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Transmittal - 4/16/2024CITY COUNCIL TRANSMITTAL _____________________________ Date Received: ___________ Jill Love, Chief Administrative Officer Date sent to Council: ____________ __________________________________________________________________ TO: Salt Lake City Council DATE: April 16, 2024 Victoria Petro, Chair FROM: Lorena Riffo Jenson, Director, Department of Economic Development SUBJECT: Outdoor Business Activity Grant Program Report STAFF CONTACTS: Peter Makowski, Peter.Makowski@slcgov.com Roberta Reichgelt, Roberta.Reichgelt@slcgov.com Andie Feldman, Andie.Feldman@slcgov.com DOCUMENT TYPE: Written Briefing BUDGET IMPACT: $100,00 issued from the General Fund in Budget Amendment #4 of FY23 Background The Outdoor Business Activity Grant Program, administered by Salt Lake City Corporation’s (“City”) Department of Economic Development (“DED”) was designed to assist restaurant and retail businesses to expand their services and operations outdoors by providing funding for or reimbursing costs associated with “outdoor business activities.” These activities include outdoor retail, dining, and bar operations, on both public and private property, that allowed businesses to serve more customers during the pandemic or as part of ongoing economic recovery from the pandemic. Grant funding was used to cover costs for items such as outdoor patio materials, furniture, fixtures, equipment, and City-related fees. Applications were reviewed to determine whether the grant application meets grant guideline requirements and funding availability. Businesses were required to define a clear description of their business operations, project description, and documentation detailing how the grant funds were used. DEPARTMENT of ECONOMIC DEVELOPMENT ERIN MENDENHALL MAYOR LORENA RIFFO JENSON DIRECTOR jill love (Apr 17, 2024 09:20 MDT) jill love 04/17/2024 04/17/2024 Funding Criteria The City allocated $100,000 which was used to directly fund qualifying businesses. Award amounts could not exceed $5,000 for outdoor dining/retail costs or $10,000 for costs incurred in hosting an Open Streets event. Grant funds could be used to reimburse existing costs, as of April 2021, or fund new projects, and matching funds were not required. If applicants met the eligibility criteria and approved use of funds, grantees were awarded on a first come, first serve basis and based on the availability of funds. Qualifying Use of Funds Grant funds were used to reimburse costs associated with outdoor business activities, including dining and retail. Per guidance from City Council, funds were also made available for businesses wanting to expand or create outdoor dining that may had not be able to front the costs. The following uses of funds qualified for grant funding: • Outdoor dining/retail furniture, fixtures, and equipment (tables, chairs, barrier/patio building materials) • Personal Protective Equipment (PPE) • City fees related to outdoor dining (i.e. Temporary Business permits, Use and Fire Operational permits, Outdoor Revocable permits, Building permits, Special Events permits, Encroachment permits, etc.) • Open Streets event costs Application Process and Outreach Efforts Per the program guidelines approved by Council, DED instituted the following measures to ensure the program was equitable, transparent, and inclusive: • 20% of funds ($20,000) was set aside for businesses located west of I-15. • The website and application materials were provided in multiple languages, with online and paper options. • Multilingual promotional materials and applications were made available through culturally diverse partner organizations. DED staff worked with the following partner organizations, among others, to market the grant: o Utah Black Chamber o Pacific Islander Chamber of Commerce o Midtown Chamber o Sugar House Community Council o Downtown Alliance o Business Advisory Board o Utah Asian Chamber o Utah Asian Association o Utah LGBTQ+ Chamber o Utah Hispanic Chamber of Commerce o Native American Chamber of Commerce o Taiwanese Chamber of Greater Salt Lake o Utah Pacific Island Chamber o Suazo Center o International Rescue Committee o Utah Independent Business Coalition o Utah Muslim Civic League o Salt Lake Area Restaurant Association o Utah Division of Indian Affairs o NeighborWorks o Utah Chinese Association o Somali Community Self- Management Agency • DED staff attended City and partner organization events, presentations, and meetings to promote the grant program. • DED staff canvassed extensively in business corridors throughout the City to meet with business owners and provide flyers and information about the grant program. • Applications were made available