DATE: MAY 10, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH: LISA BRINTON, ASSISTANT DIRECTOR
BY: OSCAR RESENDIZ, ASSOCIATE PLANNER
CRYSTAL CASILLAS, COMMUNITY DEVELOPMENT ANALYST
TITLE: ALISAL VIBRANCY PLAN (AVP) ECONOMIC DEVLOPMENT PILOT PROGRAMS RECOMMENDED MOTION:
No action is required. This report provides information related to AVP Economic Development Pilot Programs.
RECOMMENDATION:
It is recommended that the City Council receive and accept the AVP Economic Development Pilot Programs administrative report.
EXECUTIVE SUMMARY:
In November 2019, the City Council unanimously accepted the Alisal Vibrancy Plan (AVP) as a strategic planning document. The AVP is an action-oriented, comprehensive strategy for Salinas’ Alisal (East Salinas) neighborhoods. The Plan’s purpose is to communicate the collective vision, goals and desires of those who live, work, worship, and shop in the Alisal. In June 2021, the City Council demonstrated its commitment to AVP implementation by appropriating approximately $3 million dollars in the FY 2021-2022 Capital Improvement Project (CIP) Budget for immediate and short-term implementation activities. In October 2021, staff presented the AVP Implementation Plan and Budget for approximately $3 million dollars to the City Council. The Implementation Plan, developed in collaboration with the AVP Implementation Committee, prioritizes short-term activities to improve the cleanliness, appearance, infrastructure, and parks and open space, and to promote economic development of the Alisal. This administrative report outlines two economic development pilot programs identified in the AVP Implementation Plan: 1) Commercial Façade Improvement Forgivable Loan Program and 2) Business Marketing & Technology Grant Program.
BACKGROUND:
In May 2021, AVP Steering Committee and Working Group members were invited to form an AVP Implementation Committee (Committee). The Committee’s primary objectives are to maintain community at the center of AVP implementation and to develop and monitor the AVP Implementation Plan and Budget. Since May 2021, the Committee has met with staff via Zoom twelve (12) times to monitor implementation activities and to provide recommendations. In September 2021, City Council adopted A Road to Recovery for Local Businesses Blueprint, which identifies Digital Literacy and Social Media Presence as a key focus area to help business owners adapt in technological spaces. The AVP Implementation Plan and Budget presented to City Council in October 2021, allocated $675,000 to develop Micro-Grant and Loan Programs to support the recovery of small businesses in the Alisal Neighborhood Revitalization Strategy Area (ANSRA) severely impacted by the COVID-19 health order closures. A map of the ANSRA is provided as an attachment to this report.
DISCUSSION:
This administrative report outlines two economic development pilot programs developed to improve the appearance of Alisal corridors and to provide small businesses with the technology and financial tools to help them to recover from the economic impacts of the pandemic and to continue to grow. The AVP Commercial Façade Improvement Program (Façade Improvement Program) will provide forgivable loans of up to $20,000 (50/50 match) to help businesses improve their appearance including paint, signage, awnings and window treatment. The AVP Business Marketing & Technology Program will provide reimbursement grants of up to $1,100 in three different areas: a) Social Media Marketing Assistance, b) Computer Literacy Technology Assistance, and c) Financial Literacy Technology Assistance. Both pilot programs are outlined below.
AVP Commercial Façade Improvement Program (pilot) - $600,000.00 The Alisal Vibrancy Plan identified goals, policies to improve the appearance and cleanliness of Alisal corridors with a specific action of identifying funding to re-establish a façade improvement program to incentivize property owners and merchants to improve their storefronts. To develop the program staff researched the former Salinas Redevelopment Agency Façade Improvement Program and other jurisdictions to identify best practices and successful program models. Cities researched included Gilroy, Escondido, Santa Cruz, and Long Beach. Staff also met with representatives from the National Development Council (NDC), who is under contract with the City to provide economic development technical assistance. Staff then vetted program concepts with the Salinas United Business Association (SUBA) and with the Small Business and Economic Recovery Task Force, which includes representatives from SUBA, Salinas Chamber of Commerce, Central Coast Small Business Development Center, El Pajáro CDC, Salinas City Center Improvement Association and small business owners.
The Façade Improvement Program will provide interest free, forgivable loans up to $20,000 (50/50 match) to improve storefront appearance. Forgivable loans will be awarded on a first come, first served basis for qualifying projects. Façade Improvement Loans will be interest free and forgivable at the rate of 20% of the loan amount at the end of each year over five (5) years provided that the applicant/awardee maintains the work completed through the Program. Façade Improvement Program components are summarized in the table below.
Loan Amounts
Up to $20,000 (50/50 match) forgivable loan
Number of Loans Given
Program goal is to assist 30-40 businesses along primary commercial corridors in the ANSRA to beautify their storefront.
Eligibility
Property owners of commercial or industrial buildings within the Alisal (ANRSA) Business owners or tenants of commercial or industrial buildings within the Alisal (ANRSA), with permission of the property owner.
