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AGENDA ITEM REVIEW FORM |
6.G.
Regular City Council Meeting
- Meeting Date:
- 02/26/2025
- Department Head:
- Armando Esparza
- Submitted By:
- Humberto Arcos, Grants Coordinator, Economic Development
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2354. A Resolution of the Mayor and City Council of the City of San Luis, Arizona, authorizing the submission of an application to the USDA Rural Business Development Grant to establish a Small Business Assistance Fund. (Armando Esparza, Director of Economic Development)
SUMMARY:
BACKGROUND:
Road improvement projects, while essential for enhancing transportation infrastructure, can have mixed effects on adjacent businesses. A study by the Minnesota Department of Transportation (MnDOT) highlighted that while such projects can increase access and potentially boost traffic to surrounding businesses, they may also pose challenges, especially during prolonged construction periods. Potential adverse effects include decreased customer foot traffic, limited access due to road closures or detours, and overall declines in sales. These challenges underscore the importance of proactive measures to support local businesses during major infrastructure projects.
USDA RURAL BUSINESS DEVELOPMENT GRANT:
The Economic Development Department is seeking City Council approval to apply for $100,000.00 in funding from the USDA Rural Business Development Grant. These funds will be used to establish a Small Business Assistance Fund to support businesses located within the Cesar Chavez Boulevard construction corridor and other commercial areas directly impacted that may experience financial hardship due to construction-related disruptions. The Department plans to use these funds to develop either a grant program or a low-to-no-interest loan fund, offering financial support to businesses affected by reduced vehicle traffic, foot traffic, temporary access limitations, and potential revenue losses caused by prolonged construction activities. The goal of this initiative is to help small businesses navigate these economic challenges by providing flexible financial assistance, business counseling, and technical support to strengthen their resilience. If awarded, the Small Business Assistance Fund may provide grants or low-to-no-interest loans to eligible businesses.
Road improvement projects, while essential for enhancing transportation infrastructure, can have mixed effects on adjacent businesses. A study by the Minnesota Department of Transportation (MnDOT) highlighted that while such projects can increase access and potentially boost traffic to surrounding businesses, they may also pose challenges, especially during prolonged construction periods. Potential adverse effects include decreased customer foot traffic, limited access due to road closures or detours, and overall declines in sales. These challenges underscore the importance of proactive measures to support local businesses during major infrastructure projects.
USDA RURAL BUSINESS DEVELOPMENT GRANT:
The Economic Development Department is seeking City Council approval to apply for $100,000.00 in funding from the USDA Rural Business Development Grant. These funds will be used to establish a Small Business Assistance Fund to support businesses located within the Cesar Chavez Boulevard construction corridor and other commercial areas directly impacted that may experience financial hardship due to construction-related disruptions. The Department plans to use these funds to develop either a grant program or a low-to-no-interest loan fund, offering financial support to businesses affected by reduced vehicle traffic, foot traffic, temporary access limitations, and potential revenue losses caused by prolonged construction activities. The goal of this initiative is to help small businesses navigate these economic challenges by providing flexible financial assistance, business counseling, and technical support to strengthen their resilience. If awarded, the Small Business Assistance Fund may provide grants or low-to-no-interest loans to eligible businesses.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2354, AUTHORIZING THE ECONOMIC DEVELOPMENT DEPARTMENT TO SUBMIT AN APPLICATION TO THE USDA RURAL BUSINESS DEVELOPMENT GRANT TO ESTABLISH A SMALL BUSINESS ASSISTANCE FUND.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- Federal- USDA Rural Business Development Grant
- TOTAL:
- $100,000.00
- BUDGETED AMOUNT:
- $100,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 255-210-90010
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The Finance Department created a GL Account named Contractual Services Special Revenue Economic Development and numbered it GL Account 255-135-80000.