through SalesForce Community Grants dashboard, and DED and IMS staff provided support where necessary. • Paper applications were also made available to businesses who preferred to apply this way. • Included gender and ethnicity tracking in all applications. Application Data Applications were released on March 6th, 2023, and before the end of the month, Economic Development received 57 applications for different outdoor dining projects from individual businesses. As the grant was intended for small businesses, those awarded had an average of 23 employees. DED did not receive any applications to host an Open Streets event. Below is a general breakdown of applicants and awardees per this stratification method. Full application data is available in attachment B of this document: Category Number of Applicants Number of Awardees Total Applications 57 21 Funds Requested $279,785.17 $99,617.95 Minority Owned 18 8 Woman Owned 17 8 West Side Business 4 4 In total, DED received $279,785.17 in grant requests for Outdoor Dining Business Activities, and 57 applications total. Considering the program budget, DED was able to award 21 projects with funding. DED will conduct a sales tax and revenue analysis with participating businesses to measure the economic impact of the program. This data will be available in Fall/Winter 2024, requiring additional reporting time for sales tax receipts and since the grant program closed in Summer 2023, when a year-over-year comparison can be made. Recommendations If Council were to allocate future funding for this type of grant, DED suggests improving outreach and engagement regarding the Open Streets option for business districts or neighborhoods from the applicable use of funds to ensure applicants understand how they could use this option of the grant for activation. Furthermore, DED requests consideration from Council for additional funding for the program to award applications that were not funded. The demand far exceeded the funds allocated, and there are likely others that could benefit from this grant. Grant Recipient Testimonials RoHa Brewing, Rob Phillips, District 5: “RoHa Brewing is so grateful to have received the Outdoor Dining Grant. With these funds, we were able to provide substantial upgrades to our business, which ultimately enhances the community, and the overall experience of our patrons. We added tables, stools, better lighting, and much needed power outlets outside. With these upgrades we were able to host our live music out on our patio, rather than indoors. Live music supports the great arts community in Salt Lake, and the musicians, and our customers loved the flexibility of the space - being able to play outside and enjoy the outdoors, and neighborhood. Ultimately these improvements made a substantial impact to our revenue stream this summer - more patrons and more fun!” People’s Coffee, Omar Jamhour, District 4: “We haven’t used the patio almost this whole year because of all the dusty noisy construction in front and now it’s cold. But we are looking forward to it next year! It definitely added character to our coffee shop and the neighborhood in general. We are stoked for our customers to be able to use it next year and enjoy our gorgeous block!” Sugarhouse Coffee, Emily Potts, District 7: “The outdoor dining grant gave us the opportunity to make our back area into an actual fenced patio. It also enabled us to add beer and wine to our list of offerings. We are forever grateful for this grant and how it supported our little shop.” Culture Coffee, Isaac Atencio, District 2: “We at Culture Coffee in Salt Lake’s westside, couldn’t be happier to have been considered for the Outdoor Dining Grant. It has helped us to get our patio space up and running this spring! As a business that ran into some construction/contractor issues as we built out our cafe, this grant has allowed us to absorb the unforeseen costs and still allow us to tackle the next phases of our project!” Jeff Carleton, Mountain West Cider Company, Inc., District 3: “I wanted to comment and extend my appreciation for the $5000 Outdoor Dining Grant that Mountain West Cider Company was fortunate enough to have received. Your contribution was timely for us as we expanded our outdoor patio, “The Garten.” We used the funds to purchase and install cafe lighting and outdoor patio heaters. We installed a stage, and the lighting helps illuminate the entertainers. Those heaters enable us to open earlier in the spring and stay open later in the fall. That adds significantly to our revenues and helps support and entertain the community with a new and improved outdoor venue. I would comment that small business owners keep in the back of their minds a project list. Probably prioritized