Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: September 8, 2026
SUBJECT: BOUQUET CANYON BUSINESS ASSISTANCE GRANT PROGRAM DEPARTMENT: Economic Development
PRESENTER: Tyler Pledger
RECOMMENDED ACTION
City Council:
1. Conduct a public hearing and adopt a resolution entitled: “A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ESTABLISHING THE
PUBLIC PURPOSE FOR AND APPROVING THE BOUQUET CANYON BUSINESS ASSISTANCE GRANT PROGRAM.”
2. Approve a one-time transfer of $640,000 from Contingency Account (1009300-701001) to Business Development and Retention Account (1003500-517105).
3. Authorize the City Manager or designee to execute all documents necessary to administer the Bouquet Canyon Business Assistance Grant Program, including agreements with eligible grant recipients and a third-party grant administrator, subject to City Attorney review.
BACKGROUND
The City of Santa Clarita (City) is committed to supporting a strong and diverse local economy and the long-term viability of businesses throughout the community. Through the City’s Economic Development Division, the City provides business retention and expansion assistance, permitting support, market research, workforce resources, and connections to regional business assistance partners.
On February 13, 2026, Bouquet Canyon Road was closed between Plum Canyon Road and David Way as part of construction associated with the Bouquet Canyon Project. The closure, anticipated to remain in place for approximately 11 months, has detoured traffic through Haskell Canyon Road and Copper Hill Drive and altered normal traffic and access patterns for nearby commercial centers. Since the closure began, City staff has maintained regular communication
with businesses within the corridor and implemented efforts to increase awareness and support for those businesses.
These efforts have included direct outreach to businesses, ongoing communication regarding construction and access, promotion through the City's Shop Local initiatives, and sharing available business resources with business owners. As part of these efforts, the City also hosted a Shop Local pop-up event within the impacted commercial area to encourage residents to patronize businesses in the corridor and increase awareness that the businesses remain open and accessible. Despite these efforts, businesses within the corridor have continued to report challenges associated with reduced customer traffic and changes in normal access patterns.
On July 14, 2026, the City Council directed staff to explore options for providing assistance to businesses impacted by the extended road closure. In response, City staff evaluated potential financial assistance models and researched programs implemented by other public agencies, including the Los Angeles County Metropolitan Transportation Authority's Business Interruption Fund.
Based on this research and applicable legal considerations, City staff developed a proposed Bouquet Canyon Business Assistance Grant Program (Program) focused on business retention and the continued operation of businesses within the affected commercial corridor.
Proposed Grant Program
The proposed Program is intended to provide temporary, prospective financial assistance to eligible businesses experiencing documented economic hardship during the Bouquet Canyon Road closure.
The proposed Program is structured to provide prospective assistance to businesses demonstrating economic hardship associated with the road closure, restrict funding to eligible operating expenses, and require appropriate verification, recordkeeping, and accountability measures. As an additional condition of assistance, grant recipients would be required to remain open and actively operating for a minimum of two years following execution of the grant agreement.
These provisions are intended to ensure that financial assistance is directly connected to the public purpose established in the attached resolution. The proposed Program would not compensate businesses for previously lost revenue, rather, demonstrated revenue decline would be used to measure economic hardship and determine the appropriate level of prospective assistance toward eligible operating expenses.
Program Eligibility
To qualify for assistance, a business would be required to:
• Be a for-profit business or eligible non-religious nonprofit organization located within the defined commercial corridor, which is limited to businesses located within the following Assessor’s Parcel Numbers 2812-038-005; 2812-038-006; 2812-038-007; and 2812-008- 030;
• Have operated continuously at the location for at least 12 months prior to the road closure;
• Provide financial documentation demonstrating a measurable revenue decline during the closure, such as federal tax returns, payroll records, sales tax reports, and bank statements; and
• Be solvent and in good standing with applicable governmental authorities.
National or regional chain retailers, except independently operated franchises, and commercial property owners would not be eligible for assistance.
Grant Awards
An eligible business demonstrating economic hardship associated with the Bouquet Canyon Road closure may receive a grant to support continued operations. Grant awards may provide up to 50 percent of eligible fixed operating expenses for a six-month period, not to exceed $35,000 per business. The applicable grant percentage would be based on the business's demonstrated revenue decline:
Demonstrated
Revenue Decline
Grant Assistance Tier
5-10% 10% of eligible six-month expenses
11-20% 20% of eligible six-month expenses
21-30% 30% of eligible six-month expenses
31% or greater 50% of eligible six-month expenses
Revenue decline would be determined by comparing each completed quarter occurring during the road closure with the corresponding quarter from the preceding year. The greatest demonstrated percentage decline would establish the applicable assistance level. Each eligible business may receive one grant, not to exceed $35,000, during the Program.
Eligible Uses
Grant funding would be restricted to documented operating expenses intended to support continued business operations, including:
• Rent;
• Utilities;
• Insurance; and
• Payroll and associated employer payroll costs.
Grant Agreement and Compliance
As a condition of receiving grant funds, recipients would be required to enter into a grant agreement with the City and remain open and actively operating for a minimum of two years following execution of the agreement. Businesses that cease operations prior to the end of the two-year period would be required to repay a pro-rata portion of the grant.
Applicants would be required to certify the accuracy of information submitted and maintain supporting financial records for two years following receipt of an award. The City would retain the right to review and audit records to verify eligibility and compliance with Program requirements, with material violations potentially resulting in repayment of all or a portion of the grant. The Program would also include an appeals process for applicants disputing an eligibility
determination or grant award.
Program Administration
Due to the financial documentation, eligibility verification and compliance requirements associated with the Program, staff recommends utilizing a qualified third-party administrator to assist with application intake, financial review, award calculations, documentation, and grant administration.
Program Budget
City staff recommends establishing a total Program budget of $640,000, including $590,000 for direct grant assistance and $50,000 for third-party Program administration. Funding for the Program would be transferred from the Contingency account, which has an annual budget of $750,000.
The proposed Program budget is based on an estimate of the number of eligible businesses anticipated to apply for and receive grant funding. Program funding needs may be higher or lower depending on the number of applications received, the number of businesses determined to be eligible, and the amount of individual grant awards. If additional funding is needed to meet Program demand, staff would return to the City Council for consideration and approval of an additional appropriation.
If approved by the City Council, the Program application will be released in early October. City staff would conduct direct outreach to eligible businesses regarding the Program and application process and remain available to assist businesses throughout implementation.
Pursuant to Government Code Section 53083, the City is required to provide public notice and conduct a public hearing prior to approving an economic development subsidy of $100,000 or more. The required information regarding the proposed Program, including its estimated cost and public purpose, has been made available to the public in connection with this item and available online at econdev.santaclarita.gov.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
If approved, funds in the amount of $640,000 will be transferred from Contingency Account (1009300-701001) to Business Development and Retention Account (1003500-517105) to support the recommended action.
ATTACHMENTS
Resolution