City rolls out third iteration of construction mitigation grants with pre/during/post pilots; council presses for faster projects and better communication

City staff presented the third iteration of San Antonio’s construction mitigation grant program on March 19, proposing a three-stage approach—pre-construction, active-construction and post-construction pilots—backed by $1.4 million in general-fund dollars and an administration contract recommendation with LiftFund.

Brenda Hicks Lawrence, Economic Development Director, told council the program builds on ARPA-funded rounds in FY23–FY24 that helped hundreds of businesses and that this year the city proposes to set $1,000,000 for active construction grants (awards up to $35,000), a pre-construction pilot (about $80,000 with small upfront awards to support marketing or delivery relationships) and a post-construction “spruce up” pilot ($120,000 total with awards around $5,000) to help businesses recover foot traffic. Brenda said the city recommends continuing a scored application for active-construction awards and using LiftFund for administration (LiftFund’s administration fee was cited as approximately $185,000 or 13% of program costs).

Program details and timeline

- Total allocation: $1,400,000 general fund (staff presentation). - Active-construction grants: staff recommended a $1,000,000 budget with awards up to $35,000; scoring would prioritize net revenue loss, prior assistance and business tenure on corridor. - Pre-construction pilot: staff proposed $80,000 with small awards (example: $2,000) for marketing, signage or third-party delivery partnerships; Marbach Road was proposed as the pilot corridor. - Post-construction pilot: staff proposed $120,000 with $5,000 awards to help businesses make exterior or interior improvements after construction (power washing, paint, signage); three corridors were proposed for eligibility (Bynum, Bovardi, Bridal). - Outreach and administration: staff proposed $15,000 for marketing/outreach, information sessions and block-walking; LiftFund would perform application scoring and administration with anticipated application opening May 1 (active and post) and a June 2 opening for the pre-construction pilot, with notifications and disbursements planned in August–September.

Council reaction: effectiveness, equity and process

Several councilmembers, including Mayor Nirenberg, pressed staff on whether the grant checks materially change business outcomes. Brenda cited preliminary program analysis saying "the preliminary survivability rate was 13% greater for those who received grants than those non grant recipients," and that in accommodation and food-service businesses survivability among grant recipients was 25.5% greater. Councilmembers nonetheless questioned whether the program’s relatively small awards and lottery-like distribution reach enough businesses and argued resources might better accelerate project delivery and reduce construction timelines.

Councilmembers raised several consistent concerns:

- Communication and outreach: councilmembers said the city’s outreach sometimes fails to reach business owners (receipts of flyers by clerks rather than owners) and asked for more direct contact strategies such as door-to-door collection of contact information and targeted texting.

- Equity of corridor selection: districts saw uneven inclusion; councilmembers requested that corridors with longstanding impacts (for example, North New Braunfels) be reconsidered for eligibility.

- Faster project delivery: multiple councilmembers urged the city to prioritize shorter construction timelines and contract incentives that reward timely completion, arguing reducing time-in-construction may be more effective than mitigation grants.

- Administration mechanics: councilmembers pressed for non-reimbursement upfront payments for pre- and post-construction pilots (staff clarified those pilots will provide upfront funds rather than reimbursements) and asked staff to confirm eligibility criteria and minimum awards for heavily impacted businesses.

Next steps

Staff recommended moving forward with the three-pilot structure, bring a contract with LiftFund to council (administration fee $185,000 / ~13%), open applications beginning May 1 (active/post) and June 2 (pre-construction pilot), and return with any necessary refinements. Councilmembers asked staff to provide further analysis on program reach and survivability measures, ensure North New Braunfels and other long-impacted corridors are evaluated for eligibility, and to coordinate more closely with Public Works and utilities to shorten construction timelines where possible. No final council vote on the program was recorded during the B session.