Eligible Improvements
Cleaning, preparation, and painting exterior walls and trim Repair, replacement or installation of awnings, windows, doors Repair or reconstruction of entryways
Repair, replacement or installation of exterior masonry or siding materials Removal, repair or replacement of signs
Security lighting
Anti-graffiti window coating
Limited landscaping (with priority on painting, lighting, and anti-graffiti coating) Ineligible Improvements
Refinancing of existing debt
Interior improvements
Roof repair or replacement
Structural foundations
Financing of Inventory
Financing of building acquisition
Working capital
Program applicants will have one year from the award date of the loan to complete the project and request payment of loan funds. Loan funds will be paid upon receipt of paid invoices for the project, proof of payment and approval of completed work. All of the cities researched provide loan funds on a reimbursement basis, upon completion of the Façade improvements and upon receipt of paid invoices. However, many of our Alisal businesses might not have the financial ability to pay for façade improvements upfront without taking a private loan due to pandemic struggles. Staff will continue to research best practices and discuss with Small Business Recovery Taskforce and the National Development Council (NDC) as to whether financial assistance can be paid upfront for façade improvements instead of on a reimbursement basis. The goal is to make the Program as accessible to all business in need as possible.
Implementation Steps:
Timeframe
Actions
May 2022 – June 2022
Continue to refine program with stakeholder groups: SUBA, Small Business Recovery Task Force, National Development Council (NDC) Release RFP/RFQ to identify Design Professionals
Finalize program details, agreements, marketing/promotional flyers Finalize online-portal for electronic submittals or in-person appointments July 2022-June 2023
Launch Application Portal
Outreach to businesses in the Alisal (ANRSA) – canvasing, social media, radio Conduct info sessions about program, application process via Facebook live or in Person June 2023
Present pilot program update to City Council
AVP Business Marketing & Technology Grants (Pilot) - $75,000.00 This year Small Business and Economic Recovery Taskforce members prioritized the importance of targeting grants for marketing, computer literacy and business planning to address technology barriers and gaps small business owners experienced during the pandemic that prevented them from using online banking systems to accessing local, state and federal funding sources. The AVP Business Marketing & Technology Grants program will help businesses owners to incorporate new digital tools into their businesses to streamline their operations. Three categories were identified to better address the technological gaps within the small business community: social media and marketing, computer literacy, and financial literacy. Pilot program components are summarized in the table below.
Grants
Social Media Marketing Assistance
Computer Literacy Technology Assistance
Financial Literacy Technology Assistance
Grant Amounts
Up to $1,100 in reimbursement funds in one of the following categories Number of Grants Given
The program goal is to provide 68-75 grants to businesses in the ANSRA Eligibility Requirements:
Eligible applicants must
have a current city of Salinas Business License,
not have any pending code enforcement violations,
be located in the ANSRA (Home-Based Business or Store Front), participate in and complete training though the city, local educational institutions, or small business services providers, and document and submit expenses to the City for approval.
Social Media Marketing Assistance
Computer Literacy Technology Assistance
Financial Literacy Technology Assistance
Eligible Expenses
Radio/TV Advertising
Online Webpage Development
Social Media Development
Software
Internet expenses for Business location (Up to 6 months) Microsoft Office 365
Virus Protection
Hardware
Computer Reimbursement of up to $300
Printer, Scanner, Copier (All-in One)
Software
Internet Expenses for Business Location (Up to 6 months) Accounting Software (i.e., QuickBooks, etc.)
Hardware
Computer Reimbursement of up to $300
Point-of-Sales Equipment (Square Up Products, Bank institution Products) Printer, Scanner, Copier (All-in One)
Training Requirements
1-1 Consulting with Education Institution and Training
Complete Computer Literacy Training through Salinas Library Must attend a basic training on product usage and online banking Implementation Steps:
Timeframe
Actions
May 2022
Engage Stakeholders (CSUMB Get Virtual, Hartnell Computer Literacy Classes, City of Salinas Computer Literacy Classes, Bank Institutions and Community Service Providers) Finalize a detailed plan of the proposed activities, requirements and events and identify any barriers and how they will be addressed June 2023
Finalize online-portal for electronic submittals or in-person appointments Establish a training calendar
July 2022-June 2023
Launch Application Portal
Outreach to businesses in the Alisal (ANRSA) – canvasing, social media, radio Have monthly check- in status with all stakeholders
Prepare quarterly program reports
June 2023
Present pilot program update to City Council
CEQA CONSIDERATION:
The Alisal Vibrancy Plan and Implementation Plan are strategic planning documents. The action of receiving this administrative report is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines section 15378). If recommended AVP policies or actions progress to a “project” level further CEQA analysis will be required to address potential environmental impacts of the proposed project.
STRATEGIC PLAN INITIATIVE:
AVP implementation is one of the Economic Development strategies identified in the City Council 2022-2025 Strategic Goals and strategic initiatives. The short-term actions identified in the AVP Implementation Plan build off the focus areas of the E. Alisal Corridor and Economic Development. The proposed pilot programs will support small and entrepreneurial business to grow and thrive.
DEPARTMENTAL COORDINATION:
The Community Development Department’s Advanced Planning and Project Implementation (APPI) Division led AVP preparation and are leading coordination of Plan implementation, including development of the two economic development pilot programs. APPI coordinated program development with the Small Business and Economic Recovery Task Force (SUBA, Salinas Chamber of Commerce, Central Coast Small Business Development Center, El Pajáro CDC, Salinas City Center and Small Business owners) and representatives from the National Development Council (NDC).
FISCAL AND SUSTAINABILITY IMPACT:
There is no direct fiscal impact from receiving this administrative report on the implementation of the two economic development pilot programs outlined in this report. The total cost of the two pilot programs is $675,000. Both programs will be funded out of the AVP Implementation CIP 9246 as described in the AVP Implementation Budget, which is provided as an attachment to this staff report.
ATTACHMENTS:
Alisal Vibrancy Plan Area/Alisal Neighborhood Strategy Area Map AVP Implementation Plan and Budget (October 2021)
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