Staff recommends $2M in economic grants and loans from Downtown Vitality Fund; two large projects to return for HRA approval

City staff presented the Downtown Vitality Fund economic development recommendations and a list of projects recommended to receive funding. Nick Wolf, project manager in the economic development division, said the program budget includes $2,000,000 for economic development and $3,000,000 for housing, and staff received 60 interest forms that yielded 35 eligible economic development projects with requests totaling over $4,000,000. Wolf highlighted that smaller awards (under $100,000) will be structured as reimbursable grants while awards above $100,000 will be forgivable loans; awards exceeding $500,000 require HRA approval.

Staff recommended two large awards for HRA review: a $799,800 recommendation for façade improvements and rehabilitation at the Endicott Arcade and a $682,200 recommendation for renovating and activating more than 11,000 square feet at 428 Minnesota Street (With Love). Wolf said the larger awards are being funded at a high percentage to attract private leverage and extend the impact of the $2,000,000 program. Commissioners praised the package as a way to fill vacant storefronts and to increase downtown vibrancy; the two projects above $500,000 will return to the HRA for action on Sept. 23.