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ADOPT A RESOLUTION TO ACCEPT AND APPROPRIATE GRANT FUNDING FROM THE U.S. SMALL BUSINESS ADMINISTRATION FOR THE SHUTTERED VENUE OPERATORS GRANT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and authorize the City Manager, or designee, to execute all necessary documents with the U.S. Small Business Administration (SBA) to accept and deliver grant funding from the Shuttered Venue Operators Grant (SVOG) in the amount of $239,427.90;
2. Authorize the City Manager, or designee, to accept and appropriate grant revenues and expenditures in the amount of $239,427.90;
3. Authorize the City Manager, or designee, to take all actions necessary and appropriate to carry out the intent of the resolution.
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Summary
The City of Stockton submitted a grant application to the SBA on April 28, 2021, for the SVOG program that would allocate funding to shuttered venues that were negatively impacted due to the COVID-19 pandemic. The City’s Bob Hope Theatre meets the criteria of a performing arts venue that has been negatively impacted by the pandemic. On July 27, 2021, the City was notified that the Bob Hope Theatre grant application was approved. It is recommended that the City Council approve the grant award from the SBA, in the amount of $239,427.90, to assist with the funding of operational and maintenance costs to the Bob Hope Theatre.
DISCUSSION
Background
The SVOG program was established by the Economic Aid to Hard-Hit Small Business, Nonprofits, and Venues Act and amended by the American Rescue Plan Act. The allocated funding to shuttered venues will be administered by the SBA’s Office of Disaster Assistance. Eligible applicants were able to qualify for grants equal to forty-five percent (45%) of their 2019 gross earned revenue, with the maximum amount available for a single grant allocation of $10 million. State or local government owned entities were eligible to apply.
Due to the COVID-19 pandemic, the Bob Hope Theatre remained closed to the public from March 2020 through the entire fiscal year 2020-21. The closure eliminated all revenue and daily operations staff, while essential facility costs continued to incur on a monthly basis.
Present Situation
Based on the Notice of Award (Attachment A) that was received from the SBA, it is recommended that the City Council approve the award of grant funds in the amount of $239,427.90 (45% of the 2019 calendar year revenues). Funding from the SVOG grant will provide additional funding for reopening of the theatre and future operational and maintenance costs.
FINANCIAL SUMMARY
There is no negative financial impact to the City’s General Fund (GF) or any other unrestricted fund because of this action. This grant does not require matching funds from the City. The SVOG funds can potentially ease GF subsidies to the Entertainment Venues. The GF actuals will be evaluated in the annual budget development approval process for any cost saving opportunities. The SVOG funds will be appropriated in the Special Grant Fund, Parking and Venues Division, COVID-19 program.
As a condition of acceptance, the allocated funds must be spent within the budget period of one year from the date the grant was awarded (7/27/2021 to 7/26/2022) and the City must submit a report that describes the grant’s financial progress, to the SBA.
Attachment A - Notice of Award