ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET Relating to the Recognition of a Grant Received from the Illinois Department of Commerce & Economic Opportunity for Local Cure’s Economic Support Payments Grant Program known as the Business Recovery Grant Program and the Corresponding Expenditures, in the Amount of $1,385,000.00 (Council District All)
Body
BACKGROUND:
At the October 29, 2020 council meeting, the City Council approved a set aside of funds to support the grant application of $1,185,000 and the authorization to provide funding with city funds to be reimbursed by the Local CURES’s Economic Support Payments Grant program made available through the Illinois Department of Commerce and Economic Opportunity (DCEO). In February 2021, city staff submitted a modification request to extend the disbursement period to June 30, 2021 and increase the grant amount by an additional $200,000 which would bring the total grant amount to $1,385,000. The additional time would allow sufficient time to deploy grant funds. The additional grant amount reflects known, unmet demand amounts. The attached ordinance amends the 2021 Revised Annual Budget to recognize the grant terms requiring the City of Peoria to distribute funds and apply for reimbursement of funds to the Illinois Department of Commerce and Economic Opportunity based on the funds distributed.
The program’s name is “Peoria Business Recovery Grant Program”. The Economic Support Payments grant program provides reimbursement to the City of Peoria for direct payments to local businesses with COVID-19 related expenses. The Peoria Business Recovery Grant Program provides reimbursement to businesses in three categories including: Business Sustainability, Business Capacity Building and Business Transformation. Each category represents an opportunity for businesses to receive reimbursement payments from the City of up to $5,000 or a combined total of $15,000. Hotels may receive support of up to $25,000.
The City of Peoria advances funds to businesses and applies for reimbursement of the funds from DCEO. The City anticipates reimbursements of its cash outlay within 30 days of disbursement from DCEO.
To date, the City of Peoria has distributed $950,437.18 to local businesses. With an additional $200,000.00 provided by DCEO, the City will be able to provide $434,563.00 in additional grants to local businesses between now and June 30, 2021. Businesses must demonstrate they have suffered a loss in revenue and document paid expenses between March 1, 2020 and December 31, 2020, in order to receive a reimbursement grant under this program.
FINANCIAL IMPACT: The City has entered into a grant agreement with the Illinois Department of Commerce and Economic Opportunity (DCEO) to provide $1,385,000, for advances of funds to businesses. These funds will be received from DCEO on a reimbursement basis and would impact available cashflow, but would have a neutral impact beyond grant the reimbursement cycle of approximately 30 days.
NEIGHBORHOOD CONCERNS: Not Applicable
IMPACT IF DENIED: The City of Peoria 2021 Revised Annual Budget will not reflect the receipt and expenditures of the grant from the Illinois Department of Commerce & Economic Opportunity.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: Various. To be issued prior to reimbursement.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014-2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs and Population
2. Attractive Neighborhoods with Character: Safe and Livable
3. Vibrant Downtown: Riverfront/Central Business District
WHICH CRITICAL SUCCESS FACTORS(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs
2. Reinvest in neighborhoods
DEPARTMENT: City Manager’s Office