Agenda No. 4.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | May 21, 2024 |
| Department: | Executive Team |
| Subject: | Resolution 24-R-49 - Authorizing a Schertz Main Street Local Flavor Economic Development Grants for 415 and 820 Main Street. (S.Williams/B.James) |
BACKGROUND
The owner of th J's Grocery and Smoke shop located at 415 Main Street is applying for a Schertz Main Street Local Flavor Economic Development Grant. This is the second grant this property has applied for. The applicant previously was approved for a facade improvement grant for up to $9,192.50 (estimated project cost is $18,385) to redo the roof and repair woodwork to the storefront canopy as well as a sign grant up to $5,000.00. The applicant is seeking a Systems Grant of up to $15,000.00 for sewer lateral replacement work.
The owner of 820 Main is seeking a Site Improvement Grant for a parking lot addition. This grant would potentially be up to $20,000. The applicant has received $19,424,29 in grants in the past and has an open grant for up to $20,000 that is outstanding. Prior to entering into a new grant agreement, staff will have to work with the owner of 820 Main and the tenant for the grant that was approved in June of 2023 for this site to close that grant. That grant was for up to $20,000. The maximum grant total for any property is up to $40,000. So the amount available for the parking lot expansion, if any, is dependent on how much is paid out, if any for the open grant.
Staff is adding a provision to the Main Street Grant Agreement template that requires the property owner to dedicate any easements that might be needed for the Main Street Redevelopment Project, at no charge as it is hard to justify paying for easements for a project that is to the benefit of the property owners in addition to providing the matching grants.
The owner of 820 Main is seeking a Site Improvement Grant for a parking lot addition. This grant would potentially be up to $20,000. The applicant has received $19,424,29 in grants in the past and has an open grant for up to $20,000 that is outstanding. Prior to entering into a new grant agreement, staff will have to work with the owner of 820 Main and the tenant for the grant that was approved in June of 2023 for this site to close that grant. That grant was for up to $20,000. The maximum grant total for any property is up to $40,000. So the amount available for the parking lot expansion, if any, is dependent on how much is paid out, if any for the open grant.
Staff is adding a provision to the Main Street Grant Agreement template that requires the property owner to dedicate any easements that might be needed for the Main Street Redevelopment Project, at no charge as it is hard to justify paying for easements for a project that is to the benefit of the property owners in addition to providing the matching grants.
GOAL
Promote and enhance commercial activity along Main Street to promote the economic, cultural and general welfare of the public. The area around Main Street in Schertz once served as the commercial and social hub of the community. The City seeks to improve the image of the area around Main Street through matching grants that promote local economic development and stimulate business and commercial activities.
COMMUNITY BENEFIT
Encourage the attraction of small businesses that will create local charm and help develop a sense of place around Main Street. Promote commercial development. Stabilize and improve property values. Foster civic pride. Strengthen the economy of the City by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support of local businesses.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of Resolution 24-R-49, approving a Schertz Main Street Local Flavor Economic Development Grant for up to $14,192.50 for 415 Main Street.
FISCAL IMPACT
The maximum amount for the grant for 415 Main is $15,000. The maximum amount of the grant for 820 Main is $20,000.00 but it is possible that the property is not eligible for the full amount after closing the open grant for that property and potentially is not eligible for any grant funding. Staff will not execute the new agreement until the open grant has been closed.
Currently, there are nearly $40,000 in open grants with 3 property owners ($20,000 of which is the open grant for 820 Main mentioned above). To date the City has paid out $18,469.47 in Local Flavor Grants.
Currently, there are nearly $40,000 in open grants with 3 property owners ($20,000 of which is the open grant for 820 Main mentioned above). To date the City has paid out $18,469.47 in Local Flavor Grants.
RECOMMENDATION
Approval of Resolution 24-R-49.