Feb 28, 2024 City Council B Session

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>> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYONE. THE TIME IS 2:06 P.M. ON

[ ITEMS  ]

>> CLERK: RIGHT. WE HAVE TWO ITEMS TODAY ON B SESSION.

I BELIEVE WE ALSO HAVE AN EXEC, AM I RIGHT, ANDY? OKAY.

SO WE'LL GO AHEAD AND GET STARTED. I'LL TURN IT OVER TO YOU,

ERIK. >> WALSH: THANK YOU, MAYOR.

GOOD AFTERNOON, MAYOR AND COUNCIL. TWO ITEMS. WE'LL START, THE FIRST ITEM IS A BRIEFING ON THE PROPOSED NEW SMALL BUSINESS CONSTRUCTION SUPPORT GRANT PROGRAM. THE PROGRAM WAS DEVELOPED IN RESPONSE TO A COUNCIL CONSIDERATION REQUEST FROM COUNCILMEMBERS MCKEE-RODRIGUEZ AND WHYTE AND IS UTILIZING $1.4 MILLION IN ARPA DOLLARS THAT THE COUNCIL DISCUSSED AND ALLOCATED DURING LAST SUMMER'S BUDGET PROCESS. SO JUST A REMINDER, THE GOAL OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE TO SMALL BUSINESSES WHO MAY BE IMPACTED BY LONG-TERM CITY INITIATED CONSTRUCTION PROJECTS.

ANA WILL TALK ABOUT THOSE TYPES OF PROJECTS. THEY'LL ALSO SHARE WITH YOU THAT THE ECONOMIC DEVELOPMENT DEPARTMENT COLLECTED FEEDBACK FROM SMALL BUSINESSES THAT -- IN CONSTRUCTION ZONES IN ORDER TO GET FEEDBACK ON PROGRAM ADJUSTMENTS FROM OUR PREVIOUS PROGRAM. SIMILAR TO OUR PRIOR PROGRAMS, THE AWARD OF THESE FUNDS CAN BE USED FOR A BROAD ARRAY OF OPERATING EXPENSES, AND HAS BEEN DONE IN THE PAST, WE DO ANTICIPATE WORKING WITH LYFT FUND TO OPEN UP THE APPLICATION PERIOD IN MAY AND BEGIN DISPERSING FUNDS TO ELIGIBLE COMPANIES THIS SUMMER.

THIS IS THE UTILIZATION OF ARPA DOLLARS, WE CAN -- TODAY'S CONVERSATION IS GOING TO BE CRITICAL TO GETTING FEEDBACK FROM THE COUNCIL SO THAT WE CAN BEGIN IMPLEMENTATION. IT DOES NOT REQUIRE US TO WAIT TO TAKE TO COUNCIL A SESSION, SO I'LL BE WORKING TO MAKE SURE THAT WE INCORPORATE A LOT OF THE COMMENTS AND CONSENSUS THAT WE HEAR TODAY SO THAT WE CAN MOVE TO EXECUTION. AND JUST AS A FURTHER REMINDER, BECAUSE IT'S ARPA FUNDS, THE COUNCIL'S AUTHORIZED ME TO ADMINISTER THEM. AND THAT'S ALLOWED US TO BE ABLE TO MOVE OUT ON SOME OF THESE PROJECTS A LOT SOONER. SO TODAY'S B SESSION OF THE CONVERSATION AND YOUR FEEDBACK IS CRITICAL TO MAKING SURE WE GET IT

RIGHT IN ROUND 2. ANA? >> GOOD AFTERNOON, MAYOR AND COUNCIL. AS ERIK SAID, MY NAME IS ANA BRADSHAW, I'M ASSISTANT DIRECTOR IN THE CITY'S ECONOMIC DEVELOPMENT DEPARTMENT AND WE'LL BE PROVIDING SOME INFORMATION TODAY ON THE FORTHCOMING GRANTS PROGRAM. THIS IS DEFINITELY NOT OUR FIRST FORAY INTO SUPPORTING THE BUSINESS OWNERS IMPACTED BY CONSTRUCTION.

WHILE THERE HAVE BEEN PAST EFFORTS SUCH AS THE BLANCO ROAD PROGRAM A NUMBER OF YEARS BACK, IN THE LAST TWO YEARS, WE'VE ALSO HAD TWO EFFORTS THAT R WITH FUNDED BY ARPA TO PROVIDE ASSISTANCE TO BUSINESSES IMPACTED BY THESE LONG-TERM MUCH-NEEDED INFRASTRUCTURE PROJECTS ACROSS THE CITY. SO ON HERE, YOU'LL SEE BOTH THE 2022 COVID IMPACT GRANTS PROGRAM, WHICH INCLUDED THE $10,000 SUPPLEMENT FOR BUSINESSES IMPACTED IN A NUMBER OF CORRIDORS ACROSS THE CITY.

AND AS YOU'LL SEE, 135 OF THE TOTAL 524 RECIPIENTS RECEIVED THE ADDITIONAL $10,000. THEN FAST-FORWARD INTO ABOUT THIS TIME LAST YEAR, WE ROLLED OUT THE COVID CONSTRUCTION RECOVERY GRANTS PROGRAM.

NOW, THIS WAS A DEDICATED CONSTRUCTION IMPACT PROGRAM WHERE WE AWARDED ALMOST $2.5 MILLION INTO NEARLY 100 BUSINESSES WITH AN AVERAGE AWARD OF ALMOST $27,000. AND SO ALONG WITH THAT, WE HAVE BEEN SIMULTANEOUSLY ROLLING OUT OUR CONSTRUCTION MITIGATION PROGRAM.

AND THESE ARE REALLY THOSE PROACTIVE EFFORTS WHERE WE'RE WORKING WITH THE BUSINESSES BOTH BEFORE, DURING AND AS THE PROJECTS WRAP UP, THE BUSINESSES TO PROVIDE THEM SUPPORT. AND SO INITIALLY THERE WAS THE PILOT, THAT WAS FUNDED WITH $400,000. AND WE HAVE AN ONGOING

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OUR SIGNAGE PROGRAM, ONE OF THE BITS OF FEEDBACK WE HEAR FROM BUSINESSES IS THE PUBLIC DOESN'T KNOW I'M OPEN AND THEY DON'T KNOW HOW TO GET TO ME, SO WE IMPLEMENTED THIS PROGRAM. WE'VE ALSO DONE SOME TARGETED CITYWIDE MARKETING SUPPORT WITH OUR PAVING THE WAY CAMPAIGN. AND REALLY THE CORNERSTONE OF THAT WAS THE ESTABLISHMENT OF OUR BUSINESS OUTREACH TEAM. THESE ARE A DEDICATED GROUP OF SPECIALISTS WITHIN ECONOMIC DEVELOPMENT WHO ARE HAVING ALMOST DAILY CONTACT WITH THE BUSINESSES, WHETHER IT'S A QUICK PROBLEM LIKE CONSTRUCTION IS -- THE CONTRACTOR IS PARKING IN FRONT OF MY DRIVEWAY AND WORKING WITH PUBLIC WORKS TO RESOLVE THAT, OR LONGER TERM ISSUES OF HOW CAN I GET CONNECTED TO UTILITY ASSISTANCE OR, AGAIN, THE SIGNAGE AND MARKETING. THAT TEAM IS REALLY OUR BOOTS ON THE GROUND PROVIDING THAT OUTREACH AND SUPPORT TO THE BUSINESSES. SO AS ERIK MENTIONED, THIS REALLY ORIGINATED, THIS CURRENT ITERATION WITH THE CCR, AND, AGAIN, THE $1.4 MILLION FROM ARPA BEING ALLOCATED OVER THE SUMMER. THE OVERALL GOAL OF MITIGATING NEGATIVE IMPACTS ON THE BUSINESSES IMPACTED BY CONSTRUCTION. SO WE DID ENGAGE IN A LARGE FEEDBACK AND OUTREACH CAMPAIGN. WE MET WITH OUR SMALL BUSINESS ADVISORY COMMISSION IN DECEMBER TO GATHER THEIR FEEDBACK AND PRIORITIES FOR CREATION OF A CRITERIA FROM THIS PROGRAM. AND ALONG WITH THAT, ISSUED A SURVEY TO PAST GRANT RECIPIENTS LEARNING HOW THEY USED THE FUNDS.

THIS WAS REALLY INFORMATIVE FOR US IN IDENTIFYING THE AVAILABLE USES GOING FORWARD. WE ALSO REACHED OUT TO BUSINESSES THAT WERE CURRENTLY BEING IMPACTED BY CONSTRUCTION OR THOSE THE PROJECTS WERE GOING TO BE GETTING UNDER WAY IN THE NEAR FUTURE TO UNDERSTAND, AGAIN, SOME OF THE CHALLENGES THEY WERE HAVING, THE CONCERNS AND WERE THERE TO BE A GRANT PROGRAM, WHAT WOULD THEIR PRIORITIES BE FOR THE CREATION OF ELIGIBILITY CRITERIA AND UTILIZATION. WE ALSO CONNECTED WITH A NUMBER OF CHAMBERS AND BUSINESS-SERVING ORGANIZATIONS TO GET THEIR FEEDBACK AS WELL, UNDERSTANDING THAT EITHER THROUGH THEIR MEMBERSHIP OR THE BUSINESSES THAT THEY SERVED, THAT THEY HAVE A WEALTH OF KNOWLEDGE THAT WE WANTED TO TAP INTO FOR CREATION OF THE PROGRAM, AS WELL AS THERE IS AN ONGOING AUDIT OF THE 2023 COVID CONSTRUCTION GRANTS PROGRAM, LEARNING ANY LESSONS, WORKING THROUGH THAT WITH THE AUDIT TEAM AS WE GO T THROUGH THE PROCESS AND INCORPORATING THAT FEEDBACK INTO THE DESIGN OF THIS PROGRAM. SO WHAT DID THE FEEDBACK RECEIVE -- IN SUMMARY LOOK LIKE? SO, AGAIN, IN TERMS OF FINANCIAL NEED, THE BUSINESSES THAT ANTICIPATED GRANT FUNDS PLANNED TO USE IT FOR EITHER PAYROLL, RENT, MORTGAGE, SUPPLIES, GENERAL BUSINESS EXPENSES. AND PAST RECIPIENTS, THEIR UTILIZATION MIRRORED THAT NEED. WE THOUGHT THAT WAS PARTICULARLY SPR INTERESTING, THAT THEY USED IT FOR A NUMBER OF PURPOSES WITH THE TOP BEING PAYROLL, RENTS, UTILITIES. IT WAS REITERATED THROUGHOUT THE SENSE OF URGENCY AND HAVING A SIMPLE APPLICATION PROCESS, REQUIRING AS MINIMAL NUMBER OF FORMS AND DOCUMENTS REQUIRED, BUT ALSO STILL HAVING SOME CRITERIA, NOT JUST, YOU KNOW, OPEN CALL FOR APPLICATIONS. AND THEN IN TERMS OF OTHER PROGRAM CRITERIA, CERTAINLY WAS EMPHASIZED THROUGHOUT THE SURVEY RESULTS PRIORITIZING LONGER OR DELAYED CONSTRUCTION PROJECTS, AS WELL AS PREEXISTING BUSINESSES ON THOSE CORRIDORS. AND THEN ALSO CONSIDERING, BUT PERHAPS NOT DISQUALIFYING BUSINESSES WHO HAD PREVIOUSLY RECEIVED ASSISTANCE THROUGH THE PRIOR TWO PROGRAMS. AND SO ALL OF THIS FEEDBACK, ALONG WITH LESSONS THAT WE'VE LEARNED ALONG THE WAY AND THOSE THAT LYFT FUND HAS LEARNED ALONG THE WAY WERE SYNTHESIZED AND USED TO DEVELOP THE CRITERIA AND ELIGIBILITY FOR THIS NEXT PROGRAM. SO WHAT DOES THE PROGRAM LOOK LIKE? AGAIN, WITH $1.4 MILLION BEING ALLOCATED TOWARDS IT, THE PROGRAM WILL INCLUDE $1.28 MILLION IN DIRECT FUNDING TO THE BUSINESSES, WITH THE REMAINDER BEING USED AS AN ADMINISTRATIVE FEE FOR LYFT FUND TO SUPPORT THE PROGRAM. AND THIS WILL ACTUALLY BE OUR FIFTH PROGRAM SINCE THE BEGINNING OF COVID THAT WE'VE ROLLED OUT WITH LIFTFUND.

THEY HAVE BEEN AN AMAZING PARTNER THROUGHOUT THIS AND WE'RE VERY THANKFUL TO BE WORKING WITH THEM AGAIN ON THIS PROGRAM, AND REALLY LOOK TO THEIR EXPERTISE TO HELP US MAKE IT ANOTHER SUCCESS. AND SO WE DO LOOK TO ROLL OUT CASH GRANTS IN THE RANGE OF 10 TO $35,000 BASED ON THE ACTUAL REDUCTION IN NET INCOME THAT THE BUSINESSES HAVE EXPERIENCED COMPARING

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AGAIN, USING THE CRITERIA THAT THEY ARE A MAJOR CITY INITIATED CONSTRUCTION ZONE, WE UNDERSTAND THERE'S A LOT OF PRIVATE CONSTRUCTION AS WELL, BUT THE FOCUS OF THIS PROGRAM ARE CITY-INITIATED PROJECTS, THAT ARE PLANNED TO LAST AT LEAST ONE YEAR, AND THAT WERE ONGOING AS OF FEBRUARY 1ST OF THIS YEAR. AND SO YOU'LL SEE THAT RESULTED IN EIGHT CORRIDORS MEETING THAT CRITERIA.

ALTHOUGH YOU'LL NOTE THAT THE Z SOW NATURAL CULTURAL STREETS ARE A NUMBER OF PROJECTS BUT ALL WRAPPED INTO THAT PROJECTS.

WHILE IT IS EIGHT CORRIDORS YOU'LL SEE A LARGE NUMBER OF BUSINESSES BEING IMPACTED AND POTENTIALLY ELIGIBLE FOR THE PROGRAM.

IN TERMS OF THE INDIVIDUAL BUSINESS CRITERIA, YOU'LL SEE THOSE LISTED HERE, BUT WANT TO POINT OUT A FEW. FIRST, THAT THEY MUST HAVE A MINIMUM OF $10,000 IN GROSS SALES REFLECTED IN THEIR 2023 INCOME TAXES. NOW, WE KNOW TAX DAY DEADLINE HAS NOT COME YET, AND SOME BUSINESSES MAY NOT HAVE FILED, BUT IN WORKING WITH LIFTFUND, THEY CAN USE A VARIETY OF DOCUMENTS FOR BUSINESSES WHO HAVE NOT YET FILED, INCLUDING YEAR-END PROFIT AND LOSS STATEMENTS. AND THOSE BUSINESSES REALLY HAVE TO BE BRICK AND MORTAR ESTABLISHMENTS.

AGAIN, THOSE THAT THE ACTUAL CONSTRUCTION WILL HAVE AN IMPACT ON CUSTOMERS ACCESSING THEIR PLACE OF BUSINESS. THEY MUST BE A SMALL BUSINESS AS DEFINED BY THE SMALL BUSINESS ADMINISTRATION FOR THEIR SPECIFIC INDUSTRY. THEY HAVE TO BE OPERATING AND NOT FILED FOR BANKRUPTCY. AND YOU'LL SEE THE LIST OF EXCLUSIONS, WHICH IS CONSISTENT WITH ALL OF OUR PRIOR PROGRAMS. IN TERMS OF SCORING CRITERIA, I WANT TO EMPHASIZE, THIS IS NOT A FIRST COME, FIRST SERVE PROGRAM. ANY BUSINESS THAT SUCCESSFULLY APPLIES DURING THE APPLICATION PERIOD WILL BE SCORED AND POTENTIALLY ELIGIBLE FOR A GRANT. AND SO WITH THE SCORING CRITERIA, YOU'LL SEE MAXIMUM OF 100-POINTS AND LIFTFUND WILL RANK ALL OF THE BUSINESSES SCORED AND GO THROUGH THEM FROM HIGHEST SCORE TO LOWEST UNTIL FUNDING IS EXHAUSTED. AND SO YOU'LL SEE THE SCORING CRITERIA BREAKING DOWN INTO FIVE BUCKETS, INCLUDING PROJECT DURATION.

AGAIN, BASED ON THAT FEEDBACK EMPHASIZING THE LONGER TERM PROJECTS.

PROVIDING ADDITIONAL POINTS FOR BUSINESSES WHO HAVE NOT RECEIVED PRIOR ASSISTANCE. AGAIN, PRIORITIZING THOSE WHO HAVE BEEN IMPACTED THE MOST BY CONSTRUCTION AS REFLECTED IN THE REDUCTION OF THEIR NET REVENUE. THIS IS A NEW CRITERIA WE ADDED, THE NEXT ONE, PREEXISTING BUSINESSES. AGAIN, EMPHASIZING THOSE BUSINESSES WHO ARE -- OR PERHAPS THOSE LEGACY BUSINESSES ON THE CORRIDOR HAVE BEEN THERE LONG BEFORE THE CONSTRUCTION STARTED, BUT ALSO CREATING OPPORTUNITIES FOR BUSINESSES WHO ARE PERHAPS NEWER TO THE CORRIDOR, AS LONG AS THEY WERE IN OPERATION PRIOR TO THE START OF 2022.

AND THEN LOOKING AT OUR EQUITY ATLAS, THOSE ADDITIONAL POINTS TO THOSE BASED ON THE INCOME-ONLY SCORE RECEIVING ADDITIONAL POINTS WITH A HIGHER SCORE. AS I'D MENTIONED PREVIOUSLY, SO MINIMUM GRANT AWARD WOULD BE $10,000.

THE MAXIMUM OF $35,000, BUT IT WILL BE BASED ON THEIR REDUCTION IN NET INCOME WHEN COMPARING 2023 TO 2022. SO IF THE BUSINESS EXPERIENCED A $20,000 REDUCTION IN NET INCOME, IT DOESN'T NECESSARILY MEAN THEY NEED TO BE IN THE RED, JUST THAT THEIR 2023 AMOUNT IS LESS THAN THEIR 2022. SO IF THAT AMOUNT WAS $20,000, THEY WOULD BE POTENTIALLY ELIGIBLE FOR UP TO $20,000. AGAIN, UTILIZING THAT FEEDBACK WE RECEIVED BOTH FROM THOSE WHO HAD PREVIOUSLY RECEIVED GRANTS BUT ALSO THOSE WHO WERE POTENTIAL FUTURE BUSINESSES WHO COULD BENEFIT FROM THE PROGRAM, ELIGIBLE USES ARE VERY BROAD.

EVERYTHING FROM GENERAL WORKING CAPITAL TO PAYROLL EXPENSES, SUPPLIER PAYMENTS, UTILITY PAYMENTS, PROVIDED IT WAS FOR THEIR BUSINESS ONLY. AND THE ONLY TWO INELIGIBLE USES BEING DISTRIBUTIONS TO OWNERS OR INVESTORS AND ACQUIRING OTHER ASSETS.

THIS PROGRAM IS REALLY ABOUT SUPPORTING THE BUSINESSES BEING IMPACTED AND HELPING THEM TO REMAIN OPEN. IN TERMS OF PROGRAM TIMELINE, AGAIN, AFTER THIS WE WOULD LOOK TO GO INTO IMPLEMENTATION WITH

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IT WOULD BE OPEN FOR THE MONTH OF MAY, AND THEN LIFTFUND WOULD BEGIN THE PROCESS OF REVIEWING AND FOLLOWING UP WITH APPLICANTS DURING THE SUMMER WITH THE GOAL OF FUNDING STARTING TO GO OUT IN AUGUST.

THIS IS CONSISTENT WITH OUR OTHER TIMELINES. WE ALWAYS LOOK TO SEE IF, YOU KNOW, LIFTFUND WOULD START TO AWARD JUST AS SOON AS THEY CAN, BUT REALLY FOR US, THE FOCUS IS MAKING SURE WE HAVE ENOUGH TIME TO DO THAT MARKETING AND OUTREACH, AND THAT THE BUSINESSES HAVE THE TIME TO GATHER THE DOCUMENTS THEY NEED. PERHAPS IF THEY'RE FINISHING UP FILING THEIR TAXES, THEY HAVE THAT OPPORTUNITY, SO THEY HAVE THE INFORMATION THEY NEED UP FRONT SO WHEN THE APPLICATION OPENS, THAT THEY ARE READY TO APPLY SOMEWHERE DURING THERE. BUT, AGAIN, WE WANT TO EMPHASIZE, THIS IS NOT A FIRST COME FIRST SERVE PROGRAM, ANY BUSINESS WHO SUCCESSFULLY APPLIES BY THE CLOSING TIME ON MAY 31ST WOULD BE CONSIDERED FOR A GRANT.

MARKETING AND OUTREACH, SO, AGAIN, I TOUCHED ON WANTING TO HAVE THE TIME TO DO THAT, AND WE REALLY LOOK AT HAVING A MULTI-PRONGED APPROACH.

WE DO PARTNER WITH LIFTFUND, THEY CREATE A VERY ACCESSIBLE PROGRAM WEBSITE IN BOTH ENGLISH AND SPANISH, AND WE WILL LOOK TO BUILD THAT MARKETING COLLATERAL TO BE ABLE TO DISTRIBUTE. ONE OF THE MOST EFFECTIVE THINGS WE'VE FOUND, AND WE DID THROUGH THE COVID CONSTRUCTION GRANTS, WAS DOOR-TO-DOOR OUTREACH, REALLY KNOCKING ON THE DOORS.

IT'S A GREAT OPPORTUNITY FOR US TO GET TO KNOW THE BUSINESSES, PROVIDE THEM ACCESS, NOT ONLY TO INFORMATION RELATED TO THIS, BUT, AGAIN, OUR OTHER CONSTRUCTION MITIGATION PROGRAMS, AND SO WE WILL LOOK TO DO THAT AGAIN. WE'LL DO TARGETED MAILERS AND PHONE CALLS AND E-MAILS TO BUSINESSES. WE WILL HOST AT LEAST TWO INFORMATION SESSIONS WITH LIFTFUND. AGAIN, BOTH IN ENGLISH AND IN SPANISH.

WITH OPPORTUNITIES FOR THE BUSINESSES TO ASK QUESTIONS IN THOSE LIVE SESSIONS. AND ANOTHER THING WE'VE DONE IN THE PAST THAT WE'VE FOUND TO BE EFFECTIVE IS WORKING WITH OUR PARTNERS TO PROVIDE APPLICATION DAYS, WHERE IF A BUSINESS IS WORKING ON APPLICATION AND HAPPEN TO GET STUCK, THEY CAN COME, GET ASSISTANCE FROM ONE OF OUR PARTNER ORGANIZATIONS, AND BE ABLE TO SUBMIT THERE ON SITE.

WE ALSO NOAC SESTO TECHNOLOGY, -- KNOW ACCESS TO TECHNOLOGY, THERE IS A COMPUTER DIVIDE, ACCESS TO THOSE EVENTS, WHETHER THEY'LL BE HELD AT THE LIBRARY OR ANOTHER LOCATION, THAT'S SOMETHING WE'LL LOOK TO REPEAT THROUGHOUT THIS PROCESS. THAT CONCLUDES MY

PRESENTATION. HERE FOR ANY QUESTIONS. >> WALSH: MAYOR, JUST ONE THING I WANTED TO EMPHASIZE THAT ANA HAD ON SLIDE 12, AND I THINK IT WILL PROBABLY BE HOPEFULLY PART OF THE CONVERSATION, THIS -- THIS IS -- WE'RE UTILIZING ARPA DOLLARS, WHICH IS A ONE-TIME SOURCE. AND I SUSPECT PART OF THE CONVERSATION AND CONTINUED CONVERSATION BEYOND TODAY IS WHAT DO WE DO GOING FORWARD IN THE FUTURE. AND THE KEY PART I THINK, AND WE MENTIONED THIS THE LAST TIME WE CAME TO COUNCIL, IS THAT CONTINUED COORDINATION WITH SAUCE A SAWS AND CPS AS IT COMES TO MITIGATING CONSTRUCTION IMPACTS. IT'S NOT WE'RE ALL THE CITY, BUT WE HAVE INITIATED THAT CONVERSATION WITH BOTH THOSE ENTITIES AND ULTIMATELY AS IT RELATES TO A RECOMMENDATION OR A PROGRAM BEYOND THE USE OF ARPA. FROM MY PERSPECTIVE, THEY CERTAINLY SHOULD BE PART OF THAT PROGRAM AND THE FUNDING OF IT, BECAUSE THEY DIRECTLY IMPACT THOSE CONSTRUCTION PROJECTS AS WELL. THANKS, MAYOR.

>> MAYOR NIRENBERG: GREAT. THANK YOU. AND THANK YOU FOR THE PRESENTATION, ANA. THIS PROPOSAL WENT THROUGH THE ECONOMIC AND WORKFORCE DEVELOPMENT DEPARTMENT, IS THAT CORRECT?

>> NO, THIS DID NOT GO THROUGH EWDC. WE BRIEFED SBAC BUT IN

THE INTEREST OF TIME -- >> WALSH: WE FAST TRACKED.

. WE TALKED COUNC.

THAT'S FINE. I UNDERSTAND THERE'S A SENSE OF URGENCY FROM EVERYBODY ON THIS. MY QUESTION IS, WHAT HAS BEEN THE FEEDBACK FROM THE BUSINESSES, BECAUSE OBVIOUSLY IF WE WANT LIMITED FUNDS TO BE EFFECTIVE FOR THEM, WE WANT TO MAKE SURE IT'S ADDRESSING THE RIGHT THING. SO WHAT'S BEEN THE FEEDBACK SHARED FROM THE

SMALL BUSINESS COMMUNITY? >> FROM THE BUSINESS COMMUNITY, THE GRANT OVERWHELMINGLY GRATEFUL AND EXCITED FOR THE SUPPORT. I THINK THEY APPRECIATE THE ASSISTANCE GOING FORWARD, BUT WE ROUTINELY HEAR THE FEEDBACK OF IMPROVING COMMUNICATION THROUGHOUT THE SOURCE OF THE PROJECTS, SORT OF IF I KNEW NOW WHAT I KNEW THEN. SO BEING ABLE TO PREPARE THE BUSINESSES GOING INTO THE CONSTRUCTION, SO THAT'S A PRIORITY, BUT DEFINITELY FOR THE BUSINESSES THAT HAVE GOTTEN APPRECIATION FOR THE SUPPORT.

