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San Dimas approves CDBG restaurant aid allowing existing businesses to qualify by extending hours
Summary
The council on Aug. 27 approved changes to a CDBG-funded restaurant assistance program, directing staff to allow existing restaurants to qualify if they expand service hours by 30%; the program has $70,000 available for restaurants this fiscal year and the city will run marketing and selection through its CDBG consultant.
San Dimas City Council voted Aug. 27 to approve staff'recommended guidelines for a Community Development Block Grant (CDBG) restaurant assistance program and to broaden eligibility so existing restaurants can qualify by expanding service hours.
Council member (speaker S9) moved to approve staff's recommendation with an amendment that existing restaurants may qualify if they increase their service hours by 30%, and the council adopted the motion unanimously, 4-0. Staff described the program as intended to attract new businesses and support expansion of existing ones.
Why it matters: The city's small CDBG allocation means the program will fund only one or two restaurants this fiscal year; staff said the city earmarked $70,000 for the restaurant program and noted the city's broader CDBG allocation to the city was discussed as roughly $166,000. Under CDBG guidelines explained by staff, each $35,000 award must create one full-time-equivalent job; staff said the $70,000 could be used as a single $70,000 award if the recipient demonstrates creation of two full-time-equivalent positions.
Details: Economic-development/housing staff (speaker S10) said the $70,000 in restaurant funding can be distributed as two $35,000 awards or as a single $70,000 award if job-creation requirements are met. The proposed change allows existing restaurants that cannot expand square footage to qualify by increasing service hours by 30% (for example, staying open later) or by expanding outdoor seating, which staff said would count toward square-footage expansion.
Council discussion and balance: Council members emphasized both attracting new restaurants and supporting existing downtown businesses. One council member said the program's goal should be job creation and welcomed adding service-hour expansion as an alternative path to qualify. Staff said the city will work with its CDBG housing consultant and the chamber of commerce to market the program and identify candidates.
What comes next: Staff will finalize program guidelines reflecting the council's direction and begin marketing the opportunity; funding is limited and staff said selections will be made based on need and program criteria.
Quote: "The total amount funded to this program was $70,000," said staff. "For CDBG requirements, it's for every $35,000 you award a restaurant, you have to hire one full-time equivalent person."
