Summary
Council members confirmed a $12,000 CDBG loan reimbursement payment to a new downtown business and discussed higher‑level concerns about displacement of legacy businesses; members asked staff to explore anti‑displacement strategies used by other cities.
During the consent calendar discussion the mayor and council members noted a Community Development Block Grant (CDBG)‑supported loan reimbursement to a new downtown business. One council member said she had attended the ribbon cutting and was surprised to see a $12,000 CDBG loan listed among the warrants; staff clarified the total approved loan package for that business is $35,000 and that disbursements are reimbursable upon submission of receipts. Councilwoman Banuelos raised broader concerns about displacement of small businesses at the downtown site and asked staff to research ‘anti‑displacement’ approaches other cities have used. She cited work by Los Angeles and Chicago on small‑business protections and asked the city to consider options that balance support for new enterprises while reducing involuntary displacement of existing local businesses. Economic development staff told the council the city maintains funds for small business assistance and provided local staff contacts for loan applications. Council requested staff return with potential anti‑displacement tools that could be tailored to Soledad’s downtown corridor.
