City launches Small Business Accelerator, updates motel rehabs, Club Pheasant and PHLA application

Tracey Michael, director of the Economic Development and Housing Department, gave a multi‑topic director’s report that highlighted the launch of the Small Business Accelerator program, progress on motel rehabs and supportive housing operations, an exclusive negotiation agreement for the Club Pheasant site, and the city’s application for Permanent Housing Local Allocation (PHLA) funds.

Michael said the Small Business Accelerator is funded in part by Measure N and includes multiple components. She highlighted a food and beverage facility enhancement grant that offers up to $15,000 in reimbursement for eligible expenses to help prepare restaurants and food businesses for increased foot traffic related to the athletics’ season. She said the city has already received four applicants and described program eligibility as businesses with 15 or fewer full‑time equivalents and annual gross revenues of $3,000,000 or less. Michael also described permit fee assistance, a vandalism relief program offering up to $5,000 per year for storefront repairs, a facade grant program, tenant improvement grants and a microloan program planned later in the year.

On development projects, Michael said the city entered an exclusive negotiation agreement with Grama Core Development, a partnership the director named as Dan Ramos, Mark Cardano and the Devere Brothers, for the Club Pheasant site. She said negotiations are ongoing and could conclude in March or April; once terms are finalized the development team will complete plans, permit review and construction, with construction expected to take about a year (meaning a complete project could be 18–24 months from execution).

Michael and staff updated the commission on the city’s motel acquisitions and rehabilitation work intended to expand interim housing capacity. Staff said the city used local funds to acquire two motels and is using CDBG and other sources to fund substantial rehabilitation and operations; a construction manager reported progress and anticipated portions of the Pickwick Motel work to be completed within about six weeks and the larger El Tejon site by spring.

Michael also said the city is applying for the state’s Permanent Housing Local Allocation (PHLA) program and plans to request approximately $404,000 initially. The city must submit an application by the end of February to retain eligibility for the funds. Michael said 40% of PHLA funds must be directed to home improvement work that supports low‑income residents and proposed using non‑profit partners for delivery; the remainder would support emergency housing operations.

On event readiness for the athletics season, Michael described near‑term preparations for parking, traffic control, security and communications: an online parking reservation system is being tested, security ordinances addressing modern concerns (including drones) will be brought to City Council in March, and the city is coordinating traffic plans and micro‑mobility strategies with Sacramento. Michael said some city surface lots (for example, the lot behind Walgreens) are not planned for public event parking and that staff continue to refine resident and business access plans.

Commissioners asked technical questions about program deadlines, contractor selection for the motel rehab (Maximus is the contractor), use of workforce training opportunities and the timeline for Club Pheasant development. Michael encouraged commissioners to refer eligible businesses to program materials on the city website and said staff will circulate PHLA and consolidated plan materials for public review.