Title
Recommended Uses for Coronavirus Relief Funds
Action
Action:
Authorize the City Manager to negotiate and execute any necessary contracts and agreements related to the Coronavirus State and Local Fiscal Recovery Fund provided by the American Rescue Plan Act of 2021, for the following investment recommendations:
A. Up to $14 million for small business, workforce, and hospitality support:
− Up to $2.5 million for a Small Business Partner Support Program,
− Up to $2.5 million for a Small Business Innovation Grant Program,
− Up to $3.0 million to implement recommendations associated with the Employment Study for the City’s Corridors of Opportunity,
− Up to $500,000 for the Renewable Energy and Energy Efficiency Training Program,
− Up to $1.5 million for a Workforce Partner Support Program,
− Up to $4.0 million for the Charlotte Regional Visitors Authority for Hospitality Sector Support,
B. Up to $3.5 million for non-profit operating grants, and
C. Up to $1.5 million in operating support for a local foods production and distribution facility.
Body
Staff Resource(s):
Shawn Heath, City Manager’s Office
Tracy Dodson, City Manager’s Office
Teresa Smith, Finance
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, with the second installment expected 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.
§ 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.
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 $2.5 million for a Small Business Partner Support Program,
§ This was a successful program first implemented utilizing Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding.
− Up to $2.5 million for a Small Business Innovation Grant Program,
§ This was a successful program first implemented utilizing CARES Act funding.
− Up to $3 million to implement recommendations associated with the Employment Study for the City’s Corridors of Opportunity,
§ This work supports the City’s emphasis on training and job placement in the Corridors of Opportunity.
− Up to $500,000 for the Renewable Energy and Energy Efficiency Training Program,
§ This program aligns with Charlotte’s efforts to increase green employment skills for individuals with barriers to career success.
− Up to $1.5 million for a Workforce Partner Support Program,
§ This was a successful program first implemented utilizing CARES Act funding. The funding will focus on capacity building for workforce and educational partners with a track record of successful training and upscaling initiatives.
− Up to $4 million for the Charlotte Regional Visitors Authority (CRVA) for Hospitality Sector Support,
§ This funding will support CRVA programming designed to spur tourism, hospitality industry stabilization, and job creation.
− Up to $3.5 million for non-profit operating grants,
§ Funding to be allocated as follows:
− Approximately $1 million for small, grassroots non-profit organizations, and
− Approximately $2.5 million for medium and large non-profit organizations.
§ Charlotte will rely on administrative partner(s) to receive and review grant applications and disburse funds on a competitive basis to eligible non-profits.
§ Investment priority areas include:
− Housing and Neighborhoods,
− Equity and Inclusion, and
− Environment.
− Up to $1.5 million in operating support for a local foods production and distribution facility.
§ Funding will be released based on the project achieving objective milestones, including receipt of construction permit and issuance of a Certificate of Occupancy for the facility.
Fiscal Note
Funding: ARPA funds
Attachments
Attachment(s)
February 7, 2022, Strategy Session Presentation