Hemet council approves $450,000 in downtown kitchen grants with strict build-and-open conditions

The Hemet City Council approved $450,000 in downtown kitchen grants on July 8, 2025, voting 3-0 to award funding to downtown restaurant projects and to attach performance conditions, including a permit-and-build timeline and a two-year operating requirement.

City economic development staff designed the program as part of the Hemet Rises strategy to spur downtown revitalization by incentivizing new commercial kitchens. Ben Sanibel, economic development manager, told the council the program targeted downtown sites and was meant to help smaller local businesses open or expand kitchen capacity. Sanibel said the city had appropriated $300,000 in the current fiscal year and an additional $200,000 in the next year for kitchen grants.

Council members approved a motion that allocates $300,000 to Carlton Steakhouse and $150,000 to Kimball's Bistro; a request to waive certain fees for Samurai Sands was addressed separately under the motion's conditions. The council's approval requires applicants to file for building permits within 30 days of the council action, obtain a certificate of occupancy after completing improvements, open within 12 months of permit issuance, and remain in continuous operation for at least two years. Council members also directed that the grant be paid only as a reimbursable grant after the city issues a certificate of occupancy.

Applicants and supporters described the downtown potential at the meeting. Jessica Ellis, who said she has lived in Hemet for more than 20 years and is a founder of the Carlton Steakhouse proposal, framed the project as an investment in downtown's economy and identity: "Carlton Steakhouse is more than just a restaurant. It is a collaborative project grounded in experience, vision, and local commitment." Matt McPherson, another project backer, emphasized the visibility of his site's location, calling it "a gateway location to Downtown Hemet" and said the project is "shovel ready" if the city funds are available.

Some council members emphasized accountability. Council member Lodge criticized infighting among some downtown owners and warned against rewarding what she described as "bad behavior" on social media and in dealings with the city; she told downtown property owners and potential grantees to stop fighting and focus on opening businesses. Lodge proposed the 30-day permit filing and 12-month opening deadlines the council adopted. Another council member recommended securing a two-year operations requirement by recording a lien or UCC financing statement on the equipment as a condition of reimbursement; the council included the two-year requirement in its approval.

City staff clarified the grant design and payout mechanism during the discussion: funding is reimbursable and will be disbursed after completion of the permitted improvements and issuance of a certificate of occupancy. The council's motion passed unanimously by a 3-0 vote (Council member Clark, Council member Lodge, Mayor Jackie Peterson voting yes).

The council and staff said the program remains open to inquiries and that staff has already received additional interest after the formal application window closed. City staff will bring required grant documents and administrative details back to applicants and will implement the council's performance conditions before releasing funds.

The grant awards and conditions are intended to speed openings while limiting the city's exposure to unused equipment or projects that fail to open. The city did not adopt a requirement that funds be released prior to occupancy; rather, disbursement will be by reimbursement after successful completion and inspection.