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>> MAYOR NIRENBERG: WHAT ABOUT THE SPECIFIC INTERVENTIONS? I UNDERSTAND WE KNOW AND WE'RE GOING TO DO EVERYTHING WE CAN NOT TO GET INTO A SITUATION LIKE THAT, BUT IN THESE SPECIFIC INTERVENTIONS, THE LEVEL OF FUNDING, THE AMOUNT OF BUSINESSES THAT COULD BE ADDRESSED THROUGH THIS LEVEL OF FUNDING, WHAT'S BEEN THE FEEDBACK THERE, OR HAS

THERE BEEN ANY? >> I THINK PROVIDING THE MEANINGFUL FEEDBACK -- I MEAN -- AGAIN. SOME HAVE SAID THIS IS NOT ENOUGH, BUT, AGAIN, APPRECIATIVE FOR IT. SO I THINK THE EMPHASIS GOES MORE TOWARDS PROVIDING MEANINGFUL SUPPORT AS OPPOSED TO SMALLER SUPPORT TO

PERHAPS MORE BUSINESSES. >> MAYOR NIRENBERG: OKAY. I GUESS I WOULD ASK THAT AS WE EVALUATE THE USE OF THESE FUNDS, THAT IF THERE ARE SOME PATTERNS THAT EMERGE SPECIFIC TO, SAY, UTILITY ASSISTANCE OR, YOU KNOW, WHATEVER ELIGIBLE USES THAT THEY'RE BEING USED FOR, THAT WE PERHAPS COULD DIG INTO THAT A LITTLE BIT MORE AND PERHAPS THERE'S SOME NONFINANCIAL WAYS THAT WE CAN HELP WITH THOSE SITUATIONS. I'M THINKING, AGAIN, ERIK, YOU'RE TALKING ON THE FRONT END OF THESE PROBLEMS, COORDINATION WITH THE UTILITY. THERE'S ALSO BACK-END COORDINATION WHEN BUSINESSES THAT HAVE NOT BEEN ABLE TO OPERATE 100% ARE ALSO PAYING THEIR UTILITY BILLS, ELECTRIC AND WATER AT 100%, EVEN THOUGH THEY HAVEN'T BEEN OPERATING WELL, SO MAYBE THERE'S SOMETHING THAT WE CAN BE WORKING ON ON THAT SIDE OF IT, TOO. SO I GUESS JUST, IF YOU CAN CONTINUE TO COME BACK WITH US -- TO US WITH, YOU KNOW, SOME METRICS AND PERFORMANCE DATA,

ANA, THAT WOULD BE GREAT. >> I WILL ADD FROM THE 2023 GRANT RECIPIENTS, THE TOP THREE UTILIZATIONS FROM THE FINDING THAT THEY INDICATED WAS FOR RENT AND MORTGAGE, PAYROLL AND

UTILITIES. >> MAYOR NIRENBERG: GOT IT.

OKAY. ALL RIGHT. THANK YOU VERY MUCH.

WE'LL GO STRAIGHT INTO DISCUSSION WITH COUNCILMEMBER VIAGRAN.

[INDISCERNIBLE] I WANT TO THANK MY COUNCIL COLLEAGUES FOR BRINGING THIS FORWARD, MCKEE-RODRIGUEZ AND WHYTE.

I WANT TO TALK ABOUT SPECIFICALLY ABOUT THE GEVERS DRAINAGE AND SOUTH PRESA. THAT'S BEEN SOMETHING I'VE BEEN WORKING WITH YOUR TEAM ON TRYING TO GET THEM RELIEF. CAN YOU LET ME KNOW HOW YOU'RE GOING TO INFORM -- OR WILL WE GET UPDATES AS A COUNCIL OFFICE IN PARTICULAR OR DO WE NEED TO CONTINUE TO REACH OUT TO YOU FOR THE OTHER -- I KNOW WE REACH OUT TO YOU, BUT IS THERE GOING TO BE LIKE A BRIEFING THAT GIVES US AN UPDATE OR ARE WE JUST GOING TO CONTINUE TO COMMUNICATE WITH YOUR STAFF ON THAT TO GET THEM HELP?

>> WE'LL DEFINITELY DO THE OUTREACH TO GEVERS. I KNOW GABBY, OUR OUTREACH SPECIALIST, AND MONICA, THEY'RE OUT THERE QUITE FREQUENTLY, SO WE WANT TO BE ABLE TO HAND THEM A CARD THAT SAYS HERE'S HOW YOU CAN APPLY. CERTAINLY WOULD APPRECIATE THE COUNCIL OFFICES HELPING AMPLIFY OUR MESSAGE AS WELL, AND OUR GOAL WITH THE PROGRAM IS, AGAIN, THAT THE BUSINESS OWNERS KNOW WHO THEY CAN COME TO.

WE CERTAINLY APPRECIATE THAT THEY CAN GO TO THEIR COUNCIL OFFICE AND GET CONNECTED WITH US AS WELL, BUT WE WANT THAT TEAM TO BE THE WORST KEPT

SECRET ACROSS THE CITY. >> WALSH: SO PART OF WHAT WE'LL DO -- AND WE DEALT WITH THIS ON A -- NOT ON THE LAST GRANT PROGRAM, CONSTRUCTION MITIGATION, BUT ON ONE OF THE OTHER ARPA PROGRAMS, WE'LL LAY OUT A SCHEDULE WHERE WE'LL DO THE OUTREACH AND THE MARKETING IN THOSE AREAS, AND MAKE SURE ALL THE AFFECTED COUNCILMEMBERS HAVE THAT SO THAT YOU CAN EITHER IN PARALLEL OR IN CONJUNCTION ALSO AMPLIFY THAT MESSAGE AS ANA'S

DESCRIBING. >> VIAGRAN: OKAY. AND THEN ONE MORE QUESTION, BECAUSE SOMETIMES -- I'M THANKFUL FOR THIS, BECAUSE WE'RE HELPING THEM, BUT SOMETIMES THE CONTRACTORS OR THE SUBCONTRACTORS MAKE THAT MISTAKE, YOU KNOW, HIT SOMETHING THAT THEY SHOULDN'T AND THEN SOME OF MY -- THE BUSINESSES ARE TOLD TO GO TO THE CONTRACTOR TO TRY AND RESOLVE AND GET THEIR MONEY BACK FOR SOME OF THOSE ISSUES.

IS THAT STILL GOING TO BE THE CASE AND ARE WE GOING TO KEEP RECORD OF THOSE CONTRACTORS THAT KEEP ON KIND OF MAKING MISTAKES OR -- AND Y'ALL KNOW, I THINK Y'ALL KNOW WHO I'M TALKING ABOUT SPECIFICALLY.

LIKE BLOCKING OFF STREETS AND NOT INFORMING OUR -- THE SMALL BUSINESSES SO THAT, YOU KNOW, THEY HAVE CLIENTS COMING AND THEN THEY DON'T KNOW HOW TO GET TO THEM. HOW ARE WE GOING TO CONTINUE TO KEEP TRACK

AND WHAT DO WE DO IN THOSE SITUATIONS? >> COUNCILWOMAN, IF THEY DAMAGE ANY OF THEIR PROPERTY, WE MAKE THEM TO PAY FOR THAT DAMAGE.

AND, OF COURSE, IF THEY DO NOT COMMUNICATE PROPERLY, OUR POLICY IS

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WE NEVER CLOSE THE DRIVE 100%. IF THEY HAVE ONLY ONE DRIVEWAYIME. IF THEY HAVE TWO DRIVEWAY, WE COMMUNICATE WITH BUSINESS OWNER, CLOSE THIS ONE AND BUILD THAT ONE AND THEN OPEN OTHER ONE. SECONDLY, THANKS TO YOU AND OTHERS, WE PASSED THE SPONSORED NANS, WE CREATE THESE CONTRACT THAT AFTER THEY FINISH A PROJECT, IF THEY DON'T DO A GOOD JOB AND THEY GET LESS THAN 70 POINTS, WE DO NOT RECOMMEND FOR FOLLOWING THREE YEARS FOR AWARDING THEM CONTRACT.

>> VIAGRAN: THANK YOU, RAZI. THANK YOU.

THAT'S ALL FOR ME. >> MAYOR PRO TEM: THANK YOU, COUNCILWOMAN VIAGRAN. COUNCICOUNCILMAN WHYTE?

>> WHYTE: THANK YOU. I WANT TO BEGIN TODAY A LITTLE BIT ABOUT TALKING ABOUT HOW WE GOT HERE. WHEN I FIRST GOT INTO OFFICE, ONE OF THE THINGS THAT I SAID THAT I WANTED TO MAKE SURE TO DO WAS REALLY HAVE GOOD WORKING RELATIONSHIPS WITH EVERYBODY ON THIS COUNCIL AS WELL AS THE MAYOR, REGARDLESS OF THE PHILOSOPHICAL BELIEFS -- THE PHILOSOPHICAL DIFFERENCES THAT WE MAY HAVE. AND RIGHT FROM THE GET-GO, I REACHED OUT TO COUNCILMAN MCKEE-RODRIGUEZ AND WE SAT DOWN AND WE TALKED A LOT ABOUT THE ISSUES, YOU KNOW, GOING ON ACROSS THE CITY AND OUR DIFFERENT BELIEFS ON SOME OF THEM, AND AS YOU WOULD EXPECT, THERE'S A LOT OF DIFFERENCES BETWEEN HOW THE COUNCILMAN AND I VIEW SOME OF THESE PROBLEMS AND WHAT SOME OF THE SOLUTIONS MAY BE.

BUT WE GOT PAST THAT AND WE GOT TO THE THINGS THAT I THINK WE CAN AGREE ON.

AND TO ME, GOVERNMENT TODAY HAS LOST A BIT OF THE SPIRIT OF COLLABORATION. TOO MANY TIMES WE HAVE PEOPLE WITH DIFFERENT POLITICAL PHILOSOPHIES GETTING INTO THEIR OWN CORNERS AND NOT COMING TOGETHER TO WORK ON THE THINGS THAT THEY ACTUALLY CAN AGREE ON.

AND SO I WANTED TO SAY THAT I APPRECIATE COUNCILMAN MCKEE-RODRIGUEZ FOR HIS WILLINGNESS TO WORK THROUGH THE DIFFERENCES THAT WE MAY HAVE AND COME TOGETHER ON AN ISSUE LIKE THIS ONE HERE TODAY.

SO THIS WAS MY FIRST CCR, AND, YOU KNOW, FOR ME, DURING THE COURSE OF THE CAMPAIGN, I HEARD FROM SMALL BUSINESS OWNERS ALL ACROSS DISTRICT 10, AS WELL AS MANY FROM OUTSIDE OF THE DISTRICT, WHO WERE JUST REALLY BURDENED BY THE LENGTHY CONSTRUCTION GOING ON OUTSIDE OF THEIR -- THEIR FACILITIES. AND WE ALL PROBABLY HAVE STORIES LIKE THAT FROM EACH OF OUR DISTRICTS, BUT ALL YOU'VE GOT TO DO IS DRIVE AROUND THE CITY A BIT AND YOU CAN SEE CONSTRUCTION TAKING PLACE EVERYWHERE.

AND IT JUST -- IT'S SEEMING TO LAST A REALLY LONG TIME AND IT'S REALLY HURTING OUR CITY'S SMALL BUSINESSES. AND SO THAT'S WHEN THE COUNCILMAN AND I TEAMED UP, WE GOT THIS CCR DONE.

APPRECIATE EVERYBODY WHO SIGNED ONTO IT, AND I'M EXCITED THAT WE'RE HERE TODAY TO DISCUSS IT, BECAUSE I THINK WHEN THIS GETS MOVING, IT'S DEFINITELY GOING TO PROVIDE SOME RELIEF FOR OUR CITY'S SMALL BUSINESSES. ERIK, ONE THING YOU MENTIONED EARLIER THAT I JUST WANT TO GET OUT OF THE WAY AT THE TOP IS THE ISSUE OF THIS BECOMING A PERMANENT FUND THAT WE CAN GET TOGETHER IN YEARS TO COME.

AND I THINK FROM OUR PAST DISCUSSIONS, WE'VE TALKED ABOUT WE NEED TO GET THIS ON THE SCHEDULE TO TALK ABOUT DURING OUR BUDGET GOAL-SETTING PROCESS; IS

THAT RIGHT? >> WALSH: YES. >> WHYTE: OKAY.

SO I WANT TO MAKE SURE THAT WE DO NOTE THAT DURING THE GOAL-SETTING PROCESS COMING UP FOR THE BUDGET, WE DO TALK ABOUT CREATING A LINE ITEM IN THERE FOR A CONSTRUCTION MITIGATION FUND MOVING FORWARD.

I REALLY LIKE THE WORK THAT CITY STAFF HAS DONE ON THIS AS A WHOLE, BUT I DO HAVE A MAJOR CONCERN. AND THAT IS IN RELATION TO THE EQUITY ATLAS POINTS THAT ARE BEING GIVEN HERE. I UNDERSTAND THAT COUNCIL IN THE PAST HAS -- HAS DIRECTED CITY STAFF TO CONSIDER THE EQUITY ATLAS IN A LOT OF WHAT WE DO. AND I'M NOT SITTING UP HERE SAYING THAT IT DOESN'T HAVE A TIME AND A PLACE AND CAN BE HELPFUL FOR A LOT, BUT

[00:30:05]

AND IF YOU HAVE, LET'S SAY, A BUSINESS IN DISTRICT 10 MAKING $100,000 A YEAR AND YOU'VE GOT A BUSINESS IN DISTRICT TWO MAKING $100,000 A YEAR AND THE BUSINESS IN DISTRICT 10 LOST $20,000 LAST YEAR DUE TO CONSTRUCTION AND THE BUSINESS IN DISTRICT TWO ONLY LOST $10,000 LAST YEAR DUE TO CONSTRUCTION, TO ME, THE BUSINESS IN DISTRICT 10 HAS A LITTLE BIT MORE NEED THAN THE BUSINESS IN DISTRICT TWO.

BUT BECAUSE OF THE WAY THE EQUITY ATLAS POINTS ARE GOING TO WORK, IT'S THE BUSINESS IN DISTRICT TWO THAT'S GOING TO RECEIVE THE MONEY.

WE DID A LITTLE ANALYSIS HERE ON A CHART THAT I'M HAPPY TO SHARE WHERE WE COMPARED TWO BUSINESSES, EACH GETTING THE SAME NUMBER OF POINTS FOR, YOU KNOW, DURATION OF THE CONSTRUCTION PROJECT AND FOR PRIOR ASSISTANCE RECEIVED, AND WE GAVE ONE BUSINESS EXTRA POINTS FOR HAVING LOST MORE MONEY AND BEING A PREEXISTING BUSINESS FOR MORE YEARS, BUT WE GAVE THE OTHER BUSINESS THE 20 POINTS FOR THEIR EQUITY ATLAS SCORE, AND IT'S THIS OTHER BUSINESS THAT JUST GOT THE EQUITY ATLAS POINTS THAT ENDS UP SCORING BETTER TO RECEIVE THE MONEY. IT DOESN'T MAKE SENSE TO ME. A FINAL REASON IT DOESN'T MAKE SENSE TO ME, AND COUNCILMAN PELAEZ AND I WERE TALKING ABOUT IT YESTERDAY, YOU KNOW, THERE'S A BUNCH OF -- LET'S TAKE CONVENIENCE STORES, YOU KNOW, THAT MAY BE ON THE SOUTH SIDE OR THE WEST SIDE THAT ARE DOING GREAT.

THE CONVENIENCE STORE'S PHYSICALLY LOCATED ON THE SOUTH SIDE OR THE WEST SIDE, BUT THE BUSINESS OWNER ACTUALLY LIVES IN DISTRICTS 8 OR 9 OR 10.

SO EVEN THOUGH THE GUY THAT'S BENEFITING, YOU KNOW, FROM THE BUSINESS LIVES IN ONE OF THE NORTHERN DISTRICTS, BECAUSE HIS PHYSICAL LOCATION WHERE HE OPERATES IS GETTING THE EQUITY ATLAS POINTS, HE BENEFITS. AND THEN YOU HAVE THE REVERSE, TOO.

YOU'VE GOT A MECHANIC SHOP MAYBE IN DISTRICT 10 THAT REALLY NEEDS THE MONEY, RIGHT, BUT -- AND THE GUY LIVES IN DISTRICT TWO, LET'S SAY, AND BECAUSE THE PHYSICAL MECHANIC SHOP IS LOCATED IN DISTRICT 10, HE WON'T GET THE MONEY BECAUSE HE WON'T HAVE THE EQUITY ATLAS POINTS.

IT DOESN'T MAKE SENSE TO ME WHY -- WHY WE'RE DOING IT THAT WAY.

AND THE EQUITY ATLAS POINTS ARE REALLY SIGNIFICANT.

IT'S NOT LIKE TWO, FIVE, EIGHT POINTS. I MEAN, IT'S 10 AND 20 POINTS THAT YOU GET FOR THIS, AND I THINK THIS IS GOING TO PRODUCE RESULTS THAT WERE NOT INTENDED. WHEN WE SAT DOWN AND TALKED ABOUT THIS, THE GOAL HERE WAS TO HELP SMALL BUSINESSES THAT WERE NEGATIVELY IMPACTED BY CONSTRUCTION GOING ON OUTSIDE OF THE FACILITY, AND I JUST DON'T SEE WHY THE EQUITY ATLAS IS NECESSARY TO APPLY TO THIS PARTICULAR PROGRAM.

SO I WELCOME DISCUSSION ON THAT, AND I HOPE THAT WE CAN FIND SOME SORT OF RESOLUTION THERE. ONE FINAL THING I WANT TO ASK IS WITH RESPECT TO SLIDE 11 ON THE BOOKKEEPING AND ACCOUNTING SERVICES, DO

THOSE QUALIFY AS AN EXPENSE? >> SO IF IT WERE TO BE THE BUSINESS USING THE FUNDS TO PAY FOR THEIR ONGOING BOOKKEEPING

EXPENSES? IS THAT WHAT YOU'RE -- >> WHYTE: YEAH.

>> YEAH, SO THAT WOULD BE A GENERAL BUSINESS EXPENSE.

YOU KNOW, NO DIFFERENT THAN THEM PAYING FOR, YOU KNOW, ANY OTHER SERVICE

TO HELP THEIR BUSINESS. >> WHYTE: OKAY. YEAH.

AND I WASN'T SURE, BUT I THINK IT CERTAINLY SHOULD COUNT AS A QUALIFYING EXPENSE THERE. ALL RIGHT. SO THOSE ARE MY COMMENTS. I LOOK FORWARD TO HEARING MY COLLEAGUE'S TAKE ON THAT AND GETTING THIS PROGRAM MOVING. THANKS.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE.

ERIK, YOU WANT TO RESPOND TO SOME OF THAT? >> WALSH: YEAH, AND I'LL HAVE ANA PROVIDE SOME CONTEXT ABOUT THE EQUITY ATLAS PORTION AND THE

[00:35:06]

IMPORTANT. NOT CRITICAL. >> SO THE REASON WHY WE WOULD LIKE TO INCLUDE THAT CRITERIA IS BECAUSE WE'VE FOUND -- AND THROUGH WORK WE'VE SEEN ON ACCESS TO CAPITAL, IS THAT THOSE BUSINESSES WHO TEND TO BE LOCATED IN THERE HAVE LESS ACCESS TO CAPITAL, SO PERHAPS THEY DON'T HAVE THAT BANKING RELATIONSHIP OR THEY DON'T HAVE THE FINANCIAL RESERVES IN ORDER TO WITHSTAND THE REDUCTION IN REVENUE THEY'RE GOING TO SEE. SO THAT'S WHY WE'VE INTENTIONALLY INCLUDED THAT CRITERIA TO ADDRESS THAT CHALLENGE THAT WE'VE SEEN AND WE HAVE DATA TO

SUPPORT. >> MAYOR NIRENBERG: OKAY. AND I'LL CERTAINLY HAVE THOUGHTS ON IT, BUT LET'S GET THE COUNCIL DISCUSSION.

COUNCILMEMBER GARCIA? >> GARCIA: THANK YOU. AND THANK YOU SO MUCH FOR THE PRESENTATION. MY TEAM AND I HAVE BEEN WORKING WITH THE OUTREACH AND SCENE EDD AND ACTION, SO I JUST WANT TO RECOGNIZE GABBY RIGHT NOW. SO SHE WAS CRITICAL IN HELPING A SMALL BUSINESS OWNER THAT WAS IMPACTED BY THE BYNAM PHASE 2 CONSTRUCTION PROJECT.

SHE IMMEDIATELY WENT OUT THERE AND PROVIDED RESOURCES AND WAS SEEN BASICALLY AS THE FACE OF THE CITY, WHICH IS REALLY GOOD FOR US, RIGHT, BECAUSE WE WERE ABLE TO PUT SOMEONE WHO MAYBE DOESN'T NECESSARILY GET THOUGHT ABOUT, YOU KNOW. AND SO VERY EXCITED TO HAVE BEEN ABLE TO PARTNER WITH HER. I APPRECIATE ALL OF THE OUTREACH AND MY TEAM RECENTLY RECEIVED ALSO AN UPDATE, SO KUDOS ALSO TO PUBLIC WORKS.

THE PUBLIC WORKS COMMUNICATION ENGAGEMENT RESIDENT PLAN, I MIGHT HAVE GOTTEN THAT BACKWARDS, BUT NICK AND BRYAN AND THE TEAM MEET WITH US WEEKLY AND WE HAVE A PUBLIC WORKS LIAISON, JAKE, WHO WE MEET WITH. AND SO RAZI, AWESOME JOB THERE AS WELL.

SO I THINK THAT THEY'RE DOING A GREAT JOB? COMMUNICATING AND ON STAYING AHEAD. THERE'S SOME STRATEGIES THAT ARE OUTLINED IN THAT DOCUMENT THAT HAVE, I FEEL, CLEAR GUIDELINES AND GREAT EXPECTATIONS WITH COMMUNICATION, AND IF THEY ARE FOLLOWED AND IMPLEMENTED CORRECTLY, THEN I THINK THAT WE WILL BE SUCCESSFUL. BUT I ALSO APPRECIATE THE COMMUNICATION EFFORTS TO GATHER THAT INPUT. SO ON SLIDE 4, I WAS GRATEFUL FOR THAT. I WAS JUST WONDERING HOW WE BREAK DOWN AS WELL AS THE FEEDBACK, SO HOW MANY PEOPLE WERE CONTACTED BY PHONE CALL VERSUS SURVEY VERSUS FACE-TO-FACE VERSUS FOCUS GROUPS? AND CAN ANYBODY TALK TO ME A LITTLE BIT MORE ABOUT THAT? THANK YOU, ANA.

>> SO WE -- WE SENT THE SURVEY TO THE BUSINESSES IMPACTED NOW BY CONSTRUCTION OR FUTURE PROJECTS, AND WE HAD 43 RESPONSES TO IT.

SO WE SEPTEMBER IT OUT VIA E-MAIL TO THEM. WE DID A POSTCARD TO THEIR LOCATION ASKING THEM TO TAKE IT, AS WELL AS REACHING OUT THROUGH OUR PARTNER ORGANIZATIONS. THE LIFTFUND SURVEY WAS DISTRIBUTED TO THE RECIPIENTS OF THE PRIOR ONE.

WE HAD 30 RESPONSES FROM THAT ONE. AND THEN, OF COURSE, WE HAD THE SESSION WITH THE ENTIRE SMALL BUSINESS ADVISORY COMMISSION TO

GET THEIR FEEDBACK AS WELL. >> GARCIA: THANK YOU.

AND SOME OF THE ITEMS THAT YOU HAVE LISTED ON SLIDE 5 ARE THINGS THAT I'VE HEARD CONSISTENTLY, RIGHT? AND SO THE SIMPLICITY FOR THE APPLICATION, THE SINGLE APPLICATION POINT, I APPRECIATE THAT.

IF THE PROGRAM IS APPROVED, I DO HAVE QUESTIONS ABOUT FUTURE FUNDING SOURCES, RIGHT, FOR THE PROGRAM. I KNOW THAT WE'VE IDENTIFIED ARPA FUNDS AND I APPRECIATE MY COLLEAGUES MCKEE-RODRIGUEZ AND WHYTE FOR BRINGING THIS UP AND IDENTIFYING, BUT I'M WONDERING WHAT THE EXPECTATION WOULD BE FOR SMALL BUSINESS OWNERS, RIGHT, AND HOW WE WOULD PRIORITIZE THIS GOING FORWARD IN OUR BUDGET? AND SO I DON'T KNOW IF YOU ALL HAVE THOUGHT ABOUT THAT JUST YET.

SORRY, ERIK? >> WALSH: NO, BUT WE'VE HAD ALL KINDS OF THOUGHTS ABOUT IT. AND I THINK TO COUNCILMAN WHYTE'S POINT, I THINK WE PROBABLY OUGHT TO SPEND SOME TIME DURING -- A LITTLE BIT OF TIME DURING THE WORK SESSION TO KIND OF TALK THROUGH. AS THE MAYOR MENTIONED, AND AS ANA'S ANSWER, THE THIRD MOST IMPORTANT THING WERE UTILITIES.

AND ONE OF THE THINGS THAT -- ONE OF THE EARLY CONVERSATIONS I HAD WITH COUNCILMAN WHYTE, I THINK I TALKED TO COUNCILMAN MCKEE-RODRIGUEZ ABOUT

[00:40:02]

FINANCIALLY. >> GARCIA: THANK YOU. AND I APPRECIATE THE WORK WITH CPS AND WITH SAWS AND I'D LOVE TO LEARN A LITTLE BIT MORE OF LIKE WHAT THAT WOULD ENTAIL EVENTUALLY, BUT THEN MY OTHER QUESTION IS, CAN SOMEONE EXPLAIN WHAT QUALIFIES AS A MAJOR IN THE PROBABILITY CRITERIA AND HOW WE WOULD DETERMINE THAT ELIGIBILITY.

>> SO IT REALLY IS BASED ON THE DURATION OF THE PROJECT.

