Title
2023-24 Community Development Block Grant Neighborhood Economic Development Programs (Ordinance S-49683)
Description
Request to authorize the City Manager, or his designee, to procure services and amend existing contracts as necessary or appropriate to implement the Neighborhood Services Department's (NSD) grant-funded Neighborhood Economic Development (NED) Programs. All existing contract spending limits are included in the aggregate total of this item. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. There is no impact to the General Fund.
Report
Summary
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 NED Programs listed below.
Entrepreneurship Assistance Program (EAP)
EAP provides admission into Phoenix-based co-working and accelerator spaces and incubators and provides direct access to trainings, technical assistance and targeted workshops in English, Spanish or other languages to micro- and small businesses entrepreneurs in low- and moderate-income areas.
Management Technical Assistance (MTA) and Other Business Consultant Programs
These programs support and help sustain micro- and small businesses in low- to moderate-income neighborhoods by providing free financial literacy and business management consulting assistance through one-on-one consultations and group workshops that focus on topics that include, but are not limited to: marketing, management of personal and business accounts, credit building and investing, and managing digital presence. Available services and resources will be made available in various languages.
Neighborhood Commercial Rehabilitation (NCR) Programs
Commercial neighborhood rehabilitation programs encourage neighborhood revitalization. NCR provides financial and technical assistance to existing business and commercial property owners along targeted City of Phoenix business corridors. Program support, through capital improvements, ensure the long-term sustainability of the community and structures.
Other Small Business Assistance Programs
To respond to the changing needs of the micro-business community, NSD may propose developing additional tools and 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- to moderate-income communities. In addition, partnerships with non-profit agencies or 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 take part in NED Programs. Under Special Economic Development Activities, 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- to moderate-income Phoenix neighborhoods, to be eligible to participate in economic development programs. Additionally, under 24-CFR 570.208, services must benefit low- to moderate-income residents and/or low- to moderate-income Phoenix neighborhoods.
NSD estimates using up to $1.8 million in CDBG funds from current and prior HUD allocations to implement economic development programs. NSD projects approximately:
- $200,000 for EAP;
- $300,000 for MTA;
- $500,000 for Small Business Assistance; and
- $800,000 for NCR.
Activities include:
- Issue Request for Proposals, Requests for Qualifications, Calls for Interest, Invitations for Bids, Request for Bids and other procurements in accordance with Administrative Regulation 3.10;
- Deliver economic development services with various business and/or property 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 targeted economic development services and implement and administer the Neighborhood Economic Development Program activities; and
- Maintain an ACL of qualified contractors to enter into agreements with low- and moderate-income property owners funded by NSD pursuant to the grant terms. These funds may be disbursed to the property owner or contractor.
- Take all other action necessary or appropriate to carry out the purposes of this item and implement and administer the NED 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.
Concurrence/Previous Council Action
This item is scheduled for approval by the Community and Cultural Investment Subcommittee on May 3, 2023.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.