September 15, 2026
Economic Development
DATE: September 15, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Nannette Beacham, Director of Economic Development
Jesson de Leon, Senior Business Assistance Officer
Junne Garcia, Management Analyst
Subject:
Contract Amendment No. 2 with Renaissance
Entrepreneurship Center to Administer the Amended
Small Business Façade Improvement Program
FINANCIAL IMPACT: There is no immediate fiscal impact associated with the proposed amendment. The proposed $300,000 Small
Business Façade Improvement Program appropriation is
already included within the approved Fiscal Year 2026–
2027 Economic Development budget, and eligible
equipment-related improvements will continue to be
funded within this existing appropriation. No additional funding is requested.
PREVIOUS COUNCIL
ACTION:
June 21, 2022
January 7, 2025
December 16, 2025
May 19, 2026
STATEMENT OF THE
ISSUE:
The Small Business Façade Improvement Program
currently focuses on permanent exterior building
improvements and generally excludes operational
equipment. Following a recommendation from the
Macdonald Avenue Corridor Task Force, staff is
requesting City Council approval to amend the Program
Guidelines to allow limited, permanently installed
equipment-related improvements when they support
storefront activation, customer experience, pedestrian
engagement, accessibility, or code compliance.
The proposed amendment would not increase program
funding but would provide additional flexibility to consider eligible projects within the existing program budget.
AGENDA
REPORT
September 15, 2026
RECOMMENDED ACTION:
ADOPT a resolution amending the Small Business
Façade Improvement Program Guidelines to allow limited
eligible equipment-related improvements as determined
by the Economic Development Department and
APPROVE a second contract amendment with
Renaissance Entrepreneurship Center to administer
Small Business Façade Improvement Program grants for
eligible permanently installed storefront equipment -
Economic Development Department (Jesson de Leon
510-412-2023/Junne Garcia 510-620-6524/Nannette
Beacham 510-620-1306).
BACKGROUND:
On January 7, 2025, the City Council approved a contract with the Renaissance Entrepreneurship Center to administer the Small Business Building Beautification Pilot Program, now known as the Small Business Façade Improvement Program (Attachments 1 and 2). Following Council approval, City staff and the Renaissance Entrepreneurship Center developed and implemented program guidelines to establish eligibility requirements, administrative procedures, and grant criteria. The program was created to encourage investment in commercial properties by providing financial assistance for façade improvements that enhance storefront appearance, strengthen neighborhood vitality, and support economic development.
On April 28, 2026, public comment was received during a meeting of the Macdonald Avenue Corridor Task Force requesting that the program consider allowing limited equipment-related improvements, such as air curtains, as eligible program expenses.
The request asserted that these improvements could support storefront activation, customer comfort, pedestrian engagement, and code compliance.
To allow for formal consideration, staff agendized the matter for the May 12, 2026, Task Force meeting. Following discussion, the Task Force, acting in its advisory capacity, formally recommended that the City evaluate amending the program guidelines to allow limited equipment-related improvements, on a case-by-case basis, when such improvements support storefront activation, customer experience, pedestrian engagement, or code compliance objectives.
Following staff's evaluation of the recommendation and the City's administrative authority, it was determined that any substantive amendment to the adopted program guidelines requires City Council approval. Accordingly, Amendment No. 2 to Contract No. 7637 has been prepared to incorporate the proposed revisions to the Small Business Façade Improvement Program Guidelines for City Council consideration (Attachment 3).
DISCUSSION:
September 15, 2026
The current program guidelines focus primarily on permanent exterior building improvements and generally exclude operational equipment (Attachment 4). While this approach has provided clear eligibility standards, it may also exclude certain improvements that directly contribute to the program's economic development objectives.
One example discussed during the Task Force meetings was the installation of air curtains. Although categorized as equipment, air curtains may allow businesses to maintain open storefronts while improving interior comfort, reducing energy loss, enhancing visibility into businesses, and encouraging greater interaction between businesses and pedestrians. Similar equipment-related improvements may also assist businesses in meeting accessibility or code compliance objectives while improving customer experience.
Staff recognize that expanding eligibility beyond traditional façade improvements represents a substantive policy change. To maintain the integrity of the program, staff recommends that any equipment-related improvements remain limited and be eligible only when they (Attachments 5 and 6):
directly support storefront activation;
improve customer experience or pedestrian engagement; address accessibility or code compliance objectives;
are permanently installed as part of the building or storefront; and are determined by the Economic Development Department to further the public purpose of the program.
Because the program is already oversubscribed, approval of this amendment would not increase available funding. Rather, it would provide staff with additional flexibility when evaluating otherwise eligible projects within the existing program budget.
NEXT STEPS:
If the City Council approves the proposed amendment, staff will:
Update the Small Business Façade Improvement Program Guidelines to incorporate the approved eligibility criteria.
Revise application materials and administrative procedures. Notify current applicants and future applicants of the revised eligibility requirements.
Continue administering the program under the revised guidelines within existing appropriations.
Apply the revised eligibility criteria consistently on a case-by-case basis.
If the City Council does not approve the amendment, staff will continue administering the program under the existing Council-approved guidelines. City staff recommend that the City Council adopt a resolution amending the Small Business Façade Improvement Program Guidelines to allow limited eligible equipment-related improvements and approve a second amendment to the contract with Renaissance Entrepreneurship
September 15, 2026
Center to administer grant funding for eligible permanently installed storefront equipment (Attachment 7).
SYNERGISTIC POLICIES:
Strategic Goal Areas
1. Increase revenue and improve economic development
2. Improve the quality of life, community health, and social determinants of health
General Plan 2030
Policy ED1.1 – Safe, Well-Maintained Neighborhoods and Public Space Policy ED1.3 – Support Existing Businesses
Policy ED2.2 – Revitalize Commercial Corridors
DOCUMENTS ATTACHED:
Attachment 1 – Renaissance Entrepreneurship Center Contract Attachment 2 – Renaissance Entrepreneurship Center Amendment No. 1 Attachment 3 – Renaissance Entrepreneurship Center Amendment No. 2 Attachment 4 – Facade Improvement Program Overview FINAL Attachment 5 – Revised Facade Improvement Program Overview (Redline) Attachment 6 – Revised Facade Improvement Program Overview (Clean Copy) Attachment 7 – Resolution - Facade Improvement - Program Change – Equipment