AGAIN, LOOKING AT THOSE LAST, WE'VE KIND OF IDENTIFIED THAT, YOU KNOW, THOSE LASTING LONGER THAN A YEAR, REALLY THOSE MAJOR PROJECTS WHERE YOU PROBABLY HAVE SOME UTILITY COORDINATION GOING ON BUT NOT LIMITED TO, SO THIS IS REALLY INTENDED TO BE TOWARDS THOSE LESS SO THAN THOSE PROJECTS THAT ARE, PERHAPS JUST A STREET REHAB THAT ARE SHORTER IN DURATION. COUNCILWOMAN, MAJOR PROJECTS, LONG DURATION. MAJOR UNDERGROUND, VERY DEEP UTILITY, HEAVY TRAFFIC, TIGHT RIGHT OF WAY, OLD PART OF TOWN, ESPECIALLY IN DOWNTOWN

AREA, THEY ARE REALLY MAJOR PROJECTS. >> GARCIA: GOT IT. SO THERE'S SOME SORT OF CRITERIA, IT'S NOT THAT SOMEBODY RANDOMLY --

>> HOSSEINI: NO, MA'AM. >> GARCIA: OKAY. JUST CHECKING.

AS FAR AS THE BUSINESS CRITERIA WHEN WE TALK ABOUT 10,000 GROSS SALES AND 10,000 REDUCTION IN NET REVENUES, WERE THOSE NUMBERS D DERIVED BY LIKE SOME FORM OF AN ECONOMIC IMPACT STUDY OR DID SOMEBODY JUST PRESENT

10,000? >> WE ULTIMATELY LANDED AT 10,000 JUST BASED ON THE EXPERIENCE FROM THE APPLICATIONS THAT WE HAD RECEIVED.

THAT IS -- IT'S NOT AN OFFICIAL LINE IN ANY WAY, BUT WE'VE SEEN THAT THOSE BUSINESSES THAT ARE KIND OF MOVING FROM A HOBBY-TYPE BUSINESS OR A SIDE HUSTLE TO MORE OF LIKE THIS IS THEIR PRIMARY SOURCE OF INCOME,

THAT WAS SORT OF A TREND WE SAW IN THE DATA. >> GARCIA: SO SPEAKING OF THAT, SO WE HAVE THE REQUIREMENT FOR CUSTOMER FOOT TRAFFIC.

IS THAT REALLY NECESSARY? BECAUSE I KNOW THAT THERE'S A LOT OF BUSINESSES WHO HAVE DELIVERY SERVICES OR WHO HAVE DRIVERS THAT ARE STILL IMPACTED, RIGHT? LIKE WE KNOW WHAT CATERERS DID DURING THE PANDEMIC AND HOW THEY WERE IMPACTED.

AND SO I'M WONDERING IF THOSE ORGANIZATIONS, FOR INSTANCE -- I KNOW THEY'RE IMPACTED. EMPLOYEE RETENTION RATES ARE IMPACTED BY THAT AS WELL. SO WAS THERE A REASON THAT WE ARE REQUIRING CUSTOMER FOOT TRAFFIC FOR OPERATIONS AS A NECESSARY COMPONENT?

>> SO WE INCLUDED THAT BECAUSE WHAT WE HEARD FROM THE BUSINESS OWNERS WAS THAT MY CUSTOMERS CUSTOMERS CAN'T GET TO ME AND THAT BEING THE MAJOR IMPACT OF THE CONSTRUCTION, IS LACK OF VISIBILITY, LACK OF ACCESS. SO THAT'S WHY WE WANTED TO INCLUDE THAT.

WE HAVE EXCLUDED THINGS LIKE UBER DRIVERS AND THOSE TYPE OF THINGS IN THE PAST BECAUSE THERE IS SOME AMOUNT OF FLEXIBILITY IN TERMS OF

WHERE THEY CAN OPERATE. >> GARCIA: SURE. >> SO THAT'S WHY WE ADDED

THAT. >> >> GARCIA: GOT IT.

SURE. I'M JUST THINKING ABOUT I GUESS THE BEST CASE SN SCENARIO WOULD BE LIKE A CATERING COMPANY. PEOPLE AREN'T HAVING EVENTS DOWNTOWN BECAUSE THERE'S CONSTRUCTION. AGAIN, JUST FOOD FOR THOUGHT, THINKING ABOUT IT OUT LOUD. I APPRECIATE THE ELIGIBLE USES OF GRANT FUNDS ON SLIDE 11, I THINK THERE'S DEFINITELY NO CONFUSION THERE. AND THEN AS FAR AS MEASURING THE SUCCESS, IS THERE JUST -- INSTEAD OF MEASURING THE SUCCESS OF THIS PROGRAM, IS THERE A GOAL TO HAVE FEWER OR NO DELAYS IN GENERAL WITH MAJOR CONSTRUCTION

PROJECTS? >> YES. YES.

>> GARCIA: MAYBE WE WOULD OUTWORK OURSELVES OUT OF A PLAN IF WE DID.

>> WALSH: YES. THAT IS THE GOAL. ABSOLUTELY.

YES, MA'AM. >> GARCIA: AND SO THIS MIGHT BE A QUESTION FOR PUBLIC WORKS, MAYBE FOR THE CITY ATTORNEY'S OFFICE, BUT DOES THE DEFINITION OF A CONSTRUCTION DELAY DIFFER FOR EVERY CONSTRUCTION

PROJECT CONTRACT OR IS IT A UNIFORMED DEFINITION? >> HOSSEINI: CONSTRUCTION

[00:45:01]

IF THE DELAY COMES FROM SOME UNKNOWN CONDITION OR CITY DECIDED TO ADD A SCOPE OR ONE OF OUR UTILITY COMPANY ADDS A SCOPE, THAT'S A DIFFERENT --

>> GARCIA: GOT IT. OKAY. WELL -- SO THANK YOU.

AND I ASK BECAUSE MY RESIDENTS PAY ATTENTION TO THE PROJECTED TIMELINES AND THEY'RE ALWAYS ASKING ABOUT IT, AND THEY FEEL LIKE EVERY CONSTRUCTION PROJECT HAS A DELAY OF SOME SORT. AND I GET IT.

THERE'S THINGS THAT WE CAN'T PREVENT, WEATHER, ET CETERA.

BUT I JUST WANTED TO DOUBLE-CHECK, LIKE WHAT THAT OFFICIAL DEFINITION IS FOR CONSTRUCTION DELAY. AND THEN I APPRECIATE THE CONSTRUCTION RESOURCE TOOLKIT. I HAD MENTIONED IT LAST TIME, I LIKE THAT IT'S IN ENGLISH AND IN SPANISH, AND I KNOW THAT WE DON'T EXPECT EVERY RESIDENT TO COME OVER THESE THINGS, BUT I APPRECIATE THAT THE EFFORT IS THERE AND THAT THERE IS A PLACE WHERE THEY CAN FIND INFORMATION ON WHAT TO DO IF THEY NEED SOME ADDITIONAL HELP.

THOSE ARE ALL MY QUESTIONS AND COMMENTS. >> HOSSEINI: ONE ADDITIONAL THING, COUNCILWOMAN, WE ARE DOING TO REDUCE THESE CONSTRUCTION DELAY, FOR EXAMPLE, ON MARBACH ROAD, WE ARE HIRING CONTRACTOR TO WORK WITH OUR DESIGNER, PROVIDE CONSTRUCT OVERVIEW, PROVIDE GOOD COST ESTIMATE, WE DON'T BE SURPRISED WHEN WE BID THE PROJECT TO COME SIGNIFICANTLY OVERBUDGET.

THESE EFFORTS WE ARE TAKING IS GOING TO REDUCE SIGNIFICANT AMOUNT OF INCOME [INDISCERNIBLE] SO AVOID CONSTRUCTION DELAY.

WE MAY STILL HAVE SOME, BUT IT'S GOING TO REDUCE SIGNIFICANTLY.

>> GARCIA: GREAT. THANK YOU SO MUCH, RAZI. >> HOSSEINI: AND THAT'S

MARBACH ROAD, DISTRICT FOUR AND DISTRICT SIX. >> GARCIA: YES, WE'RE SHARING IT. AND I THINK WE HAVE AN UPCOMING SESSION.

SO THANK YOU VERY MUCH. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA GARCIA. COUNCILMEMBER KAUR.

>> KAUR: THANK YOU, MAYOR. THANK YOU TO MY COUNCIL COLLEAGUES FOR BRINGING THIS FORWARD AND FOR CITY STAFF BRINGING THIS TO US SO QUICKLY. I THINK THIS IS THE FIRST CCR SINCE WE'VE BEEN HERE THAT HAS GONE THROUGH THE WHOLE PROCESS AND MADE IT TO US WITH PRESENTATION FOR US TO GIVE FEEDBACK ON, SO WE'RE EXCITED THAT THAT'S THE CASE.

SO I HAVE SOME QUESTIONS, AND SO I'M JUST GOING TO START OFF BY SAYING, FIRST OF ALL, THANK YOU FOR THE WORK IN GETTING THIS PROGRAM DEVELOPED.

I WANT TO START OFF WITH MY BIGGEST CONCERN, WHICH IS WHY WE'RE USING NET

REVENUE RATHER THAN A DIFFERENT MEASURE. >> SO THINGS THAT WE'VE USED GROSS REVENUE, HOWEVER WE HEARD FEEDBACK IN THE COVID IMPACT GRANTS PROGRAM FROM THE BUSINESSES THAT OUR COSTS ARE GOING UP, TOO, AND SO NOT ONLY ARE THEY SEEING A REDUCTION IN FOOT TRAFFIC, LESS REVENUE, BUT THEIR LABOR EXPENSES, THEIR SUPPLY EXPENSES, IN MANY CASES THEIR RENT AND MORTGAGE IS GOING UP, AND SO THAT'S REALLY EVEN STRAINING THE NET MORE.

SO WITH THE CONSTRUCTION GRANTS PROGRAM WE DID LAST YEAR, WE INTRODUCED NET AS THE REQUIREMENT INSTEAD OF GROSS. GOT SOME GOOD FEEDBACK.

AGAIN, AND THERE WERE THOSE, WELL, I'VE MANAGED MY EXPENSES.

SO NEITHER IS A PERFECT MEASURE, BUT WE FEEL WITH COST AND INFLATION STILL GOING UP, NET IS STILL A LITTLE BIT MORE REFLECTIVE.

AND LIFTFUND ACTUALLY PERFORMED SOME ANALYSIS ON A FEW AS WE WERE NG THE CREATION OF CRITERIA HERE, AND THEY FOUND THAT THAT WOULD STILL BE THE MORE BENEFICIAL CRITERIA TO USE OVER GROSS BECAUSE THEIR NET REDUCTION WAS GREATER THAN THEIR GROSS REDUCTION.

>> KAUR: GOT IT. YEAH, I HEARD THE SAME CONCERN, TOO, RIGHT, BECAUSE EXPENSES FOR EVERYTHING HAVE GONE UP. AND ALSO IF YOU HAVE A LARGER BUSINESS, IF MY BUSINESS IS SURVIVING OFF A MILLION DOLLARS IN REVENUE, MY REDUCTION IN NET REVENUE COULD PROBABLY BE HIGHER AND I COULD BE IMPACTED LESS. BUT IF I HAVE $100,000 REVENUE BUSINESS AND I HAVE 5% REDUCTION, THEY MIGHT BE SEEN -- LIKE THE REDUCTION MIGHT SEEMINGLY BE SMALLER, BUT THE IMPACT COULD BE SIGNIFICANTLY GREATER.

AND SO I HAVE A REAL CONCERN THAT USING THAT METRIC IS NOT GOING TO HELP SUPPORT OUR SMALL BUSINESSES THAT ARE AT THREAT OF GOING OUT OF BUSINESS AS MUCH AS IT WILL HELP SUPPORT OUR LARGER SMALL BUSINESSES THAT HAVE A LITTLE BIT MORE ROOM TO GIVE. SO I'M NOT SURE IF WE COULD GET CREATIVE ON MAYBE DAYS CASH ON HAND OR DEBT TO INCOME RATIO, SOMETHING ELSE THAT COULD BE A MEASURE. AND I UNDERSTAND THAT'S TRICKY BECAUSE IT'S -- IT REQUIRES MORE CALCULATION, IT REQUIRES THEM TO HAVE GOOD BOOKS, WHICH WE KNOW OUR SMALL BUSINESSES ALSO HAVE SO MUCH ON THEIR PLATE, BUT IF WE -- HAVE WE EXPLORED ANY OF THOSE OTHER

RATIOS? >> WE VICE PRESIDENT LOOKED AT THOSE SPECIFIC RAETZSCH -- WE HAVEN'T LOOKED AT THOSE SPECIFIC RATIOS.

I DO WANT TO POINT OUT IN THE SCORING CRITERIA TO YOUR POINT OF THE SMALLER

[00:50:02]

SO THOSE SMALLEST BUSINESSES WHO HAVE EXPERIENCED A LARGER LOSS, THEY WOULD GET MORE POINTS THAN, PERHAPS A LARGER BUSINESS WHO HAD A LARGER DOLLAR AMOUNT, BUT IT RESULTS IN A SMALLER PERCENTAGE, THEY WOULD GET LESS POINTS. SO WE ARE TRYING TO RECOGNIZE THAT.

I THINK WITH SOME OF THE ITEMS YOU MENTIONED, AGAIN, WE'RE TRYING TO BALANCE WHAT INFORMATION WOULD A BUSINESS HAVE ON HAND, AND SO WE KNOW EVERYBODY HAS TO FILE TAXES, AND SO THAT'S SOMETHING WE CAN READILY -- OR LIFTFUND CAN READILY EXTRACT FROM THEIR TAXES AS A WAY TO

BE ABLE TO IDENTIFY HOW MUCH THEIR LOSS WAS. >> KAUR: HEARD.

BECAUSE SOME OF THEM HAVE BEEN TELLING US THAT DEBT IS A BIG CONCERN FOR THEM, ESPECIALLY GIVEN ALL OF THE LOANS THAT THEY RECEIVED.

IF WE COULD LOOK AT JUST WHAT IT -- AND BECAUSE THEY WANT TO USE IT FOR PAYING OFF DEBT, IF WE CAN THINK ABOUT HOW THAT WOULD MAKE A DIFFERENCE.

AND MAYBE IF IT'S JUST AN ANALYSIS THAT WE COLLECT THAT INFORMATION ON THIS ROUND SO WE COULD DO BOTH MODELS AND SEE IF IT WOULD CHANGE THE RESULTS OF THE APPLICANTS. SO THAT'S THING ONE. ALSO FOR ANOTHER BIG CONCERN FOR SOME OF THE BUSINESSES WAS BECAUSE I THINK THIS IS A COVID FUNDED -- OR ARPA FUNDED, IS THAT WHY WE CAN'T USE FOR BUSINESSES THAT WERE OPENED IN '22 OR BUSINESSES THAT HAVE BEEN OPEN LESS THAN TWO

YEARS? >> AS WE UNDERSTAND THE ARPA REQUIREMENTS, AND I'LL CERTAINLY DEFER TO THE CITY ATTORNEYS ON THIS ONE, THE REASON WHY WE SELECTED 2022 AS THE CREATION DATE WAS THE LAST PROGRAM YOU HAD TO HAVE BEEN ESTABLISHED BY 2021, SO WE'RE JUST RECOGNIZING THAT WE'VE DONE A PROGRAM AND SO WE ARE A YEAR LATER IN THE PROCESS.

>> WALSH: AND WE WANTED TO RECOGNIZE -- THIS WAS PART OF THE CONVERSATION LAST TIME, WE WANTED TO RECOGNIZE THAT IF THAT STREET WAS UNDER CONSTRUCTION AND YOU OPENED THE BUSINESS DURING THAT TIME FRAME, THAT'S NOT THE SAME AS THE BUSINESS THAT EXISTED BEFORE.

AND WE HAD SOME OF THAT IN TERMS OF THE PROJECTS THAT WERE SUBMITTED LAST

TIME AROUND. >> KAUR: AND I WOULD AGREE WITH YOU, BUT IT'S LIKE THE SAME IDEA, LIKE YOU'RE BUYING A HOUSE IN THIS NEIGHBORHOOD, VERSUS YOU'RE OPENING A BUSINESS IN THIS AREA, BUT IT DOESN'T MEAN THE IMPACT IS ANY LESS, RIGHT? FOR EXAMPLE, WE HAVE THAT COFFEE SHOP THAT YOU GUYS WENT -- SOME OF THE FOLKS WENT TO ON BROADWAY THAT'S A SMALL BUSINESS.

THAT SPOT HAS BEEN REVOLVING, SO THAT WOULD BE AN EXAMPLE OF SOMEONE THAT WASN'T ELIGIBLE. I THINK IF THERE'S NO ARPA REGULATION FOR WHEN IT WAS OPENED, WE'D REALLY LIKE TO CONSIDER EXPANDING THAT TO BUSINESSES THAT WERE -- THAT HAVE BEEN OPENED LESS THAN TWO YEARS AS

WELL. >> WALSH: OH, LET ME -- IF YOU PULL UP SLIDE 9, WHAT ARE YOU SUGGESTING? ARE YOU SUGGESTING CHANGING THE POINT STRUCTURE THERE FOR PREEXISTING BUSINESSES OR -- WHAT IS IT EXACTLY

YOU'RE SUGGESTING. >> KAUR: YES. EXACTLY, THAT THE PREEXISTING BUSINESS IS NOT VALUED AT THAT LEVEL.

>> THE MINIMUM CRITERIA WAS THAT IT WAS ESTABLISHED AS OF 1/12022. WE NEED TO HAVE THE COMPARISON OF 2023 VERSUS

2022. >> KAUR: SO MY QUESTION WOULD BE LIKE COULD WE PUSH THAT BACK TO 2023 OR CHANGE THE START DATE FOR WHEN A BUSINESS SORT OF

HAD TO HAVE BEEN LAUNCHED? >> THEN YOU -- SO IF WE WERE TO DO THAT, THEN WE WOULD NOT HAVE TWO FULL YEARS OF COMPARISON

BECAUSE WE NEED TO COMPARE 2023 TO 2022. >> KAUR: GOT IT.

SO YOU NEED SOME KIND OF HISTORY. >> CORRECT.

>> KAUR: OKAY. WELL, THEN, YEAH, I DON'T KNOW IF WE NEED TO TAKE A LOOK AT THE -- MAYBE TAKING A LOOK AT THE HISTORY FOR THE ELIGIBILITY CRITERIA AS WELL, IF WE COULD CHANGE THE POINTS SO THAT IT'S

NOT -- WAWLZ I'M SORRY. >> KAUR: FOR THE PREEXISTING POINTS.

>> WALSH: I'M SORRY. I WAS JUMPING AHEAD. BUT I'M LOOKING AT THE SCORING. I MEAN, MAYBE IT IS JUST A SUGGESTION BASED ON WHAT YOU'RE SAYING, MAYBE WE RESTRUCTURE, INSTEAD OF 25, 15 AND FIVE, WE RESTRUCTURE IT IN ORDER TO GIVE POINTS THAT HAVE BEEN OPENED LESS THAN TWO YEARS. RIGHT NOW IF YOU'RE LESS THAN TWO YEARS, YOU GOT

ZERO. >> KAUR: RIGHT WAWLZ SO .

>> WALSH: MAYBE WE RESHUFFLE A LITTLE BIT TO BE ABLE TO CAPTURE THAT, SO YOU'RE ELIGIBLE FOR SOME POINTS FT I'M THROWING AN IDEA OUT AND

HOPING WE GET SOME -- >> KAUR: AND ALSO MAYBE CHANGE THE DIFFERENCE IN POINTS. RIGHT NOW THAT DIFFERENCE IS ALMOST AS SIGNIFICANT AS THE NET REVENUE LOSS, SO, YEAH, I -- PUTTING IT OUT THERE FOR MY COLLEAGUES TO COMMENT ON THAT COMPONENT. OKAY.

LET'S GO TO SLIDE EIGHT -- OH, WE ALREADY TALKED ABOUT THAT.

SORRY. SLIDE 4. YOU MENTIONED THE SURVEY DATA. CAN WE GET SOME OF THE SURVEY DATA THAT YOU'VE -- THAT YOU -- THAT LIFTFUND RECEIVED? WOULD YOU BE ABLE TO

[00:55:03]

SHARE THAT WITH US? >> WE MAY HAVE TO SCRUB IT FOR THEIR IDENTIFYING INFORMATION, BUT WE SHOULD BE ABLE TO PROVIDE A SUMMARY OF IT.

>> KAUR: YEAH. I WOULD LOVE TO SEE THAT IF POSSIBLE, JUST SO WE COULD SEE SOME OF THE OTHER FEEDBACK. BECAUSE WE DID OUR POLLING BUT WE NEVER KNOW IF -- WE ALWAYS DO THE SAME PEOPLE SO IT MIGHT BE GOOD TO HAVE DIVERSITY THERE. AND THEN WOULD LOVE TO SEE THE STATUS OF THE $400,000 FOR THE CONSTRUCTION TOOLKIT AS WELL THAT WAS MENTIONED. AND THEN HOW DID Y'ALL COME UP WITH THE RANGE FOR THE GRANTS? LIKE HOW DID YOU DECIDE THAT IT WAS GOING TO BE

10 TO 35,000? >> SO THAT'S CONSISTENT WITH WHAT WE'VE DONE IN BOTH -- WELL, WITH THE COVID IMPACT -- ACTUALLY, WITH THE COVID IMPACT GRANTS AND THE CONSTRUCTION GRANTS, WE'VE DONE THE SAME RANGE, AGAIN, IN HOPES OF PROVIDING MEANINGFUL SUPPORT TO THE

BUSINESSES. >> KAUR: I WAS JUST QUESTIONING, RIGHT, BECAUSE THERE'S ALWAYS THE THOUGHT WHERE IF YOU GO LESS, YOU CAN LEM MORE, IF YOU GO HIGHER, YOU CAN MAKE MORE IMPACT, I WAS JUST CURIOUS AS TO WHAT WAS THE -- WAS THERE A THOUGHT ON IF WE GIVE $25,000, THIS IS GOING TO MAKE A MEANINGFUL IMPACT AND HOW DID WE MEASURE THE MEANINGFUL IMPACT FOR SMALL BUSINESSES. I WAS MOSTLY ASKING FOR CURIOSITY PURPOSES AND WONDERING HOW THE NUMBER IS DECIDED, LIKE HOW MANY DID WE GIVE OUT AT THE

HIGHEST LEVEL VERSUS THE LOWEST LEVEL? >> I CAN DEFINITELY PROVIDE A DISTRIBUTION -- ACTUALLY, THE LISTING OF ALL THE GRANT RECIPIENTS GOING BACK TO THE ORIGINAL COVID GRANTS IS AVAILABLE AND WE CAN

SHARE THAT WITH THE COUNCIL. >> KAUR: I'D JUST LIKE TO

KNOW WHAT WOULD BE THE MOST IMPACTFUL. >> THE AVERAGE AWARD FROM THE FIRST PROGRAM WAS $27,000, BUT WE CAN PROVIDE THE FULL

BREAKOUT. >> KAUR: YEAH, AT THE MAX, IF WE GAVE OUT ALL $35,000 GRANTS, WE'D BE GIVING OUT A LITTLE LESS THAN 40 GRANTS, AND THEN AT THE LOWEST, YOU'RE GIVING OUT, YOU KNOW, 120.

SO THERE'S A BIG -- IT'S QUANTITY OVER IMPACT, I WOULD SAY, AND I'D LIKE TO THINK -- I'D LIKE TO KNOW MORE ABOUT WHAT'S MOST IMPACTFUL.

I'LL BUZZ BACK IN. THANKS, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER MCKEE-RODRIGUEZ?

>> MCKEE-RODRIGUEZ: THANK YOU, MAYOR. AND I'M COMING TO THIS CONVERSATION MILDLY -- A LITTLE BIT MORE THAN MILDLY FRUSTRATED.

I WANT MY MESSAGE TO BE RECEIVED NOTING THAT FRUSTRATION.

AND ANA, THANK YOU FOR THE PRESENTATION. MY COMMENTS ARE NOT FOR YOU. IT'S FOR THIS BODY AND FOR LEADERSHIP, RIGHT.

ONE I'LL ADDRESS A LITTLE BIT OF WHAT I THINK THE UNDERLYING CONCERNS OF COUNCILMAN KAUR WERE, AND I'LL SAY THIS, I VIEW IT VERY DIFFERENTLY BECAUSE WE HAVE DISPARITIES IN ACCESS TO EVERYTHING. GREENSPACE, FOOD, AMENITIES, AFFORDABLE SERVICES, INCLUDING HEALTH-RELATED SERVICES, AND THERE ARE PARTS OF TOWN THAT HISTORICALLY HAVE NOT BEEN INVESTED IN. AND SO WHEN SOMEONE COMES IN AND THEY BUILD A RESTAURANT, THEY BUILD AN AMENITY, THEY BUILD SOME SORT OF SERVICE FOR THE COMMUNITY, THEY SAW VALUE, ESPECIALLY FIVE, 10 YEARS AGO, THEY SAW VALUE IN A COMMUNITY THAT OTHERS DID NOT. THAT OTHERS REFUSED TO INVEST IN. AND SO I DON'T KNOW THAT WE NEED TO CHANGE THE PRIORITIZATION OF POINTS FOR THAT BECAUSE I DON'T NECESSARILY CARE AS MUCH ABOUT THE PERSON WHO CAME IN AND SAID, YOU KNOW WHAT? ALL THESE BLACK AND BROWN PEOPLE ARE LEAVING AND WEALTHIER WHITE PEOPLE ARE MOVING IN, SO NOW I WANT TO POP UP A BUSINESS, AND THEY'RE DOING A CONSTRUCTION PROJECT AND I MIGHT BE ABLE TO GET A LITTLE BIT OF MONEY OUT OF IT, I DON'T -- THAT'S NOT WHO I CONSIDER THIS PROGRAM FOR. THERE'S THREE MAIN CONVERSATIONS I THINK WE'RE HAVING. ONE IS ABOUT, OF COURSE, THE CCR AND THE REQUEST FOR A PERMANENT PROGRAM. AND SUPER EXCITED TO COLLABORATE WITH COUNCILMAN WHYTE ON THIS. WE DID HAVE A LOT OF CONVERSATIONS ABOUT THE AREAS THAT WE DISAGREED AND I PROVIDED HIM WITH A LIST OF ALL THE REASONS THAT HE WAS WRONG ON ALL OF THEM.

