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City staff propose $7 million 'Restore the Core' matching grant to activate vacant downtown storefronts
Summary
City economic-development staff proposed a TIFF-funded Restore the Core program: $7 million for matching reimbursement grants (one-to-one, up to $200,000) to adapt long-vacant downtown ground-floor spaces, with eligibility rules (minimum $50,000 project, 36-month lease, public-facing tenant) and council oversight of each grant award.
City economic-development staff outlined the Restore the Core proposal, a TIFF-funded matching reimbursement program intended to reduce a reported 31% ground-floor vacancy rate in the downtown core and to make street-level spaces viable for tenants who bring regular pedestrian activity.
Carrie Cruz, economic-development administrator, said downtown remains the region’s hub for jobs and entertainment but has evolved since the pandemic; staff estimate more than 1,600 housing units are currently in downtown construction, which creates demand for activated ground-floor uses. The program’s stated goal is to adapt misaligned or oversized ground-floor spaces so they become publicly accessible, tax-generating businesses.
Staff described a $7 million multi-year program structured as a one-to-one matching reimbursement grant, with typical caps of $200,000 per project and a lower cap ($100,000) for projects under an active development agreement. Eligible uses emphasize public-facing tenants — retail and service-oriented businesses (medical services, tailors, dry cleaners, veterinarians) — and exclude non-public or non-taxable uses such as offices, houses of worship or designated ineligible categories like tobacco/vape shops. The program requires property-owner consent, a minimum project of $50,000 and a minimum 36-month lease for tenant beneficiaries; staff said grants would be paid after work is completed (reimbursement) and that each grant award would come to council for approval.
Staff said the program prioritizes chronically vacant spaces (vacant for more than 12 months) and long-term investment, and they cited peer programs in other cities (Madison, Minneapolis, Tempe, and Iowa City) as models. Council members asked about program details: whether the indoor public market is still under consideration (staff: yes, under study), whether commercial brokers have been consulted (staff: yes), and whether the council can exclude certain business types (staff: yes).
Council discussion focused on program safeguards and monitoring: some members recommended a five-year minimum lease rather than three, others suggested branding and visible signage for grant-funded projects to raise awareness, and several requested that staff monitor initial outcomes and return within six to 12 months to adjust program rules if required. Staff offered forgivable-loan or clawback options as potential future tools but noted the program is currently proposed as a reimbursement grant.
Staff said the program is intended to be marketable and administrable for small tenants, and that individual grants would return to the council for approval. Council did not vote on program funding during the session; staff will return with grant recommendations and requested program performance data from past small-business lending to inform risk decisions.
