CITY COUNCIL AGENDA ITEM NO.%
Meeting Date: December 10, 2013
Subject/Title: A Resolution to accept the recommendations of the Land Use and Development Committee to: (1) establish a priority list for funding projects/programs for the 2014-2015 Economic Development Grant Program; and (2) approve 2014-15 grant funding for the Category 1- Priority Events and (3) approve minor administrative changes to the Program application.
Prepared by: Peggy Trudell, Senior Community Development Technician Submitted by: Casey McCann, Community Development Director
RECOMMENDATION
A Resolution to accept the recommendations of the Land Use and Development Committee to: (1) establish a priority list for funding projects/programs for the 2014-2015 Economic Development Grant Program; and (2) approve 2014-15 grant funding for the Category 1- Priority Events and (3) approve minor administrative changes to the Program application.
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 tax to a gross receipts tax structure. As part of the voter-approved change in business tax structure, 20% of the City’s business license revenues are set aside for economic development purposes. Beginning in May 2004, the City has distributed those funds using the annual “Economic Development Grant Program,” which awards grants 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.
In the most recent year of the grant program, on June 11, 2013, the City awarded $197,095 in grant funds (Resolution No. 2013-79).
BACKGROUND
This staff report presents recommendations by the Land Use and Development Committee regarding the City’s Economic Development Grant Program.
This Grant Program allows local organizations to receive grants for activities that help promote Brentwood and attract shopping and tourism to the city. Since 2004, the program has awarded approximately $1,327,669 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.
At the conclusion of the 2013-2014 grant cycle, the Land Use and Development Committee asked for a comprehensive review of the grant program in order to improve its efficiency and effectiveness. The Committee held public meetings on October 21, November 5, and November 18 to discuss potential modifications to the program, as summarized below.
ANALYSIS
In its review of the grant program, the Land Use and Development Committee noted that grant funds have been used to support a wide variety of activities, which can be grouped into three general categories: (a) major public events, such as Cornfest, the Holiday Parade, and the Art,
Wine & Jazz Festival; (b) marketing efforts sponsored by various business organizations (e.g., Downtown Business Coalition events, Trilogy promotional video, etc.); and (c) marketing and business development initiatives sponsored by the City. After careful review and discussion about the intent of the program and the merits of each past applicant, the Committee is recommending that the existing Economic Development Grant Program be replaced with three City initiatives that match these three categories of traditionally-funded activities, as discussed below.
1. Priority Events
The Committee identified a list of seven “priority events” (listed below) that meet the following criteria: (a) they have typically received significant funding from the Grant Program; (b) they occur each year and are valued by the Brentwood community; and (c) they are proven, well-established community events that attract visitors and shoppers from throughout the East Contra Costa region – and in the process, they help build the customer base of local shops and reinforce the image of Brentwood as a safe, fun, family-friendly, and high-quality community. The Committee is recommending these seven events be removed from the competitive grant process and be funded annually and incorporated, if required, through the City’s budget process. The Committee emphasized that Economic Development Grant Funds should be allocated to specific events, rather than to organizations.
Category 1 – Priority Events
2011-2012 Grant Amount 2012-2013 Grant Amount 2013-2014 Grant Amount 2014-2015 Recommended Grant Award (1) CornFest – Fireworks $26,638 $27,845 $28,595 * (2) Holiday Parade $8,500 $9,000 $4,500 $7,500 (3) Hometown Halloween $5,500 $5,200 $3,500 $3,500 (4) Summer Concert Series $30,000 $40,000 $31,000 $30,000 (5) Brentwood Art, Wine & Jazz
Festival (including banner change-out of $2,500)
$0 $0
$10,500 $10,500 (6 & 7) C.C. Events – Annual
Christmas Tree Lighting and Movies in the Park $20,000 (included additional events) Multiple Events - combined with Summer Concert Series $5,000 $5,000 TOTAL: $90,638 $82,045 $83,095 $56,500
*Cornfest will not be held in 2014 therefore funding for the fireworks is not shown. Funding for the Cornfest fireworks would be evaluated annually.