by revenue opportunities but usually just waiting on funding to make it happen. This Grant certainly made our improvements possible. My expectation is that similar grants to other small businesses will also help them make immediate improvements and assist them with their growth. Thanks again for your support and for making this possible.” Attachments: A. Outdoor Business Activity Grant Program Guidelines B. Outdoor Business Activity Grant Applicant Metrics Sheet EXHIBIT A OUTDOOR BUSINESS ACTIVITY GRANT PROGRAM GUIDELINES The Outdoor Business Activity Grant Program, administered by Salt Lake City Corporation’s (“City”) Department of Economic Development (“DED”) is designed to assist restaurant and retail businesses expand their services and operations outdoors by providing funding for or reimbursing costs associated with “outdoor business activities.” These activities include outdoor retail, dining and bar operations, on both public and private property, that allows businesses to serve more customers during surges in the pandemic or as part of ongoing economic recovery from the pandemic. Grant funding will be used to cover costs for items such as outdoor patio materials, furniture, fixtures, equipment and City-related fees. Applications will be reviewed and scored to determine whether the grant application meets grant guideline requirements and funding availability. Businesses are required to define a clear description of their business operations, project description, and documentation detailing how the grant funds will be used. 1. Definitions Fixed Business Location: A permanent place of doing business in this state, such as an office, warehouse, storefront, or similar location owned or controlled by an employer. Open Streets: An event that closes a City street to cars, allowing pedestrians to use the street and businesses to utilize the sidewalk for Outdoor Business Activities. Outdoor Business Activities Any retail, or restaurant activity, include retail sales, retails services, or outdoor dining, that would typically occur inside a building or structure but is operating outside and adjacent to the anchor business. Qualifying Business: A business that meets the Eligibility Criteria described in Section 2.A herein and that has applied for grant funding for one or more Qualifying Use(s) of Funds, as described in Section 2.C herein. Temporary Business Permit: A temporary permit, issued by Real Estate Services, which offered a prorated, monthly fee to businesses leasing City right-of-way for outdoor dining and retail. This permit was created in response to the COVID-19 pandemic under City Emergency Proclamation and expired in May 2021. 2. General A. Funding The City has allocated $100,000 which will be used to directly fund qualifying businesses. The funding amounts available for each project are as follows: • Outdoor Business Activities: up to $5000 • Open Streets events: up to $10,000 Grant funds will be issued to fund or reimburse the grantees’ costs associated with Outdoor Business Activities and Open Streets events. The applicants are required to submit bids, quotes, invoices, receipts, or proof of purchase before being issued grant funds. Funding is dependent on meeting application criteria, approved use of funds, and availability of funds. B. Eligibility Criteria To be eligible for the Outdoor Business Activity Grant Program a business must: • Be located within Salt Lake City limits: Review Salt Lake City boundaries here: https://www.slc.gov/council/find-your-council-member/ • Have a current Salt Lake City Business License • Operate out of a Fixed Business Location • Be defined as in-person retail, restaurant, or bar • Request reimbursement/funding for costs, including Temporary Business Permits, accrued as of April 1, 2021 C. Qualifying Use of Funds Grant funds must be used to fund or reimburse costs associated with Outdoor Business Activities, including dining and retail. These uses will be reflected in the Budget section of the application. The following uses of funds qualify for reimbursement grant funding: • Outdoor dining/retail furniture, fixtures and equipment (tables, chairs, barrier/patio building materials) • Personal Protective Equipment (PPE) • City fees related to outdoor dining (i.e. Temporary Business permits, Use and Fire Operational permits, Outdoor Revocable permits, Building Permits, Special Events permits, encroachment permits) • Open Streets event costs D. Diversity, Equity, and Inclusion To ensure the grant program is available to all potential applicants, DED has instituted the following measures to ensure the program is equitable, transparent and inclusive: • 20% of funds ($20,000) is set aside for businesses located west of I-15. • Application