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DISCUSSION
City of San Bernardino
Request for Council Action
Date: June 5, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager
Joshua Dramitinos, Deputy Director of Economic Development Department: Economic Development
Subject: Façade Improvement Grant Program: “Paintbrush
Program" (All Wards)
Recommendation:
Receive as filed and provide staff direction with program implementation.
Executive Summary
This item is the presentation of the American Rescue Plan Act-Funded Facade Improvement Grant Program, otherwise known as "the Paintbrush Program.” The program will allocate $1,250,000 towards grants ranging from $10,000 to $20,000 to assist small businesses with façade, or exterior improvements to their business. The recommendation to the Mayor and City Council is to receive the item as filed and provide staff direction regarding the implementation of the program.
Background
The City of San Bernardino was awarded $77 million under the American Rescue Plan Act (ARPA). The City received $38.5 million in May 2021, with the remainder of the funds received in 2022. Treasury issued the final ARPA guidance for the use of the funds on January 6, 2022, providing clarification on allowable investments, but generally not expanding the list of eligible projects and programs. The City is working within the guidance, focusing on investments in Qualified Census Tracts (QCTs) and other priority investments.
Within the allowable investments includes assistance for small businesses that can demonstrate a negative impact from COVID-19. In October 2021, Council requested that staff dedicate funds to help small businesses with City-wide clean-up efforts and develop a facade improvement program, referred to as the “Paintbrush Program.” At the October 20, 2021, Council Meeting, Council unanimously approved Resolution No. 2021-247 1 7
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allocating $2,000,000, for graffiti abatement, clean-up efforts, and the Paintbrush Program.
Rehabilitation of commercial properties, storefront improvements, and façade improvements for disproportionately impacted small businesses is specifically allowed under the ARPA Treasury guidelines. According to the guidelines, “disproportionately impacted small business” is a restricted designation attributed to small businesses operating in Qualified Census Tracts. Council may develop a more restrictive, but not less restrictive, definition for the program. Treasury guidelines can be viewed in Attachment
2. Of the funds allocated per Resolution No. 2021-247, $1,250,000 is currently allocated to the Paintbrush Program.
Discussion
Using Council’s October 20, 2021, direction, staff developed a Façade Improvement Program benchmarking best practices from local agencies across the state and country for the benefit of San Bernardino-based businesses. Staff crafted a framework for grant assistance to businesses that were negatively impacted by COVID-19 or are qualified as an “underserved small business group.” In collaboration with the Inland Empire Small Business Development Center (SBDC), the program requires applicants to participate in free one-on-one business consultations offered by the SBDC. There is no administrative fee, or any other cost associated with SBDC’s partnership. Attached is the “City of San Bernardino Facade Improvement Grant Program “Paintbrush Program” Guidelines,” (Attachment 1).
Purpose
The purpose of this Grant Program is to enhance economic opportunities within the small business community and to encourage additional investment in the City’s commercial corridors. The Program will help create a pedestrian-friendly, aesthetically pleasing environment for residents, visitors, and tourists, and may also create substantial economic benefits for merchants and property owners as a result of increased interest and activity. The investment will increase the competitive advantage of operating a business in the city of San Bernardino.
Program goals include:
•Facilitate commercial revitalization.
•Stimulate private investment and customer patronage.
•Generate shopping opportunities and create a pleasant walking environment by improving the visual aesthetics of commercial building façades.
Guideline Overview
Eligible applicants are property owners or tenants with an active business license located in leased or owned commercial properties within a designated main commercial corridor within a Qualified Census Tract (QCT) throughout the City of San Bernardino or in the Downtown Core as defined by the map in Attachment 4.
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A (tenant) that is not the property owner must show evidence of the right to alter the property, or consent from the property owner. Evidence is accepted in the form of a letter from the property owner along with a signed and notarized Owner Authorization Form.
Property owned by City employees, elected and appointed officials, and/or operated by non-taxable agencies, cannabis businesses, and any unpermitted businesses are not eligible to participate in this program.
Completion of the mandatory consultation and completed submission of requested documentation constitutes the applicant’s priority in being selected to receive funding.
