Item 33 - Additional Information Memo.pdf

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City of Phoenix

To: Mario Paniagua Date: December 1, 2020
Deputy City Manager

From: Markus Coleman he
Light Rail Administrator

Subject: ADDITIONAL INFORMATION FOR ITEM 33 ON DEC. 2, 2020 FORMAL AGENDA -
LIGHT RAIL SMALL BUSINESS FINANCIAL ASSISTANCE PROGRAM PILOT

This memo presents additional options for the Council to consider for item 33 on the Dec. 2,
2020 Formal agenda, Light Rail Small Business Financial Assistance Program (SBFAP) pilot.
The proposal is based on additional input received from businesses on affected light rail
corridors expressing an urgent need for increased funds due to construction impacts. Several
businesses have communicated that amounts for the proposed SBFAP pilot are too low to help
address lost revenue. Another option for consideration is to restructure the timing of the funds
to increase the per business amount in the first year of the program as follows:

e from $1,000 to $3,000 in Tier 1,
e and from $5,000 to $9,000 in Tier 2.

The increased first-year amounts would decrease funds set aside for the second and third
years of construction. So, the downside to this option is that it reduces the amount of funding
currently available and set aside to fund the second and third years of the SBFAP. Staff
continues to seek additional resources, including City and other governmental funding, grants,
donations, and other sources to assist businesses affected by light rail construction.

Additionally, based on input from affected businesses, staff recommends changing the
proposed eligibility criteria regarding the time for eligible businesses to have been in operation
on the affected corridor prior to commencement of construction from two years to:

e for Tier 1, to “prior to commencement of construction’,

e and for Tier 2, to “one year prior to commencement of construction”.

Staff recommends approval of the options above to revise the first-year funding amounts and to
change to eligibility criteria regarding the time in operation for businesses along the corridor.

Approved:
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Mario Paniagua, Deputy City Manager Date