materials will be provided in multiple languages. • Online and paper applications will be accepted. • Application assistance will be provided by DED and The International Rescue Committee for applicants in need of translation or other specific needs. These measures were developed and approved by the Salt Lake City Mayor’s Office of Equity and Inclusion are aligned with the SLC Citywide Equity Plan. D. Outreach and Engagement To promote the grant program within the community and to ensure engagement and access to all qualified businesses, DED will take the following measures: • Provide physical promotional materials i.e., flyers, paper applications • Host online promotion and applications on the department website • Social media engagement • Promotion through community partners and business associations • Multilingual promotional materials and applications distributed through culturally- diverse partner organizations • Promotion to all businesses that accessed City permits for Outdoor Business Activities after April 1, 2021 3. Grant Criteria A. Application Information The following information will be required for each grant application: General: • Applicant/Business Name • Business Location • Demographic Information (optional) • Amount requesting ($100 – $10,000) Business Description: Provide a summary of the type of business, and their general operations, applying for the grant. Description must include: • Address of business’ Fixed Business Location • Proof of current Salt Lake City Business License • Number of employees Project Description: Describe the project for which grant funds are requested. If applicant previously hosted an Open Streets Event, please include a description of participating artists, where and when the project took place, what types of arts activities were offered, and how the requested grant funds were used. Use of Funds: Outline the costs associated with the project. Applicants must provide the following: • Vendor • Qualifying Use of Funds type (building materials, furniture, fixtures, equipment, and permits) • Invoices, quotes, bids, receipts and/or proof of purchase B. Application Deadline APPLICATIONS ARE DUE BY SEPTEMBER 30, 2023 Applications must be complete to be considered for funding. Incomplete applications will not be considered. Qualifying applicants will be approved for funds on a first-come, first-served basis, provided the City has grant funds available. C. Review Process Applications will be reviewed by the Grant Administrator (the “Administrator”). The Administrator is Salt Lake City Corporation staff; the Administrator will meet to review grant applications on a first come, first serve basis. The Administrator will review applications and award grantees provided the completion of the three sections of the application described in Section 4.A., herein. Once the application is complete the Administrator will conduct a review to confirm the applicant meets eligibility criteria and approves use of funds. Funds are limited and grants will be awarded based on application requirements being met and the availability of funds. Grantees will be notified upon final approval. 4. Grant Funding A. Grant Funding Requirements The following is required to receive grant funding. Checks will be issued once all requirements are met: • Each applicant must complete and sign the Grant Agreement • Use of funds are supported by invoices, receipts, and/or bids • Issuance of permit(s) (if applicable) 5. Grant Reporting A. Applicant Reporting Requirements Once the application period closes, or funds are no longer available, DED will provide the following reports to City Council by January 1, 2024: • Applicant information o Business Location o Demographic Data o Number of employees (business size) o Funding Type (outdoor dining/retail or Open Streets) o Funding amount B. End-of-Program Reporting Requirements In order to measure the impact of grant funding on participating businesses, DED will provide the following data analysis by September 2024 to demonstrate the impact of the grant funds on the grantee business operations. • Sales Tax/Revenue Analysis o Sales Tax percentage increase for participating businesses o Sales data provided by grantees (optional) • Business Testimonials • Provided by grantees (optional) EAST  SIDE Method Received (SF case # or other) BUSINESS NAME ADDRESS APP SUBMISSION DATE Seeking Reimbursem ent? AMOUNT REQUESTED Woman Owned? Minority Owned? No. of Employees 1 25 Renourish Kombucha Tap R1314 S 500 E, 100 A 3/6/2023 Yes 2,520.86$            Yes Yes 1 2 26 Tea Zaanti 1944 S 1100 E 3/6/2023 Yes 5,000.00$            No No 12 3 27 Sugar House Coffee 2011 S 1100 E 3/6/2023 No 5,000.00$            Yes No 20 4 30 SLC Eatery 