SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving the Amended Town of Erie Revitalization Incentive Grant Program
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Stephanie Pitts-Nagus, Economic Development Manager
Time
TIME ESTIMATE: 30 minutes
end
For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
The 2025 Budget includes $100,000 from the Old Town URA Fund for the Revitalization Incentive Grant Program.
Policy
POLICY ISSUES:
The policy issue is whether to change the grant format increasing the direct impacts for downtown business owners, while also streamlining the administrative process.
Recommendation
STAFF RECOMMENDATION:
Approve the Amendments to the Revitalization Incentive Grant Program.
Body
SUMMARY/KEY POINTS
• Improve the ease of scoring the applications by making changes to the scoring matrices and guidelines for both grants, including:
• Scoring the amount of private investment relative to the matching grant amount more reflective of the projects we’ve seen proposed;
• Making the “public benefit” section, which includes both visual impact and community impact, worth more and allow for greater flexibility for the TOEURA committee to determine the nature of this impact;
• Removing points awarded to businesses operating in “target industry clusters,” as the selected clusters are not reflective of the business types Erie residents want to see located Downtown.
• Increase the maximum match available for the Business Siting and Expansion grant from 10:1 to 4:1 to keep pace with inflation and rising labor costs, and stimulate interest among Erie’s business community.
• Make significant changes to the eligibility requirements for the Business Siting and Expansion grants so that these grants can serve as an attraction tool for new businesses to locate Downtown, stimulate more significant private investment, and better serve the goals of existing Downtown businesses. Changes include:
• Removing the stipulation that a business must have been in operation for more than one year;
• Allowing businesses that have received the Historic Building Improvements grant to be eligible for the Business Siting and Expansion grant;
• Requiring applicants to have completed a preapplication meeting prior to the application deadline, if applicable;
• And removing the stipulation that businesses “must be expanding in size and not simply changing locations” as the purpose of the grant is equally for siting as it is expansion.
BACKGROUND OF SUBJECT MATTER:
On Nov. 12, 2013, the Town of Erie Urban Renewal Authority (TOEURA) Board of Commissioners established the Historic Old Town Erie Urban Renewal Plan Area (“Old Town URA”), with the goal of reducing, eliminating, and preventing blight within the Plan Area by stimulating growth through private investment within its boundaries.
On June 23, 2020, TOEURA adopted its Incentive Policy, utilizing tax increment financing funds generated in the Historic Old Town Erie Urban Renewal Plan Area to address the aforementioned goal of reducing blight within the Old Town URA. In accordance with this Policy, on Oct. 27, 2020, TOEURA approved the creation of the Revitalization Incentive Grant Program (also referred to as the “Downtown Revitalization Grant Program”) with grants available in two categories: (1) Historic Building Improvements and (2) Business Siting and Expansion. The former provides matching funds to businesses within Old Town which invest in visual and environmental improvements to the exteriors of their buildings visible from public rights-of-way; the latter reimburses more significant improvement projects that may involve interior and exterior improvements, with the goal of reducing area vacancies, eliminating blight, and stimulating private investment in Downtown Erie. To date, seven rounds of grant funding have been issued to 14 businesses.
Most of these awardees have taken advantage of the Historic Building Improvements grant. This grant provides a 2:1 matching grant up to $30,000 (for a total potential reimbursement of $15,000) and therefore provides a significant incentive to those considering undertaking any exterior improvements visible from public rights-of-way. The Business Siting and Expansion grant, by contrast, has had fewer applicants and even fewer projects completed. However, it only provides a 10:1 matching grant. Therefore, a business making a $100,000 investment to improve their building would only receive a $10,000 reimbursement from the Town. Furthermore, other aspects of the grant do not currently work to achieve the basic goals of this grant: to encourage redevelopment of existing buildings and incentivize new businesses to locate in Downtown.
To maintain the grant program's accessibility and relevancy to Old Town businesses, the Economic Development Department is recommending new changes to the grant program. The goal of these changes is threefold:
(1) improve the ease of scoring the applications by making changes to the scoring matrices for both grants;
(2) increase the maximum match available for the Business Siting and Expansion grant to keep pace with inflation and rising labor costs and stimulate interest among Erie’s business community; and,
(3) make significant changes to the eligibility requirements for the Business Siting and Expansion grants so that these grants can serve as an attraction tool for new businesses to locate Downtown, stimulate more significant private investment, and better serve the goals of existing Downtown businesses.
The proposed amendments to the program will help the Town accomplish these goals.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☒ Attractive Community Amenities
☐ Engaged and Diverse Community
☒ Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☒ Small Town Feel
☐ Safe and Healthy Community
☒ Effective Governance
☒ Environmentally Sustainable
☒ Fiscally Responsible
tachments
ATTACHMENT(S):
1. Resolution 25-033
2. Amendments to the Revitalization Grant Program_CLEAN
3. Amendments to the Revitalization Grant Program_REDLINE
4. Staff Presentation