BUT NONETHELESS, IT'S GREAT TO WORK WITH YOU. THERE'S A FEW -- ONE THING IS I WANT TO ANSWER THE QUESTION, WHAT WILL IT TAKE TO MEET MY EXPECTATIONS FOR A PERMANENT PROGRAM. AND ONE IS THAT, YOU KNOW, I UNDERSTAND THAT A QUARTER OF REQUIREMENT FOR THIS PHASE OF -- A CORRIDOR REQUIREMENT IS PART OF THIS PHASE OF THE PROGRAM BUT THERE WILL REMAIN BUSINESSES IMPACTED BY PROJECTS THAT DON'T FALL WITHIN A CORRIDOR LIKE THIS. AND TO ME, JUST IN ITS SIMPLEST FORM BRINGS RESOLUTION TO HARM DONE. I WOULD REALLY LIKE TO EXPLORE EXPANDING THE TYPES OF PROJECTS THAT A BUSINESS MAY RECEIVE SUPPORT FOR, AND PARTICULARLY FOR THE LENGTH OF THE PROJECT. BUSINESSES IN MY DISTRICT WON'T MAKE IT A FULL YEAR OFTENTIMES. WHAT WOULD THE LIST LOOK LIKE WITH PROJECTS THAT LAST THREE MONTHS, SIX MONTHS, EIGHT MONTHS.

THOSE ARE PROBABLY SMALLER GRANT AMOUNTS THAT WE CAN PROVIDE BUT I THINK THEY'RE PROMPTS WORTHY OF SUPPORT -- PROJECTS WORTHY OF SUPPORT. I WOULD PREFER THAT WE SPECIFY FOR THE BUSINESS CRITERIA A PERCENTAGE REDUCTION IN REVENUE RATHER THAN A FIXED

[01:00:04]

AS IT RELATES TO THIS SPECIFIC PROGRAM, THE $1.4 MILLION IN ARPA FUNDING FOR THIS, ONE OF MY CONCERNS IS THAT NORTH NEW BRAUNFELS PHASE 2 IS NOT INCLUDED AS ONE OF THESE CORRIDORS; HOWEVER, THEY JUST WENT THROUGH A HUGE, HUGE PROJECT THAT DEVASTATED BUSINESSES. BUSINESSES DIED.

THEY -- THEY'RE NO LONGER THERE BECAUSE OF THE PREVIOUS PROJECT.

AND SO I WOULD LIKE TO SEE SOME CONSIDERATION GIVEN FOR THOSE PROJECTS THAT HAVE A PHASE 2 BECAUSE THAT DESIGN -- THAT DESIGN IS COMPLETING VERY SOON AND WE'RE GOING TO START CONSTRUCTION, AND THOSE BUSINESSES ARE GOING TO BE IMPACTED. AND I'M VERY, VERY MUCH CONCERNED BY THIS CORRIDOR THAT IS A HISTORICALLY BLACK CORRIDOR WHERE ONLY BLACK PEOPLE ARE INVESTING AND NOW BLACK AND BROWN PEOPLE ARE INVESTING AND THEY'RE ALL GOING TO BE GENTRIFIED OUT OF THIS CORRIDOR.

AND THEN WHAT HAPPENS? AND WHAT ROLE DID WE AS A CITY PLAY IN THAT? THE THIRD PROBLEM I HAVE -- OR THE THIRD SORT OF TOPIC I WANT TO DISCUSS, AND I'VE DISCUSSED WITH NEARLY EVERY SINGLE ARPA TOPIC THAT WE'VE TALKED ABOUT, WHETHER IT WAS THE -- NOT JUST THE DELEGATE AGENCY PROCESS, BUT THE ORGANIZATIONS AND NONPROFITS THAT RECEIVED FUNDING, THE OUTDOOR IMPROVEMENT GRANT, CONSTRUCTION GRANTS, ALL OF IT, IT SEEMS AS THOUGH DISTRICT TWO IS BEING GIVEN A DISPROPORTIONATELY LOW AMOUNT OF FUNDS. AND REGARDLESS OF WHETHER OR NOT IT'S ABOUT THE NUMBER OF APPLICATIONS, IT'S OUR ROLE -- IT'S OUR ROLE TO FILL THE MISSION OF ARPA, OF THESE ARPA FUNDS, RIGHT? AND THE GOAL OF ARPA WAS TO ADDRESS THOSE COMMUNITIES THAT WERE DISPROPORTIONATELY IMPACTED BY THE COVID PANDEMIC.

AND WHERE WE SAW THOSE HOSPITALIZATIONS, WHERE WE SAW THOSE DEATHS, WHERE WE SAW THOSE -- THE CLOSURES OF BUSINESSES WAS ON THE EAST, WEST AND SOUTH SIDE, AND THE EAST SIDE SPECIFICALLY, SOUTHEAST AND EAST SAW A HUGE AMOUNT. AND SO FOR THE OUTDOOR IMPROVEMENT GRANT WHERE WE ONLY GOT TWO OUT OF 42 PROJECTS FUNDED, 4.7%, THAT'S NOT EQUITABLE, IT'S NOT EVEN EQUAL FOR THE CONSTRUCTION GRANTS, LAST ROUND, DISTRICT TWO GOT TWO OUT OF 91 GRANTS, 2.1%. THAT'S NOT EQUAL AND IT'S ABSOLUTELY NOT EQUITABLE. WE LOOKED AT THE NUMBER OF DISTRICT TWO ORGANIZATIONS THAT RECEIVED ARPA FUNDS AND IT WAS VERY FEW AGAIN. IT WAS LESS THAN -- IT WAS SIGNIFICANTLY LESS THAN 10%. AND SO ARE WE MEETING THE GOAL OF ARPA? AND WHEN I GO BACK TO MY COMMUNITY, BECAUSE I DON'T REPRESENT THE CITY, I REPRESENT MY CONSTITUENTS AND I'M REPORTING BACK HOW I FEEL THINGS ARE GOING AND THE WAY THE CITY IS REPRESENTING THEM AND SERVING THEM, I DON'T -- I CAN'T SAY CONFIDENTLY THAT WE USED ARPA FUNDS IN A WAY THAT BENEFITED MY CONSTITUENTS IN A WAY THAT BENEFITED THOSE WHO WERE MOST HURT BY THE PANDEMIC. AND THAT IS DISTRESSING TO BE ABLE TO SAY THAT I AM IN ONE OF THE 11 MOST POWERFUL SEATS IN THE CITY AND MY CONSTITUENTSY IS STILL STRUGGLING AND THEY'RE NOT RECEIVING RELIEF. LIKE, UGH! AND SO AS WE MOVE FORWARD WITH WHAT LITTLE ARPA DOLLARS WE HAVE, WITH THE FUNDING THAT WE'RE ABOUT TO ALLOCATE AS PART OF THE BUDGET WITH, I NEED -- I NEED DESPERATELY, AND MY CONSTISES WENTS, 143,000 OTHERS NEED US TO DO BETTER AND TO REALLY, REALLY LOOK AT THIS, BECAUSE IT'S SO DISSATISFYING AND IT'S SO -- IT'S DISTRESSING. THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER MCKEE-RODRIGUEZ.

GOING TO MOVE ON, UNLESS THERE'S AN IMMEDIATE RESPONSE.

KEEP MOVING? OKAY. ALL RIGHT.

COUNCILMEMBER CABELLO HAVRDA? >> HAVRDA: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION, ANA. THE PROGRAM CHECKED OFF A LOT OF THE KNOWN BOXES FOR BUSINESS SUPPORT, GRANTS, FUNDING, APPLICATION PROCESS -- WHAT WE HEAR THE MOST FROM IS -- FROM COMMUNITIES OR FROM BUSINESSES WHEN WE GO SPEAK WITH THEM IS ACCESS TO CAPITAL.

SO WHEN YOU TALK ABOUT THE -- HOW THE EQUITY ATLAS IS GOING TO BE USED TO INCREASE ACCESS TO CAPITAL, THAT'S SOMETHING THAT I UNDERSTAND, THAT SPEAKS TO ME. I -- I DO HAVE A CONCERN ABOUT, YOU KNOW, SOME OF THE THINGS THAT BOTH COUNCILMAN WHYTE AND MCKEE-RODRIGUEZ TODAY

[01:05:03]

ARE WE LOOKING AT THAT FOR THIS PROGRAM? >> NO, THAT'S NOT

SOMETHING THAT'S EVALUATED. >> HAVRDA: OKAY.

I SUBMIT THAT THAT MIGHT BE A CRITERIA. WE TALKED ABOUT AT SBEDA, IF IT'S GOOD ENOUGH ON THAT SIDE, IT'S GOOD ENOUGH BECAUSE YOU CAN LIVE IN ANY DISTRICT AND HAVE ALL LEVELS OF INCOME.

BUT LOOKING INTO THAT INCOME MIGHT AFFECT, YOU KNOW, MAYBE THERE'S MORE OR LESS POINTS.

IT MIGHT AFFECT A DECISION IF YOU'RE LOOKING AT SOMEBODY WHO HAS TWO PEOPLE WHO HAVE, IN EVERY OTHER WAY ARE EQUAL EXCEPT FOR THEIR PERSONAL FINANCE. MAYBE THERE'S A WAY TO HELP THAT PERSON THAT DOESN'T HAVE ACCESS TO WEALTH OR CAPITAL OUTSIDE OF THEIR BUSINESS OR OUTSIDE OF LENDERS AND, YOU KNOW, PERSONAL, PERSONAL WEALTH. ANYWAY, I WOULD LIKE FOR US TO LOOK INTO WHETHER THAT COULD BE -- AND I DO HAVE A LITTLE BIT OF AN ISSUE WITH POINTS.

I KNOW WE HAVE TO DO THIS IN AN OBJECTIVE AND A COUNTING KIND OF A WAY BUT IT SEEMS LIKE WHEN YOU HAVE THESE POINTS, IT ALMOST SEEMS LIKE SOME POINTS ARE WORTH MORE THAN OTHER POINTS, IF THAT MAKES SENSE. I DON'T KNOW IF WE CAN HAVE A DISCUSSION MAYBE ABOUT HOW THAT POINT SYSTEM IS USED. I DO WANT TO KNOW ABOUT YOUR TEAM AND THE STAFF THAT'S DEDICATED TO THE PROGRAM. HOW'S THE WORK SPREAD ACROSS THE ECONOMIC DEVELOPMENT DEPARTMENT AND ARE YOU PARTNERING WITH PUBLIC WORKS AND TO MAKE SURE THAT EVERYBODY IS TALKING?

>> YES. SO WITHIN ECONOMIC DEVELOPMENT, WE HAVE OUR SMALL BUSINESS OUTREACH TEAM. THEY'RE A SMALL, MIGHTY TEAM WITH A MANAGER AND THREE STAFF.

AND SO THEY ARE ASSIGNED DISTRICTS WHERE THEIR PRIMARY OBJECTIVE IS TO ENGAGE WITH THE BUSINESS OWNERS, PARTICULARLY THOSE ON CONSTRUCTION CORRIDORS WITHIN THEIR ASSIGNED AREAS.

JUST REALLY TO BE THAT FACE-TO-FACE INTERACTION AND PROVIDE THEM WITH RESOURCES AND FOLLOW UP. AS A TEAM WE ARE ALSO COORDINATING WITH PUBLIC WORKS AND WITH CNE ON KIND OF A HOLISTIC STRATEGY. WE ACTUALLY JUST MET LAST WEEK DISCUSSING MARBACH AND THAT UPCOMING PROJECT. AND AS AN OPPORTUNITY TO TAKE ALL OF OUR NEW COMBINED EFFORTS AND BRING THEM ALL TOGETHER AS SORT OF FROM SOUP TO NUTS HOW DO WE ADDRESS COMMUNICATIONS, WORKING WITH THE SMALL BUSINESSES, THE ENHANCEMENTS THROUGH THE RESPONSIBLE BIDDER ORDINANCE. AS RAZI MENTIONED, HAVING THE CONTRACTOR ON BOARD DURING THE DESIGN PROCESS AND ALSO INCLUDING INNOVATION FROM THE PERSPECTIVE OF HOW DO WE MEASURE ALL OF THIS. SO WE ARE DEFINITELY LOOKING AT BEING PROACTIVE WITH IT AND EXCITED TO HOPEFULLY ROLL OUT A COMBINED EFFORT WITH MARBACH PROJECT AND FUTURE PROJECTS THAT ARE GOING TO RESULT FROM THE MOST RECENT BOND PROGRAM.

SO WE ARE LOOKING TOWARDS ADDRESSING THOSE PROBLEMS PROACTIVELY AND IN A COORDINATED

WAY. >> HAVRDA: SPEAKING OF MARBACH, I KNOW COUNCILWOMAN DR. ROCHA GARCIA AND I ARE GOING TO BE WATCHING IT VERY CLOSELY BUT WE'RE NOT THE ONLY ONES, NOT JUST US IN OUR COMMUNITIES. I THINK THIS IS GOING TO BE KIND OF A TEST OF ALL OF THESE PROGRAMS AND INITIATIVES THAT WE'VE BROUGHT UP SINCE THE PANDEMIC AND A LOT OF THE FEEDBACK THAT WE'VE GOTTEN FROM BUSINESSES. I THINK ALL EYES ARE GOING TO BE ON MARBACH, YAY, BUT WE'VE GOT TO MAKE SURE THAT WE'RE IN LOCKSTEP AS A TEAM, AS A CITY.

YOU KNOW, SPEAKING OF THAT, WE'VE SPENT $18.5 MILLION TOTAL IN ARPA AND NOW WE'RE TALKING ABOUT ANOTHER $1.5 MILLION OR SO. I DO HAVE A CONCERN -- AND MAYBE THIS SPEAKS TO COUNCILWOMAN DR. KAUR'S QUESTION AS WELL BUT REGARDING NEWER BUSINESSES BUT HOW WE'RE GOING TO SUSTAIN THIS PAST ARPA MONEY. BECAUSE I UNDERSTAND THAT WAS RESCUE AND RECOVERY. THAT WAS FOR THE PANDEMIC. BUT THIS IS IN FACT SOMETHING THAT THEY'RE GOING TO BE DEALING WITH LONG PAST THE PANDEMIC. AND NOT EVEN JUST BECAUSE OF THE PANDEMIC. TO HER POINT NEWER BUSINESSES DEALING WITH CONSTRUCTION.

SO I THINK WE HAVE TO START TALKING ABOUT THAT AS WELL, A PLAN MOVING FORWARD SO THAT WE CAN MAKE SURE THOSE BUSINESSES ARE, INCLUDING NEWER BUSINESSES, ARE AT LEAST HELPED.

WE HAVE A PLAN FOR WHAT WE KNOW IS COMING. MARBACH IS A GOOD EXAMPLE.

HOW ARE WE GOING TO HELP FUND SOME OF THOSE BUSINESSES IF THEY RUN INTO PROBLEMS? I KNOW A LOT OF THE WORK WE'RE DOING IS TO PREVENT, HOPEFULLY THAT, BUT I STILL THINK THAT WE'RE GOING TO HAVE SOME ISSUES WITH SMALLER BUSINESSES. SO SPEAKING OF THAT, I THINK ON

[01:10:06]

>> THOSE ARE SET SPECIFIC TO DIFFERENT INDUSTRIES. EACH BUSINESS HAS THEIR SIX-DIGIT CODE AND SO EACH ONE OF THOSE SIX-DIGIT CODES IS ASSIGNED A DIFFERENT THRESHOLD.

SO IN THE AREA OF LIKE RESTAURANTS, IT TYPICALLY RANGES FROM ABOUT $8 MILLION TO $10 MILLION DEPENDING IF YOU'RE FAST FOOD, FAST CASUAL, OR FINE DINING.

BUT RETAIL WILL HAVE, DEPENDING ON YOUR TYPE OF RETAIL, IT'S GOING TO HAVE A DIFFERENT

THRESHOLD FOR THAT. >> HAVRDA: I GUESS MY CONCERN HERE -- I'M GLAD WE ARE FOCUSING ON SMALL BUSINESS BUT A LOT OF THE BUSINESSES I'VE TALKED TO ARE -- I GUESS WE WOULD DEFINE THEM AS MICROBUSINESSES. THEY HAVE THREE, FOUR, FIVE EMPLOYEES.

MAYBE HALF OF THEM RELATED TO THEM. IS THERE POINTS FOR BEING A MUCH SMALLER BUSINESS THAT DOESN'T HAVE A LOT OF MILLION DOLLARS IN REVENUE?

>> WE'VE INCLUDED THAT IN PAST PROGRAMS BUT YOU'RE ABSOLUTELY CORRECT.

THE VAST MAJORITY OF APPLICANTS, BASED ON THE ANALYSIS FROM LIFTFUND, WERE ON THAT MICRO SIDE. THE REASON WHY WE HAVE APPLIED THE SBA STANDARDS IS THERE IS NO ACTUAL DEFINITION FOR A MICRO BUSINESS. SBA DOES NOT DEFINE IT.

THERE'S A NUMBER OF WORKING, LOOSE DEFINITIONS BUT ONE OF THE THINGS THAT WE'VE LEARNED ALONG THE WAY IS BEING ABLE TO ANCHOR TO REAL CRITERIA THAT EXISTS THAT ARE DEFINED KIND OF UNIVERSALLY. AND SO THAT'S WHY WE INCLUDE THAT SIZE STANDARD.

BUT DEFINITELY THE VAST MAJORITY ARE ON THE SMALLEST END OF IT. >> HAVRDA: I UNDERSTAND IN AUDIO] CAN WE NOT COME UP WITH OUR OWN MICRO -- DEFINITION OF MICRO BUSINESS AND APPLY IT? I MEAN, IT'S OUR PROGRAM, RIGHT? MAYBE WE CAN COME UP WITH OUR OWN DEFINITIONS.

THE SBA, FOR SOME OF THEM IT'S BETWEEN 100 AND 150 EMPLOYEES OR BETWEEN A MILLION AND 10 MILLION AND THAT DOESN'T APPLY TO SO MANY OF THE BUSINESSES THAT WE'RE TALKING ABOUT.

IS THERE A WAY TO -- ULTIMATELY WHAT I'M ASKING IS IF YOU HAVE A MICRO BUSINESS, I MEAN -- I'M GOING TO MAKE SOMETHING UP. UNDER 15 EMPLOYEES. IS THAT -- CAN THEY GET A HIGHER

POINT SYSTEM OR CAN THEY BE LOOKED AT MORE? >> SO WITH THE SCORING CRITERIA, IT PRIORITIZES PERCENTAGE LOSS AND SO WHAT'S GOING TO DRIVE YOUR PERCENTAGE LOSS IS YOUR TOTAL REVENUE AND THE AMOUNT YOU'VE REDUCED SO THAT DOES GET AT SOME OF THAT SITUATION OF THE

SMALLEST OF THE SMALL. >> HAVRDA: SOME OF IT. I WOULD LIKE FOR US TO LOOK AT THAT HOW WE COULD TARGET MORE PRECISELY MICRO BUSINESS. ERIK, DO YOU HAVE SOMETHING?

>> WALSH: ACTUALLY, I THINK THAT WAS IT. I'M GOOD. YOU'RE UP, SIR.

>> WALSH: SO -- SORRY, MAYOR. >> MAYOR NIRENBERG: NO, GO AHEAD, ERIK.

>> WALSH: MICRO BUSINESSES, THIS IS A CLARIFYING. MICRO BUSINESSES WOULD BE ELIGIBLE FOR THIS PROGRAM. WHAT YOU'RE TALKING ABOUT IS MAYBE EXTRA CREDIT FOR BEING --

>> HAVRDA: EXTRA CREDIT . I HAVE ONE MORE COMMENT, NOT A QUESTION.

YOU KNOW, EVERY CONSTRUCTION -- WE WENT THROUGH THIS ON HIGHWAY 90.

IT GETS A LOT WORSE BEFORE IT GETS BETTER AND I WANT TO MAKE SURE THAT THAT -- THE MESSINESS THAT COMES WITH THAT GROWTH IS BEING -- IT'S NOT KILLING OUR SMALL BUSINESSES.

THAT'S WHAT THE WHOLE POINT OF THIS IS. I THINK IF WE LOOK IN THIS IN A

LITTLE MORE DEPTH WE COULD COVER MORE GROUND. >> MAYOR NIRENBERG: THANK YOU,

COUNCILMEMBER CABELLO HAVRDA. COUNCILMEMBER ALDERETE GAVITO. >> GAVITO: THANK YOU, MAYOR.

THANK YOU SO MUCH FOR THIS PRESENTATION AND I ALSO DO WANT TO THANK COUNCILMAN MCKEE-RODRIGUEZ AND COUNCILMAN WHYTE FOR BRINGING THIS FORWARD. OBVIOUSLY IMPROVING INFRASTRUCTURE IS A LOT OF OUR TOP PRIORITIES. ONE OF THE THINGS THAT I'M REALLY FOCUSED ON IS BUSINESSES WHO DON'T NECESSARILY QUALIFY FOR THIS.

I THINK WE'VE BEEN SAYING THAT A COUPLE OF TIMES THROUGHOUT THIS PRESENTATION.

FOR EXAMPLE, IN MY DISTRICT, THE BANDERA ROAD CORRIDOR IS OWNED BY TXDOT SO THOSE SMALL BUSINESSES WOULD NEVER BE ABLE TO QUALIFY FOR A PROGRAM LIKE THIS.

BUT AS WE KNOW THAT BANDERA ROAD IS GOING TO NEED MUCH-NEEDED CONSTRUCTION AND EXPANSION, I WANT US TO START THINKING ABOUT HOW DO WE PROTECT THOSE BUSINESSES TOO, EVEN THOUGH IT'S NOT A CITY PROJECT, THIS IS BANDERA, IT IS IN OUR CITY AND RESIDENTS ON BOTH SIDES OF BANDERA ARE RESIDENTS OF SAN ANTONIO. AND THOSE SMALL BUSINESSES ARE THERE TOO. I DID WANT TO ECHO COUNCILWOMAN DR. KAUR'S POINTS ABOUT THE

[01:15:04]

I SEE WHAT COUNCILMAN WHYTE'S COMMENTS ARE. I THINK THAT -- YOU KNOW, YOU COULD HAVE A BUSINESS IN DISTRICT 7 AND LIVE IN DISTRICT 10.

I AGREE WITH COUNCILWOMAN CABELLO HAVRDA IF WE'RE LOOKING AT THEIR PERSONAL CRITERIA LIKE WE DO FOR SBEDA, THAT MIGHT OFFER US A DIFFERENT LENS. AND WE MAY SEE THAT WE MIGHT BE MISALLOCATING POINTS. I THOUGHT COUNCILMAN MCKEE-RODRIGUEZ'S COMMENTS WERE SPOT ON AND I DO AGREE. I THINK IT IS DISTRESSING WHERE THE EASTSIDE CONTINUES TO SUFFER AT A DISPROPORTIONATE RATE. SO I DO THINK THAT WE HAVE TO MAKE THAT RIGHT FOR ALL SIDES OF THE CITY. BUT ALSO LOOKING AT THE EQUITY ATLAS AND THE ELIGIBLE PROJECTS, I'M ONLY SEEING ONE IN DISTRICT 2 THAT COULD EVEN QUALIFY, WHICH MAKES ME CURIOUS HOW THE EQUITY ATLAS IS COMING INTO PLAY. I DON'T SEE ANY IN DISTRICT 5 OR DISTRICT 2 AND WE DO KNOW THESE DISTRICTS DO HAVE SOME OF THE HIGHEST CONCENTRATION OF POVERTY IN OUR CITY.

>> SO THE LIST OF ELIGIBLE PROJECTS WAS DRIVEN BY THOSE THAT ARE ONGOING AND ARE EXPECTED TO LAST AT LEAST ONE YEAR. AND SO WORKING WITH THE PUBLIC WORKS TEAM WE WORKED WITH THEM TO IDENTIFY THOSE PROJECTS. UNDERSTANDING FROM THEM THAT THEY ARE AT SORT OF AN INTERESTING JUNCTURE WHERE THEY'RE WRAPPING UP MANY OF THE 2017 BOND PROJECTS AND THE 2022, THOSE APPROVED IN THERE, ARE IN THE DESIGN PHASE SO THEY HAVEN'T YET BEGUN CONSTRUCTION ON THEM. SO THE ACTUAL NUMBER OF PROJECTS THAT MEET THAT CRITERIA LAND ON

THOSE EIGHT. >> I JUST WANT TO CLARIFY ALSO THAT THE EQUITY ATLAS IS BEING USED WHEN IT COMES TO SCORING, WHEN IT COMES TO FIGURING OUT. IF WE DON'T HAVE ENOUGH MONEY, HOW DO WE ORGANIZE WHO WE'RE GOING TO BE FUNDING. THAT DOESN'T NECESSARILY DRIVE WHICH PROJECTS ARE INCLUDED IN THE PROGRAM. THAT IS THE CRITERIA THAT PUBLIC WORKS AND ECONOMIC DEVELOPMENT DEVELOPED BASED ON THE CONSTRUCTION PROJECT ITSELF.

NOT NECESSARILY ON THE EQUITY ATLAS. >> GAVITO: I UNDERSTAND.

I THINK WHAT I'M ALSO CURIOUS OF BECAUSE I UNDERSTAND WHY NO PROJECTS IN DISTRICT 7 WERE SELECTED BUT I'M ALSO CURIOUS. I THINK WHAT WOULD BE INSIGHTFUL TO SEE HOW MANY ELIGIBLE PROJECTS, POTENTIALLY IN DISTRICT 2 OR DISTRICT 5, HOW MANY PROJECTS WERE ELIGIBLE AND

HOW MANY ACTUALLY COULD RECEIVE THIS. >> SORRY. LET ME PULL UP THE SLIDE REAL QUICK.

TO CHANGE THE EITHER PLANNED DURATION OF AT LEAST 12 MONTHS OR BE ONGOING AS OF AUDIO] SO IN ORDER TO ENCOMPASS MORE PROJECTS WE WOULD HAVE TO CHANGE ONE OR BOTH OF THOSE.

>> GAVITO: I WONDER IF THAT'S SOMETHING WE TAKE OFFLINE AND LOOK AT FURTHER.

>> WALSH: OKAY. SO YOU'RE TALKING ABOUT THE ELIGIBLE PROJECTS ON THE SCREEN ARE PROJECTS WITH A DURATION OF 12 MONTHS. LOOKING AT PROJECTS THAT HAVE A DURATION OF SIX MONTHS AND ABOVE. IS THAT WHAT YOU'RE SUGGESTING?

>> GAVITO: WHEN WE'RE LOOKING AT THE EQUITY ATLAS SCORING, I DO THINK THAT THERE IS A POINT TO BE MADE OF YOU COULD HAVE A BUSINESS IN DISTRICT 2 BUT LIVE IN DISTRICT 8.

