REPORT TO THE CITY COUNCIL FROM: LANCE LIPPINCOTT, Director Economic Development Department BY: KELLY TREVINO, Economic Development Analyst Economic Development Department SUBJECT ..Title Approve an award of $1,500,0000 in American Rescue Plan Act (ARPA) funding to the Fresno Area Hispanic Foundation (FAHF) and authorize City Manager or designee to negotiate and sign an agreement for services. ..Body RECOMMENDATION Staff recommends City Council approve an award of $1,500,000 million in ARPA funding to FAHF to provide fa�ade grants to small businesses in the City of Fresno that have been disproportionately impacted by the COVID-19 Pandemic and authorize City Manager or designee to sign agreement for services. EXECUTIVE SUMMARY The City of Fresno has allocated $1,500,000 in ARPA Funding for a Fa�ade Grant program to be outsourced to a local Community Based Organization (CBO). This program will provide funding to small businesses in the City of Fresno that have been disproportionately impacted by the COVID-19 pandemic. Special emphasis will be focused on outreach and funding in the downtown, Chinatown and the Transit Oriented Development (TOD) areas within the City. Fa�ade grant amounts shall be up to $25,000 for single storefront properties and up to $50,000 for properties with multiple storefronts. All funding must be allocated by December 31, 2024 and expended by June 30, 2025. BACKGROUND In 2021, the City of Fresno was awarded American Rescue Plan Act funding in the amount of $170,808,029. Of this funding, $1,500,000 was allocated to provide fa�ade grants to small businesses who were disproportionately impacted by the COVID-19 pandemic. Through a formal request for proposals (RFP) process, a total of seven (7) proposals were submitted for this funding through the City's Planet Bids portal. All proposals were reviewed by a committee consisting of representatives from Planning and Development, Finance, the City Manager's Office and the Economic Development Department. The committee has recommended the funding be awarded to FAHF to administer the fa�ade grant program as their proposal was found to be the most thorough, provide the best value and was best aligned with the RFP. FAHF was found to be the most capable of providing the level of service required to effectively administer this project and has the prior experience and knowledge necessary for reporting compliance requirements of the ARPA funding required. In addition, FAHF has a variety of other loan programs available that could provide further support to grantees. Funding for the program shall be allocated to include $120,000 for administration of the program, $60,000 for technical assistance to businesses who are interested in applying and $75,000 for outreach. The remaining $1,245,000 will be made available as fa�ade grants to small businesses in Fresno. The intent of the outreach funding is to provide more effective and targeted outreach to businesses in Chinatown, Downtown and the TOD areas in the City of Fresno through subcontracting with partner agencies. FAHF will give highest priority to other proposers/respondents to this RFP. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this recommendation does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE FAHF is located in the City of Fresno and services proposed will assist City of Fresno businesses. FISCAL IMPACT This agreement and program will be funded through American Rescue Plan Act funding and will not impact the general fund. Attachments: RFP 12300927 Bid Evaluation Agreement