Presenter/Contact
Presenter
Jeff Jewell, Director of Economic and Community Development
Contact Info
(830) 221-4621 - jjewell@nbtexas.org
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SUBJECT:
Title
Approval of a resolution authorizing the City Manager to approve the disbursal of a grant payment in the amount of $10,000 to Precinct 3 LLC, d.b.a Water 2 Wine, a business located within the corporate limits of the City of New Braunfels, via the City’s COVID-19 Small Business Resource Grant that are consistent with the general statement of purpose of the City’s Chapter 380 Economic Development Program Policies and Procedures.
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BACKGROUND / RATIONALE:
On August 24, 2020, the City Council approved a resolution authorizing the payment of grants to 66 businesses within the corporate limits of the City under the City’s COVID-19 Small Business Resource Grant Program authorized under Chapter 380 of Texas Local Government Code. Chapter 380 of Texas Local Government Code allows municipalities to make grants or loans of public dollars to promote local economic development and to stimulate business and commercial activity in the municipality.
The City Council provided the Mayor with the discretion to establish a review committee to evaluate the businesses requesting assistance and provide a recommendation to the City Council as to which applicants should receive an award. Committee members were:
• Mayor Rusty Brockman
• Mayor Pro-Tem Justin Meadows
• Councilmember Jason Hurta
• Don Austin, EDC Board member
• Chris Snider, Mayor’s Recovery Task Force
• Delia Saucedo-Milam, member of public
The review committee adopted initial criteria for the selection of businesses that required a company demonstrate at least a 25% decline in revenue between March-May 2019 and March-May 2020. With these initial criteria in place, the committee set out to select businesses that met the following additional criteria:
1. All businesses mandated closed by local and Governor’s orders and meeting the primary revenue decline criteria were funded per program guidelines; and
2. All businesses showing at least a 25% drop in revenue, required to operate at a reduced capacity because of local and Governor’s orders, having less than $1,000,000 in annual business expenses, as well as those businesses selected by the committee that were determined to have revenue and sales negatively affected by the ban on gatherings, in addition to a discretionary decision to include daycares and child care centers; and
3. Lodging and accommodation businesses with at least a 25% decline in revenue and those businesses with more than $1,000,000 in annual expenses demonstrating greater than a 50% decline in revenue; and
4. Retail establishments with the greatest percentage of revenue declines received the remaining budgeted funds.
In total, sixty-six (66) businesses were advanced by the committee for a funding recommendation and those grants were approved my City Council on August 24. 2020. Subsequent to their approval, it was brought to the committee’s attention that one business that met the criteria for funding recommendation as outlined above had not been recommended for funding. That businesses, Precinct 3 LLC, d.b.a. Water 2 Wine, was not included in the initial recommendation as it was not classified as a bar (being an establishment required to hang a “51%” sign per Texas Alcoholic and Beverage Commission rules). However; upon closer review of the Governor’s Executive Order, it should have been included under Criteria 1 as it was ordered to close to all customer activity except to-go sales.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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X |
Yes |
Strategic Priorities |
Ensure sustainable quality development Maintain fiscal stability of City operations |
FISCAL IMPACT:
As put forth by the recommendation committee, the funding recommendation of this additional $10,000 will be derived from sales taxes from the general fund. This funding strategy was approved by the Economic Development Corporation and City Council with the recent adoption of amendments to their respective economic development agreements.
Recommendation
COMMITTEE RECOMMENDATION:
The Small Business Resource Committee recommends approval of the funding recommendations for this additional grantee.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution authorizing the city manager to enter into a Chapter 380 Agreement with Precinct 3 LLC, d.b.a.Water 2 Wine.