HomeMy WebLinkAboutCRA-R-06-0002 Cover MemoSEOPW & Omni Board Of Directors Meeting
January 30, 2006
Item # 5
SOUTHEAST OVERTOWN/PARK WEST
AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES
INTER -OFFICE MEMORANDUM
To: Chairman Johnny L. Winton
and Members of the CRA Board
Date: January 20, 2006 05-01487
Subject: Resolution to Modify CRA Overtown
Small Business Grant Initiative
Resolution
From: `frank K. Rollason References:
Executive Director
RECOMMENDATION:
Enclosures: Supporting Documentation;
Legislation
it is recommended that the Board of Directors of the Southeast Overtown/Park West (SEOPW)
Community Redevelopment Agency (CRA) approve and adopt the attached Resolution modifying CRA
Resolution No. CRA-R-05-0049 (Overtown Small Business Grant Initiative enacting legislation), to include
Working Capital' as an eligible grant category in an amount not to exceed 25% of the total grant.
JUSTIFICATION:
In interviewing the various grant applicants, it became clear that working capital is a necessary companion
expense associated with many of the other already authorized grant categories (Capital Improvements,
Equipment Purchases, Strengthening of the Asset or Inventory Base). In the discussions with business
owners, there were various associated expenses compounded by adding new equipment (electrical,
mechanical, and /or plumbing hook up) or increasing inventory (adding personnel to assist in sales or
actually run the equipment purchased). In essence, some of the businesses have little or no working capital
to take full advantage of the improvements, equipment, or additional inventory provided by this grant
program. It is requested that the program be modified to allow up to 25% of the total grant for working
capital. If a maximum grant would be approved by the Executive Director for $25,000 then a maximum of
$6,250 of the $25,000 could be approved for working capital. The grant applicant would have to show how
the working capital would be used and if new hires were a part of the use, the applicant would be
encouraged to hire individuals from the Overtown area.
FUNDING SOURCE: No additional financial impact. Funding for program has been previously approved.
FKR/eh