Applicants will be added to the first-come, first-serve queue when all requirements are completed, including consultation and document submission and review.
Award Amount
ELIGIBLE BUSINESS
GRANT AWARD
AVAILABLE PER
BUSINESS
Open for business prior to March 13, 2020, and still in business. $20,000
Open for business starting March 14, 2020, through May
11, 2023, to present, and open with appropriate permits (if opened after May 11, 2023, business is ineligible). $10,000
Improvements eligible to be made with program funds must enhance or restore the physical condition or appearance of the building. Types of improvements include, but are not limited to:
•Exterior Signs (installation of new or repair or replacement of legally installed and mounted signs
•Awnings, canopies, or sunshades (installation of new or repair or replacement of fixed metal or fabric awnings)
•Painting or exterior surface treatment (stucco, tile, stone or brick replacement or repair)
•Asphalt paving, replacement or repair of tiles or decorative pavers, sidewalk or courtyard repaving (not in the public right-of-way)
•Repair or replacement of masonry walls or footings
•Outdoor lighting (installation of new exterior lighting fixtures; repair or replacement of existing exterior lighting fixtures)
•Installation, repair or replacement of decorative or security fencing •Replacement of plate glass windows, reglazing of windows or change of windows •Replacement or refurbishment of architectural features •Rehabilitation of historical features
•Installation or replacement of outdoor landscaping, irrigation and fountains All improvements must be visible from the public right-of-way. All eligible businesses are invited to apply. Businesses which have previously received alternative sources of funding 1 7
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such as the Economic Injury Disaster Loan (EIDL), Paycheck Protection Program (PPP) Loan, State, or County of San Bernardino grants are eligible to apply. Businesses that have received funding in Round One of the ARPA-funded grant program or will receive funding in Round Two are ineligible to apply. An eligible business shall receive only one source of funding from the available City ARPA-funded small business assistance grant programs.
The program is based on the availability of funds, program guidelines and submission of all required information and supporting documentation. Small businesses, within the identified commercial corridors, with a maximum of five hundred (500) employees (full and part-time) may be eligible to receive façade improvement grant funds after attending one (1) mandatory one-on-one consulting session.
Marketing
Staff plans to market this opportunity to the eligible business community through various methods, including:
•Digital
oFlyers, brochures, and digital media will be shared across all digital platforms available, including Instagram, Facebook, E-Newsletters, website articles, and more.
•Physical
oStaff will connect with business resource groups at in-person meetings to share the opportunity and how to apply to the program. Staff will also spend time advertising the opportunity with door-to-door outreach. •Mail
oStaff will use mail efforts to notify eligible businesses of the opportunity and provide information on how to learn more.
2021-2025 Strategic Targets and Goals
The use of the American Rescue Plan Funds as outlined aligns with Key Target No.
3. Improved Quality of Life by investing in projects and services that positively impact health, access to shelter and services, and improve the outdoor and built environment in the San Bernardino community; and Key Target No. 4. Economic Growth and Development by investing in economic development of local San Bernardino-based businesses.
Fiscal Impact
There is no General Fund impact associated with this item. To date, the remaining American Rescue Plan (ARPA) budget for this initiative, per Resolution No. 2021-247, is $1,827,698.68.
Conclusion
Receive as filed and provide staff direction with program implementation.
Attachments
Attachment 1 City of San Bernardino Façade Improvement Grant Program 1 7
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Guidelines
Attachment 2 US Treasury ARPA Guidelines
Attachment 3 City of San Bernardino Façade Improvement Grant Program PowerPoint
Attachment 4 City of San Bernardino Façade Improvement Grant Program Map
Ward:
All Wards
Synopsis of Previous Council Actions:
August 4, 2021 Mayor and Council received a report and discussed the allocation of American Rescue Plan funds.
October 20, 2021 Mayor and Council committed American Rescue Plan funds to eligible projects and programs and amended the 2021/22 Budget by $7,160,000. Resolution 2021-247.
June 30, 2023 Mayor and Council received an update on the Façade Improvement Program, or the “Paintbrush Program” as part of the Strategic Initiatives Workshop.