TO:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DECEMBER 6, 2022
Placentia Cit Council
AGENDA REPORT
SUBJECT: PLACENTIA SMALL BUSINESS EMERGENCY RELIEF GRANT PROGRAM TO
ASSIST SMALL BUSINESSES LOCATED WITHIN ELIGIBLE CDBG CENSUS TRACT AREAS THAT HAVE BEEN AFFECTED BY THE COVID-19 PANDEMIC (ROUND 4)
FISCAL
IMPACT: REVENUE: $150,000 (302534-4201 232502-4201)
EXPENSE: $150,000 (302534-6401 232502-6401)
SUMMARY:
The COVID-19 pandemic had a significant financial impact upon Placentia's local economy. As a way to ensure that small businesses could thrive during the pandemic, the City allowed various forms of outdoor dining. Many small businesses have continued to express interest in outdoor dining and the County of Orange has approached the City with an eligible grant that would facility temporary and permanent outdoor dining spaces. This action approves the continuation of the Placentia Small Business Emergency Relief Grant Program for a fourth round to assist Placentia small businesses within the Census Tract in the Low to Moderate Income areas that were affected by the COVID-19 pandemic. Program costs in the amount of $150,000 will be grant funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the County of Orange Community Development Block Grant Funds (CDBG-CV).
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize the continuation of the Placentia Small Business Emergency Relief Grant Program to assist Placentia small businesses within the Census Tract in the Low to Moderate Income areas affected by the COVID-19 pandemic; and
2. Authorize the City Administrator and/or City Attorney to make non -substantive changes to the program guidelines, application and associated documents, as necessary; and
3. Adopt Resolution No. R-2022-85, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
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Dec 6, 2022
City Council Agenda
December 6, 2022
4. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney to receive the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the County of Orange Community Development Block Grant Funds (CDBG-CV) and distribute the funds.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Ensure Long -Term Fiscal Sustainability, under Objective #1.4, which is to protect and preserve existing economic development/property nodes throughout the City to maximize revenue opportunities.
DISCUSSION:
The COVID-19 pandemic has had a significant financial impact upon Placentia's local economy.
During various Stay at Home Orders and other restrictions, restaurants were permitted to have limited and temporary outdoor dining opportunities. Subsequently, the City has adopted an administrative use permit process which allows restaurant businesses which meet certain conditions to have more permanent outdoor dining. In addition, the City has recently reorganized the 100 block of Santa Fe Street within Old Town to facilitate more outdoor dining opportunities while also allowing thru traffic. The next step in both of these processes is for both permanent and temporary outdoor dining structures to be constructed within eligible census tract areas funded by this grant program, which includes the Old Town Area. Attachment 2 to this report outlines all of the eligible census tract areas that may be eligible for this grant program.
Previous Small Business Grants Efforts by Placentia
First Round of the Placentia Small Business Emergency Relief Grant Program ($207,025) On May 19, 2020, the City Council approved the First Round of the Placentia Small Business Emergency Relief Grant Program to small businesses with a maximum grant request of $10,000.
The City opened its application period from May 21, 2020 to May 28, 2020. During this timeframe, the City received a total of 82 applications and after a comprehensive review process, awarded 34 applicants with grant awards ranging from $5,000 to $7,000.
Supervisor Doug Chaffee's Additional Grant Award ($612,975) On July 23, 2020, the City, in partnership with County Board of Supervisor Doug Chaffee, awarded the remaining small businesses from the First Round of the Placentia Small Business Emergency Relief Grant Program. This included all 82 applications receiving the maximum grant award of $10,000.
Second Round of the Placentia Small Business Emergency Relief Grant Program ($170,000)
On February 2, 2021, the City Council approved the Second Round of the Placentia Small Business Emergency Relief Grant Program to small businesses with a maximum grant request of $5,000. The City opened its application period from February 3, 2021 to March 1, 2021. During this timeframe, the City received a total of 129 applications and after a comprehensive review process, awarded 35 applicants with grant awards ranging from $2,410 to $5,000.