1017 S Main St 3/7/2023 Yes 2,718.23$            No Yes 25 5 31 Pleiku 129 264 Main St. 3/8/2023 No 5,000.00$            No Yes 8 6 34 Manoli's 402 E 900 S 3/7/2023 No 5,000.00$            No No 30 7 39 The Tin Angel 131 S. Main St 3/7/2023 No 5,000.00$            Yes No 15 8 40 London Belle 321 S. Main St. 3/8/2023 No 5,000.00$            No No 30 9 43 RoHa Brewing 30 E Kensington Ave 3/8/2023 No 5,000.00$            No No 12 10 44 Taqueria 27 149 E 200 S 3/8/2023 No 5,000.00$            No Yes 30 11 45 People's Coffee 177 E 200 S 3/8/2023 No 5,000.00$            No Yes 8 12 47 Sunny Honey LLC 535 N. 300 W 3/8/2023 No 4,378.86$            Yes Yes 8 13 Email Mountain West Cider 425 N 400 W 3/8/2023 No 5,000.00$            No Yes 10 14 49 A & B Gemini LLC 77 W. 200 S 3/8/2023 Yes 5,000.00$            Yes No 15 15 55 Pizza Volta 1080 E 2100 S 3/8/2023 Yes 5,000.00$            No No 28 16 57 Café Molise 404 W Temple 3/9/2023 Yes 5,000.00$            No No 75 17 SF Copper Canyon Grillhouse 215 South Temple 3/9/2023 No 5,000.00$            No No 60 18 58 Publik Ed's 210 University St. 3/9/2023 Yes 5,000.00$            Yes No 41 Taste of Louisiana 545 W 700 S 3/9/2023 No 5,000.00$            No Yes 6 19 63 Slackwater 684 S 500 W 3/9/2023 No 5,000.00$            No No 20 70 Mochinut 3/9/2023 No 5,000.00$            Yes Yes 10 21 72 Society of Relief 69 E Gallivan Ave 3/9/2023 No 5,000.00$            Yes No 6 22 65 La Barba Coffee 3/10/2023 No 5,000.00$            No No 24 79 Ivy and Varley 55 W 100 S 3/10/2023 No 5,000.00$            NO No 30 25 80 Studio 149 W 200 S 3/10/2023 No 5,000.00$            No No 3 26 76 Soundwell 149 W 200 S 3/10/2023 No 5,000.00$            No No 3 27 68 Publik Coffee 502 e 3rd Ave 3/11/2023 No 5,000.00$            Yes No 10 28 59 Maxwell's East Coast Eatery 328 W 200 S 102 3/13/2023 No 5,000.00$            No No 8 29 75 Salt Lake Brewing Company 147 W 300 S 3/13/2023 Yes 5,000.00$            No No 55 30 78 Squatters Pub 2110 Highland Dr. 3/13/2023 No 5,000.00$            No No 51 31 81 Bewilder Brewing Company 445 S 400 W 3/13/2023 Yes 5,000.00$            No No 20 32 87 Franklin Ave Cocktails and KJason LeCates 3/14/2023 Yes 5,000.00$            No No 40 33 88 HK Brewing 370 Aspen Ave 3/14/2023 No $10,000 Yes Yes 6 34 51 Sushi Hut 270 S. Main St 3/14/2023 No 5,000.00$            Yes Yes 7 35 89 Dali Crepes 2854 W Temple 3/14/2023 No 5,000.00$            No No 18 36 92 Tamarind 120 Main St. 3/15/2023 No 5,000.00$            Yes Yes 13 37 98 White Horse 325 S. Main St. 3/16/2023 No 5,000.00$            No No 50 38 99 Whiskey Street 323 S. Main St. 3/16/2023 No 2,583.61$            No No 50 39 93 Susy's Kitchen 33 Fort Union Blvd. 3/16/2023 No 2,583.61$            Yes Yes 1 40 67 Bruges Waffles and Frites 336 W 300 S 3/16/2023 No 5,000.00$            No No 14 41 101 Six Sailor Cider 158 S. Rio Grande 3/18/2023 No 5,000.00$            No No 1 42 83 Johnny's SLC 165 E. 200 S. 3/21/2023 No 5,000.00$            No No 7 43 86 9th Street Coffee and Donu 248 W 900 S 3/21/2023 No 5,000.00$            No Yes 2 44 In‐person Laziz Kitchen 912 Jefferson St. 3/23/2023 No 5,000.00$            No No 25 45 In‐person Laziz Kitchen 152 E 200 S. 3/23/2023 No 5,000.00$            No No 26 46 108 Nomad 2 1675 E 1300 S 3/26/2023 No 5,000.00$            Yes No 30 47 91 Hopkins Brewing Company 2121 McClelland St. 3/29/2023 No 5,000.00$            No No 30 48 104 Blue Copper Coffee 179 W. 900 S. 3/29/2023 No 5,000.00$            No No 4 49 110 Toasters 151 W. 200 S 3/30/2023 Yes 5,000.00$            No nO 6 50 112 The Juice Shop 888 S 200 E 3/31/2023 No 5,000.00$            Yes Yes 5 51 113 Finca 1513 S. 1500 E 4/3/2023 Yes 5,000.00$            No No 25 52 114 Pago on Main 341 Main St 4/3/2023 Yes 5,000.00$            No Yes 35 53 115 Pago 126 878 S 900 E 4/3/2023 Yes 5,000.00$            No Yes 20 52 259,785.17$       20.08 WEST Salesforce Case #/ Method Received BUSINESS NAME ADDRESS APP SUBMISSION DATE Seeking Reimbursem ent? $ REQUESTED Woman Owned? Minority Owned? Employees 1 33 Sugar Space 132 S 800 W 3/9/2023 No 5,000.00$            Yes No 2 77 Squatters and Wasatch Craf 5725 W Amelia Earhart D 3/13/2023 No 5,000.00$            No No 55 3In‐person Sabor Latino 2080 W North Temple 3/17/2023 No 5,000.00$            Yes Yes 10 4 100 Culture Coffee 285 N 900 W 3/28/2023 No 5,000.00$            No Yes 2 4 20,000.00$         22.3333333 99,617.95$        East Side Qualified Application Total: 79,617.95$        West Side Qualified Application Total: 20,000.00$        Total Funds Requested: 279,785.17$      Percentage West side applicants: 8.163265306 Average No. of Employees for all applicants: 19.82 23.47368421 TOTAL FUNDS OUT Average No. of Employees for Awardee businesses: