be affected by the crisis as many are still recovering from the events of the last three years. Supporting small businesses at this time is also a form of upstream prevention as many small businesses work from tight margins, and during times of emergency and crisis can use assistance to keep their businesses operating and people employed.
Homelessness Emergency Proclamation: Small Business Recovery Support Programs February 1, 2023
Staff looked at the Long Beach Recovery Act (LB Recovery Act) and a combination of State, local, and federal funds, to determine which programs could be repurposed to support these local emergency efforts.
City staff has identified $510,000 from repurposed LB Recovery Act funds to directly support small businesses through the following activities:
1. Business Improvement District (BID) Grants ($100,000): in additions to the grants awarded to BIDs during the roll out of the LB Recovery Act, BIDs will receive grants to support sidewalk activation, special events, and clean and safe initiatives.
2. Visual Improvement Grant Program ($350,000): This grant program will support local small businesses impacted by crime and vandalism on or after October 1st, 2022. Grant applications will open February 2023 and remain open until funding is exhausted. Grant awards will be issued on a rolling basis to eligible applicants. Program details and eligibility requirements will be forthcoming. Property crime as a whole has increased from 2021 to 2022, and the City, through this program, is helping ease the burden on small businesses. It should be noted that crime and vandalism can be committed by people who may be housed or unhoused and is often exacerbated by mental health challenges and increases in societal stressors, such as the COVID-19 pandemic and its associated economic effects.
3. BizCare ($60,000): The City's BizCare team, which connects business owners and nonprofit leaders to important resources and information, will provide support and proactive outreach for these programs.
Next Steps
Staff is developing these programs and plans to launch them in February 2023. The Economic Empowerment Fund program and the Business License Tax and Fee Grant program budgets will be reduced to make these new programs possible; both programs are still anticipated to roll out with modified scopes. Two existing Long Beach Recovery Programs under the Economic Recovery category will be redesigned with reduced budgets to make these new Small Business Support programs possible as the major goals for these programs were already substantially achieved under other grant programs such as the Small Business Relief Grant, Nonprofit Relief Grant, Restaurant Brewery, and Bar Relief Grant, and the Personal Services and Fitness Relief Grant. Additional LB Recovery Act business support programs, Inclusive Business Navigators and ActivateLB Customer Activation are also preparing to launch early this year to assist local small businesses in their economic recovery. These programs will be tracked through, reported on, and communicated via the Long Beach Recovery Act. As these new programs come online, City staff will continue to provide detailed information through memoranda, press releases, and updates to the City's Long Beach Recovery Act website. For more information, visit the Long Beach Recovery Act website at:
https://longbeach.gov/recovery/reporting-data/.
Homelessness Emergency Proclamation: Small Business Recovery Support Programs February 1, 2023
If you have any questions, please contact Meredith Reynolds at 562-570-6677 and Bo Martinez at 562-570-5282.
CC: DAWN MCINTOSH, CITY ATTORNEY
DOUGLAS P. HAUBERT, CITY PROSECUTOR
LAURA l. DOUD, CITY AUDITOR
LINDA F. TATUM, ASSISTANT CITY MANAGER
TERESA CHANDLER, DEPUTY CITY MANAGER
KATY NOMURA, DEPUTY CITY MANAGER
APRIL WALKER, ADMINISTRATIVE DEPUTY CITY MANAGER
KEVIN LEE, CHIEF PUBLIC AFFAIRS OFFICER
MONIQUE DE LA GARZA, CITY CLERK (REF. FILE #xx)
DEPARTMENT HEADS