AND SO ARE WE GIVING THIS -- AWARDING THIS TO POTENTIALLY SOMEBODY WHO LIVES ON THE NORTHSIDE. I'M NOT SURE. AND I DO THINK THAT IF WE LOOK AT THE SBEDA GUIDELINES AND AT PEOPLE'S PERSONAL INCOME, I THINK THAT'S A LAYER OF DATA

THAT'S WORTH LOOKING INTO. >> WALSH: SO THEN I THINK REALLY THE POLICY-LEVEL QUESTION IS WHETHER OR NOT YOU WANT TO UTILIZE THE EQUITY ATLAS AND MAYBE WE LOOK AT USING -- LIKE COUNCILWOMAN HAVRDA TALKED ABOUL BUSINESS DEFINITION. THERE IS SOME BASIS AROUND -- BECAUSE THE EQUITY ATLAS PORTION THAT'S BEING APPLIED IS ONLY THE INCOME PIECE AND SO THAT IS FOR

[01:20:05]

I DON'T THINK WE CAN DO BOTH AT THE SAME TIME. I DON'T THINK.

>> SEGOVIA: IF I MAY, ERIK, AND I'M USING MY DEIA HAT AND NOT MY CITY ATTORNEY HAT.

PART OF THE REASON WE USE THE EQUITY ATLAS IS BECAUSE WE ALSO VALUE THE FACT THAT THERE ARE RETAIL BUSINESSES IN A COMMUNITY THAT HAS BEEN HISTORICALLY NOT SERVICED AND THAT THE VALUE TO THE COMMUNITY OF THOSE RETAIL OUTLETS ARE MUCH MORE IMPORTANT THAN THEY ARE IN OTHER PLACES IN THE CITY. SO THAT'S THE OTHER FACTOR OF WHY WE USE THE EQUITY ATLAS IN

TERMS OF THIS PROGRAM. >> GAVITO: I'M STILL PROCESSING IT BECAUSE, AGAIN, I CAN GET WITH ALL OFFLINE ON THIS. BUT OVERALL, THANK YOU FOR THE

PRESENTATION. >> MAYOR NIRENBERG: TH THANK YO, COUNCILMEMBER GAVITO.

COUNCILWOMAN CASTILLO. >> CASTILLO: I VALUE YOU ALL DID EXTENSIVE PROGRAM INPUT AND REACHED OUT TO SMALL BUSINESS OWNERS THAT Y'ALL PROVIDED SUPPORT TO AND THEN AS WELL AS WORKING WITH THE AUDIT TEAM TO ENSURE THOSE FUNDS ARE BEING USED APPROPRIATELY AND AS DISBURSED. JUST HEARING THE CONVERSATION AROUND THE EQUITY ATLAS AS WELL AS THE SCORING CRITERIA, I DO BELIEVE WHAT COUNCILWOMAN HAVRDA IS PROPOSING, LOOKING AT PERSONAL NET WORTH, WOULD BE SOMETHING OF VALUE. AND, AT THE SAME TIME, I BELIEVE COUNCILMAN MCKEE-RODRIGUEZ PROVIDED A GOOD ARGUMENT ON WHY WE SHOULDN'T CHANGE THE EQUITY ATLAS OR THE INCOME SCORES RATHER BECAUSE OF SOMETHING THAT WE'RE SEEING IN DISTRICT 5 IS FOLKS WHO HAVE LAND SPECULATED, DIDN'T TAKE CARE OF PROPERTY, HAVE DROVE DOWN THE PROPERTY VALUES AND NOW THAT THEY'RE SEEING DEVELOPMENT, NOW THEY'RE PROPPING UP BUSINESSES.

I THINK THERE'S OPPORTUNITY FOR US TO LOOK AT THE PERSONAL NET WORTH.

I THINK THERE WOULD BE VALUE IN TRACKING HOW MANY PROPERTIES AND/OR BUSINESSES EACH APPLICANT OWNS BECAUSE I'VE HAD CONVERSATIONS WITH COMMUNITY MEMBERS THAT THEY'RE HAVING TO MAKE CUTS. WE KNOW THE STATE OF THE ECONOMY IS PUTTING SO MUCH PRESSURE ON WORKING FAMILIES THAT THEY'RE HAVING TO CUT THEIR LAND LINES, REDUCE THEIR CABLE.

SOME OF THEM ARE HAVING TO SELL THEIR VACANT PROPERTIES. ALL THAT TO SAY I THINK IT'S IMPORTANT THAT WE DO LOOK AT THE ASSETS THAT INDIVIDUALS WHO ARE SEEKING SUPPORT HAVE.

AND I THINK IT COULD SERVE AS DATA FOR US TO USE IN FUTURE POLICY DISCUSSIONS.

I DO THINK THERE IS A GOOD ARGUMENT TO BE MADE THAT A D5 RESIDENT COULD HAVE A BUSINESS IN A DIFFERENT DISTRICT BUT I WOULD LIKE TO KNOW THE NET WORTH OF THAT INDIVIDUAL.

THAT'S SOMETHING I WOULD BE SUPPORTIVE OF US TRACKING AND TAKING INTO ACCOUNT.

ON THE SLIDE 7, THE CULTURAL ZONA PROJECT ENCOMPASSES A PIECE OF DISTRICT 5.

DOES THAT MEAN THOSE SMALL BUSINESSES IN DISTRICT 5 WOULD BE INELIGIBLE?

>> WE WORK WITH PUBLIC WORKS TO IDENTIFY THE STREETS IMPACTED AND ACTUALLY INCLUDE A 500-FOOT BUFFER. WE GO DOWN TO THE STREET LEVEL WITH MAPPING TO MAKE SURE THOSE ARE INCLUDED BUT WE WILL CERTAINLY VERIFY. AND SO WE MAY HAVE INADVERTENTLY

MISSED THOSE IN DISTRICT 5. >> THAT CLARIFICATION. AND, LASTLY, I JUST WANTED TO THANK THE ECONOMIC DEVELOPMENT TEAM. I HAD AN OPPORTUNITY TO GO OUT WITH YOUR SMALL BUSINESS NAVIGATORS OR OUTREACH INDIVIDUALS TO GO SPEAK TO DISTRICT 5 BUSINESSES.

I WANTED TO ENSURE ON MY END THAT I WAS DOING MY DUE DILIGENCE TO DO THAT OUTREACH TO SMALL BUSINESSES. SO THAT WAY IF THEY DIDN'T ALREADY RECEIVE THAT NOTE CARD OR IT GOT LOST, THEY'RE HEARING FROM OUR TEAM AS WELL. WHAT WE FOUND IS THIS MANY OF THE SMALL BUSINESSES ALREADY HAD THE NOTICE AND THEY'RE LIKE IS THIS THE SAME AS THIS ONE? YES. IT WAS DOUBLE CONTACTS BEING MADE WITH OUR SMALL BUSINESSES.

SO I JUST WANTED TO THANK YOU AND YOUR TEAM FOR THAT OUTREACH. THOSE ARE ALL MY COMMENTS.

THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CASTILLO.

COUNCILMEMBER COURAGE. >> COURAGE: THANK YOU, MAYOR. I THINK WE HAVE LEARNED A LOT FROM THIS DISCUSSION. WE ARE REALLOCATING AND I HAVE A LOT OF RESPECT FOR A LOT OF WHAT PEOPLE HAVE SAID ABOUT THIS. AND I THINK THE LESSON FOR US IS AS WE MOVE FORWARD, BECAUSE WE'RE TALKING ABOUT MAKING A MORE PERMANENT BUDGETARY ALLOTMENT TO HELP BUSINESSES WHO

[01:25:09]

SOMETIMES THAT'S SURPRISING TO HEAR. AND I THINK WE NEED TO PAY MORE ATTENTION TO THAT. THERE OBVIOUSLY ARE AREAS THAT HAVE BEEN UNDERDEVELOPED FOR YEARS AND I THINK PART OF THE ARPA FUNDING AND PART OF OUR GOAL AS A CITY IS TO TRY AND CREATE MORE EQUALIZATION IN THE FUTURE IN A LOT OF THAT. THANKS FOR BRINGING THAT UP AND EDUCATING US ON THAT. AND LET'S, YOU KNOW, TAKE ALL OF THOSE OTHER VARIABLES INTO CONSIDERATION. YOU KNOW, AS FAR AS I'M CONCERNED, I DON'T SEE ANY MAJOR CHANGE I WOULD MAKE HERE. MAYBE YOU COULD REALLOCATE A FEW POINTS HERE AND THERE.

TO ME THE MOST IMPORTANT JOB IS WHAT WE DO GOING FORWARD FOR THE MILLIONS WE MAY BE ALLOCATING IN YEARS TO COME TO HELP BUSINESSES GET THROUGH DIFFICULT CONSTRUCTION TIMES.

THANKS, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE.

COUNCILMEMBER PELAEZ. >> PELAEZ: THANKS. LOOKING AT THE LIST OF ELIGIBLE BUSINESSES AND THOSE THAT ARE EXCLUDED, I THINK WE COVERED THIS WITH ONE OF THE OTHER GRANT PROGRAMS. BUT I'D LIKE TO ADD VAPE SHOPS, IF POSSIBLE.

I DON'T THINK THERE'S ANYBODY ON THIS DAIS WHO THINKS WE NEED TO SPEND TAX DOLLARS ON MAKING IT EASIER FOR PEOPLE TO VAPE. ANYWAY, THAT'S IT ON THAT TOPIC. THE OTHER THING TOO IS I'M LOOKING AT THE CORRIDORS AND JUST PULLING UP A MAP AND LOOKING AT SOME OF THE BUSINESSES ALONG THESE CORRIDORS THAT WOULD ARGUABLY BE ELIGIBLE WITH THE EXISTING CRITERIA.

THEY INCLUDE LIBERTY BAR, MIXED LEE, HOT JOY, DOUGH PIZZERIA, FARM TABLE, THE BACKYARD AT BROADWAY, MULTIPLE CONVENIENCE STORES, AND SOME HOTELS AND MOTELS.

I CAN TELL YOU JUST LOOKING AT THIS LIST THE NUMBER OF PEOPLE WHO ARE OWNERS, I KNOW A LOT OF THESE. TWO OF THEM LIVE IN SONTERRA. THEY'RE WEALTHY PEOPLE.

MANY OF THEM LIVE IN ALAMO HEIGHTS. SOME LIVE IN THE DOMINION AND ACROSS THE HIGHWAY . TWO OF THESE PEOPLE I KNOW TO BE WEALTHY LAWYERS.

ONE OF THEM HAS A REALLY HUGE FISHING BOAT IN SAN DIEGO IN A MARINA AND THE OTHER HAS A FRACTIONAL INTEREST IN A JET THAT'S PARKED AT THE AIRPORT RIGHT NOW.

I THINK THAT'S WHAT WE'RE TALKING ABOUT HERE IS TRYING TO FIGURE OUT A WAY TO MAKE SURE THE MONEY GOES TO THE PEOPLE WHO ARE GOING TO BENEFIT FROM IT THE MOST.

I DO LIKE THE NET WORTH ANALYSIS THAT WAS PROPOSED. I LIKE THE MICRO BUSINESS ANALYSIS THAT WAS PROPOSED AS WELL. MAYBE THAT'S WHERE WE CAN START AND PRIORITIZE. BUT I THINK ALL OF US AGREE THAT, YOU KNOW, SOMEBODY WHO OWNS A PRIVATE JET, EVEN IF THEY APPLY, SHOULDN'T BE THE BENEFICIARY OF THIS MONEY BECAUSE THAT'S NOT WHAT IT'S INTENDED FOR AND RIGHT NOW IT'S DESIGNED -- IT LOOKS THAT WAY.

AND WE ALL KNOW THAT THE INCOME SHOWN ON THE FINANCIAL STATEMENTS FOR AN LLC ARE VERY DIFFERENT THAN WHAT THE REAL INCOME IS. AND THE RATIO BETWEEN DEBT AND MONEY COMING IN AND MONEY GOING OUT, ESPECIALLY IF YOU'VE GOT A VERY GOOD CPA TO PREPARE THOSE DOCUMENTS FOR YOU. ANYWAY, THAT'S IT. IF ANYTHING COMES OF THIS, HOPEFULLY WE CAN ALL AGREE ON THE VAPE SHOP COMPONENT. THANKS.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. I'M GOING TO CHIME IN AND ASK A FEW QUESTIONS REAL QUICK. ANA, I DON'T KNOW IF YOU OR BRENDA OR ANYBODY ON THE TEAM HAS DONE A PEER ANALYSIS. WHAT ARE OTHER CITIES DOING? WE'RE NOT THE ONLY ONES THAT ARE SUFFERING THROUGH DELAYED CONSTRUCTION BECAUSE OF SUPPLY CHAIN ISSUES, LABOR ISSUES, ET

CETERA. >> FOUND REALLY THERE ARE NO CONSISTENCIES. I THINK LOTS OF CITIES ARE GRAPPLING WITH THIS CHALLENGE RIGHT NOW. SO WE'RE ABLE TO DRAW SOME ON THE MARKETING TYPE PROGRAMS AND PROVIDING THAT TYPE OF ASSISTANCE TO THE BUSINESSES.

NOT MANY WERE DOING GRANT PROGRAMS. I CAN'T HONESTLY RECALL ONE.

[01:30:02]

I BELIEVE IN WORKING WITH LIFTFUND THEY ARE NOT WORKING WITH ANY OTHER COMMUNITIES THAT

ARE ROLLING OUT CONSTRUCTION GRANT PROGRAMS. >> MAYOR NIRENBERG: ERIK, YOU

LOOKED LIKE YOU WANTED TO ADD SOMETHING. >> WALSH: I REMEMBER THE ANALYSIS. I THINK THERE WAS A CANADIAN CITY THAT WAS UTILIZING A

SIMILAR PROGRAM FOR A LIGHT RAIL PROJECT. >> MAYOR NIRENBERG: YEAH, AND I DO KNOW OUR PEER REVIEWS FROM THE COVID GRANTS THAT WE GAVE OUT SHOWED THAT WE HAD A MUCH LARGER NUMBER OF GRANTEES WITH HIGHER CEILING FOR THE OVERALL GRANTS.

WE WERE COMPARED TO PEERS DOING A LOT MORE ON SMALL BUSINESS RELIEF FOR COVID THAN WE HAD -- THAN OTHERS WERE. OF COURSE, THE CONSTRUCTION CONCERNS AND FRUSTRATIONS ADDED TO THIS WHOLE MIX AND SO WE FOUND ARPA AND THE ELIGIBILITY AT THE TIME AND EVEN IN THIS WAS YOU HAD TO BE A COVID-IMPACTED BUSINESS PLUS CONSTRUCTION IMPACTED, SO WE CREATED A PROGRAM LIKE THAT. I THINK THIS DISCUSSION HAS BEEN ENLIGHTENING IN A FEW WAYS FOR ME. NUMBER ONE, I KIND OF FEEL US VEERING OFF INTO SORT OF A MORE GENERALIZED ROUTE. WE'RE TALKING ABOUT CONSTRUCTION MITIGATION, WHAT ARE WE TRYING TO ACCOMPLISH? WE'RE TRYING TO MITIGATE THE IMPACTS THAT CONSTRUCTION HAS CAUSED ON LOCAL SMALL BUSINESSES. AND SO, YOU KNOW, NUMBER ONE, THAT'S CONCEPTUALLY CHALLENGING BECAUSE WE'RE NOT GOING TO EVER STOP MAINTAINING OUR STREETS AND THERE'S GOING TO BE CONSTRUCTION ONGOING SO WE'RE GOING TO TRY TO NARROW DOWN WHO IS ELIGIBLE FOR THAT. ARE THEY LONG-TERM CONSTRUCTION PROJECTS? ARE THEY CONSTRUCTION PROJECTS THAT HAVE BEEN DELAYED? WHAT ARE THE BEST WAYS THAT WE HAVE TO HELP MITIGATE THAT? NON-MONETARY WAYS, WE'VE WORKED ON COMMUNICATION, SIGNAGE, WAYFINDING. I WOULD VENTURE TO SAY THOSE ARE EFFECTIVE WHEN USED PROPERLY.

BECAUSE THERE'S NOT GOING TO BE A WHOLE LOT OF IMPACT -- COMPARED TO A RESTAURANT THAT'S SITTING ON THE CORNER OF THE INTERSECTIONS BEING RECONSTRUCTED, THERE'S GOING TO BE A WHOLE LOT MORE IMPACT TO THAT BUSINESS THAN THERE WOULD BE TO A MORTGAGE OFFICE WHICH HAS TWO PEOPLE WORKING THE PHONE AT A DESK. DOES THIS PROGRAM CONSIDER THAT SORT OF THING, THE KIND OF BUSINESS? OR IS THAT ALL BAKED INTO YOUR

NET REVENUE LOSS, ASSUMED? >> SO AS ONE OF THE CRITERIA ARE THEY HAVE TO HAVE A CUSTOMER

TRAFFIC OR SOME TYPE OF IN-PERSON. >> MAYOR NIRENBERG: SO YOU'VE

ACCOMMODATED THAT. >> YES. >> MAYOR NIRENBERG: BUT THERE WILL ALWAYS BE CONSTRUCTION IMPACTS. AND BECAUSE THEY HAVE MEANS TO DO THAT. AND SO A LOT OF THE CONCERNS AND FRUSTRATIONS THAT WE'VE HEARD FROM BUSINESS OWNERS THAT HAVE BEEN IMPACTED BY CONSTRUCTION ARE PEOPLE THAT MIGHT BE ABLE TO GO APPLY FOR ANOTHER LOAN. AND SO WE'RE TRYING TO HELP FOLKS WHO MAYBE NOT HAVE THAT ABILITY TO GO APPLY FOR ADDITIONAL SOURCES OF CAPITAL.

HOW DEEP DO Y'ALL GO INTO THE ANALYSIS OF NOT NECESSARILY WHAT THE INCOME OF THE OWNER IS BUT WHAT MEANS THEY HAVE TO DRAW DOWN CAPITAL TO SAVE THEIR BUSINESS?

>> SO THAT'S NOT SOMETHING THAT WE LOOK AT. LIFTFUND LOOKS AT.

THEY DO LOOK AT THINGS LIKE INCOME TAX DOCUMENTS FOR THE BUSINESS.

NOW, IF THE INDIVIDUAL IS A SOLE PROPRIETOR AND IT IS INCLUDED WITHIN THEIR INDIVIDUAL TAX RETURN, AGAIN, THEY ARE JUST LOOKING AT THE DOCUMENTS RELATED TO THE BUSINESS.

>> MAYOR NIRENBERG: TO ME, THAT'S MORE IMPORTANT THAN JUST A ROTE TAX STATEMENT.

WHATEVER YOUR INCOME IS. BECAUSE WHAT I THINK WE'RE TRYING TO DO WITH THIS PROGRAM IS IN THESE CONSTRUCTION PROJECTS THAT ARE OFT DELAYED AND LAST A LONG TIME, SHOULD BE AN ACCOMMODATION FOR THE SERVICE IN THAT AREA. WE'RE TRYING TO PREVENT THE CONSTRUCTION FROM CLOSING SHOP AND SO IT'S LESS IMPORTANT TO ME WHAT THE PERSON'S INCOME IS THAN IT IS WHAT THEIR MEANS TO KEEP THE BUSINESS OPEN ARE. IN THAT CASE, WITH THIS DISCUSSION WITH THE EQUITY ATLAS, IT IS ABOUT WHERE THE BUSINESS IS LOCATED.

IT IS ABOUT MAKING SURE THAT WE DON'T LOSE THE RESTAURANTS. WE DON'T LOSE THE, YOU KNOW, THE CORNER SHOPS. WE DON'T LOSE WHATEVER THE PUBLIC ACCOMMODATION IS IN THAT PARTICULAR AREA. SO, YOU KNOW, I'M A LITTLE BIT TORN ON THIS CONVERSATION

[01:35:03]

SMALL BUSINESSES THAT REALLY FOCUS ON HOW SMALL BUSINESSES CONTRIBUTE TO THE EQUITY AND WEALTH OF THE FAMILIES THAT OWN THEM. THIS IS ABOUT MAKING SURE THAT CONSTRUCTION DOESN'T CAUSE THE CLOSURE OF BUSINESSES IN AREAS THAT CAN'T LOSE THAT SERVICE TO THE PUBLIC. SO THOSE ARE MY ONLY COMMENTS. COUNCILMEMBER WHYTE.

>> WHYTE: YEAH, SO TO FOLLOW UP ON THAT -- AND MAYBE I MISUNDERSTOOD OR DIDN'T UNDERSTAND OR DISAGREE. IT'S ONE OF THE THREE. TO ME, THE OWNER OF THE BUSINESS' NET WORTH OR OTHER ASSETS HE HAS IS GOING TO FACTOR INTO WHETHER OR NOT HE CAN GET A LOAN OR HAVE ACCESS TO CAPITAL TO KEEP OPEN THE BUSINESS, WHETHER IT'S IN DISTRICT 2, 3, OR 4. SO AGAIN I SEE IT AS NOT WHERE THE PHYSICAL BUSINESS IS LOCATED. I'M WITH YOU ON WE WANT TO KEEP THESE BUSINESSES IN THESE HISTORICALLY-DISADVANTAGED AREAS OPEN, BUT TO ME THE MORE IMPORTANT CRITERIA IN TERMS OF ACCESS TO CAPITAL WOULD BE THE OWNER'S NET WORTH OR ASSETS. AND THAT LEADS ME TO ECHOING SOME OF THE COMMENTS FROM MY COUNCIL COLLEAGUES THAT I DO THINK NET WORTH OF THE OWNER WOULD BE SOMETHING TO LOOK AT AS OPPOSED TO THESE EQUITY ATLAS POINTS.

I THINK THERE'S A BETTER WAY TO LOOK AT THIS TO HELP DISADVANTAGED AREAS AND OWNERS THAT NEED IT THAN THROUGH THE EQUITY ATLAS, WHICH IS SIMPLY BASED ON THE GEOGRAPHIC AREA OF WHERE THE BUSINESS IS LOCATED. AND I THINK WE'VE HEARD THAT NOW FROM QUITE A FEW FOLKS.

THIS PROGRAM IS GOING TO HELP PROBABLY, YOU KNOW, 40 BUSINESSES, GIVE OR TAKE.

THAT'S IT. AND THE WAY THAT IT'S SET UP RIGHT NOW, ONLY DISTRICTS 1 THROUGH 4 ARE GOING TO HAVE ANY BUSINESSES THAT ARE HELPED HERE. THE 23 BUSINESSES THAT ARE THEORETICALLY ELIGIBLE IN DISTRICT 10 HAVE EQUITY ATLAS SCORES OF 1 TO 2 SO THEY'RE NOT GOING TO BE GETTING THESE FUNDS. I MEAN, THIS PROGRAM IS SIMPLY GOING TO HELP BUSINESSES IN DISTRICTS 1 THROUGH 4 AND I DON'T THINK THAT WAS WHAT WAS THE INTENT.

THERE'S CONSTRUCTION GOING ON ALL OVER THE CITY THAT'S HURTING BUSINESSES.

I WANT TO ECHO COUNCILMAN PELAEZ ON THE VAPE SHOPS. I WOULD AGREE THAT THOSE SHOULD BE EXCLUDED AS WELL. AND I ALSO WANT TO ECHO COMMENTS ON THE SIZE OF THE BUSINESSES THAT WE'RE HELPING. I DO THINK THE SBA DEFINITION IS FRANKLY TOO LARGE AND FOR US HERE IN SAN ANTONIO I THINK THAT WE NEED TO FOCUS OUR EFFORTS ON -- IF YOU WANT TO CALL THEM MICRO BUSINESSES BUT BUSINESSES THAT ARE PROBABLY SMALLER THAN WHAT WOULD FIT IN THE SBA

DEFINITION. THANKS, MAYOR. >> MAYOR NIRENBERG: THANK YOU,

COUNCILMEMBER WHYTE. COUNCILMEMBER KAUR. >> KAUR: THANK YOU, MAYOR.

SO I'VE BEEN DOING SOME THINKING AS EVERYBODY HAS BEEN TALKING AND HAVE SOME SPECIFIC RECOMMENDATIONS FOR US TO CONSIDER. SO I REALLY THINK THAT THIS DEBT CONVERSATION -- I'M GOING TO COME BACK TO IT BECAUSE IT'S REALLY IMPORTANT TO ME.

JUST BECAUSE SOMEONE, YES IT'S IMPORTANT IF SOMEONE DOES NOT HAVE ACCESS TO DEBT THAT WE SUPPORT THEM. EVEN IF THEY DO HAVE ACCESS TO DEBT AND THEY ARE TAKING OUT DEBT IN AN UNHEALTHY WAY CRITERIA, COULD WE ADD EITHER A 10% INCREASE IN DEBT OR $10,000 LOSS? NOT JUST EXPERIENCE A $10,000 REVENUE LOSS BUT THEY ALSO HAVE INCREASED IN DEBT CAN ALSO BE A WAY TO MAKE THEM ELIGIBLE. I LIKE THE IDEA OF THE SIX MONTHS.

SOME OF OUR BUSINESSES DON'T LAST A YEAR. FOR THE POINTS IT'S UNDER 18 MONTHS THERE'S NO POINTS. COULD WE ADD 5 POINTS FOR DURATION PROJECT FROM 7 TO 18 SO

[01:40:05]

COULD WE LOOK AT WHAT WE COULD DO TO HELP REFINANCE DEBT? SO MAYBE THERE'S A WAY NOT JUST TO GIVE A GRANT, WHICH IS A ONE-TIME, YES, YOU HELPED ME. COULD WE LOOK AT WHAT IT WOULD BE LIKE TO GIVE A 0% DEBT REFINANCE LOAN PROGRAM AS A PART OF THAT, RATHER THAN JUST A GRANT. BECAUSE THAT ALSO COULD RECYCLE. AND THEN ON SLIDE 13 REAL QUICK, CAN WE TRY TO SET SOME TARGETS FOR THESE? SO LIKE HOW MANY SOCIAL MEDIA POSTS ARE WE GOING TO PUT UP OR HOW MANY BUSINESSES OF THAT ELIGIBLE BUSINESS LIST ON THOSE PROJECTS ARE WE GOING TO AT LEAST TRY TO MAKE CONTACT WITH BETWEEN BOTH THE OFFICE -- I MEAN, OUR DISTRICT OFFICES AND THE CITY DEPARTMENTS. JUST TO SET SOME TARGETS.

