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Council hears 'Sandy Ignite' plan proposing grants and revolving loan pool to spur downtown investment
Summary
Consultant John presented 'Sandy Ignite', a three-part program with $100,000 in concept-design grants (up to $25,000 with 50% match), $400,000 in capital grants (up to $100,000 with 50% match) and a $1,000,000 revolving loan fund (loans up to $250,000). Council supported piloting the approach and asked staff to refine scoring, anti-squatting guardrails and outreach.
Council reviewed a proposed economic development package, called "Sandy Ignite," that would combine small design grants, capital grants and a revolving loan pool aimed at encouraging downtown property owners and businesses to invest in rehabilitation and new projects.
John, the presenter, described three elements: a concept-design grant program with a $100,000 total allocation (awards up to $25,000 with a required 50% owner match), a $400,000 capital grant program (awards up to $100,000 with 50% match) and a $1,000,000 revolving loan fund with individual loans up to $250,000 to bridge financing gaps. "We would set aside a $100,000, and they could apply for up to $25,000, and they would have to match that with 50% of their financing," John said.
The scoring criteria John described will emphasize creation of living-wage jobs (the plan uses a 32-hour baseline for living-wage scoring), long-term business viability and private investment leverage; applicants would be asked to provide recent financial statements to help staff assess need and prevent misuse. Council members and staff discussed guardrails to avoid "squatting" where a recipient accepts funds without completing a project; suggestions included application deadlines, milestones and enforcement clauses.
Staff noted launch and outreach plans: the program would open twice a year (suggested January 1 and July 1 cycles) and be promoted jointly with the chamber of commerce and other regional economic-development partners to allow grant stacking where appropriate. Council members asked whether the suggested program totals were adequate. Staff replied that $400,000 is already in the current urban renewal budget for grants and that only about $8,000 of that amount has been spent this cycle, leaving roughly $392,000 available for reallocation if desired.
Council also raised a practical limit: a standing moratorium on certain new construction constrains the number of new-build projects that could immediately use larger capital grants, and staff said the program is intended to help both existing businesses and property owners who can redevelop under existing capacity constraints.
What’s next: council generally supported piloting Sandy Ignite, asked staff to refine scoring and timelines, and directed staff to return with application materials, a recommended launch schedule and proposed enforcement/monitoring conditions.
