Issue Statement: The Community Redevelopment Agency's budget includes annual funding for incentive grants to attract, retain, and develop local businesses. With five different incentive grant programs established in 2012, the current structure is too complex. A simplification and streamlining of grant opportunities offered will improve the accessibility and effectiveness of incentive grant programs and support the overall mission of the CRA.
Recommended Action: Staff recommends that the CRA Board adopt a Resolution to effectuate the recommended changes to the Business Incentive Grant Program.
Background: In 2012, as part of the culinary arts branding initiative, the CRA presented recommendations to establish CRA and Downtown Incentive Programs for local businesses. Three years later, the CRA Board approved an update to the Facade Program to allow landscaping as an eligible expense.
There are currently five (5) different programs from which businesses can select:
- Façade/Landscaping and Business Site Improvement Program
- Mini Façade/Landscaping and Business Site Improvement Program
- Development and Relocation Incentive Program
- Strategic Investment Program
- Merchant Assistance Program
Façade Landscaping and Business Site Improvement Grant (maximum award $10,000) and Mini Façade Landscaping and Business Site Improvement Grant (maximum award $4,000)
The Façade & Business Site Improvement and Mini Façade & Business Site Improvement Programs encourage business owners in the CRA to enhance their business site through exterior improvements. Commercial businesses within the Oakland Park CRA are eligible to participate in this program.
Eligible improvements include aesthetic improvements to the building structure, including but not limited to, exterior painting, installation of awnings, new windows and/or doors and signage, adjoining parking lots, sidewalks, and landscaping in conjunction with the overall physical façade improvements to the structure.
Approved applicants may receive reimbursement for 80% of their eligible project costs, up to a maximum award of $10,000 per PCN (folio) number or $4,000, respectively.
This grant is the most frequently utilized grant program.
Development and Relocation Incentive Program (cap not defined)
The Development/Relocation Incentive program supports challenging redevelopment projects that cannot be accommodated under other CRA programs. Since not all redevelopment obstacles can be anticipated, this program allows the CRA the flexibility to facilitate projects that would not happen without assistance at some level.
The objectives of the program include:
- To ensure property development continues, including rehabilitation and renovation of existing buildings;
- To assist existing businesses or tenants relocating to a more suitable location and allow for re-merchandising of vacated space;
- To assist property owners in obtaining the highest and best use of vacant and semi-occupied properties;
- To eliminate slum and blighted properties; and
- To attract private sector investment into the district using CRA-owned property as leverage.
This grant was created to attract businesses to the City's Downtown and requires the business site located in Downtown Oakland Park. This grant is underutilized, with one (1) grant application for this program having been submitted over the last three years.
Strategic Investment Program (max $35,000)
The Strategic Investment Program (SIP) was designed to enhance the pace, content, and quality of commercial and retail development in the Downtown. The program's focus is to specifically addresses the infrastructure needs to create the environment necessary to attract private investment capital.
The intent of the program was to start strategically in a small area to build up the critical mass necessary to have an acknowledgeable economic, visual, and social impact. In targeting resources in a compact area, the program attempts to leverage the greatest possible return of public investment.
Culinary-related or affiliated businesses within the Oakland Park Community Redevelopment Agency target area of Downtown Oakland Park are eligible to participate in this program.
The Strategic Investment Program reimburses a business fifty percent (50%) of the costs of eligible site improvements to a project that results in a culinary-related use. Qualified improvements may be either on private land or on the public right of way, or both. Grant reimbursement occurs after the entire project, including the building structure, is complete. This program ranks second in utilized grant programs.
Merchant Assistance Program (max $10,000)
The Merchant Assistance Incentive Program (Program) was designed to assist merchants with funding to focus on increasing sales through design and merchandising techniques. The program was available only to restaurants located in Downtown Oakland Park along Dixie Highway and NE 12th Avenue, between Oakland Park Boulevard and NE 38th Street.
The incentive was limited to the following activities: reconfigure design and re-merchandise an occupied space, advise restaurant operators in advertising, marketing, promotion, sales and service techniques, and other related tools, and to stimulate sales for business retention purposes. No applications were approved for funding under this program.
Review of Current Programs: A comprehensive review of the various programs revealed overlapping requirements from business applicants, inconsistent grant offerings, and unclear investment outcomes for the CRA. Depending on the program, the applications require different items to be submitted by the applicant. Moreover, the grant amount varied for each program, creating confusion for the business community.
The current grant programs also do not require that applicants show a matching investment, which could mean that a business could qualify for CRA funding with no private investment.
The established grant programs focus heavily on Downtown Redevelopment as a strategic goal to further the Downtown Culinary Arts District and target resources in a compact area to build the critical mass necessary to have an acknowledgeable economic, visual, and social impact. As recognized by the CRA Board, the CRA is ready to expand the brand and business development CRA wide.