Wednesday, Jun. 24, 2009
Grover Beach moves to boost city businesses through new stimulus program
Officials are working on a stimulus program to help local companies thrive, to provide jobs and to bump up the city’s sales tax revenue
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closeOfficials in Grover Beach are taking several steps to boost the city’s economy through a new local stimulus program.
Earlier this month, the City Council endorsed the development of programs geared to boost the city’s business, as well as retain and create jobs.
The programs soon to be developed include a funding source for business loans and grants, as well as guidelines that will make it easier for the city to purchase products and services from businesses in Grover Beach.
“We asked ourselves, ‘How can we help with small-business owners and encourage people to shop at local stores?’ ” Mayor John Shoals said.
“This is our way of trying to help. We don’t want to see empty storefronts in our business corridor.”
City staff members are working on developing the stimulus plan, and the council still has to sign off on the programs that city staff members are working on, including one that requires a change in city law.
City law currently requires using the lowest bid for a construction project, for example.
But a proposed purchasing program would require the city to offer a contracting bid to a Grover Beach company within 5 percent or $5,000 of the lowest qualified bid amount submitted by any contractor.
The city also would give preference within 5 percent of the lowest bids offered to businesses in the city when buying materials, supplies, equipment or services.
Stimulating the city’s local economy also will help boost the city’s much needed sales tax revenue.
Grover Beach has a sales tax revenue pot of about $720,000, which is down about 12 percent to 16 percent from previous years. That compares with $2.8 million in fiscal year 2009 sales tax revenue in neighboring Pismo Beach.
For years, leaders in Grover Beach have sought ways to generate more income to pay for services and infrastructure needs, including street repairs estimated to cost more than $30 million.
The city currently spends about $800,000 to $1.2 million a year on repairing streets.
“We’re planning to put forward the programs as soon as they can be rolled out,” City Manager Bob Perrault said. “We’ll be doing it in pieces, and some programs will come sooner than others.”
Also as part of its overarching goal to boost the local economy, the city accepted a $10,000 check at a council meeting earlier this month to provide assistance to local businesses.
The money came from the Rabobank’s Community Reinvestment Act program, which allocated quarterly grants that go back into the local community.
The city plans to match the funds with a $10,000 contribution from its own funds set aside for community improvement.
The business loan and grant amounts are expected to be between $1,000 and $5,000.
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