2. Eligible for Grant Competition
The Committee also recommends that the annual competitive grant process should continue, but in a scaled-down form in which: (a) the application form is streamlined to make it easier to apply for grants; (b) grants would be awarded each year based on funding availability; and (c) in general, the primary purpose of the grants would be to provide seed funding for business-sponsored events and marketing efforts, and would not necessarily be awarded year after year
potential future grant applications.
Category 2 – Grant Competition
2011-2012 Grant Amount 2012-2013 Grant Amount 2013-2014 Grant Amount Downtown Business Coalition
Events (DBC) $15,000 $30,000 $7,000
Trilogy Promotional Video (Trilogy) $0 $0 10,000 Delta Harvest Run (Delta Realtors
Assoc.) $0 $0 $2,000
TOTAL: $15,000 $30,000 $19,000
3. Potential Programs to Incorporate into Economic Development Program’s Budget
The table below shows examples of economic development programs that have previously been funded through the Economic Development Grant Program, and which will now be considered as “Category 3” projects.
Category 3 – Potential E.D. Programs 2011-2012 Grant Amount 2012-2013 Grant Amount 2013-2014 Grant Amount Entrepreneur Training Program
(SBDC) $15,000 $15,000 $7,500
Brentwood Business Growth
Intensive (Jeff Hall) $0 $0 $9,000
Outdoor Dining Furniture Grants
(City) $10,000 $7,500 $7,500
DTN Tourist Map (City) $0 $4,000 $4,000 Shop Local Campaign (City) $0 $17,000 $20,000 Downtown Event Consultant (City) $0 $0 $10,000 Downtown Street Tree Lighting
(City) $0 $12,000 $15,000
Citywide Banners (Chamber) $5,400 $23,000 $22,000 Experience Brentwood Advertising
Campaign (Chamber) $10,000 $12,500 $0
A suggested funding amount for each would be recommended by the Economic Development Initiatives Ad Hoc Committee and then presented to Council annually and determined based on funds available from the 20% of Business License Tax funds received by February each year. The amount available for funding will fluctuate based on the business tax revenue received. The last two years of grant funding utilized unspent grant funds from previous years and are no longer available. On an annual basis, the City Council would consider a spending plan (to be prepared by staff) on which economic development projects should be funded. Once the City Council approves the plan, staff would implement those programs as part of the City’s overall economic development program.
Finally, during the October 21, 2013 Committee meeting, staff presented a revised application to the LUDC. It was determined that the current application was repetitive and not user-friendly and therefore staff suggested reducing the application from 5 pages to 3 pages to help facilitate ease for users; Guidelines and Application Packet (Attached).
FISCAL IMPACT
The Council action would approve Category 1 – Priority Events grant funding for Fiscal Year 2014-15 in the amount of $56,500. In mid-2014 staff will revisit the Council for grant approval for the 2014-2015 Economic Development Grant Program for the Category 2 and 3 items and will also incorporate the approved funding into the 2014-2015 Economic Development Operating budget.
Attachments
Resolution
RESOLUTION NO. 2013-____
A RESOLUTION TO ACCEPT THE RECOMMENDATIONS OF THE LAND USE AND DEVELOPMENT COMMITTEE TO: (1) ESTABLISH A PRIORITY LIST FOR FUNDING PROJECTS/PROGRAMS FOR THE 2014-2015 ECONOMIC DEVELOPMENT GRANT PROGRAM; AND (2) APPROVE 2014-15 GRANT FUNDING FOR THE CATEGORY 1 – PRIORITY EVENTS AND (3) APPROVE MINOR ADMINISTRATIVE CHANGES TO THE PROGRAM APPLICATION.
WHEREAS, on November 5, 2002, citizens voted in a general election to amend Ordinance No. 707, Chapter 5.04 of the municipal code, changing the business license tax from a flat rate to a gross receipts tax structure; and
WHEREAS, as part of the 2002 ballot measure to restructure the City’s business license tax, the voters also approved the creation of a Business License Tax Program (“Program”) that would allocate 20% of total business license tax revenues to grants awarded to projects that support marketing, promotion, and economic development within Brentwood; and
WHEREAS, on May 25, 2004, by Resolution No. 2004-125, the City awarded $78,660 in 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, and since then the City has continued making annual grants through the program awarding approximately $1,327,669; and
WHEREAS, 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; and
WHEREAS, the purpose of the Program is to provide funding to local organizations, including the City, the Brentwood Chamber of Commerce and others for economic development for the explicit purpose of business promotion and institutional advertisement for the City. Twenty percent of the business license tax collected by the City provides the funding source for this program. Disbursement of these funds requires City Council approval; and
WHEREAS, the Land Use and Development Committee reviewed and considered the current program, discussed the merits and the intent of the program and has recommended funding categories;
WHEREAS, the City would like to make minor changes to the application; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby:
(1) Approves a priority list for funding projects/programs for the Economic Development Grant Program for the 2014-2015 grant cycle; and
(2) Approves 2014-15 grant funding for the Category 1 – Priority Events in the following manner:
Holiday Parade $7,500 Hometown Halloween $3,500 Summer Concert Series $30,000
Annual Christmas Tree Lighting and Movies in the Park $5,000; and
(3) Approves minor administrative changes to the Economic Development Grant application.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 10th day of December 2013 by the following vote:
Deadline:
March __, 2014
City of Brentwood
Community Development Department
150 City Park Way
Brentwood, CA 94513
(925) 516-5405
Economic Development Grant Program
Guidelines & Application Packet
2014-15 Economic Development Grant Program
Background
The City of Brentwood sets aside 20% of its business license revenues for “economic development for the explicit purpose of business promotion and institutional advertisement for the City of Brentwood.” As part of this effort, each year the City offers grants for local marketing, events, and business development projects through the Economic Development Grant Program.
How Does the Program Work?
To apply for an Economic Development Grant, please complete and submit the enclosed application by the deadline of 5:00 PM on Friday, ______, 2014. Applications are currently being accepted for the FY 2014-15 cycle – i.e., projects occurring between July 1, 2014 and June 30, 2015.
The application must be for a project that meets the program’s requirements and restrictions (see below). Applications are reviewed by a subcommittee of the City Council, and then brought to the City Council for consideration.
If your project is approved, you would then work with the City’s Economic Development staff to carry out the project. After the project is completed, you would submit the required form (with supporting documentation) and the grant is then paid as a reimbursement. Alternatively, you can work with staff to arrange for the grant to be paid in quarterly installments or in progress payments. For more information on reimbursement or the required forms/documentation, please contact Economic Development staff at 925-516-5187.
Who Can Apply?
Any organization can apply if they have a current Brentwood Business License unless exempt. If the organization is a non-profit tax-exempt organization, then proof of status from the State and Federal determination letters must be submitted.
Application Requirements
To be eligible for funding, the applicant must:
Submit a completed original application with authorized signature(s) by the deadline with all items on the checklist below.
Application must be legible; preferred printed.
Submit a copy of current business license certificate if not exempt. If exempt, provide proof of exemption. Submit evidence of approval by the organization’s Board of Directors, if applicable. Funds requested must support projects or events within the City of Brentwood.
Operate without discrimination.
Restrictions
Funding cannot be used towards staff salaries or benefit costs.
The City logo cannot be used without the prior approval from City staff.
Fundraising cannot be the primary focus of the project (i.e. the sole purpose of the project/event cannot be to support the organization or business operations); however, a portion of the profits can be used towards supporting the organization or business.
Pass through payments are not allowed.
Application Review Citeria
Applications will be reviewed based on the following criteria and rated on a point scoring matrix: 1. Project aligns with current City Council Goals and Strategic Plan.
2. Project would help achieve positive publicity for Brentwood throughout the region.
3. Project would increase shopping and tourist activity in Brentwood and demonstrate maximum return on City’s investment.
4. Project would build goodwill among local businesses and support the overall vibrancy and cohesion of the local business community.
5. Project would support the City’s overall economic development efforts. 6. Project would reinforce the image of Brentwood as a high-quality community. 7. Project would generate tax revenue, jobs, and other economic benefits to the City. 8. Project would support small business development.
9. Project demonstrates a stable management structure and full fiscal accountability which includes a reasonable budget that consists of eligible expenses, a strong financial commitment of matching private funds, and the minimum use of City funds.
10. Project includes a well-developed, strategic marketing plan.
Application Deadline
Application must be received by the Economic Development Manager no later than _______, 2014 by 5:00 p.m. Postmarks are NOT acceptable. Applications will be reviewed and decisions will be based on the information provided. Successful applicants will have their proposals brought to the City Council for consideration of the grant. Please submit applications to: City of Brentwood, Community Development Department, 150 City Park Way, Brentwood, CA 94513.
Application Checklist
The following items must be submitted by the deadline:
Completed Application Packet along with any attachments (1 original).
Authorized Signature.
Authorization Letter granting permission from the property owner of where the project will take place (if applicable).
Copy of Brentwood business license certificate or (if a non-profit organization, proof of nonprofit status must be submitted – one copy of State and Federal tax ID forms attached to original application).
Completed Budget (see attached form).
Completed Marketing Plan (i.e. how will project/event be promoted?).
Statement of Financial Need.Grant Reports
Under the program requirements, you will be required to submit the required reimbursement form, documentation of your expenses, as well as a self-evaluation report. Forms will be presented to each organization that receives a grant award. For more information on reimbursement or the required forms/documentation, please contact Economic Development staff at: 925-516-5187.
PLANNING/ECONOMIC DEVELOPMENT STAFF
If you have any questions or concerns, please call or send an email to:
Economic Development Grant Program Application for Funds
Fiscal Year 2014/2015
Section 1. Summary Information
Proposed Project Name: ______________________________________________________________________
Amount of Total Event Budget: $______________________________
Amount of Requested Grant funds: $___________________________
Sponsoring Organization: ____________________________________________________________
Contact Person: __________________________________________________________
Mailing Address: ________________________________________City: ______________ State/Zip: _________
Telephone: _____________________ Email: _____________________________________________________
Business License #: ________________________ and/or Non-profit ID #: _________________________
Section 2. Proposed Project Narrative
On a separate page, please answer the following (please be detailed and concise; no more than 2 pages):
3.1 Please describe the Project in detail. Please include location, date(s), and other information.
3.2 How will the project promote a positive image and/or achieve positive publicity for Brentwood?
3.3 How will the project increase shopping and tourist activity in Brentwood?
3.4 How will the project build goodwill among local businesses and support the overall vibrancy and
cohesion of the local business community?
3.5 How will the project generate tax revenue, jobs, and other economic development efforts?
3.6 How will the project support small business development?
3.7 How will the requested funds be used?
3.8 What City services/facilities (if any) will be required for your project?
3.9 How will the project be effectively managed?
3.10 How will financial issues be handled, such as: managing expenses and revenues, and
demonstrating fiscal accountability?
3.11 How does this project minimize the need for City funding and maximize the City’s return on
investment?
3.12 How will the project be marketed and advertised? Please be as specific as possible including
targeted media and any partnerships or collaborative marketing related to your project.
SAMPLE
Section 3. Proposed Project Budget
Complete a line-item budget using the “Budget” form attached. Please itemize project revenues and
expenses. If your total project costs exceed the amount of grant funds requested, list other funding sources
for your project.
3.1 Please use the below form as a template when creating your budget for submittal on a separate page.
LINE ITEM
Projected
2014/15
Expenses
Amount of Grant
Funds Requested
Salaries
Insert Description
Supplies/Materials/Equipment
Insert Description
Marketing
Insert Description
Contractual Services (i.e. Consultant Fees)
Insert Description
Other
Insert Description
TOTAL
3.2 List other funding sources supporting your project.
OTHER FUNDING SOURCE(S) SUPPORTING PROJECT
(List by Source and Amount Cash and In-Kind)
Amount