THIS IS WHAT WE SAID WE WERE GOING TO DO AND WE DID IT. AND THEN THE LAST QUESTION THAT I HAVE IS ON SLIDE 14. JUST BECAUSE ONE OF MY STAFFERS USED TO WORK FOR THE LIFTFUND.

HE REMEMBERS THAT THE PERCENTAGE FOR ADMINISTRATIVE FEE WAS A LITTLE BIT LOWER.

HAS THAT INCREASED NOW FOR THEI? >> YES. AS THEY EVALUATE THEIR COSTS

GOING UP AS WELL, THE NEGOTIATED RATE WAS 12%. >> KAUR: THANKS.

AND THEN THE LAST RECOMMENDATION THAT I WANTED TO MAKE WAS GOING BACK TO THIS IDEA OF IMPACT.

I THINK, ECHOING WHAT SOME OF THE FOLKS HAVE JUST SAID. WE WANT TO MAKE SURE THIS GRANT PROGRAM SPECIFICALLY IS FOCUSED ON IMPACT. AND SO THE LAST RECOMMENDATION I'D LIKE TO MAKE IS TAKING OUT THE YEARS OF HOW LONG THEY'VE BEEN IN BUSINESS.

BECAUSE TO ME THAT'S LESS IMPORTANT THAN HOW MUCH IMPACT THIS COULD HAVE ON THEM.

WHETHER THAT'S NET WORTH, THAT'S A REPLACEMENT IN THAT AREA OR WHETHER IT'S ANOTHER FINANCIAL METRIC IS WHAT I'D LIKE TO SEE IN THE ELIGIBLE SCORING CRITERIA.

THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR.

ANYONE ELSE? IS THAT IT? >> WHYTE:

>> MAYOR NIRENBERG: WHAT'S YOUR TAKEAWAY, ERIK? ARE YOU BRINGING THIS BACK FOR

REVIEW? >> WALSH: LIKELY. THERE'S A LOT OF THINGS I THINK WE NEED TO RELOOK AT AND I THINK WE NEED TO CHASE THOSE DOWN AND COME BACK TO THE COUNCIL.

>> MAYOR NIRENBERG: LAST COMMENT IS THAT IF THIS IS GOING TO BE A CONSTRUCTION MITIGATION GRANT PROGRAM, WE'VE GOT TO FOCUS ON MITIGATING CONSTRUCTION IMPACTS.

THAT'S IT. OKAY. >> WALSH: WE'LL TRY TO DO THAT RELATIVELY QUICKLY. THAT WAY WE KEEP THE TRAINS MOVING.

>> MAYOR NIRENBERG: QUEUE US UP FOR ITEM 2. >> WALSH: OUR SECOND ITEM, NEIGHBORHOOD AND HOUSING SERVICES IS GOING TO BRIEF YOU ON A PRE-SOLICITATION FOR THE NEXT ROUND OF HOUSING BOND FUNDING. THE VOTERS APPROVED $150 MILLION IN 2022. SINCE THEN, THE COUNCIL HAS AWARDED $80 MILLION OF THAT $150 MILLION. THOSE FUNDS THAT YOU AWARDED LAST YEAR INCLUDE 288 PERMANENT SUPPORTIVE HOUSING UNITS FOR INDIVIDUALS AND 654 INCOME-BASED UNITS AND 312 UNITS OF PUBLIC HOUSING. MORE THAN 2500 HOMES ARE CURRENTLY IN THE DEVELOPMENT PIPELINE AND A LITTLE OVER 1500 UNDER CONSTRUCTION. WE HAVE CONTINUED TO MAKE PROGRESS AND EXECUTE AND SPEND THAT MONEY EFFICIENTLY. THE EVALUATION CRITERIA THAT VERONICA WILL COVER FOR THE NEXT ROUND OF RFPS, WHICH ARE FOCUSED ONN RENT HOUSING AND OUR LAST INCREMENT FOR PERMANENT SUPPORTIVE HOUSING . OUR STRATEGIC HOUSING IMPLEMENTATION PLAN IS GUIDING ALL OF THIS AS WELL AS THE CRITERIA THAT THE BOND COMMITTEE DEVELOPED AND PROPOSED TO THE COUNCIL. SO WE ARE EAGER TO MOVE ALONG

AND I'LL TURN IT OVER TO VERONICA. >> THANK YOU, ERIK.

I'M VERONICA GARCIA. I'M EXCITED TO TALK ABOUT OUR NEXT ROUND OF HOUSING BOND

[01:45:03]

IT ALLOWS US TO PRESERVE THE AFFORDABLE HOUSING WE ALREADY HAVE IN THE COMMUNITY AND TO CREATE MORE AFFORDABLE HOUSING OPTIONS FOR SAN ANTONIANS. THE BOND WAS SPLIT UP INTO MULTIPLE FUNDING CATEGORIES. SO WE HAVE USED THE HOUSING BOND TO HELP US REPAIR HOMES THAT ARE OWNER OCCUPIED. WE HAVE $40 MILLION SET ASIDE TO BUILD NEW MULTIFAMILY RENTAL HOMES THAT ARE AFFORDABLE. WE HAVE $40 MILLION FOR REHABBING EXISTING MULTIFAMILY RENTAL HOMES. $35 MILLION SET ASIDE TO BUILD NEW MF-RENTAL HOMES THAT ARE AFFORDABLE. WE HAVE $25 MILLION SET ASIDE TO BUILD PERMANENT SUPPORTIVE HOUSING, WHICH IS HOUSING WITH ON SITE SERVICES TO HELP INDIVIDUALS WHO ARE CHRONICALLY HOMELESS. AND WE HAVE $5 MILLION SET ASIDE TO BUILD SINGLE-FAMILY HOMES AND CREATE MORE HOME OWNERSHIP OPPORTUNITIES . I AM EXCITED TO SAY THAT OUR HOME OWNERSHIP BUCKET IS COMPLETELY COMMITTED SO WE HAVE EXHAUSTED ALL OF THE BOND FUNDS AND MANY OF THOSE PROJECTS ARE UNDERWAY. TODAY'S BRIEFING WILL FOCUS ON THE MIDDLE THREE ITEMS WHICH STILL HAVE REMAINING FUNDS. WE WERE ALSO TASKED WITH ENSURING THAT WE ARE BEING CREATIVE WITH THE HOUSING BOND FUND SO WE CONTINUE TO HAVE ABOUT $8 MILLION SET ASIDE TO PURSUE CREATIVE PROJECTS THAT ARE IN ALIGNMENT WITH OUR STRATEGIC HOUSING IMPLEMENTATION PLAN. ONE PROJECT YOU'VE ALREADY APPROVED PREVIOUSLY, WHICH IS CONVERTING A MOBILE HOME COMMUNITY TO A COOPERATIVE STRUCTURE WHERE THE MOBILE HOME OWNERS ARE BECOMING LANDOWNERS. THAT PROJECT IS ALREADY UNDERWAY. WE CONTINUE TO HAVE BOND FUNDS SET ASIDE FOR OUR OPERATION REBUILD, WHICH IS A DEMO DIVERSION PROGRAM FOR HOMEOWNERS.

SO WE STILL HAVE FUNDS SET ASIDE TO PURSUE OTHER STRATEGIES SUCH AS LAND BANKING, COMMUNITY LAND TRUSTS, AND HOW WE CAN CONTINUE TO INCENTIVIZE ACCESSORY DWELLING UNITS AS AFFORDABLE HOUSING RIGHT HERE IN OUR NEIGHBORHOODS. THE HOUSING BOND WILL HELP US MEET THE NEEDS OF THOSE WHO ARE MOST VULNERABLE. IT IS BEING ADMINISTERED IN ALIGNMENT WITH OUR SHIP, OUR TEN-YEAR HOUSING AFFORDABILITY PLAN.

AS WAS SHARED AT THE PLANNING AND COMMUNITY DEVELOPMENT MEETING YESTERDAY, OUR SAN ANTONIO POVERTY RATE IS JUST OVER 17%. WHICH MEANS ABOUT 250,000 RESIDENTS LIVE AT THE POVERTY LEVEL OR BELOW. AND THAT POVERTY LEVEL ALIGNS MOST CLOSELY WITH OUR 30% AREA MEDIAN INCOME BRACKET. THAT'S A FAMILY OF THREE MAKING LESS THAN $24,000 A YEAR. AND SO THESE FUNDS ARE STRUCTURED IN A WAY WHERE OUR PROJECTS THAT RECEIVE FUNDING HAVE HOUSING FOR THOSE LIVING AT OR BELOW THE POVERTY LEVEL.

I WANTED TO MAKE SURE THAT WAS EMPHASIZED AS WE GO THROUGH THE SOLICITATION CRITERIA TODAY.

SO THE HOUSING BONDS WILL CREATE FUNDING OPPORTUNITIES TO INCREASE AND PRESERVE HOMES SPECIFICALLY NEAR JOBS, TRANSIT, AND SCHOOLS. TO DATE WE HAVE BEEN VERY -- MOVED QUICKLY. JUST THREE MONTHS AFTER THE BOND WAS APPROVED AND PASSED BY VOTERS, WE ISSUED OUR FIRST ROUND OF REQUESTS FOR PROPOSAL. CITY COUNCIL HAS AWARDED $81 MILLION TO 30 DIFFERENT PROJECTS. THIS WILL HELP INCENTIVIZE THE CREATION AND TOTAL OF OVER 4800 HOMES INCLUDING 288 PERMANENT SUPPORTIVE HOMES.

THIS FUNDING, WE MADE IT BOND FUNDS. WE CO-MINGLED THEM WITH FEDERAL FUNDS SO WE HAVE MORE DOLLARS AVAILABLE FOR THOSE TEAMS WHO WANT TO HELP US BRING MORE HOUSING AFFORDABILITY TO OUR CITY. WE'VE SEEN MUCH PROGRESS TO DATE SINCE THE FUNDS WERE APPROVED. CURRENTLY WE HAVE MORE THAN 2500 HOMES IN THE DEVELOPMENT PIPELINE. AND WE HAVE AN ADDITIONAL 1400 HOMES ARE ALREADY UNDER CONSTRUCTION. THESE HOMES, BEYOND JUST NUMBER OF UNITS CREATED, THESE AFFORDABLE HOUSING -- WE'VE SEEN PROJECTS THAT HAVE PUBLIC ART INCORPORATED, THAT HAVE SERVICES FOR THE RESIDENTS SUCH AS AFTER SCHOOL CARE PROGRAMS, FOOD PANTRY, MANY OF THEM COMMITTED TO READY TO WORK PARTNERS. THEY ALSO INCLUDE PROJECTS THAT GO ABOVE AND BEYOND SUSTAINABILITY FEATURES OR RESILIENT HOUSES WITH EV CHARGING.

VERY CREATIVE IN THE PROJECTS THAT ARE AWARDED FUNDING. WE HAVE CELEBRATED FIVE GROUNDBREAKING SO FAR AND WE HAVE TEN MORE PROJECTS, INCLUDING 1600 UNITS THAT ARE EXPECTED TO BREAK GROUND THIS YEAR. IN TOTAL, AS ERIK MENTIONED, OVER 35% OF OUR PROJECTS INCLUDE DEEPLY AFFORDABLE UNITS AND THAT INCLUDES OVER 900 UNITS THAT ARE FOR FAMILIES AT THAT 30% AMI INCOME OR BELOW. TODAY'S BRIEFING IS ON THREE RFP

[01:50:02]

PROJECTS LOCATED OUTSIDE OF CITY LIMITS. A FOCUS ON NOT THE PROJECT BUT ON THE APPLICANT. SO APPLICANTS THAT HAVE AN ACTIVE DART CASE OR ON THE PROACTIVE APARTMENT INSPECTION PROGRAM WOULD NOT BE ELIGIBLE IN THIS PARTICULAR FUNDING ROUND.

PROJECTS THAT DON'T MEET OUR MINIMUM AFFORDABILITY CRITERIA. AGAIN, WE HAVE LIMITED FUNDS SO WE WANT TO MAKE SURE ALL THE PROJECTS INCLUDE UNITS THAT ARE THE HARDEST TO BUILD.

SO AT LEAST 10% OF THE PROJECT MUST BE FOR HOUSING FAMILIES THAT ARE AT 30% OF THE AREA MEDIAN INCOME OR BELOW. WE ALSO WOULD BE NOT PROVIDING FUNDING TO PROJECTS THAT CAUSE DIRECT, INVOLUNTARY DISPLACEMENT OF RESIDENTS. AND FOR OUR PERMANENT SUPPORTIVE HOUSING CATEGORY, A PROJECT WOULD BE INELIGIBLE IF IT DID NOT SERVE CHRONICALLY HOMELESS RESIDENTS, IF IT DID NOT UTILIZE OUR COORDINATED ENTRY SYSTEM, OR IF THE PROJECT HAD A MAXIMUM LENGTH OF STAY FOR THE RESIDENTS SUCH AS A TRANSITIONAL HOUSING OR INPATIENT REHAB PROGRAM.

THESE ARE THE PARAMETERS WE ARE CONTINUING TO UTILIZE. THESE WERE RECOMMENDED BY THE HOUSING CITIZEN BOND COMMITTEE AND BY THE HOUSING COMMISSION AND APPROVED BY CITY COUNCIL WHEN THE BOND WAS ADOPTED. WE CONTINUE TO LOOK AT WHO IS THE PROJECT FOR, WHERE IS IT PROPOSED TO BE LOCATED, HOW, WHAT TYPE OF HOUSING IS BEING BUILT, AND HOW ARE THE RESIDENTS BEING SERVED. SO MORE SPECIFICALLY WE LOOK AT PROJECTS THAT ARE PRIORITIZING DEEP AFFORDABILITY, SO THEY HAVE THOSE 30% UNITS IN THEM. PROJECTS THAT ARE PUBLIC HOUSING OR INCOME-BASED HOUSING UNITS ALSO GET ADDITIONAL PRIORITY. WE'LL BE LOOKING AT PROJECTS THAT ARE SHOVEL READY. IT'S REALLY IMPORTANT THAT THESE PROJECTS AND FUNDS GET STARTED AS SOON AS POSSIBLE. WHEN YOU THINK ABOUT IT, WE'RE ALMOST TWO YEARS INTO THE APPROVAL OF THE BOND AND MANY OF THESE PROJECTS TAKE AT LEAST TWO YEARS TO BE BUILT.

SO WE REALLY WANT TO FOCUS ON AWARDING OUR FINAL FUNDS TO PROJECTS THAT ARE READY TO GO.

WE WILL BE LOOKING FOR PROJECTS THAT INCORPORATE UNIVERSAL DESIGN STANDARDS.

AGAIN, SUSTAINABILITY FEATURES THAT GO BEYOND CODE. WE WILL BE EMPHASIZING PROJECTS THAT MEET BUILD SAN ANTONIO GREEN LEVEL 2 CERTIFICATION, WHICH IS ROUGHLY ABOUT 15% BEYOND WHAT THE STANDARD CITY CODE REQUIRES. AND, AGAIN, LOOKING FOR PROJECTS THAT ARE NEAR PUBLIC TRANSIT LINES. WE ALSO, AS WAS DONE IN PREVIOUS FUNDING ROUNDS, WE WILL REQUIRE NEW CONSTRUCTION PROJECTS COMPLETE A DISPLACEMENT IMPACT ASSESSMENT. THE DISPLACEMENT IMPACT ASSESSMENT REALLY HELPS US AND THE SCORING COMMITTEE WITH A BETTER UNDERSTANDING OF THE SURROUNDING AREA AND THE VULNERABILITY FACTORS OF THAT AREA BEFORE ANY FUNDING AWARDS ARE DONE.

WE WILL ALSO LOOK AT PRIORITIZING PROJECTS THAT INCLUDE THOSE MEANINGFUL ON-SITE RESIDENT SERVICES. SO AS MENTIONED WE HAVE A TOTAL OF $30.4 MILLION AVAILABLE.

I'LL START WITH THE PERMANENT SUPPORTIVE HOUSING CATEGORY. WE'VE HAD ONE FUNDING ROUND AND THAT LEFT $9.7 MILLION. THIS WILL BE THE SECOND SOLICITATION FOR PROPOSALS FOR PERMANENT SUPPORTIVE HOUSING. ACROSS THE OTHER TWO CATEGORIES WE HAD PREVIOUSLY COMMITTED ALL OF THE BOND FUNDS BUT SOME PROJECTS WERE NOT ABLE TO MEET THEIR STATE OR FEDERAL FUNDING TIMELINES, WHICH BASICALLY MEANS THEY WERE NOT ABLE TO OBTAIN THE ADDITIONAL GAP FUNDS, OTHER FINANCING THAT THEY NEEDED TO COMPLETE THE PROJECT. AGAIN, WITH THE INTEREST OF GIVING THE FUNDS TO PROJECTS READY TO GO. WE HAVE SPOKEN WITH THEM.

WE HAVE AGREED WILL BE RECAPTURING THOSE COMMITMENTS AND MAKING THEM AVAILABLE IN THIS NEXT ROUND. NONE OF THE PROJECTS ACTUALLY RECEIVED BOND FUNDS SO THERE WAS

[01:55:03]

WE STILL HAVE THE FUNDS AND NOW WE'RE GOING TO BE MADE AVAILABLE WITH THIS ROUND.

SO FOR NEW RENTAL HOUSING, THAT GIVES US $6.4 MILLION WHEN WE ADD OUR REMAINING FEDERAL FUNDS.

THE LARGEST FUNDING CATEGORY WE HAVE IS RENTAL REHAB, AND THAT'S $14.2 MILLION.

SO AS WE CONTINUE TO DO OUR DUE DILIGENCE AND SPEAK WITH ALL OF OUR DEVELOPMENTS THAT ARE STILL IN THE PREPIPELINE PLANNING CONSTRUCTION UNDERWRITING PHASE BETWEEN NOW AND WHEN WE COME BACK WITH RECOMMENDATIONS, IF WE IDENTIFY ANY OTHER PROJECTS NOT MEETING THEIR DEADLINES OR NOT MOVING FORWARD, WE WILL BE RECAPTURING THOSE FUNDS AND ADDING THEM TO THESE SOLICITATIONS. EVERY PROJECT HAS TO HAVE AN AFFORDABILITY COMMITMENT OF AT LEAST 20 YEARS AND WE WILL BE PRIORITIZING PROJECTS THAT GO 40 YEARS OR LONGER.

SO AS AN OVERVIEW FOR OUR FIRST CATEGORY, NEW RENTAL HOUSING, WE HAVE $6.4 MILLION.

THIS IS THE ONE CATEGORY THAT COMBINES BOTH OUR BOND FUNDS WITH THE FEDERAL DOLLARS.

SO THERE IS NO CHANGE TO THE SCORING CRITERIA FROM PREVIOUS ROUNDS.

WE CONTINUE TO HAVE THE LARGEST CATEGORY OF POINTS AVAILABLE FOR AFFORDABILITY.

SO LOOKING AT HOW DEEPLY AFFORDABLE, HOW MANY UNITS ARE DEEPLY AFFORDABLE.

ARE THEY INCORPORATING THOSE ADDITIONAL SUSTAINABILITY MEASURES, WHICH MAKES PERHAPS THE COST OF OCCUPYING THE RESIDENCE, UTILITY BILLS, DOES THAT MAKE IT MORE AFFORDABLE? WE'RE LOOKING FOR DEVELOPMENT TEAMS THAT HAVE PREVIOUS AFFORDABLE HOUSING EXPERIENCE AND LOOKING FOR THOSE THAT ARE IN GOOD STANDING WITH THE CITY. PROJECTS THAT HAVE A NONPROFIT PARTNER, SO MAYBE A PARTNERSHIP WITH THE SAN ANTONIO HOUSING TRUST OR ONE OF OUR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS. THEY CAN BE ELIGIBLE FOR UP TO 10 POINTS. 15 POINTS FOR A PROJECT'S GAP READINESS.

THAT SPEAKS TO HOW SHOVEL READY IS THE PROJECT AND HOW MUCH FUNDING ARE THEY ASKING FOR FROM THE CITY VERSUS WHAT ARE WE GETTING IN RETURN FOR THAT INVESTMENT AS FAR AS THEIR AFFORDABILITY MIX AND WHAT OTHER FUNDS ARE THEY LEVERAGING. AND THEN 15 POINTS ON THEIR CONSTRUCTION PRIORITIES AND LOCATION. SO THAT'S WHERE WE WOULD BE INCLUDING POINTS FOR ARE YOU ON PUBLIC TRANSIT OR ONE OF THOSE ART FUTURE LINES? ARE YOU INCORPORATING THAT LEVEL 2 BUILD SAN ANTONIO GREEN STANDARD OR EVEN HIGHER? AND THEN WHERE EXACTLY WITHIN THE CITY ARE YOU PROPOSING TO BUILD THIS PROJECT.

FOR THE SCORING PANEL, WE WILL HAVE A MIX OF INTERNAL CITY STAFF AND EXTERNAL STAKEHOLDERS.

SO WE WILL HAVE REPRESENTATIVES FROM THE CITY MANAGER'S OFFICE, FROM OUR DEPARTMENT.

WE HAVE EXPERTISE FROM PUBLIC WORKS AND VIA AND PLANNING. AND WE WILL CONTINUE TO INCLUDE TWO MEMBERS FROM THE CITIZEN HOUSING BOND COMMITTEE. THE COMMITTEE WILL ALSO BE SUPPORTED BY ADVISORIES MEMBERS. WE HAVE EXPERTISE FROM OUR UNDERWRITERS AND CITY ATTORNEY'S OFFICE AS WELL AS OUR DIVERSITY, EQUITY, INCLUSION, AND ACCESSIBILITY AND OUR SUSTAINABILITY OFFICE. SINCE THIS PROJECT, THIS PARTICULAR FUNDING ROUND INCLUDES FEDERAL FUNDS, WE WILL BE WAIVING ALL OF THE SBEDA AND LOCAL PREFERENCE POINT REQUIREMENTS. WE'RE NOT ALLOWED TO INCLUDE THOSE WITH FEDERAL DOLLARS.

OUR NEXT CATEGORY IS REHAB OF EXISTING AFFORDABLE RENTAL HOUSING.

WE HAVE A TOTAL OF $14.3 MILLION. THIS IS ONLY BOND FUNDS SO YOU WILL SEE THAT WE INCLUDE OUR SMALL BUSINESS, OUR SBEDA PROGRAM, AND LOCAL PREFERENCE POINTS ARE INCLUDED IN THIS ROUND, AS WELL AS OUR VETERAN-OWNED SMALL BUSINESS.

THIS SCORING CRITERIA ALSO REMAINS UNCHANGED FROM THE PREVIOUS FUNDING ROUNDS THAT WERE ALREADY APPROVED BY CITY COUNCIL. SO WE CONTINUE TO HAVE THE HIGHEST AMOUNT OF POINTS AVAILABLE FOR PROJECTS LOOKING AT HOW AFFORDABLE IS THE PROJECT AND ARE THE UNITS THERE. WHAT DOES THAT MIX LOOK LIKE? AGAIN, POINTS FOR DEVELOPMENT EXPERIENCE, LOOKING AT THOSE THAT ARE INCORPORATING A NONPROFIT PARTNER.

LOOKING AT HOW MUCH FUNDING FROM THE CITY ARE THEY ASKING IN COMPARISON TO OTHER FUNDS LEVERAGED. AND THEN, OF COURSE, CONTINUE TO LOOK AT RESIDENT SERVICES.

OUR PANEL WILL INCLUDE MEMBERS OF THE CITY MANAGER'S OFFICE AND OUR DEPARTMENT.

DEIA AS WELL AS HISTORIC PRESERVATION, SINCE THESE ARE REHAB PROJECTS.

WE WILL ALSO INCLUDE TWO MEMBERS OF THE CITIZEN BOND COMMITTEE. OUR FINAL CATEGORY IS PERMANENT SUPPORTIVE HOUSING, AND THIS IS SPECIFICALLY HOUSING FOR INDIVIDUALS WHO ARE EXPERIENCING CHRONIC HOMELESSNESS AND WHO HAVE A DISABLING CONDITION. WE WILL BE LOOKING FOR PROJECTS THAT COMBINE THE HOUSING ALONG WITH ON SITE SUPPORT SUCH AS MEDICAL OR MENTAL HEALTH CARE.

[02:00:02]

SO THIS RFP WILL PRIORITIZE PROJECTS THAT INCLUDE 100% OF THE PROJECT COMMITTED TO BE PSH UNITS WITH THE HOUSING-FIRST APPROACH WHICH MEANS A LOW BARRIER TO ENTRY TO BE ABLE TO GET INTO THE PROJECT. GOING THROUGH OUR DESIGNATED COORDINATED ENTRY SYSTEM, PROJECTS THAT HAVE THAT ON-SITE SERVICES FOR THE RESIDENTS, AND HOUSING THAT DOESN'T CAP HOW LONG A RESIDENT CAN STAY THERE. SO WITH THIS PARTICULAR FUNDING CRITERIA, WE HAVE $9.7 MILLION AVAILABLE. WE HAVE ALTERED THE SCORING CRITERIA SLIGHTLY FROM PREVIOUS.

OUR PREVIOUS FUNDING ROUND DID INCLUDE FEDERAL DOLLARS SO, AGAIN, WE HAD TO WAIVE SBEDA AND LOCAL PREFERENCE POINTS. THIS FUNDING ROUND IS ONLY HOUSING BOND DOLLARS SO WE'VE ADJUSTED THE PERMANENT SUPPORTIVE HOUSING. IT WAS 40.

NOW IT IS 30 POINTS. AND WE SLIGHTLY ADJUSTED DOWN THE DESIGN AND CONSTRUCTION PRIORITY AND THE DISPLACEMENT AND RESIDENT PROTECTION PRIORITY.

