Leon Valley
TX

Staff Report

Discussion and Possible Action on Economic & Community Development Advisory Committee’s Recommendation regarding businesses located at Seneca Plaza and Lebmans Square

Information

Department:AdministrationSponsors:
Category:Proclamation

Item Discussion

PURPOSE:   

 

The purpose of this agenda item is for the Leon Valley City Council to consider and possibly act on a recommendation made by the Economic & Community Development Advisory Committee to enter into up to 10 grant or forgivable loan agreements with affected tenants up to $6,000.00 per tenant. The agreements would be for expenses paid for either moving or first or last month’s rent at a Leon Valley location  and receipts would be required as part of the agreement.                

 

FISCAL IMPACT

 

Currently the economic development project fund has a balance of $111,039.00 so there is sufficient funding for these grants or forgivable loans. 

 

STRATEGIC GOALS

 

This request is consistent with the City of Leon Valley’s Strategic Plan which outlines goals and objectives.  One of these goals & objectives is economic development.  Retaining these existing businesses in Leon Valley is an example of attempting to maintain a sound economy in the city. 

 

SEE LEON VALLEY

 

Social - Provides an opportunity for Leon Valley businesses to remain located in the community and it provides for Leon Valley citizens to be able to continue to utilize the businesses affected. 

 

Economic -   Provides an opportunity for businesses that might have to relocate to be able to relocate in the city limits of Leon Valley.  

 

Environmental - N/A

 

RECOMMENDATION

 

That the Leon Valley City Council act on the recommendation of the Economic & Community Development Advisory Committee and agree to fund up to 10 grants or forgivable loans for businesses displaced as a result of the stop work order at Seneca Plaza and Lebman’s Square. 

                                                       

 

 

Meeting History

Aug 22, 2017 6:00 PM  City Council Special Meeting

City Manager Kelly Kuenstler presented this item seeking City Council consideration and possible action on a recommendation made by the Economic and Community Development Advisory Committee to enter into up to ten (10) grants or forgivable loan agreements with affected tenants up to $6,000.00 per tenant.

City Manager Kuenstler explained that the agreements would be for expenses paid for either moving expenses; first and last month’s rent at a Leon Valley location (receipts would be required as part of the agreement. City Manager Kuenstler added that as of the beginning of this meeting, there were currently seven (7) businesses asking for the program for a total of $42,000.00.

The presentation was followed by a lengthy discussion.

· Mr. Rufer owner of Rufer’s Coin Company spoke in opposition of the way the City handled the situation.

City Manager Kelly Kuenstler said that based on the discussion the motion would be that a forgivable loan would be granted to all businesses located at Seneca Plaza and Lebman’s Coral that have been affected by the STOP WORK ORDER and applied for the loan; preference will be given to tax collecting businesses; the businesses must relocate within the city limits of Leon Valley; they must stay in business for one (1) year; the loan will be forgiven at the conclusion of the one (1) year mark if they meet the conditions as just specified.

Council Member Benny Martinez added “up to $6,000). City Manager Kuenstler said, “Yes, up to $6,000.”

A motion was made by Council Member Belinda Ealy and seconded by Council Member David Jordan to approve the motion as previously stated by City Manager Kelly Kuenstler.

Council Member Benny Martinez said he would like it to read “up to $60,000 with a maximum of up to $6,000 per business.”

Mayor Riley repeated the motion with Council Member Martinez’ change to read a motion that a forgivable loan would be granted to all businesses located at Seneca Plaza and Lebman’s Coral that have been affected by the STOP WORK ORDER and applied for the loan, with a maximum of up to $6,000 per business with a grand total of up to $60,000; preference will be given to tax collecting businesses; the businesses must relocate within the city limits of Leon Valley; they must stay in business for one (1) year; the loan will be forgiven at the conclusion of the one (1) year mark if they meet the conditions as just specified.

Mayor Riley called for a vote and announced the motion passed unanimously.

RESULT:APPROVED [UNANIMOUS]
MOVER:Belinda Ealy, Council Place 2
SECONDER:David Jordan, Council Place 5
AYES:Benny Martinez, David Edwards, Belinda Ealy, David Jordan

Discussion