Noble merchants form business alliance; county pledges $10,000 to help get started

Merchants along Noble Road in Cleveland Heights presented an update to the city’s Planning & Development Committee on their effort to form a merchant association and said county officials have pledged $10,000 in start-up funds.

At a committee meeting, Delisha Robinson announced that local merchants had organized a representative body and chosen a name and logo. “We have over 40, 40 signatures of people that want to be a part of the business association,” Ashley, a merchant representative, told the committee. Robinson said she had spoken with county contacts who “are going to give the association $10,000,” though she added paperwork must be completed before funds are released.

The group described itself to committee members as the Noble Business Alliance (also referred to during the meeting as the Noble Merchants Association). Members said they have formed a provisional board and chosen spokespeople to represent the merchants to city staff and council. The update covered organizational steps the group still needs to complete before receiving and managing public funds, including selecting a legal entity to receive the money, adopting bylaws, opening a bank account and preparing a budget.

Brian Anderson, assistant director in the Planning & Development Department, told the group the city needs a legal entity to receive grant or county funds and suggested two common options discussed at the meeting: forming a 501(c)(3) nonprofit or a 501(c)(6) trade association. Anderson said a 501(c)(3) would accept tax-deductible donations, while a 501(c)(6) is a trade association structure that can engage in lobbying. City staff emphasized that the choice of entity affects governance, how funds are handled and what funding sources are appropriate.

Committee members and staff outlined typical start-up costs and tasks the merchants should include in a budget: attorney filing fees and assistance to incorporate and obtain tax-exempt status, a checking account, basic administrative expenses and, potentially, part-time staffing to manage programs. “You need to figure that — hire an attorney to do the corporate thing, file the paperwork to become a 501(c)(3). You also need to do things like open a checking account,” a merchant participant said during the update.

Robinson and other speakers suggested seeking pro bono legal help; committee members offered to help locate lawyers and community organizations that have assisted similar groups in the past. City staff and council members also said the city previously provided support to a Noble-area business association: records presented during the meeting indicated roughly $7,500 in city support in February 2011. Council will consider any city allocation for the new association only after the group meets with staff, finalizes bylaws and submits a budget request.

Next steps agreed at the meeting included scheduling follow-up meetings between the merchant representatives and Myra (city planning staff), assembling the organizational documents (bylaws, incorporation paperwork), and sending any past paperwork or records the city has to the merchants’ contact (Abby was named as the city recipient for electronic copies). Committee members said they would revisit funding decisions once the group had its governance and budget in place.

The discussion emphasized both immediate start-up assistance and longer-term financial planning: committee members encouraged the merchants to build a three- to five-year forecast so the organization would not rely solely on the initial funds. The committee did not take a formal vote at the meeting; rather, members provided guidance and identified resources that could help the merchants complete incorporation and grant-administration steps.