City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 18, 2022 FROM: COMMUNITY & ECONOMIC DEPARTMENT WARDS: ALL
DEPARTMENT
SUBJECT: ACCEPT ADDITIONAL SHUTTERED VENUE OPERATOR GRANT AWARD FROM THE UNITED STATES SMALL BUSINESS ADMINISTRATION FOR THE FOX PERFORMING ARTS CENTER IN THE AMOUNT OF $265,068.44 AND AUTHORIZE A SUPPLEMENTAL APPROPRIATION IN THE SAME AMOUNT ISSUE:
Accept the additional Shuttered Venue Operators Grant award from the United States Small Business Administration for the Fox Performing Arts Center in the amount of $265,068.44 and authorize a supplemental appropriation in the same amount to the Entertainment Fund, Shuttered Venue Operator grant project accounts.
RECOMMENDATIONS:
That the City Council:
Accept the additional Shuttered Venue Operators Grant award from the United States Small Business Administration for the Fox Performing Arts Center in the amount of $265,068.44; With at least five affirmative votes, upon receipt of the grant award, authorize the Chief Financial Officer, or designee, to record an increase in revenue and supplemental appropriation in the same amount, for a total grant amount of $3,479,911.21, to the Entertainment Fund, Shuttered Venue Operator grant project accounts, and Authorize the City Manager, or designee, to execute any necessary, financial, or legal documents, including making minor and non-substantive changes to execute the Shuttered Venue Operators Grant from the United States Small Business Administration.
BACKGROUND:
The Shuttered Venue Operators Grant (SVOG) program was established in Section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) (15 U.S.C. 9009a) and signed into law on December 27, 2020, as part of H.R. 133 Consolidated Appropriations Act, 2021 (Public Law No. 116-260).
Section 324 of the Economic Aid Act was amended by Section 5005 of the American Rescue Plan Act (Public Law No. 117-2) signed into law on March 11, 2021.
Eligible entities for the grant include live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators or owners, and talent representatives, per the Economic Aid Act. State or local governments are eligible for publicly owned venues that are independently operated (for example, museums or historic homes). For example, a city parks and recreation department that operate a bandstand and various nature parks could apply for the bandstand but could not include nature park improvements as part of the grant application.
The City of Riverside was able to qualify for the grant as the owner of the Fox Performing Arts Center.
On May 4, 2020, the City submitted an application for the Shuttered Venue Operator Grant (Grant) for the Fox Performing Arts Center. Over 14,000 entities applied through the initial round of funding.
On July 29, 2021, the Community & Economic Development Department was notified by the SBA of the notice to award $2,143,228.51 for direct costs related to the Fox Performing Arts Center, the maximum amount of funding the City could receive under the Grant during the first round of funding.
On August 28, 2021, the City was again notified of a supplemental award of $1,071,614.26.
On September 7, 2021, City Council approved the total amount of $3,214,842.77.
DISCUSSION:
On February 11, 2022, a final notice of grant award was received from the Small Business Administration indicating that the City would receive a third award in the amount of $265,068.44.
In accordance with the City Grant Administration Policy 01.006.00, the Community & Economic Development Department Director (Director) is required to evaluate the award. The Director evaluated: 1) benefits to the customers of the Fox Performing Arts Center; 2) the City’s long and short-term financial implications and feasibility; and 3) compatibility with existing City priorities/goals and services.
The Director determined the community and City would benefit by accepting this grant award in its entirety.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 1 – Arts, Culture and Recreation and specifically, Goal 1.1 – Strengthen Riverside’s portfolio of arts, culture, recreation, senior, and lifelong learning programs and amenities through expanded community partnerships, shared use opportunities, and fund development.
This item also contributes to Strategic Priority 5 – High Performing Government and Goal 5.4 – Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
The item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The SBA is a trusted funder and partner for businesses across the country. The support from the SBA for venues that were shuttered due to COVID-19 is having a significant impact on the creative economy across the country. Through the entire process, SBA has awarded funds to entertainment venues, been open to questions and revisions and addressed changing concerns due to COVID-19.
Equity– The SBA allows reconsiderations, appeals and provides guidance to all organizations that applied.
Fiscal Responsibility – The SBA grant award is the maximum amount allowed by the SBA for the budget of the Fox Performing Arts Center.
Innovation – Due to COVID-19 closures, the city and its staff had to adapt, shift, and think outside of the normal processes and procedures for programming and funding. This grant is one example of the effort and diligence of staff, elected officials, and the public to support the arts and the creative economy.
Sustainability & Resiliency – Staff was quick to adapt to new opportunities for financial support from federal and state governments as well as private funders to help support programs and needs during COVID-19 for our community.
FISCAL IMPACT:
The total fiscal impact of this action is $265,068.44. Upon City Council approval and acceptance of the grant from the SBA, an increase in revenue in the amount of $265,068.44 will be made in the Entertainment Fund, Shuttered Venue Operator Revenue account no. 9173600-331100, and a supplemental appropriation in the same amount will be recorded to the Entertainment Fund, Shuttered Venue Operator Expenditure account no. 9173600-440110 for Fiscal Year 2021/22. The total fiscal impact of the grant is $3,479,911.21.
Prepared by: Chris Christopoulos, Acting Community & Economic Development Director Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments
Final Notice of Grant Award - Small Business Administration SVO Acceptance – Additional Grant Award