City Council Agenda
December 6, 2022
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Outdoor Dining in Old Town Placentia ($60,329)
On July 21, 2020, the City Council approved temporary Outdoor Dining in Old Town Placentia by closing Santa Fe Avenue from Bradford Avenue to Main Street. This resulted in a greater use of the public street and provided a safe environment for patrons to dine out while maintaining the appropriate social distancing requirements. The City Council also approved the purchase of temporary curbside pick-up signs, tables, chairs, umbrellas, landscape enhancements, new signage and water filled security barriers and commercial outdoor planters that served as barriers for both pedestrian and traffic control.
Citywide Outdoor Dining Grant Application ($50,000)
On July 21, 2020, the City Council also approved funding support for businesses citywide with outdoor dining to fund outdoor furniture, supplies, and equipment. The City awarded 25 businesses with grants in the amount of $2,000 each for their outdoor dining efforts due to the Covid-19 pandemic.
Third Round of the Placentia Small Business Emergency Relief Grant Program ($406,848) On September 7, 2021, the City Council approved the continuance of the Placentia Small Business Emergency Relief Grant Program to small businesses in Placentia needing financial assistance in overcoming the temporary loss of revenue due to the COVID-19 pandemic. The program is based upon the availability of the County of Orange CDBG funds, program guidelines, and submission of all required information and supporting documentation. The program will grant small businesses with 25 or fewer employees a working capital grant of up to five thousand dollars ($5,000) to support payroll expenses, rent, mortgage payments, utility expenses, or similar expenses that occur in the ordinary course of business from March 27, 2020 to May 31, 2021.
Based upon the County's allocation of $406,848, the City would be able to assist approximately 81 small businesses within the City.
Proposed Fourth Round of the Placentia Small Business Emergency Relief Grant Proaram ($150,000)
Staff is proposing the continuance of the Placentia Small Business Emergency Relief Grant Program to small businesses within the Low- and Moderate -Income areas of the Census Tract (as illustrated in Attachment 2) in Placentia needing financial assistance in overcoming the temporary loss of revenue due to the COVID-19 pandemic. The program is based upon the availability of the County of Orange CDBG funds, program guidelines, and submission of all required information and supporting documentation. The program will provide a working capital grant of up to fifteen thousand dollars ($15,000) for businesses within the 100 block of Santa Fe Avenue and up to twenty-five thousand dollars ($25,000) for all other businesses within the Low - and Moderate -Income areas of the Census Tract. The grant will be used to support outdoor dining amenities, including permanent structures, temporary ADA platforms, tables and chairs, landscape or similar expenses that occur from January 11, 2023 through August 31, 2023.
To be eligible, businesses must meet the following requirements:
• Small businesses in the Low -and Moderate -Income areas of the Census tract in the City • Main place of business must be within the Low- and Moderate -Income areas of the Census tract in the City
City Council Agenda
December 6, 2022
• Applicant must have and provide a Data Universal Numbering system (DUNS) number at time of application
• Applicant must be willing to attest to a statement verifying that the award was used for costs necessary due to impacts associated with COVID-19 • Applicant must be willing to attest to a statement verifying they are in compliance with all local, state, and federal COVID-19 guidelines and orders • Must be open and in operation for at least 12 months
• Must not have any existing municipal code violation(s) In terms of approving the applications, Staff is recommending a point -rating system rather than a first-come, first-served system in order to assist businesses with higher need, longer tenancy in the City, or other application criteria to provide funds to those businesses that have been most impacted by the COVID-19 pandemic closures.
FISCAL IMPACT:
The City will be awarded the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the County of Orange Community Development Block Grant Funds (CDBG-CV3) in the amount of $150,000 that will be used for the Small Business Emergency Relief Grant Program.
Prepared by:
Je n:to { •a.
As ista t to e City Administrator/
Economic Development Manager
Reviewed and approved:
Damien R. Arrula
City Administrator
Reviewed and approved:
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Jennifer Lampman
Director of Finance
Attachments:
1. Guidelines and Application
2. Map of Census Tract Low and Moderate Areas
3. Resolution No. 2022-85 - Budget Resolution