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Council hears plan to replace ineligible Main Street grant for Motherland Kitchen with local financial incentive
Summary
City staff described a proposed financial incentive agreement to replace a state Main Street Startup grant that became ineligible; the package would mirror the previously approved grant terms and be paid from the economic development fund upon proof of eligible expenditures.
City staff briefed the Hagerstown Mayor and City Council on Aug. 5 about a proposed financial incentive agreement for Motherland Kitchen LLC to replace a Main Street startup grant that the state later deemed ineligible.
Staff said Motherland Kitchen, an Afro‑Caribbean restaurant planned for 5557 South Potomac Street, had been approved locally to receive up to $34,329 under a Main Street startup grant administered through the Maryland Department of Housing and Community Development (Project Restore). State reviewers later determined the business was ineligible because of a vacancy‑length requirement tied to the state’s grant rules; staff said the vacancy determination used the date of the state application (April 24) and that the prior occupant, "the dog house," vacated the space in October 2024.
Because the state disallowed the award on that technicality, staff proposed a local financial incentive agreement that would follow the same eligibility and reimbursement requirements as the previously approved Main Street grant. The proposed agreement would be paid from the economic incentives line item in the economic development fund. Under the proposed terms, reimbursements would require documentation and receipts for eligible items; a portion of the incentive could also be paid on behalf of the business as rent assistance, staff said.
The council indicated support for staff to proceed with a financial‑incentive agreement; a council member asked whether reimbursements would require receipts, and staff confirmed documentation would be required. No formal approval was recorded at the Aug. 5 work session; staff presented a resolution, draft motion and the draft agreement in council packets and said formal action would be taken if the council chooses to adopt the agreement in a subsequent meeting.
Staff noted that the business owner had invested capital toward opening downtown and that the ineligibility was tied to state timing rules rather than the business’s readiness to open.
