Title
Recommended Uses for American Rescue Plan Act Funds
Action
Action:
A. Approve the use of up to $1,550,000 from the Coronavirus State and Local Fiscal Recovery Fund for small business and entrepreneurship support, as follows:
– Up to $750,000 for a Diversity, Equity, and Inclusion-focused early-stage entrepreneurship accelerator,
– Up to $800,000 for small business ecosystem strategy, and
B. Approve the use of up to $1,700,000 from the Coronavirus State and Local Fiscal Recovery Fund for Corridors of Opportunity programming, as follows:
– Up to $1,000,000 for commercial district organizational support,
– Up to $200,000 for a mobile symphony project by the Charlotte Symphony Orchestra,
– Up to $500,000 to support permanent workspaces for local creatives, and
C. Authorize the City Manager, or his designee, to negotiate and execute any necessary contracts and agreements related to these recommendations.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Holly Eskridge, Economic Development
Erin Gillespie, Economic Development
Explanation
§ These actions authorize the City Manager to negotiate and execute any necessary contracts or agreements for the following recommended allocations of SLFRF funding provided by the American Rescue Plan Act of 2021:
- Up to $750,000 for DEI-focused early-stage accelerator
§ Pilot a nationally recognized early-stage accelerator with a track record of DEI-focused programming for two years. The accelerator is planned to help develop 25-40 local innovation-driven companies per year.
- Up to $800,000 to create a small business ecosystem strategy
§ Complete comprehensive assessment of small business ecosystem to help increase equitable opportunities and address challenges and gaps in resources.
- Up to $1 million for commercial district organizational support
§ Grant program that supports corridor-based organizations that support small businesses and promote growth in the Corridors and/or provide workforce development services.
- Up to $200,000 for mobile symphony project,
§ Support 10 Corridors of Opportunity co-sponsored concerts with a mobile stage in partnership with local organizations.
- Up to $500,000 to support permanent workspaces for creatives
§ Support the development of studio/workspace for local creatives. Funds may be used to supplement rents and upfit costs for creative entrepreneur studio space.
§ The proposed uses in this Request for Council Action are to respond to the negative economic impacts of the COVID-19 public health emergency and have been reviewed for compliance with the U.S. Treasury Department’s Interim Final Rule regulating allowable uses of SLFRF funds.
Background
§ On March 11, 2021, in response to the COVID-19 public health emergency, President Biden signed the American Rescue Plan Act of 2021 (ARPA).
§ ARPA included the Coronavirus State and Local Fiscal Recovery Fund (SLFRF), which provided $130 billion in direct assistance for local governments to be used to mitigate the fiscal effects stemming from the COVID-19 public health emergency.
§ The SLFRF provides direct payments to metropolitan cities and counties. Charlotte was one of the 990 cities across the nation that met the criteria.
§ The U.S. Treasury Department is releasing SLFRF funding to local governments in two equal installments. Charlotte received its first installment of approximately $71 million in May 2021 and the second installment in May 2022.
§ Funds from the SLFRF may only be used to cover costs incurred by December 31, 2024, for the following purposes:
- To respond to the COVID-19 public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
- To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible city employees who are performing such essential work or by providing grants to eligible employers that have eligible workers who perform essential work;
- For the provision of government services to the extent of the reduction in revenue in the city’s budget due to the COVID-19 public health emergency relative to revenues collected in Fiscal Year 2019; and
- To make necessary investments in water, sewer, or broadband infrastructure.
City Council Discussion
§ At the February 6, 2023 Jobs and Economic Develop (J&ED) Council Committee meeting the committee received a presentation and discussed this funding request.
§ The committee voted unanimously to support moving the request forward for consideration by Council action (Ajmera absent).
§ City Council was briefed on the request from the J&ED chair at the February 6, 2023 Council Committee Discussions meeting.
Fiscal Note
Funding: American Rescue Plan Act (ARPA) Funds
Attachments
Attachment(s)
February 6, 2023, Jobs and Economic Development Committee Presentation