Agenda

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City Council Regular Meeting

Meeting Date:

06/25/2019

BACKGROUND

On December 11, 2018, the City Council approved Resolution 18-R-152, creating the Schertz Main Street Local Flavor Economic Development Program. The Schertz Main Street Local Flavor Economic Development Program is intended to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors. The Schertz Main Street Local Flavor Economic Development Program will enhance other city efforts to improve, beautify, and promote economic development in the Main Street area.
Funding for the Schertz Main Street Local Flavor Economic Development Program is provided annually through the City’s General Fund. Funds are made available on a first-come-first-serve basis. The program also stipulated that grants will not be provided for work already completed or which has begun prior to the approval of the grant application. Funds are provided on a 50/50 matching basis, in-kind contributions may be counted toward the matching requirement. The program also stipulated that no more than one of the four grant types (Signage Improvement Grant, Facade Improvement Grant, Site Improvement Grant and Capital Equipment Grant) may be received per property per year. All improvements must conform to City regulations and building codes and receive advance approval by the City Council. All grants are paid out upon completion of the project.

Staff is recommending a few changes to the program that was approved in December. The first is to remove the restriction that only one type of grant may be received per property per year. The maximum amount allowed for the grants varies: the signage grant is capped at $5,000, the capital equipment grant is capped at $2,500 and the Facade Improvement Grant and Site Improvement Grant are both capped at $20,000. In order to allow greater flexibility, but still cap the amount that can be awarded per grant per year, staff is recommending limiting the amount that can be awarded among all four grants to $20,000 per year. This will also allow a property owner to apply for a second grant of the same type that has already been awarded as long as don't exceed the annual cap for that grant per year as well as the $20,000 total cap.
Another change is to allow projects to be eligible for a grant as long as they contact staff about the grant prior to commencing the work and in the case of a repair or replacement of capital equipment that has broken within 14 days of the work commending. This would allow the owner of a property that has to replace a piece of equipment over the weekend to still apply for the grant. Finally, grant payments can be paid in phases - allowing an owner to use grant monies to help cash flow the project.

GOAL

To amend the local flavor grant program to encourage more property owners in the Main Street corridor to utilize the program.

COMMUNITY BENEFIT

The program was created after the City Council heard from residents, business owners and community organizations. As has been the past practice new programs or ordinances are monitored and amended to increase their effectiveness.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of the resolution amending the Schertz Local Flavor Main Street Local Flavor Economic Development Program.

FISCAL IMPACT

The fiscal impact will be limited as these changes do not increase the total amount a property can receive in a year.

RECOMMENDATION

Staff recommends approval of Resolution 19-R-74.

Attachments
Resolution 19-R-74
Amended Grant Program