SLO pledges $3.4 million to spur local economy. Here’s how money will be spent
The San Luis Obispo City Council unanimously passed a comprehensive stimulus package on Tuesday in an effort to spur the local economy and address homelessness.
The city allocated $3.425 million in General Fund money targeting multiple issues related to the economic impacts of COVID-19, as well as a prevalent homelessness problem.
Funding generated by the recently approved Measure G-20 sales tax increase is envisioned to help cover the costs by replenishing the resources being used now.
“This policy makes me chokes up,” San Luis Obispo Mayor Heidi Harmon said at Tuesday’s City Council meeting. “We’re able to use this money for the best way possible at a time when people need it most during a critical time.”
Details of SLO economic stimulus package
The city is allocating $500,000 for small business grants to award $5,000 each to 100 local businesses — the second round of the city’s funding after distributing $260,000 to 52 businesses earlier this year.
A separate $200,000 allocation offers an incentive for people to shop locally.
The city is still working out details, assistant city manager Greg Hermann said. But under the preliminary plan, shoppers who provide $100 in receipts from purchases at businesses within the city would receive $20 gift cards.
“We would hope then that a $20 gift card would promote further spending in the community,” Hermann said.
Hermann said the city is working in conjunction with the San Luis Obispo Chamber of Commerce and Visitors Center to give gift cards to shoppers who submit their receipts.
Additionally, the city is setting aside $2 million to help businesses owners complete their tenant improvements. That program will use interest from short-term certificates of deposit for a grant program to help offset the cost of a tenant improvement permit.
“Small business is key to the fabric of the community,” San Luis Obispo Chamber of Commerce CEO Jim Dantona said. “A government that’s quick to react can spur a local economy. And $2 million in funding for tenant improvements is incredible to help the community survive and adjust.”
San Luis Obispo will spend an additional $425,000 on its Open SLO vitality program, furthering measures such as parklets, holiday decorations and downtown cleanliness to spark economic activity and ensure a vibrant hub for shoppers and visitors.
Funding for homeless services
The final piece of the funding is $300,000 toward homeless services support, which go toward helping unsheltered people.
That includes hiring homeless resource manager for a two-year contract. That person would coordinate efforts on the highest priority needs, such as a Homelessness Strategic Plan for the city and building upon existing relationships with San Luis Obispo County and other Central Coast cities, regional partners and nonprofit organizations “to maximize services available and the determination of long-term resource needs,” the city staff said.
The county, which operates social services, generally is responsible for homeless services in the region, according to San Luis Obispo officials.
But the city of San Luis Obispo has focused on providing some spending in recent years in areas including the 40 Prado Homeless Services Center; the clean-up of abandoned property and trash in parks, creeks and open spaces associated with illegal camping, and a police officer and mental health outreach coordinator dedicated to homeless outreach.
The homeless resource manager would be skilled at community building, policy development and budgeting.
“I’m 100% supportive of a homeless services coordinator,” City Councilmember Erica Stewart said at Tuesday’s meeting.
Should SLO have database for businesses?
Harmon said she’d like to see work done to establish a community database of San Luis Obispo businesses and the products they offer.
Harmon said she thinks a partnership with Cal Poly or the business community could inspire that.
“How can we really help people not shop online?” Harmon said. “I think the main reasons people shop online is because of the ease of it. They punch in the thing they want, they know exactly where to go and it comes to their house. ... There’s a growing hunger for that kind of information on a local level.”
San Luis Obispo has created a virtual shopping guide to show which local businesses, restaurants and retail stores are operating in the community. The guide is posted on the city’s website, www.slocity.org.
In addition to the $500,000 approved by the council for small business grants, the city will announce ways residents can donate to support local business grants.
This story was originally published December 9, 2020 at 1:24 PM.
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