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River City outlines downtown 'Scenic Storefronts' matching grant; council questions access for small entrepreneurs
Summary
River City Company presented a downtown storefront improvement program that would reimburse 50% of eligible façade and interior upgrades for property or business owners; council members asked whether the reimbursement model disadvantages small and minority entrepreneurs and urged complementary programs to keep tenants in place.
River City Company told the Chattanooga City Council on Nov. 4 that it will launch a downtown 'Scenic Storefronts' program offering a 1:1 matching, reimbursable grant to property or business owners for permanent interior and exterior improvements and will provide technical assistance and design support.
"River City Company is fully self funded for our operations," Sarah Mattson said, describing River City's nonprofit model and its role in running the application and reimbursement process. The city has set aside roughly $1.3 million for business development programs and an additional $585,000 returned by a third party (CNE) restricted for small-business development; staff said those dollars are held and a specific program has not yet been defined.
Mattson described the grant mechanics: applicants front project costs and River City reimburses the city's matching share when work is complete. "If it's a $40,000 project, then the business owner or property owner will contribute 20,000 and we will reimburse 20,000," she said, noting the reimbursement is issued after the work is finished. River City will also pursue market analysis, a retail assessment of vacant storefronts and a business-attraction strategy.
Council members raised equity concerns. Councilman Dennis Clark urged attention to minority entrepreneurs and long-term affordability: "...we're helping them do the facade. So what is the matching component to actually help people stay in the space that we just paid to give them a facelift?" Mattson said River City does not currently run rent‑subsidy programs and cautioned such programs can affect lease markets; she said exploring rent assistance is a future possibility.
Why it matters: The program aims to reduce vacancy and improve storefront quality downtown, but the reimbursement structure requires entrepreneurs to front costs—raising questions about which businesses can realistically participate without additional supports.
What’s next: River City and city economic development staff will follow up with data and may work with council on complementary programs to ensure access and long-term tenant stability. Council requested River City provide past program outcomes and metrics from previous facade grants.
