Brentwood Set to Approve $197k in Economic Development Grants

The Brentwood City Council is set to discuss Tuesday night the approval of $197,000 in Economic Development Grants to seventeen different projects for the purpose of marketing and attracting shopping and tourism in Brentwood and amending the 2013-2014 operating budget.

In reviewing the grant awards, it’s somewhat of a shame that the Delta Harvest Run received just $2,000 of the $7,180 in funding when compared to what the Chamber of Commerce and Brentwood Art Society. The Chamber received $58,000 while the Art Society got $10,500. The Harvest Run brings in out of town guests and something that should receive a bump in funding.  Meanwhile, the committee awarded the city the largest chunk of the grant pie in awarding $92,500 to the City of Brentwood.

Here is a look at the Staff Report for Item F2 where the grants have been suggested, however, they may be tweaked a bit as the entire council will have a say.

RECOMMENDATION

A Resolution to Award funding from the 2013-2014 Economic Development Grant Program in the amount of $197,095 to seventeen different projects for the purpose of marketing and attracting shopping and tourism in Brentwood and amending the 2013-2014 operating budget.

PREVIOUS ACTION

On November 5, 2002, citizens voted in a general election to amend Chapter 5.04 of the Brentwood Municipal Code to change the business license taxto a gross receipts tax structure.

In May 2004, the City awarded $78,660in the program’s first year to various programs based on the ability to identify a direct nexus between the funding of these programs and support of the Brentwood business community. Since then, the City has made annual grants through the program, in the following amounts:

• $99,884 (June 28, 2005 – Resolution No. 2005-147).
• $98,054 (June 13, 2006 – Resolution No. 2006-128).
• $115,000 (June 26, 2007 – Resolution No. 2007-132).
• $121,000 (May 13, 2008 – Resolution No. 2008-099).
• $130,543 (May 26, 2009 – Resolution No. 2009-106).
• $138,350 (June 8, 2010 – Resolution No. 2010-76).
• $146,038(May 24, 2011 – Resolution No. 2011-71).
• $203,045 (May 8, 2012 – Resolution No. 2012-51).

On January 11, 2011, the City Council approved new application guidelines for the program that are designed to be more clear and specific about: (a) the criteria used to select projects, and (b) the requirements that applicants must meet in order to ensure a successful, well-managed event that is consistent with the City’s economic development goals(Resolution 2011-01). On February 12, 2013, the City Council approved a name change from the Business License Grant Program to the Economic Development Grant Program and also approved the implementation of a more flexible reimbursement policy for applicants.

BACKGROUND

The Economic Development Grant Program allows local organizations to receive grants for activities that help promote Brentwood and attract shopping and tourism to the city. Since 2004, this program has awarded approximately $1,130,574 in grants to help fund projects sponsored by the City, Brentwood Chamber of Commerce, and other local organizations. The program is funded from a 20% portion of the City’s annual business license tax revenues. The available funding for this year’s program is $197,464.To receive a grant, applicants must submit a completed grant application detailing the project, the estimated budget, and other key information as described in the program’s

Guidelines and Application Packet (Exhibit B).For the upcoming (2013/14) grant cycle, applications were due March 29, 2013 for projects or events that take place between July 1, 2013 and June 30, 2014.

A total of 21 applications were received for the 2013/14 Economic Development Grant Program, resulting in a request for funding of $406,225. The 21 applications are summarized in Exhibit C, and they are listed briefly by project in Table 1 below:

ANALYSIS

On April 23, 2013 applications were reviewed by the Economic Development Internal Staff Review Committee, which is comprised of staff from the following offices: City Manager, Finance, and Community Development. According to the Grant Program’s guidelines, the applications were evaluated based on several criteria, including:

• Alignment with City Council Goals and Strategic Plan.
• Ability to achieve positive publicity for Brentwood throughout the region, and to reinforce the image of Brentwood as an attractive, family-friendly, high-quality community.
• Potential to support the City’s overall economic development efforts – and specifically to increase shopping and tourist activity in Brentwood, and to support small business development.
• Ability to generate tax revenue, jobs, and other economic benefits to the City.
• Demonstration of a stable management structure and full fiscal accountability which includes a reasonable budget, eligible expenses, and a strong financial commitment of private funds, using City funds sparingly. After review of the applications and discussion about the intent of the program and the merits of each application, staff made initial recommendation.

