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City staff propose revamp of small‑business grants and subordinate loans to jump‑start downtown redevelopment
Summary
Economic development staff proposed broader, more flexible CDBG‑funded programs including larger façade/grant limits in priority areas, an expanded subordinate loan (BOOST) product for new construction and an area‑focused quarterly grant cycle; council asked staff to prepare policy and budget language for FY implementation.
City economic development staff outlined a package of changes on May 4 intended to make the city more aggressive and flexible in deploying Community Development Block Grant (CDBG) funds to spur commercial redevelopment.
Key elements: staff proposed raising individual grant caps for targeted redevelopment areas, moving corridor/capacity grants to a quarterly application cycle, creating a more market‑sensitive 'boost' subordinate loan aligned with bank underwriting, and removing some census‑tract restrictions so eligible businesses across the city can apply. The proposal includes a priority‑area map (the staff called it the "Hand of Fayetteville") that concentrates higher thresholds where the city wants faster redevelopment.
Staff said a small business survey showed financing and technical assistance as top needs. The proposal contemplates public‑private partnerships and possible integration with a community development financial institution to deploy more capital without excessive city risk. Council expressed general support and directed staff to return with program documents, legal templates and a launch timeline tied to the FY budget process; staff projected readiness by July 1 if approved.