THOSE ALSO WENT SLIGHTLY DOWN SO THAT WE COULD ADD THOSE POINTS FOR THE SBEDA PROGRAM AND LOCAL PREFERENCE. THIS PROJECT, AGAIN, IF YOU HAVE 100% OF THE PROJECT DEDICATED TO PSH, YOU WOULD BE RECEIVING THE MOST POINTS. AND REALLY FOCUSING ON WHAT SERVICES AND ON-SITE CARE IS PROVIDED. ALL THAT GOES INTO THAT 30-POINT CRITERIA. THIS SCORING PANEL INCLUDES REPRESENTATIVES FROM THE CITY MANAGER'S OFFICE AGAIN. OUR DEPARTMENT. WE HAVE HUMAN SERVICES THAT WILL BE SERVING ON THIS PANEL AS WELL AS A REPRESENTATIVE FROM VIA. AND IN THIS ROUND, AS IN PREVIOUS ROUNDS, MANY THANKS TO KATY VELA WHO SUPPORTS US. SHE IS THE EXECUTIVE DIRECTOR OF CLOSE TO HOME. SHE WAS THE CO-CHAIR OF THE CITIZEN HOUSING BOND COMMITTEE AND WE'LL BE ADDING ONE MORE PERSON FROM OUR CITIZEN BOND COMMITTEE.

I WILL MENTION ONE MORE THING ABOUT THE PSH FUNDING ROUND. WE'VE HAD SOME VERY POSITIVE DISCUSSIONS WITH OPPORTUNITY HOME AND WE ARE LOOKING AT HOW WE CAN PARTNER WITH THEM.

SO WE WOULD BE PROVIDING THE FUNDING TO BUILD THE PSH UNITS AND WE ARE LOOKING AT HOW THEY COULD PARTNER AND OFFER ADDITIONAL RENTAL HOUSING SUBSIDIES TO SOME OF THE RESIDENTS WHO MAY LIVES THERE, MAKING IT EASIER FOR THE NONPROFITS AND DEVELOPERS WHO PROVIDE THIS TYPE OF HOUSING, MAKING IT EASIER FOR THEM TO GET UNDERWRITING AND CONTINUE TO HOUSE RESIDENTS WHO ARE MOST IN NEED. SO THE TIMELINE, WE WERE AT HOUSING COMMISSION LAST WEEK. WE HEARD A LOT OF GOOD FEEDBACK INCLUDING MAKING SURE WE WERE INCLUDING THOSE TECHNICAL EXPERTS AS WELL AS MAYBE SOMEONE WITH LIVED EXPERIENCE ON OUR SCORING COMMITTEE. WE ALSO HEARD SOME QUESTIONS ABOUT WHY SBEDA POINTS ARE ON SOME BUT NOT OTHERS. THAT WAS INCORPORATED IN THIS PRESENTATION.

AFTER TODAY'S B SESSION AND WITH YOUR APPROVAL, WE PLAN TO RELEASE ALL THREE RFPS ON FRIDAY, SO DEFINITELY NOT WASTING ANY TIME. THEY WILL BE OPEN FOR ABOUT 45 DAYS THROUGH MID APRIL. THEN WE EXPECT TO COME BACK TO COUNCIL MEMBERS THIS JUNE WITH OUR NEXT ROUND OF FUNDING AWARDS. SO THAT CONCLUDES THE INFORMATION ON THE THREE HOUSING BOND RFPS. BUT I DID WANT TO MAKE SURE I POINT OUT THAT HOUSING BOND IS ONLY ONE WAY THAT WE'RE LOOKING AT HOW WE INCENTIVIZE HOUSING PROJECTS. WE'RE ALSO CONTINUING TO PURSUE OTHER FUNDING OPPORTUNITIES THAT ARE AVAILABLE. MARK CARMONA WAS ON THE S.A. TO D.C. TRIP A COUPLE OF WEEKS AGO.

HE WAS ABLE TO MEET WITH THE DEPARTMENT OF TRANSPORTATION AND GET MORE INFORMATION ON THE WHITE HOUSE INITIATIVE TO SUPPORT THE CONVERSION OF OFFICE SPACE TO RESIDENTIAL.

IT'S SOMETHING THAT COMES UP QUITE OFTEN. HIS TEAM WAS ABLE TO MEET WITH BUILD AMERICA BUREAU STAFF, WHICH IS LIKE THE FINANCING ARM OF THE DEPARTMENT OF TRANSPORTATION AND A LOT OF DISCUSSION ON THE TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT, TIFIA, WHICH REALLY HELPS FUND THESE TYPES OF PROJECTS .

LOOKING FOR HOW DO WE REPURPOSE PROPERTIES FOR TRANSIT-ORIENTED DEVELOPMENT AND AFFORDABLE HOUSING, ESPECIALLY NEAR OUR TRANSIT CORRIDORS. SO WE LEARNED MORE ABOUT ELIGIBLE FUNDING CRITERIA FOR THESE DOLLARS. WHAT IS THE FUNDING TIMELINE.

WHAT TYPES OF PROJECTS SHOULD WE BE PURSUING FOR THIS FUNDING. WE'RE CONTINUING TO LEARN MORE AND TALKING TO DEVELOPERS THAT MAYBE DON'T MEETING OUR HOUSING BOND CRITERIA BUT ARE STILL BRINGING MORE HOUSING TO OUR COMMUNITY. AS ALL OF THIS IS IN ALIGNMENT WITH OUR HOUSING GOALS, SPECIFICALLY BRINGING PROJECTS THAT INCORPORATE HOUSING, AFFORDABILITY WITH THOSE MIXED-USE OPTIONS. WE KNOW, AS SAN ANTONIO CONTINUES TO GROW AND OUR RESIDENTS FACE ALL OF THESE PRESSURES ON INCREASING HOUSING COSTS, WE WANT TO MAKE SURE WE'RE LOOKING AT ALL POTENTIAL AVENUES TO BRING MORE HOUSING, AFFORDABLE HOUSING, DIVERSE HOUSING OPTIONS SO WE CAN ACCOMMODATE THOSE RESIDENTS.

[02:05:04]

>> MAYOR NIRENBERG: THANK YOU VERY MUCH, VERONICA, FOR THE PRESENTATION.

I JUST WANTED TO SAY THANK YOU. IT'S REALLY REMARKABLE THE PROGRESS THAT YOU ALL HAVE MADE.

MARK, VERONICA, THE ENTIRE TEAM. VICTORIA AND EVERYBODY -- ACTUALLY VERONICA AND VERONICA, VICTORIA, IAN, MARK. EVERYBODY HAS DONE A PHENOMENAL JOB.

WE CERTAINLY WANT TO THANK THE VOTERS OF SAN ANTONIO AS WELL WHO NOT ONLY CHANGED OUR CHARTER BUT ALSO OVERWHELMINGLY SUPPORTED THE HOUSING BOND IN 2022 THAT'S MADE ALL THESE FUNDS POSSIBLE. REALLY, IT'S BEEN A LONG EFFORT TO GET TO WHERE WE ARE NOW BUT YOU GUYS CONTINUE TO BE MODELS FOR MILLION OTHER COMMUNITIES. JUST WANT TO THANK YOU FOR ALL YOUR HARD WORK AND WE'RE GOING TO CONTINUE TO DO WHAT YOU DO. WE'LL GET INTO CONVERSATION WITH

COUNCILMEMBER GAVITO. >> VIL.>> GAVITO: THANK YOU FORS PRESENTATION.

ACTUALLY YESTERDAY COUNCILMAN WHYTE'S TEAM AND THE DISTRICT 7 TEAM TOURED TOWN TWIN VILLAGE -- FOR OUR TEAM IT WAS THE SECOND TIME. EVERYONE WAS SO IMPRESSED BY THE SUCCESS STORY THERE. ESPECIALLY HOW THEY'RE PROVIDING SHELTER FOR OUR CHRONICALLY HOMELESS WHO ARE 50 AND OVER. AND THE STORIES THEY WERE SHARING WITH US WERE TOUCHING.

FAMILY REUNIFICATION. HOW THEY FINALLY HAVE THE SPACE TO CONCENTRATE ON HEALTH CONDITIONS THAT HAVE BEEN PERSISTENT FOR YEARS. IT WAS REALLY GREAT AND I'M GLAD THAT WE WERE ABLE TO DO THAT TOGETHER. I DO HAVE A COUPLE OF QUICK QUESTIONS. I'M VERY HAPPY TO SEE THAT WE'RE MOVING INTO A NEW ROUND OF AFFORDABLE HOUSING PROJECTS. ON SLIDE 6, I WAS CURIOUS ABOUT THE DISTANCE REQUIREMENT

CRITERIA FOR THE PROXIMITY TO ADVANCED RAPID TRANSIT. >> WE'RE LOOKING TO PRIORITIZE PROJECTS THAT ARE WITHIN A QUARTER MILE OF AN EXISTING TRANSIT LINE OR ONE OF THE

FUTURE ART LINES. >> GAVITO: THANK YOU. ON SLIDE 8 I SAW THE

DISPLACEMENT IMPACT ASSESSMENT. WHAT DOES THAT LOOK LIKE? >> I THINK WE HAVE A BACKUP SLIDE ON THE DISPLACEMENT IMPACT ASSESSMENT. IT WOULD BE SLIDE 19.

THANK YOU. SO WE HAVE PROJECTS THAT WE LOOK AT.

WE LOOK TO MAKE SURE FIRST AND FOREMOST ARE THEY DIRECTLY DISPLACING ANY RESIDENTS.

IF THEY SAY YES TO THAT FIRST QUESTION, THEY'RE AUTOMATICALLY NOT CONSIDERED FOR BOND FUNDS.

BUT THEY COULD -- LIKE, FOR EXAMPLE, IN A RENTAL REHAB THEY MAY MOVE THEM TEMPORARILY AND THAT'S ALL PART OF OUR CONSIDERATION. AND THEN WE LOOK AT THE AREA SURROUNDING THE PROPOSED PROJECT. SO ARE THEY IN A CENSUS TRACT THAT IS AT RISK. THAT'S A TOOL THAT WE HAVE, IT'S A PUBLIC TOOL CREATED IN THE PARTNERSHIP WITH METRO HEALTH. IF THEY ARE IN A CENSUS TRACT, THAT IS AN AREA THAT HAS SEEN HOUSING PRICES INCREASE BEYOND WHAT THE REST OF THE CITY HAS SEEN.

THAT'S ANOTHER POTENTIAL RISK FACTOR. THEN WE WOULD LOOK AT IF THEIR PROJECT IS INCREASING THE POPULATION OF THAT CENSUS TRACT BY MORE THAN 10%.

OUR TEAM DOES THAT ANALYSIS AND PROJECTS RECEIVE A SCORE. IT DOESN'T MEAN THAT THEY'RE NOT ELIGIBLE FOR FUNDS, IT'S JUST INFORMATION WE PROVIDE THE SCORING COMMITTEE SO THEY CAN BETTER UNDERSTAND WHAT WILL THAT PROJECT DO TO THE SURROUNDING AREA.

AND WE LOOK AT OTHER PROJECTS THAT SAY YES TO ALL THESE QUESTIONS OR TWO OF THE THREE QUESTIONS GET A SECONDARY ANALYSIS. WE LOOK AT WILL THEY HAVE HIGHER EVICTION RATES OR FORECLOSURE RATES. ALL OF THESE VULNERABILITY PACK FORCE AND THAT'S WHAT GIVES US A SCORE OF LOW, MODERATE, OR HIGH. WE PROVIDE THAT TO THE COMMITTEE AND IF IT'S HIGH RISK IT MAY HAVE AN IMPACT BUT WE BALANCE THAT WITH RECOMMENDATIONS SUCH AS MAYBE THIS HAS A HIGHER PERCENTAGE OF HOMES IN THE AREA THAT ARE AT FAIR TO LOW CONDITION. AND SO WE MAY RECOMMEND THAT THAT DEVELOPER MAKE HOME REHAB AVAILABLE IN THE AREA. IT'S ALL ABOUT PROVIDING THAT ANALYSIS BEFORE FUNDS ARE

DECIDED RATHER THAN SOMETHING WE LOOK AT AFTER THE FACT. >> GAVITO: NO, THAT'S

EXTREMELY HELPFUL. I APPRECIATE THAT CLARIFICATION. >> I'LL GIVE CREDIT TO COUNCILMAN MCKEE-RODRIGUEZ AND HIS TEAM WERE PUSHING THAT WE INCLUDE THAT.

>> GAVITO: THANK YOU. THANK YOU FOR PUSHING THAT, COUNCILMAN MCKEE-RODRIGUEZ.

THAT IS EXTREMELY HELPFUL. ON SLIDE NO. 9, YOU KNOW, I KNOW THAT MOST OF THE AVAILABLE FUNDING IS FOR RENTAL HOUSING REHAB AND ACQUISITION. I RECENTLY READ AN ARTICLE

[02:10:07]

IT WAS SAYING THAT NEARLY HALF OF THE U.S. MARKETS HAVE APARTMENT VACANCY RATES OF OVER 7%. SO I WAS WONDERING HOW WE'RE PARTNERING WITH LIKE THE SAN ANTONIO APARTMENT ASSOCIATION AND OUR APARTMENTS TO UNDERSTAND THE VACANCY RATE HERE IN OUR CITY AND HOW THAT COULD BE AN OPPORTUNITY FOR HOUSING SOME FOLKS AS WELL.

>> SURE. WE DO HAVE ONGOING CONVERSATION AT MONTHLY MEETINGS WITH THE SAN ANTONIO APARTMENT ASSOCIATION AND WE DO TALK A LOT ABOUT WHAT ARE THE CHALLENGES THEY'RE SEEING, WHAT PROGRAMS DO WE HAVE. THOSE ARE ONGOING CONVERSATIONS AND THIS RENTAL REHAB CATEGORY IS A GREAT OPPORTUNITY TO TAKE SOME OF THOSE PROPERTIES THAT MAYBE HAVE BEEN IN THE MARKET FOR A LONG TIME AND MAYBE SOMETHING THAT'S AFFECTING THEIR LEASE UP RATE IS THE CONDITION OF THE PROPERTY. AGAIN, LOOKING AT IS THE DEVELOPMENT TEAM, IS THE OWNER OF THE PROPERTY IN GOOD STANDING WITH THE CITY.

THEY MAY BE A GOOD CATEGORY FOR HOUSING FUNDS SO THEY CAN IMPROVE THE CONDITION OF THE

PROPERTY. >> GAVITO: IN THOSE CONVERSATIONS DO WE KNOW WHAT OUR VACANCY RATE RIGHT NOW IS IN SAN ANTONIO? AND IF Y'ALL NEED TO FOLLOW UP.

>> IT IS 6%. >> GAVITO: WE CAN FOLLOW UP. I DO THINK --

>> 6%. >> GAVITO: 6%. YOU KNOW, AND I'M JUST CURIOUS WHAT THE OPPORTUNITIES ARE AND I'M GLAD Y'ALL ARE COLLABORATING ON THIS.

ON -- LET'S SEE. YEAH, SLIDE 16. I THOUGHT THAT WAS AN EXCITING INITIATIVE WITH THE U.S. DEPARTMENT OF TRANSPORTATION. IT WOULD BE GREAT TO SEE NOT ONLY OFFICE BUILDINGS BUT WE JUST HAVE SO MANY VACANT BUILDINGS ALL OVER THE CITY, ESPECIALLY ON FREDERICKSBURG ROAD. WE TALKED A LOT TO THE OFFICE OF HISTORIC PRESERVATION ABOUT IT JUST BECAUSE THESE VACANT BUILDINGS BECOME NUISANCES.

>> I'LL ADD THAT WE LOOKED AT PARTNERING WITH OFFICE OF HISTORIC PRESERVATION TO ENSURE BUILDINGS THAT ARE ON THEIR VACANT BUILDING REGISTRY RECEIVE INFORMATION THAT -- PARTICULARLY

THE RENTAL REHAB IS OPEN. >> GAVITO: YEAH. I MEAN, AND ALSO, YOU KNOW, WHEN WE TOOK THE CITY ATTORNEYS' TEAM OUT TO LOOK AT SOME HOMELESS ENCAMPMENTS IN DISTRICT 7, SOME OF THESE BUILDINGS HAVE BROKEN GLASS AND THE UNSHELTERED POPULATION GETS IN THERE AND IT BECOMES A HAZARD FOR THE SURROUNDING NEIGHBORHOOD AND IT'S UNSIGHTLY.

WHEN THOSE BUILDINGS HAVE SO MUCH POTENTIAL AND WE'RE JUST LITERALLY PASSING BY THEM, EYESORES IN OUR COMMUNITY. SORRY. BUT THANK YOU FOR THIS WORK.

THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDERETE GAVITO.

COUNCILMEMBER ROCHA GARCIA. >> GARCIA: THANK YOU, MAYOR. AND THANK YOU, VERONICA.

I APPRECIATE THE WORK AND THEN ALSO, MARK, THE S.A. TO D.C. TRIP I THINK WAS BENEFICIAL.

COUNCILWOMAN DR. KAUR AND I WERE IN A MEETING AND YOU WERE AT AS WELL AND YOU HEARD HOW THEY ALSO WOULD LIKE TO LEND THEIR SUPPORT. LOOKING FORWARD TO THAT PARTNERSHIP. SO I'M VERY EXCITED ABOUT THE FIRST MAJOR HOUSING BOND IN OUR HISTORY AND HOW WE'RE MOVING THROUGH IT WITH INTENTION. AND SO I APPRECIATE THAT THERE'S SUCH CAREFUL CONSIDERATION GOING. I SAID THIS TIME AND TIME AGAIN WE HAVE TO BE SUCCESSFUL THIS GO AROUND BECAUSE WE WANT TO EXTEND IT TO A PHASE 2.

AND SO I REALLY DO BELIEVE THAT WE CAN MAKE AN IMPACT AND CONSIDER THIS THE DECADE OF THE NEIGHBORHOOD AND THIS IS JUST OUR FIRST FIVE YEARS. THE MAIN CATEGORIES, I'M HAPPY WITH THEM BECAUSE THEY WERE DEVELOPED WITH RESIDENT INPUT, SPECIFICALLY FROM THE COMMISSION. I'M HAPPY THAT THEY CONTINUE TO BE INVOLVED AND A PART OF THE SCORING COMMITTEE AS WELL WITH THE RFPS. BUT I WANT TO FOCUS A LITTLE BIT MORE ON THE CREATIVE PROJECTS CATEGORY. AND I KNOW THAT WE'VE TALKED ABOUT IT BEFORE AT PCDC YESTERDAY BECAUSE WE RECEIVED THAT UPDATE ON THE STATUS OF POVERTY IN SAN ANTONIO. I JUST WANT TO MAKE SURE THAT WE'RE THINKING, LIKE EVERY SINGLE TIME WE'RE THINKING OF HOW WE SELECT THESE PROJECTS, THAT ONE-FIFTH OF SAN ANTONIANS ARE LIVING WITH AN INCOME OF ABOUT $13,000. AND THAT LITERALLY EVERY OTHER CHILD THAT WE SEE IN THE STREET MIGHT BE IN POVERTY. NO, IS PROBABLY IN POVERTY BECAUSE 53% OF CHILDREN BETWEEN THE AGES OF 0 AND 17 LIVE IN POVERTY.

I FEEL LIKE THAT WOULD BE THE THING WE THINK ABOUT AS WE MAKE THESE DECISIONS.

AND SO THERE'S ALWAYS AREAS THAT WE CAN IMPROVE ON OR WE COULD QUESTION EVEN ON SOME OF THE PROJECTS. BUT I'LL GIVE YOU AN EXAMPLE. IN MY DISTRICT, WE HAVE A LOT OF

[02:15:01]

AND SO I WOULD LIKE TO SEE HOW WE CAN CONSIDER THAT, RIGHT, AND SO THERE'S SOME COMMUNITIES THAT ARE IN DIRE FORM OF INVESTMENT. AND CONSIDERING I HAVE MOST OF THE MOBILE HOMES IN ALL OF SAN ANTONIO, THAT TO ME CONTINUES TO BE A PRIORITY. HOW DO WE CONTINUE TO MAKE SURE THAT KIDS WHO ARE GROWING UP IN AREAS WITH MOBILE HOME PARKS FEEL JUST AS IMPORTANT AS THE FOLKS THAT ARE BEING INVESTED ON THAT LIVE IN DIFFERENT KINDS OF HOMES.

AND SO IT SHOULD BE EQUAL TREATMENT FOR ALL. SO ANYTHING THAT WE CAN DO ON THAT AREA IN CREATIVITY PROJECTS CATEGORY, I WOULD LOVE TO SEE SOME ADDITIONAL THOUGHT GOING INTO THAT. ALSO INTO CONSIDERATION THAT I HAVE THE LARGEST NUMBER OF FAMILIES WITH CHILDREN THAT ARE RENTERS IN SAN ANTONIO. THAT BECOMES CRITICAL.

SO ALL THOSE THREE STATS. THE FACT THAT WE HAVE THE 53% CHILDREN.

IT TOTALLY MAKES SENSE. WE NEED TO DO THIS AND GET IT RIGHT FOR OUR CHILDREN AND THEIR FUTURE. AND SO DO WE ANTICIPATE ANY ADDITIONAL RFPS IN THAT PARTICULAR REGARD OR ANYTHING IN THE FUTURE? HAS THAT COME UP AT ANY

COMMITTEE LEVEL JUST YET, VERONICA? >> WE HAVE -- WITH THESE FUNDING ROUNDS, THIS WILL EXHAUST ALL OF THE FUNDING IN EACH OF THOSE CATEGORIES.

WE STILL HAVE MONEY IN RENTAL REHAB THAT WILL BE DONE OVER THE NEXT THREE YEARS.

BUT THOSE CREATIVE PROJECTS, WE HAVE ABOUT $8 MILLION LEFT TO PURSUE OTHER IDEAS.

AND ANY PROJECTS OR PROGRAMS THAT WE WANT TO DEVELOP WOULD COME BACK TO COUNCIL FOR APPROVAL. SO THERE IS OPPORTUNITY TO PURSUE OTHER OPTIONS.

I WILL POINT OUT THAT ONE OF THOSE CREATIVE PROJECTS WAS THE MOBILE HOME PARK CONVERSION AND WE DID GET A PROPOSAL AND IT EXCEEDED THE AMOUNT OF FUNDS WE HAD IN THE HOME OWNERSHIP CATEGORY. SO WE DID BRING THAT TO COUNCIL AND GET THAT PROJECT.

AND THEN WE CAME BACK AGAIN AND GOT ADDITIONAL FUNDS APPROVED FOR THE INFRASTRUCTURE, THE SIGNAGE, EVERYTHING THAT THAT COMMUNITY NEEDED TO REALLY KIND OF ENHANCE THE CONDITIONS THAT WERE THERE ALREADY. SO WE'VE DONE THAT. WE STILL HAVE FUNDS AVAILABLE TO CONTINUE TO LOOK AT THOSE OPTIONS. BUT THE PRIORITY FOR THIS PARTICULAR HOUSING BOND WAS TO ENSURE WE'RE GIVING DOLLARS TO PROJECTS THAT ARE ALL READY TO GO. AGAIN, WE STILL HAVE FUNDS SET ASIDE.

>> GARCIA: THANK YOU. AS LONG AS WE'RE CONSIDERING IT, EVEN IF IT'S DOWN THE LINE OR WE HAVE IT AS SOMETHING FOR THE FUTURE. DO YOU ANTICIPATE WHAT OUR FUNDING LEVEL AND OUR PERCENTAGE OF COMPLETION FOR THE 2026-2027? I MEAN, I KNOW WE'RE PROBABLY GOING TO GET A REPORT CLOSER TO THE TIME BUT I JUST WANT TO BE READY TO SHOW HOW SUCCESSFUL WE'VE BEEN FOR OUR NEIGHBORS FOR THAT SECOND GO. TO SEE IF WE CAN GET THAT

IN AUDIO] >> IT'S DEFINITELY TOP OF MIND. COUNCIL MEMBERS APPROVED A $250,000 PUBLIC INFORMATION CAMPAIGN, WHICH WE ARE ALREADY WORKING ON.

SO WE CAN HELP PROMOTE WHAT DID THE BOND DO, WHO DID IT HELP, HOW MUCH OF THE FUNDING HAS ALREADY BEEN SPENT. TO DATE WE'VE ALREADY ISSUED ABOUT $12 MILLION JUST FROM THE FUNDING AWARDS THAT'S ALREADY BEEN DONE. THEY'RE WELL UNDERWAY.

I THINK WE CAN EXPECT TO HAVE OUR FIRST RIBBON CUTTING THIS SUMMER ON ONE OF THE REHAB PROJECTS. SO WE ARE DEFINITELY MOVING WITH A SENSE OF URGENCY WITH IN MIND DOING AS MUCH AS WE CAN WITH THIS BOND AND LOOKING TOWARDS HOPEFULLY THE NEXT ONE.

>> GARCIA: THANK YOU SO MUCH, VERONICA. GREAT WORK TO YOU AND TO VERONICA AND TO MARK AND THE ENTIRE TEAM. THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA GARCIA. COUNCILMEMBER COURAGE.

>> COURAGE: THANK YOU, MAYOR. I'VE GOT A FEW QUESTIONS THAT I THINK ARE RELATED TO WHAT WE'RE TALKING ABOUT. FIRST OF ALL, YOU PROBABLY KNOW THIS, VERONICA.

HOW MANY PEOPLE HAVE BEEN EVICTED IN THE PAST YEAR IN THE CITY OF SAN ANTONIO?

HOW MANY EVICTIONS HAVE GONE THROUGH? >> CURRENTLY OUR EVICTION RATE IN SAN ANTONIO, WE HAVE ABOUT 700 RESIDENTS THAT ARE EVICTED EVERY WEEK.

THAT -- >> COURAGE: HOW MANY? >> 700 THAT RECEIVE A NOTICE OF

EVICTION. >> COURAGE: NO, BUT HOW MANY ACTUALLY ARE EVICTED?

BECAUSE I KNOW WE WORK TO HELP PEOPLE NOT TO BE EVICTED. >> SURE.

I CAN GET DATA ON HOW MANY ACTUALLY GET EVICTED. I KNOW WE CAN SAY THAT THE EVICTION RATE HAS INCREASED ABOUT -- YEAH. THAT'S NOTICE TO VACATE.

WE HAVE DATA THAT SHOWS WHILE OUR EVICTION RATE HAS INCREASED ABOUT 7% OVER THE PAST THREE YEARS, OUR JUDGMENT IN FAVOR OF LANDLORDS HAS ONLY INCREASED 4%. I SAY THAT BECAUSE WE CAN SHOW OUR EVICTION PREVENTION AND MITIGATION EFFORTS HOPEFULLY ARE HELPING MORE RESIDENTS WHO MAY

[02:20:03]

RECEIVE AN EVICTION NOTICE, NOT ACTUALLY GET EVICTED RIGHT AWAY. >> COURAGE:

>> COURAGE: I APPRECIATE THE WORK Y'ALL DO. I THINK IT'S GREAT.

