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HomeMy WebLinkAboutMINUTES - 05182010 - C.67RECOMMENDATION(S): 1. APPROVE West Contra Costa Business Development Center's request to change the location of the proposed Culinary Business Center Incubator Project, which was allocated $100,000 of FY 2008/09 Community Development Block Grant-Recovery (CDBG-R) funds, from a building located in the City of San Pablo to a building located at 403 Civic Center Plaza, in Richmond. 2. APPROVE the CDBG-R Substantial Amendment to the Contra Costa County FY 2008/09 CDBG Action Plan and AUTHORIZE the Deputy Director-Redevelopment to submit the amendment to the U.S. Department of Housing and Urban Development (HUD). FISCAL IMPACT: No General Fund impact. All funds are provided to the County on a formula basis through the U.S. Department of Housing and Urban Development (HUD). The CDBG-R funds are part of the stimulus package approved by the federal government under the American Recovery and Reinvestment Act of 2009. CFDA# 14.253 (CDBG-R Program) APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/18/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor ABSENT:Federal D. Glover, District V Supervisor Contact: Gabriel Lemus, 335-7229 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 18, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: EMY SHARP, Deputy cc: C.67 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:May 18, 2010 Contra Costa County Subject:West Contra Costa Business Development Center - Culinary Business Center Project Funded with Community Development Block Grant-Recovery (CDBG-R) Funds BACKGROUND: In June 2009, the Board of Supervisors approved the Contra Costa County Substantial Amendment to the FY 2008/09 Action Plan for the allocation of CDBG-R funds. The federal guidelines for CDBG-R funds indicate that awarded activities are required to create or retain jobs or promote economic opportunity for lower income persons/households; or promote energy conservation, smart growth, green building technology, or reduce pollution emissions. Awarded projects/activities must be "shovel-ready" and must estimate the number of jobs created or retained; or provide a description of how the activities promote energy conservation, smart growth, green building technology, or reduce pollution emissions. Originally, the West Contra Costa Business Development Center (WCC BDC) was allocated $100,000 in CDBG-R funds to support the build-out/rehabilitation of a building located in the City of San Pablo for a Culinary Business Center Incubator (CBC Incubator). Due to site challenges, the WCC BDC decided on another site for the project. The new site for the project is within the City of Richmond's Civic Center Auditorium located at 403 Civic Center Plaza. The City of Richmond's City Council has approved a five-year lease for the space on April 6, 2010. The five-year term began May 1, 2010. The WCC BDC is a nonprofit corporation that assists in fostering entrepreneurship opportunities for low-income persons. The WCC BDC’s goal is to help businesses grow, create job opportunities, and generate a renewed sense of economic activity in the communities of west Contra Costa County. As part of their overall goal of fostering entrepreneurship opportunities, the WCC BDC proposes to create the CBC Incubator to assist low-income persons create or expand their culinary businesses and to create jobs for low-income persons. The CBC Incubator will be a shared-used commercial kitchen where caterers and specialty food producers can prepare, cook, and package their food products for sale in a fully equipped and certified kitchen. As operator of the CBC Incubator, the WCC BDC will provide active business assistance to those who utilize the CBC Incubator. WCC BDC will provide business counseling, plus assistance with product development, recipe development, safe and sanitary production, labeling regulations, product pricing, marketing, and distribution. The WCC BDC will hire an on-site manager with food-industry and marketing backgrounds to oversee the daily operation of the CBC Incubator and to provide direct assistance to business tenants. The year-to-year operation of the CBC Incubator will be funded primarily with rent revenue collected from the businesses utilizing the CBC Incubator. Depending on the level of usage, the rent for business tenants will range from $15 to $22 per hour. Approximately 8 to 10 construction jobs will be created to rehabilitate the building to create the CBC Incubator. During operation, it is anticipated that the CBC Incubator will be supporting the growth of 30 businesses each year. During the first year, at least 15 new businesses will be served, of which 50 percent will be Urban County clients. Each subsequent year, 3 to 5 new companies will to be added. With each new CBC Incubator business, at least 2 to 3 new jobs will be created during the incubation phase. During the first year of operation, at least 30 new jobs will be created, with 30 additional new jobs created on average per year during the subsequent years. The total estimated budget to create the CBC Incubator is $419,000 of which $200,000 will be provided by The City of Richmond ($60,000 for equipment and furnishings and $140,000 of in-kind support in the form of below market rate 5-year lease ($1 per year) for the space). The County's $100,000 of CDBG-R funds will all be used for construction costs to renovate the designated space for the CBC Incubator and will be provided to this project in the form of a conditional grant that will be forgiven over a period of five years dependent on the job and business creation for Urban County clients. CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: