PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Approval of a resolution of the City Council of New Braunfels, Texas, approving a recommendation of the New Braunfels Economic Development Corporation for a project expenditure of up to $250,000 to the SPARK Small Business Center to assist with the operation of an economic development program, a project authorized under 505.102 of the Texas Local Government Code.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
SPARK Small Business Center (SPARK) supports and develops the entrepreneurial and small business environment by focusing on and providing counseling sessions, expanding access to capital, contracting and procurement opportunity, and exporting initiatives. In 2011, SPARK joined with the Small Business Development Center (SBDC) of University of Texas at San Antonio’s Institute for Economic Development (UTSA) to establish the Small Business Development satellite center in New Braunfels. The satellite center is staffed by a Project Manager and a Program Specialist and offers integrated services to meet the needs of experienced small business owners as well as individuals interested in starting a business in the New Braunfels area.
At its September 20, 2023 meeting, the New Braunfels Economic Development Corporation (NBEDC) received a presentation from SPARK’s Business Advisor providing an update on SPARK’s work during the most recent quarter and identified a funding request for FY 2024. At its October 19, 2023 meeting, the NBEDC held a public hearing for an expenditure approval for up to $250,000 to the SPARK Small Business Center. The expenditure request was approved unanimously by the NBEDC Board.
As a part of the required quarterly reporting process, SPARK representatives will provide updates on the number of business plans created, new business starts, number of jobs created, number of jobs retained, and the amount of financing closed.
FISCAL IMPACT:
The funding request of $250,000 provides the amount estimated to operate the Center for one year. Approximately $173,000 of this amount is paid to UTSA for staffing and professional services and the remaining balance is for rent, utility, and remaining operating expenses at the West San Antonio Street office location. Last year, SPARK expensed approximately $236,000 operating the Center. The request for $250,000 reflects increased costs in UTSA’s expenses, insurance, utilities, rent and expanded marketing expenses and contingency allowances.