These are commendations were presented to the Land Use and Development Committee (LUDC)on May 20, 2013. The Land Use and Development Committee reviewed the applications and have recommended that the City Council allocate grant funds to seventeen projects in three major categories, as discussed below:

1. Downtown Brentwood Promotional Projects Nine of the applicants requested funding for well-established community events and programs that draw visitors and shoppers to the downtown.

In the process of prioritizing the limited funds available, the LUDC recommended the City provide grant funding for the Holiday Parade ($4,500) and Hometown Halloween ($3,500), each to utilize $1,000 for marketing and the remainder of their grant funding for associated costs to host each event. The Downtown Brentwood Coalition is recommended to receive $7,000 to fund  Brides Day Out and two other events of their choosing. The LUDC recommends funding $15,000 for the Community Center Events, which would include $5,000 for the Movie in the Park and Christmas Tree Lighting, with the remaining $10,000 to be used to hire a consultant to develop an events & promotion strategy for the Downtown.

The LUDC also recommends fully funding the Summer Concert Series, Downtown Tourist Map, Downtown Tree Lighting and Downtown Furniture Grant Program due to their historical proven success. The LUDC also requested that, for future years, the City Council consider identifying other funding sources for the Downtown Tree Lighting so that it is not funded by the Economic Development Grant Program. Even though successful in the past, funding for the Downtown Façade Grant Program is not recommended at this time.

2. City wide Promotional Activities & Community Events

Eight applicants requested funding for community events/activities that will attract visitors and shoppers from throughout the East Contra Costa region – and in the process, help to build the customer base of local shops and reinforce the image of Brentwood as a safe, family-friendly, high-quality community.

In this category, the Chamber requested a combined grant amount of $65,095 for three grants: (a) Cornfest Fireworks ($30,595), (b) Citywide Banner Program, which includes installation and rotation of four banners with the redesign of the Spring banner ($22,000), and (c) Brentwood Advertising Campaign ($12,500). The LUDC recommended funding the actual cost of the Cornfest Fireworks; however, they did not recommend paying the site prep-work. The LUDC also recommended that the Chamber continue to carry out its multi-year strategy, in which one of the four banners would be redesigned each year, with the ultimate goal of having all banners feature a custom design. The Brentwood Advertising Campaign is not recommended for grant funding at this time.

The Art Society is requesting funds for the Brentwood Art, Wine & Jazz Festival ($18,000) and for the Art, Wine and Jazz Festival Banner Change-out ($3,000). The Committee indicated that this event is worthy of additional marketing and recommends partial funding for each. The Committee also recommends funding marketing expenses for the Delta Harvest Run ($2,000).

The Committee also recommended sup porting two grant applications that focus on Citywide marketing: (a) the Shop Brentwood Campaign ($20,000) proposed by the City, and (b) the Brentwood Promotional Video ($10,000) proposed by Trilogy at the Vineyards. The Committee stated that these two programs are both effective devices and can be used to attract regional attention to Brentwood using various print, broadcast, and online marketing tools.

3. Business Development Projects

Two of the applications involve projects that would help develop small businesses via direct training, support and resources in Brentwood, as summarized below:

Both the Brentwood Business Growth Intensive and the Brentwood Entrepreneur Training Program are recommended to receive partial grant funding because both programs have proven successful at helping to create and grow small businesses, achieve positive publicity for Brentwood, and build goodwill in the business community.

The LUDC further recommends that the Brentwood Food & Ag Innovation does not fit the criteria for this grant program, but might be considered for potential funding from the Agricultural Enterprise Grant Program. Flagship was not recommended for funding at this time; however, the LUDC expressed an interest in staff working with Willy’s Bagels & Blends to explore a potential project to expand their operations in Brentwood.

CONCLUSIONS

In summary, the City received 21 proposed projects totaling $406,225 in requested funds, and the Land Use Development Committee is recommending the City Council award grants to seventeen of those projects, for a total grant funding of $197,095.

The seventeen proposed grants cover a wide variety of activities that will support key community events, Downtown shopping and cultural activity, small business development, and general promotion of Brentwood.

These recommendations are based on the available funding of $197,464. All applicants were invited to attend tonight’s City Council meeting. Further, applicants are notified of award or denial of their application via written notice following City Council action. Copies of the applications submitted can be viewed by contacting the Economic Development Division.

FISCAL IMPACT

The recommended award amount is $197,095.

The current amount available in the deposit account for grant funding is $197,464, resulting in a rollover of $396 toward next year’s grant cycle. A 2013-2014 operating budget amendment is required as follows for grants received by the City of Brentwood: