Item #05
Date: November 15, 2022
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Business Façade Improvements and Marketing Assistance to Local Downtown Businesses Utilizing ARPA Funds
Recommendation:
Pass a Motion to authorize the City Manager, or designee to 1) establish a Business Façade/Marketing Grant Program providing Marysville’s Downtown Businesses in the Central Business District funding to enhance the aesthetic appeal and improve business performance, 2) approve and execute Resolution 2022-XX establishing ‘The Program’, 3) to execute an Memorandum of Understanding (MOU) with the Yuba-Sutter Economic Development Corporation (YSEDC) to administer the program and grant payments and 4) authorize the Finance Director to make a supplemental appropriation of $10,000 to 10-110-5165 (Professional Services) for the cost to administer the program.
Background:
The American Rescue Plan Act of 2021 (ARPA) was signed into law by the President of The United States on March 11, 2021. The U.S. Department of Treasury established the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) to provide state, local and tribal governments with the resources needed to respond to the pandemic and its economic effects. The City of Marysville has received an allocation of approximately $3.07 million in funds with disbursement, that began in 2021. The U.S. Department of the Treasury has released a final rule and related guidance on January 6, 2021, outlining the appropriate uses of the ARPA funds.
The ARPA final rule encourages local governments to provide assistance to “households, small businesses, and non-profits, or aid to impacted industries such as tourism, travel, and hospitality”. The final rule recognizes that “many Americans remain unemployed, out of the labor force, or unable to pay their bills” due to the economic impacts of COVID-19. Furthermore, the final rule provides as an eligible use of payments from the fund, efforts to “sustain and strengthen the economic recovery, maintain vital public services, and make investments that support long-term growth, opportunity, and equity”.
As stated in the final rule, our communities have experienced “[unprecedented] economic conditions, [and] experienced severe impacts from the pandemic and resulting recession”. It continues that, “this pain [is] particularly acute among lower-income Americans….”, The City of Marysville plans to utilize a portion of its American Rescue Plan Act (ARPA) funding to offer facade improvement and/or Marketing grants up to $10,000 to businesses in the Central Business District.
Item #05
The program goal is to enhance the aesthetic appeal of the corridor and improve business performance through visible external property improvements and/or through customized marketing campaigns. This may serve as a pilot program with potential expansion to other districts within the City.
Discussion & Analysis:
Downtown Marysville, also known as the Central Business District (CBD), is specifically the area located “South of 9th Street, East of E Street , West of A Street and North of the South Levee” The CBD is one of the city’s busiest areas in terms of traffic volume and is a prime commercial corridor for targeted revitalization. This area is a high priority for City Council. Efforts are being made to eliminate blight, encourage commercial and residential development, add wayfinding signs, enforce code, and beautify the area to be more inviting to visitors and residents of Marysville alike.
This expenditure will advance the public purpose of economic development within the community.
Aesthetic and marketing improvements will enhance business performance, ultimately providing more revenue, additional labor demand, and improving the well-being of the residents and visitors alike of the City of Marysville. Furthermore, this expenditure is expected to help mitigate additional urban decay in Marysville, benefitting all residents as a whole. Though incidental benefits to private businesses may occur from the expenditure, a public benefit will be conferred or obtained by the expenditure of such funds, and therefore is not interpreted as a gift of public funds.
Examples of eligible physical improvements include building façade improvements, paint, parking lot improvements, attractive fencing, lighting, and updated signage. An example of eligible marketing program would be utilizing a consultant to create an approved electronic marketing plan. Examples of non-eligible improvements include staff wages, lease payments, internal remodeling, other operating costs or paying for a direct mail campaign. This effort will also provide for forgiveness of previous Marysville Small Business Emergency Economic Relief Fund loans administered by the YSEDC. Grant amounts will be applied to outstanding loan balances prior to granting funding for façade improvements and marketing efforts and in no event will the total grant funds awarded via the three programs exceed $10,000 to any one business.
Applicants must be either the current property owner or tenant business (non-profits are not eligible), but only one entity is eligible per property (i.e., the property owner and tenant cannot both receive a grant for the same property). Property owners with multiple tenants may be eligible for up to $10,000 per tenant space (consignees excluded). If multiple storefronts occupy portions of the same building, each can apply, but improvements must be complimentary in design (i.e., cohesive paint schemes, etc.). All work must be approved by City staff and/or staff of the YSEDC prior to reimbursement per finalized grant guidelines/instructions. Each applicant may apply for both façade improvement and marketing grant programs. In no event will the total grant funds awarded via the three programs exceed $10,000 to any one business of grant, façade improvement or marketing, not both.
The City of Marysville will have sole discretion and responsibility for determining eligible improvements and applicants must obtain written pre-approval of their proposals from the City before expenditures are made. Staff proposed that the YSEDC manage the program with compensation via an administrative fee of 10% of the funds distributed (see attachment 2).
All work must be in alignment with applicable state, county and city regulations, including Building Code, Development Code, Environmental Health, etc. Staff will work with property owners to remedy property issues such as outstanding building permits, certificates of occupancy, or required use permits, as needed.
Item #05
Alignment with City Council Goal(s):
The proposed project is supported by Goal #2: Expand Economic Development Legal Review:
The City Attorney reviewed this recommendation and associated agreements and approved them as to form.
Fiscal Analysis:
$100,000 in funding was appropriated as part of the FY2022/23 budget. Staff recommends a supplemental appropriation of $10,000 to 10-110-5165 (Professional Services) to compensate YSEDC for administration of the Program.
Attachments:
1) Resolution 2022-XX
2) YSEDC MOU and Scope of Services
3) Map of Central Business District