Title
Consider a memorandum/resolution authorizing the City Manager to negotiate and execute contracts with selected recipients for the North Killeen Downtown Start-Up Program.
Summary
DATE: July 12, 2022
TO: Kent Cagle, City Manager
FROM: Danielle Singh, Assistant City Manager
SUBJECT: North Killeen Downtown Start-Up Program Contracts
BACKGROUND AND FINDINGS:
The City Council allocated American Rescue Plan Act Funds to make assistance available to Killeen entrepreneurs interested in starting or expanding businesses within the North Killeen Downtown Area. This program is intended to build stronger communities and allow more access to economic opportunities in the areas of Killeen that were disproportionately impacted by the coronavirus pandemic.
Applications were received from February 1, 2022 to April 13, 2022. The City Council reviewed applications on May 18, 2022 and selected nine applications to move forward for further consideration. The City Council directed staff to meet with these nine applicants and asked for additional information to be provided at a later date.
On July 5, 2022, the City Council directed staff to prepare a resolution to allow the City Manager to negotiate and execute contracts with seven applicants in the following amounts:
|
Business |
Funding Request |
|
Twice as Funny |
$306,000 |
|
Let's Eat Texas |
$89,000 |
|
Space Create |
$128,578 |
|
Khaniesiology |
$95,000 |
|
Aromas Cigar Lounge |
$239,953 |
|
Rincon de Panama |
$87,500 |
|
Braids and Brows by Chris |
$19,781 |
THE ALTERNATIVES CONSIDERED:
1. Do not authorize the City Manager to negotiate and execute contracts.
2. Authorize the City Manager to negotiate contracts but bring back to the City Council for final approval.
3. Authorize the City Manager to negotiate and execute contracts with some or all applicants and/or change the amounts authorized.
4. Authorize the City Manager to negotiate and execute contracts with the applicants in the amounts specified.
Which alternative is recommended? Why?
Alternative 4 is recommended based on previous City Council direction. This will allow applicants to move forward in the most expeditious way possible.
CONFORMITY TO CITY POLICY:
This item conforms to all applicable City Policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The total financial impact is $965,812, which is likely to occur in multiple fiscal years.
Is this a one-time or recurring expenditure?
This is a one-time expenditure.
Is this expenditure budgeted?
There was a total of $1,000,000 budgeted for this program as well as the Business Relief Program. Additional American Rescue Plan Act Funds will need to be allocated for the Business Relief Program once those numbers are finalized.
If not, where will the money come from?
Additional funding for the Business Relief Program will be budgeted from American Rescue Plan Act Funds.
Is there a sufficient amount in the budgeted line-item for this expenditure?
There is a sufficient amount for the North Killeen Downtown Start-Up Programs, but additional Business Relief Program funds will need to be budgeted in the future.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to negotiate and execute contracts with the applicants in the amounts specified.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
North Killeen Downtown Business Start-Up Program FAQ