Hemet Council expands downtown kitchen grant pot, denies retroactive reimbursement to Kimball's Bistro
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Summary
Council voted 3‑1 to expand a downtown kitchen grant program citywide, appropriate an additional $500,000 (total potential funds $700,000), approve fee waivers for participants, deny a retroactive $150,000 reimbursement request from Kimball's Bistro, and allow Carlton Steakhouse to move a $300,000 award to a new downtown location.
The Hemet City Council on Jan. 13 amended its downtown kitchen grant program and authorized additional funds while resolving two contested grant requests.
City staff recommended expanding the program citywide and allocating $200,000 already available plus an additional $500,000 from general fund reserves to create a $700,000 account for grants; staff advised estimated awards would generally not exceed $300,000 and proposed a 45‑day second application round. Economic development staff and the city attorney briefed council on legal issues raised by a pending request from Kimball's Bistro for retroactive reimbursement for expenses incurred before a formal notice‑to‑proceed.
During public comment, Jason Strange (representing Kimball's project) asked the council for a narrow, project‑specific exemption to allow documented reimbursement of pre‑award project expenses, arguing the project was nearly complete, had no certificate of occupancy yet and needed the offset to open. He said the project provided public benefit by restoring a historic building and creating jobs.
Council voted 3‑1 (Council Member Lodge opposed) to: appropriate $500,000 in general fund reserves to the kitchen grant program (bringing available funds to $700,000), authorize waiver of planning and building permit fees for program participants, deny Kimball's Bistro’s request for retroactive reimbursement of its $150,000 award, and approve relocating a $300,000 award for Carlton Steakhouse to 123 North Harvard Street and to initiate a second application period.
City attorney and staff emphasized legal limits on retroactive payments, including gift‑of‑public‑funds concerns and consistency with adopted program guidelines; council left in place staff’s recommended fee waivers even as it denied the retroactive reimbursement request.
Next steps: Staff will update program materials and open a second application round for the amended program; Carlton Steakhouse’s relocation will proceed subject to property‑owner concurrence and any lease issues resolved between private parties.
