Title
2021-2022 CDBG Neighborhood Economic Development Programs (Ordinance S-47512)
Description
Request to authorize the City Manager, or his designee, to issue Request for Proposals, Request for Qualifications or Invitation for Bids and amend existing contracts, including increasing spending limits, as necessary or appropriate to implement the Neighborhood Services Department's grant-funded Neighborhood Economic Development Programs. All existing contract spending limits are included in the aggregate total of this item. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
The Neighborhood Services Department (NSD) administers several economic development programs that make a significant and positive impact on Phoenix neighborhoods by expanding economic opportunities for low- and moderate-income individuals through job creation and training, and providing valuable and timely resources to the small businesses that serve their community including consultations, technical assistance, financing opportunities, and forgivable loans for rehabilitation projects. The U.S. Department of Housing and Urban Development (HUD), through the Community Development Block Grant (CDBG), funds the Neighborhood Economic Development (NED) programs listed below.
Entrepreneurship Assistance Program (EAP)
EAP provides admission into Phoenix-based co-working and accelerator spaces and incubators, and direct access to trainings, technical assistance, and targeted workshops in English, Spanish or other languages to low- and moderate-income small business owners.
Management & Technical Assistance (MTA) Program
MTA provides free consulting services and technical assistance to small businesses through instructional and curriculum-based one-on-one meetings or group workshops focused on topics including, but not limited to, branding, marketing and other needed services.
Neighborhood Commercial Revitalization (NCR) Programs
NCR programs encourage neighborhood revitalization by providing financial and technical assistance to existing business and commercial property owners along targeted business corridors in Phoenix. Program support, through capital improvements, ensure the long-term sustainability of the community and its structures.
Other Small Business Assistance Programs
To respond to the changing needs of the micro-business community, NSD may propose to develop program resources to promote their sustainability and success. Program funding could include grants, loans, or other assistance for businesses that operate in, or predominately serve, low- and moderate-income communities. In addition, partnerships with non-profit agencies and other organizations could be established to leverage funding options and other services.
Program Eligibility for NSD's NED Programs
Business owners must meet a CDBG National Objective to participate in NED Programs. Under Special Economic Development Activities 24-CFR, Part 570.203, owners must provide a public benefit or deliver neighborhood enhancements, including job creation for local residents, blight elimination, or the provision of qualified goods and services to residents of targeted, low- and moderate-income Phoenix neighborhoods, to be eligible to participate in economic development programs.
NSD plans to utilize up to $1.8 million in CDBG funds from current and prior HUD allocations to implement NED programs. NSD projects approximately $200,000 for EAP, $200,000 for MTA, $600,000 for Small Business Assistance and $800,000 for NCR in 2021-22 to administer its NED Programs.
- Issue Requests for Proposals, Requests for Qualifications, Calls for Interest, Requests for Bids, and other procurements in accordance with A.R. 3.10.
- Deliver economic development services with various business and/or property owners through the utilization of financial tools such as grants and loans.
- Amend existing contracts with various business or property owners, or agencies such as non- and for-profit organizations and other agencies to provide economic development services and implement and administer the Neighborhood Economic Development Program activities.
- Take all other action necessary or appropriate to carry out the purposes of this item and implement and administer the Neighborhood Economic Development Program grants according to their terms.
Application and Review Process
NED Program applications may be submitted at any time and are reviewed by City of Phoenix staff as they are received to determine the eligibility and feasibility of the proposed project. Successful applications must meet a CDBG National Objective in accordance with HUD program regulations.
Procurement Information
Services may be procured, as needed, by utilizing procurement procedures in accordance with Administrative Regulation 3.10 to implement and administer NSD's NED Programs.
Financial Impact
NED Programs are funded by the U.S. Department of Housing and Urban Development through the Community Development Block Grant and Choice Neighborhood Grant; there is no impact to the General Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Land Use and Livability Subcommittee on April 21, 2020 by a 3-0 vote.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Neighborhood Services Department.