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Committee reviews $100,000 downtown revitalization grant outreach; staff to consult city attorney on gift‑of‑funds risk
Summary
Staff reported outreach for a $100,000 downtown exterior‑beautification grant; many property owners are hesitant because of short tenant leases, and staff will consult the city attorney to avoid gifting public funds before launching a solicitation.
PORT ORCHARD — Port Orchard staff briefed the finance committee on Feb. 17 about a proposed downtown revitalization grant program backed by a $100,000 allocation and said they will refine program rules after legal review.
Nick (staff) said staff have contacted about two‑thirds (66%) of downtown property and business owners between Harrison and Frederick on Bay Street and received few formal applications to date. He said property owners and business tenants expressed concern that short leases would discourage tenant investments and that a tenant might improve a space only to later face higher rent or eviction.
"The last thing we would wanna see is somebody apply for a grant that has a match, put money into the building and do a project, and then have the landlord raise the rent on them and evict them," Nick said.
Committee members discussed possible eligibility criteria, including requiring a longer lease or documentation that improvements would not lead to evictions, and debated appropriate match levels (staff noted examples in other programs ranging from low tens of percent up to 50% for certain grants). Director Bond urged running the program concepts past the city attorney to ensure the city is not making an impermissible gift of public funds.
"I really should run it through the attorney," Bond said, referring to a legal memo staff had prepared. Committee members agreed staff should consult the attorney and bring back clear rules and criteria before soliciting applications; some members suggested piloting a single project first to create momentum.
Staff will prepare a follow‑up memo or email summarizing attorney feedback and recommended criteria, and the committee signaled support for testing one early project if the legal review permits.