WE NEED TO CONTINUE DOING THAT, WE NEED TO EXPAND IT, BUT WHAT I REALLY WAS LOOKING FOR IS HOW MANY PEOPLE ARE LOSING OUT, BEING EVICTED.

YOU WERE SAYING 700 A WEEK. >> STUDENT: NOTICES.

>> COURAGE: SO OVER 52 WEEKS THAT'S OVER 35,000 PEOPLE WHO ARE GETTING EVICTION NOTICES IN A YEAR, AND EVEN IF ONLY, YOU KNOW, 10 OR 20% OF THEM GET EVICTED, THAT'S THREE TO 7,000 PEOPLE A YEAR, WHO ARE NOW UNHOUSED AT LEAST TEMPORARILY. LET ME ASK YOU ANOTHER QUESTION. HOW MANY PEOPLE ARE ON THE HOUSING VOUCHER WAITLIST WAITING FOR A VOUCHER TO FIND A PLACE TO LIVE?

>> SO OPPORTUNITY HOME HAS MANY DIFFERENT WAITLISTS, AND THEY'VE LET US KNOW THAT THEY HAVE OVER 100,000 -- MORE LIKE 110,000 PEOPLE THAT ARE ON A VARIETY OF WAITLISTS INCLUDING THE HOUSING VOUCHER

WAITLIST. >> COURAGE: LET ME ASK YOU ANOTHER QUESTION, YOU MAY KNOW THE ANSWER TO THIS. IF WE HAD THE 100 TO 1500 UNHOUSED HOMELESS PEOPLE, NOT THE 15, 1600 WHO ARE AT HAVEN FOR HOPE OR THE COUPLE OF HUNDRED WHO ARE AT SAM, BUT SOMEWHERE BETWEEN 101,500, THEY'RE NOT ANY PLACE THAT WE KNOW OF IF THEY ALL WALKED IN TOMORROW AND SAID WE WANT TO GET HOUSED, WE WANT SERVICES, WHERE WOULD WE PUT THEM?

>> SO THAT'S PART OF THE CHALLENGE. WE DON'T HAVE ENOUGH HOUSING UNITS FOR INDIVIDUALS WHO NEED THEM, SO OUR GOAL OVER THE NEXT 10 YEARS IS TO CREATE 1,000 PERMANENT SUPPORTIVE HOUSING, AND WE'RE ABOUT A THIRD OF THE WAY THERE. WE HAVE STILL A WAYS TO

GO. >> COURAGE: I UNDERSTOOD THAT.

I THINK IT'S IMPORTANT FOR US TO PUBLICLY DISCUSS THOSE THINGS.

YOU TALKED ABOUT 900 HOMES HAVE BEEN CREATED AT LESS THAN 30% AMI.

BUT WE'VE JUST TALKED ABOUT THOUSANDS OF PEOPLE WHO WE DON'T HAVE ANY HOMES FOR, NOT TO MENTION THE FACT THAT WE'VE GOT 250,000 WHO ARE LIVING IN POVERTY. YOU KNOW, I COMMEND THE WORK THAT YOUR DEPARTMENT DOES AND EVERYBODY -- AND, YOU KNOW, I SAT ON SAN ANTONIO HOUSING TRUST, I KNOW W WHAT WE'RE TRYING TO DO AND HOW HARD THAT IS, BUT I DON'T THINK WE'RE IN A POSITION TO BE PATTING OURSELVES ON THE BACK FOR MUCH OF ANYTHING RIGHT NOW. AS A COMMUNITY, NOT AS A CITY GOVERNMENT, NOT AS AN ORGANIZATION OR AN ENTITY WORKING ON THIS, BUT AS A COMMUNITY, WE'VE GOT A LONG WAY TO GO TO PROVIDE DECENT, REASONABLE, AFFORDABLE HOUSING FOR A LOT OF PEOPLE IN THIS CITY.

I THINK WE'VE GOT A LOT MORE TO BE DONE. AND I HOPE THAT WE -- I WAS -- I WAS APPRECIATIVE OF WHAT YOU SAID ABOUT SSOME OF THE OTHER THINGS WE REACHED OUT TO WHEN WE WENT TO WASHINGTON AND SOME OTHER THINGS THAT MAY BE COMING DOWN THE PIPELINE, BUT I THINK WE NEED TO, AS A COMMUNITY, ACCEPT AND UNDERSTAND WE'VE GOT A LONG WAY TO GO.

IT'S GOING TO TAKE A TOTAL COMMUNITY BUY-IN TO PROVIDE THE KIND OF SAFE, AFFORDABLE HOUSING THAT PEOPLE NEED IN THIS CITY.

AND SO I HOPE WE CONTINUE DOING WHAT WE'RE DOING, BUT, YOU KNOW, I THINK WE NEED TO FIND EVEN GREATER WAYS TO PROVIDE MORE HOUSING AS QUICKLY AS POSSIBLE. OTHERWISE, WE'RE GOING TO KEEP LOSING AND MORE AND MORE PEOPLE ARE GOING TO BECOME HOMELESS AND WE'RE GOING TO CONTINUE TO HAVE MORE AND MORE PEOPLE IN POVERTY. I'M NOT SAYING I KNOW WHAT AN ANSWER IS, BUT I THINK ONE OF THE SOLUTIONS IS WE NEED TO BUILD MORE AFFORDABLE HOUSING, A LOT MORE FASTER THAN WE'RE DOING

IT. THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE. QUICK TIME CHECK, WE DO HAVE AT LEAST ABOUT AN HOUR IN EXEC. WE DO HAVE A PUBLIC COMMENT PERIOD AT 5:00, TOO, SO OBVIOUSLY THAT'S A LITTLE BIT DELAYED ALREADY. SO LET ME GO NOW, KNOWING THAT, COUNCILMEMBER

KAUR? >> KAUR: THANKS, MAYOR. I WILL SPEAK QUICKLY.

I GOT YOU. I GOT YOU. THANK YOU SO MUCH FOR THIS PRESENTATION. WE GET TO TALK ALL ABOUT A LOT OF DISTRICT ONE PRIORITIES TODAY. SO I HAVE A FEW QUESTIONS, SPECIFICALLY AROUND THE BAD ACTORS AND THE PEOPLE THAT ARE NOT -- THAT ARE ON THE PROACTIVE LIST NOT BEING INCLUDED. I OBVIOUSLY UNDERSTAND BECAUSE WE DO NOT WANT TO IB SENT VIZE PEOPLE TO GO ON THAT LIST, BUT WE ALSO DON'T HAVE A MECHANISM FOR THOSE FOLKS TO ACTUALLY BRING THEIR BUILDINGS UP TO CODE ASIDE FROM VIOLATING. IT'S LIKE ALL WE'RE OFFERING IS A NEGATIVE -- LIKE A STICK FOR NOT DOING WHAT YOU'RE SUPPOSED TO DO. SO, LIKE, WOULD THERE BE A WAY THAT WE COULD THINK ABOUT HOW WE MIGHT USE LIKE A 0% LOAN FOR THESE FOLKS THAT COULD BRING

[02:25:06]

>> WE COULD CONSIDER THAT. CURRENTLY HAVE A PROGRAM WITH SMALL LANDLORDS, THOSE WITH 10 UNITS OR LESS.

IT'S A PILOT PROGRAM. IT'S FUNDED THROUGH SOME HUD FUNDING THAT WE HAD, A REALLY SMALL PILOT FOR SMALLER LANDLORDS TO HELP BRING THEIR ADDRESS CODE ISSUES OR BRING THEIR APARTMENT UP TO CODE, MAINTENANCE IMPROVEMENTS. WE DON'T HAVE SOMETHING ON THAT SCALE FOR THE LARGER COMPLEXES LIKE YOU'RE TALKING ABOUT. IT DOESN'T MEAN WE CAN'T HELP THEM, WE'RE JUST -- THIS IS JUST FOR THIS PARTICULAR HOUSING BOND ROUND, THEY WOULD BE INELIGIBLE IF THEY HAVE AN ACTIVE CASE, BUT WE CAN -- WE WORK VERY CLOSELY WITH DEVELOPMENT SERVICES AND THE CITY ATTORNEY'S OFFICE SPECIFICALLY FOR THOSE DARK PROPERTIES TO SEE WHAT OTHER OPTIONS ARE AVAILABLE AND MAYBE THERE'S A DIFFERENT FUNDING PARTNER --

MAKING THE IMPROVEMENT. >> HOUSTON: AND I DO WANT TO ADD THAT THE CITY ISN'T THE ONLY FUNDING SOURCE. HUD HAS PROGRAMS SPECIFIC TO THAT, AND WE'D RATHER HUD TAKE THAT ON AND THEN ONCE WE SEE THAT THEY'VE MET THAT THRESHOLD, THEN OUR FUND CA FUNDING CAN BE LAYERED.

COUNCILMAN COURAGE, THERE ARE 2700 30% UNITS IN THE PIPELINE RIGHT NOW.

900 ONLY SPEAKS TO THE BOND MONEY THAT WE'RE DEALING WITH RIGHT NOW.

>> KAUR: OKAY. YEAH, I APPRECIATE THAT. I SOMETIMES FORGET WE'RE NOT THE ONLY ENTITY DOING WORK IN THE CITY, BUT I -- STOP.

ANOTHER QUESTION THAT I HAD WAS THANK YOU TO COUNCILMEMBER GAVITO FOR BRINGING UP THE DAA. HAVE WE CHECKED ON THE RELIABILITY OF THIS ASSESSMENT. WE'VE BEEN USING IT FOR A BIT, BUT DO WE KNOW FIVE

YEARS DOWN THE LINE IF IT'S ACCURATELY -- >> WE'VE PILOTED WITH THE BOND, SO WE'VE ONLY BEEN USING IT FOR A LITTLE OVER THE YEAR.

SO WE DON'T KNOW. AGAIN, IT'S NOT METROMEANT TO PREDICT DISPLACEMENTS, IT'S TO HELP THE SCORING DEPARTMENT.

AFFORDABLE HOUSING IS USUALLY ONE OF THE MITIGATION RECOMMENDATIONS, SO WE'RE USING THE TOOL TO UNDERSTAND THE AREA SURROUNDING AFFORDABLE HOUSING PROJECTS, AT THE SAME TIME KNOWING THAT THE AFFORDABLE HOUSING PROJECT IS ONE OF THE SOLUTIONS TO ANY ISSUES

THAT MAY BE THERE. >> KAUR: GOT IT. YEAH.

I THINK THE DISPLACEMENT PART IS REALLY IMPORTANT CONVERSATION, ESPECIALLY AS WE KNOW AS FOLKS GET TO INCREASE THE STANDARD OF WHAT THEY'RE PROVIDING, THEY'RE GOING TO BE ABLE TO INCREASE RENT.

AND SO MAKING SURE THAT WE'RE NOT UNINTENDINGLY PUSHING PEOPLE OUT, I THINK, IS ECHOING THAT IMPORTANCE. SO A SPECIFIC RECOMMENDATION, IF IT'S POSSIBLE, IS PARTICULARLY AROUND THE DEVELOPMENT EXPERIENCE, IF WE CAN MOVE MAYBE FIVE OF THE DEVELOPMENT EXPERIENCE POINTS TO THE DISPLACEMENT SO THAT LIKE IN THE REHAB PART, IT'S ONLY FIVE POINTS RIGHT NOW, BECAUSE I KNOW YOU GUYS DROPPED THAT TO INCREASE SBEDA, BUT I THINK THAT IS -- I THINK THAT'S NOT SIGNIFICANT ENOUGH. SO WOULD -- I'M JUST SUGGESTING FROM DEVELOPMENT EXPERIENCE, BUT ANYTHING -- PLACE WHERE YOU FEEL LIKE YOU COULD TAKE FIVE POINTS TO INCREASE THAT A LITTLE BIT I WOULD SUPPORT AND ADVOCATE FOR. THE OTHER QUESTION THAT I HAD ON THE PSH SCORING WAS -- IS -- FOR THE PSH, IS THAT ONLY ELIGIBLE FOR NEW DEVELOPMENT OR COULD YOU USE THOSE DOLLARS FOR, LIKE, CONVERTING 100 ROOMS IN AN EXPHISESING

BUILDING FOR PSH? >> YOU COULD USE IT FOR EXISTING.

ONE OF THE PREVIOUS PROJECTS THAT WAS FUNDED WAS THE HUDSON, WHICH IS RUN BY SAMMINISTRIES, AND IT WAS A REHAB OF AN EXISTING APARTMENT TO

CONVERT THEM TO PSHS. >> KAUR: WE WERE TALKING ABOUT THAT TODAY, AND IT'S BEEN A GREAT -- IT'S BEEN A GREAT SUCCESS, LIKE THE NEIGHBORS.

WE'VE HEARD ONLY GOOD THINGS, SO I DON'T KNOW IF THIS IS AN OPTION, BUT MAYBE THINKING ABOUT, E KNOW WE HAVE A BUILDING THAT HAS SOME SPACE IN IT, IF WE CAN CONVERT SOME OF THE UNITS THERE TO PSH.

I DON'T KNOW HOW THAT WOULD WORK IN TERMS OF THE LAYOUT OF IT, BUT -- WANTED TO ASK ABOUT IS THERE USE NO METRIC THERE FOR THE AMOUNT OF DOLLARS TO THE AMOUNT OF UNITS THAT ARE BEING CREATED, LIKE SOME KIND OF RATIO, LIKE HOW FAR OUR BOND DOLLAR IS GOING. IS THAT CONSIDERED IN ANY

WAY? >> SO WE HAVE ON OUR SLIDE OF THE FUNDING AWARDS HOW MUCH PRIVATE INVESTMENT WE'RE LEVERAGING FOR OUR BOND AND FEDERAL CONTRIBUTIONS, I THINK THAT'S SLIDE.

>> KAUR: 6. NO. >> -- 4.

SO WE DO LOOK AT THAT, BUT WE DON'T HAVE LIKE A MINIMUM SUBSIDY PER UNIT. WE GIVE THE SCORING COMMITTEE A LOT OF FLEXIBILITY SO THEY CAN LOOK AT WHAT PROJECTS WERE SUBMITTED AND EVALUATE THEM. WE DON'T HAVE TO AWARD ALL OF THESE FUNDS IF WE

[02:30:05]

PROJECTS THAN FUNDS THAN WE HAVE AVAILABLE. >> KAUR: IN THE PREVIOUS RFPS, HAVE WE GOTTEN MORE PROJECTS THAN FUNDS OR HAS IT BEEN --

>> YES. AND OUR NEW RENTAL PRODUCTION IS ALWAYS THE MOST POPULAR. WE ALWAYS GET MORE PROJECTS THAN FUNDS WE HAVE AVAILABLE.

>> KAUR: I WOULD THINK IT WOULD BE IMPORTANT FOR US TO KNOW IF WE CLOSE THE GAP ON THIS PROJECT, WE COULD INCREASE BY 200 MORE UNITS THAN ANOTHER PROJECT, AND MORE AFFORDABLE UNITS, I SHOULD SAY.

LIKE THOSE TWO THINGS BEING CONNECTED. SO I'LL JUST SAY I WOULD LIKE FOR US TO THINK ABOUT HOW THAT -- IF THERE'S A WAY TO CONSIDER

THAT. >> UH-HUH. >> KAUR: AND THEN JUST THE LAST THING I'LL SAY IS I WANT TO ECHO THE THANK YOU FOR BRINGING UP THE TIFIA GRANT DOLLARS. I WILL ECHO THE IMPORTANCE OF AFFORDABLE HOUSING UNITS THAT WE NEED TO CREATE AND THANK YOU FOR ALLOWING ME TO BE ON THE TRUST BOARD NOW AND MARK AND I VISITED -- SUPPORT THAT WORK AND ANYTHING WE CAN DO. THANKS, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER

MCKEE-RODRIGUEZ. >> MCKEE-RODRIGUEZ: THANK YOU, MAYOR.

I ACTUALLY HAVE 46 QUESTIONS. NO, I'M KIDDING.

ONE IS JUST A COMMON ANSWER, SOMETHING I WOULD LIKE TO SEE REGARDING THE DISPLACEMENT STUDYF I'M HAPPY TO SEE IT'S AT THE BEGINNING OF THE PROCESS AND I IMAGINE IT'S GOING -- I HOPE AND IMAGINE IT'S DOING WONDERS FOR US, BUT I WOULD LOVE TO SEE IF THERE'S ANY INDICATORS THAT WE HAVE TO MEASURE THE SUCCESS OF PREVENTING DISPLACEMENT FOR THE PROJECTS THAT WE ARE INSEPTEMBER VIZING OR PROVIDING FUNDING FOR USING THIS TOOL. I ALSO -- IT SEEMS A LITTLE -- I DON'T KNOW, IT SEEMS TO CONTRADICT, BUT ON SLIDE 8, IT SAYS NEW CONSTRUCTION PROJECTS MUST COMPLETE THE DISPLACEMENT IMPACT ASSESSMENT, BUT THERE ARE

POINTS FOR THE REHAB AS WELL. >> I'M GLAD YOU BROUGHT THAT UP, I WAS THINKING ABOUT THAT WHEN COUNCILWOMAN KAUR BROUGHT HER COMMENTS UP, THE REASON THE REHAB ONLY HAS FIVE, THEY'RE NOT REQUIRED TO DO A DISPLACEMENT. WE DON'T LOOK AT HOW THEY EFFECT BECAUSE THEY'RE ALREADY THERE. WE'RE J JUST INCENTIVIZING BRINGING THE UNITS UP TO CODE OR MAKING IMPROVE.

S FOR THE RESIDENTS. THEY'RE FOR ARE THEY OFFERING AFTER SCHOOL PROGRAM, JOB TRAINING, READY TO WORK PARTNER, WHAT IF ANY SERVICES ARE THEY OFFERING AND THAT'S WHERE THAT FIVE-POINT CONSIDERATION IS.

>> MCKEE-RODRIGUEZ: I HEAR YOU. AND I'M JUST WONDERING IF RENOVATION PRPROJECTS DO SOMETIMES LEAD TO DISPLACEMENT AND IF IT'S WORTHY OF US DOING THAT ASSESSMENT. I WOULDN'T WANT FOR US TO HAVE THE BEST INTENTIONS FOR THAT TO THEN LEAD TO DISPLACEMENT.

I THINK THE GOAL IS NO DISPLACEMENT, ECHOING A LITTLE BIT OF WHAT COUNCILWOMAN KAUR SAID, SOMETIMES IT SEEMS LIKE THE BURDEN IS ON THE CITY TO SOLVE ALL OF THE CITY'S PROBLEMS. REALISTICALLY IT'S OUR ROLE DO AS MUCH AS WE CAN WITH WHAT FEELS LIKE -- IT'S HARD TO CONCEPTUALIZE THE AMOUNT OF RESOURCES AND TOOLS THAT WE HAVE AT OUR DISPOSAL, IT'S OUR RESPONSIBILITY TO USE THEM RESPONSIBLY AND TO MICMAKE SURE WE'RE NOT CREATING FURTHER HARM.

THE LAST LITTLE BIT, SOMETIMES WE TALK ABOUT COMMITTEES AND EVALUATION SCORING AND WHATNOT AND WE TALK ABOUT REPRESENTATION ON THAT, AND I'M THINKING ABOUT ÚTHE POVERTY REPORT THAT CAME OUT, AND I'M SURE COUNCILWOMAN ROCHA GARCIA ALREADY MENTIONED THIS, BUT THERE ARE SOME POPULATIONS THAT I THINK -- AND YOU MENTIONED LIVED EXPERIENCE AS WELL, SOME THAT MIGHT BENEFIT FROM BEING A PART OF A SCORING COMMITTEE, AND WE WOULD BENEFIT FROM HAVING THEIR EXPERTISE ON A COMMITTEE LIKE THIS. FOR EXAMPLE, BLACK RESIDENTS MAKING UP 23% OF THOSE IN POVERTY, DESPITE MAKING UP 6.6 OF THE POPULATION.

JUST READING THE NAMES, I DON'T THINK I SAW ANY BLACK PEOPLE ON THE SCORING COMMITTEE. 53% OF SINGLE WOMEN HOUSEHOLDS MAKING UP 53% OF THOSE IN POVERTY, ARE THERE ANY SINGLE WOMEN OR THOSE IN POVERTY THAT COULD BE SERVING ON THE COMMITTEE? AND WHAT WOULD THE RESULTS OF A SOLICITATION LOOK LIKE IF WE PRIORITIZED AND HAVE -- MAKE THE COMMITTEES PREDOMINANTLY MADE UP OF THOSE TYPES OF POPULATIONS VERSUS, YOU KNOW, OUR TRADITIONAL MAKEUP?

FOOD FOR THOUGHT. >> OKAY. >> MCKEE-RODRIGUEZ: THANK

YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER MCKEE-RODRIGUEZ. COUNCILMEM COUNCILM

COUNCILMEMBER CASTILLO. >> CASTILLO: THANK YOU, MAYOR.

I'M REALLY LOOKING FOR THE PROJECTS THAT ARE GOING TO COME OUT OF THIS RFP PROCESS. SIMILAR TO MY COLLEAGUE, I'M REALLY EAGER FOR THE CREATIVE PROJECTS. I HAD AN OPPORTUNITY TO MEET THE FIRST FAMILY TO PARTICIPATE IN THE ESPARANZA'S COMMUNITY LAND TRUST AND THEY WERE JUST SO GRATEFUL AND EAGLE TO BE PART OF THE PROCESS.

DISPLACED, THEY'LL GET TO STAY IN THE INNER WEST SIDE.

[02:35:02]

AND WHEN WE DO THE RESEARCH, MANY OF THEM ARE OWNED BY LLCS AND/OR, RIGHT, THERE'S NOT A CLEAR TITLE. BUT HOW CAN WE, YOU KNOW, ENSURE THAT THERE'S AN OPPORTUNITY THAT IF THERE'S ISSUES THAT A PROPERTY'S BEEN VACANT FOR X AMOUNT OF YEARS AND THEY OWE OVER 40,000 IN BACK TAXES AND THERE'S NO ACCOUNTABILITY -- GAVITO'S COMMENTS ON THE VACANT BUILDINGS MADE ME THINK OF THAT.

AND DURING LAST BUDGET YEAR, WE HAD A CONSTITUENT, STEPHANIE, AND SHE PROPOSED, YOU KNOW, HOW DO WE RETROFIT THESE BUILDINGS INTO SOMETHING THAT'S PRODUCTIVE, PARTICULARLY HOUSING? AND I'M GRATEFUL, RIGHT, FOR THE QUESTIONS THAT COUNCILMAN COURAGE RAISED BECAUSE WE DO NEED TO CHALLENGE SOME OF THE ANTIHOMELESS RHETORIC THAT WE'RE HEARING. I WAS GRATEFUL THAT I WAS AT A NEIGHBORHOOD MEETING AND A WOMAN ASKED THOSE QUESTIONS ABOUT HOMELESSNESS IN THE AREA. AND SHE'S LIKE, WHAT ABOUT THE TOWN TWIN VILLAGE, RIGHT? THE TINY HOME. SHE DESCRIBED THEM BEFORE SHE POINTED THEY WERE TINY HOME VILLAGES. HOW COME WE DON'T HAVE THAT IN DISTRICT FIVE. AND I HIGHLIGHTED, I'M GRATEFUL THAT YOU'RE SAYING THIS OUT LOUD IN FRONT OF FOLKS IN THE NEIGHBORHOOD ASSOCIATION MEETING ABOUT THE NEED AND THE SUPPORT THAT THESE TYPE OF PROJECTS PROVIDE AND BENEFIT THAT THEY PROVIDE TO OUR COMMUNITY.

SO I JUST WANTED TO THANK YOU AND YOUR TEAM FOR YOUR INITIATIVE AND YOUR

LEADERSHIP. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CAS COUNCILMEMBER CASTILLO.

COUNCILMEMBER WHYTE? >> WHYTE: THANKS, MAYOR, AND AT YOUR REQUEST, I WILL CUT OUT A LOT OF WHAT I WAS GOING TO SAY. THANK YOU FOR THE PRESENTATION. VERY INFORMATIVE. I'M JUST GOING TO SAY THIS, THE BEST WAY IN MY OPINION TO MAKE HOUSING MORE AFFORDABLE FOR FOLKS IN SAN ANTONIO IS TO HAVE THEM -- MORE FOLKS WITH JOBS AND MORE FOLKS WITH GOOD-PAYING JOBS. AND ALSO TO LIV LIMIT OUR RESIDENT'S EXPENSES.

CONTINUING TO RAISE RATES ON OUR CITIZENS VIA CPS TAKES MORE MONEY OUT OF THEIR POCKETS AND HARDER FOR THEM TO MAKE MORTGAGE PAYMENTS OR RENT PAYMENTS OR WHATEVER IT MAY BE. ADDITIONALLY, I'VE TALKED A LOT ABOUT HOW WE USE OUR RESOURCES AND CAN WE USE OUR RESOURCES IN A BETTER MANNER TO PROMOTE GROWTH AND OPPORTUNITY FOR OUR CITIZENS. WE'RE GOING TO BE COMING UP ON BUDGET DISCUSSIONS HERE IN THE NEXT FEW MONTHS, AND I HOPE THAT WE CONSIDER SOME ALTERNATIVES MOVING FORWARD WITH THE BUDGET.

THANKS. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE. AND HE FINISHED ON SOMETHING I TOTALLY AGREE WITH, EVERY ASPECT OF IT. ALL RIGHT.

THANK YOU VERY MUCH TO THOUSING TEAM. GREAT WORK AS ALWAYS.

[EXECUTIVE SESSION At any time during the meeting, the City Council may recess into executive session in the Presidio Conference Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following:  ]

THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET IN EXECUTIVE SESSION TO CONSULT WITH TOY ATTORNEY'S OFFICE DELIBERATE AND DISCUSS THE FOLLOWING ITEMS, ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SECTION 551.08 SEIVE, THE THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL

PROPERTY PURSUANT TO TEXAS GOVERNMENT >> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYONE. WELCOME TO OUR CITY COUNCIL B SESSION.

CITY COUNCIL HAS RECONVENED FROM ITS EXECUTIVE SESSION.

THE TIME IS 5:35 P.M. ON THE 28TH DAY OF FEBRUARY, 2024.

NO OFFICIAL ACTION WAS TAKEN IN OUR EXECUTIVE SESSION.

OUR B

* This transcript was compiled from uncorrected Closed Captioning.