HomeMy WebLinkAbout2020-05-05; City Council; Resolution 2020-079RESOLUTION NO. 2020-079
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ALLOCATING $5,000,000 TO THE ECONOMIC RESPONSE AND
RECOVERY INITIATIVE AND ESTABLISHING A BUSINESS LOAN PROGRAM
WHEREAS, on February 14, 2020, the San Diego County Health Officer declared a Local Health
Emergency as a result of the spread of COVID-19; and
WHEREAS, on March 4, 2020, the State of California declared a State of Emergency as a result
of the spread of COVID-19; and
WHEREAS, the Health Officer of the County of San Diego has issued an order requiring people
to remain in their homes or place of residence, except for employees or customers traveling to and
from essential businesses or activities; and
WHEREAS, the current Order of the Health Officer and Emergency Regulations became effective
at 12:00am on Friday May 1, 2020; and
WHEREAS, the current Order of the Health Officer and Emergency Regulations states that all
businesses not meeting the definition of essential businesses are considered "non-essential
businesses" and shall be and remain closed for the duration of the Order; and
WHEREAS, 3.7 million workers have filed for unemployment in the past seven weeks; and
WHEREAS, the City Council approved the Economic Recovery and Revitalization Initiative (ERRI)
on April 21, 2020; and
WHEREAS, the ERRI includes direction to present an allocation of $5,000,000 from the city's set-
aside for economic uncertainty in the General Fund to the City Council on May 5, 2020; and
WHEREAS, the ERRI includes direction to present recommendations for the establishment of a
business loan program to the City Council on May 5, 2020; and
WHEREAS, the Ad Hoc City Council Economic Revitalization Subcommittee has developed
recommendations for prioritization of $5,000,000 to implement the ERRI and a business loan
program in response to COVID-19.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the deputy city manager, administrative services is authorized to appropriate five
million dollars ($5,000,000) from the city's economic uncertainty set-aside in the
May 5, 2020 Item #8 Page 6 of 8
General Fund to cover the cost of expenditures related to the EERI including the
following priorities:
a. $4,400,000 to the business loan program;
b. $250,000 to the joint marketing strategy;
c. $250,000 to be held as contingency or for future City Council decisions;
d. $50,000 to partner on mediation and renegotiation services; and
e. $50,000 for city lessee relief.
3. That the city manager establish a business loan program consistent with City Council
approved parameters including:
a. A focus on small businesses;
b. Requiring applicants to have a valid City of Carlsbad business license as of
March 1, 2020;
c. Requiring applicants to be in good standing with the city;
d. Prohibiting the award of a loan to a business for expenses that were funded by
any federal, state, or local agency;
e. Excluding national franchises and chains with criteria; and
f. Including smaller regional businesses with a physical presence in Carlsbad; and
g. Allowing loans for operational expenses such as rent, payroll, mortgage interest
and utilities; and
h. Small business microloans of $5,000-$10,000 for businesses with gross revenue
of $2,000,000 or less, or 15 employees or less and terms of 0% interest if paid
back within six-months, 1% if paid back within twelve-months, and 2% if paid
back within eighteen-months; and
i. Small business recovery loans of $10,000-$25,000 for businesses with gross
revenue of $3,000,000 or less and fewer than 50 employees and terms of 2%
interest if paid back within twelve-months and 3% if paid back within thirty-
months; and
j. Allowing for the deferral of the first payment on the loan to be deferred up to
90 days and the deferral of up to 180 days at the discretion of city staff based
upon demonstrated evidence of hardship; and
May 5, 2020 Item #8 Page 7 of 8
4. That the city manager negotiate with a third-party to administer to administer the
business loan program and return to City Council with a contract for approval if it
exceeds $100,000 annually.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 5th day of May, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
,ti11a_tC~ Cb:L ~
B°ARBARA ENGLESON, City Cl
(SEAL)
,,,,,11111111111,11
;$:-''o'''~ CA/:/,J'11
"," ~ •'"•c...n -z ~'" .•·· ··--.u~~
~.... '•,';'¥ s--
:2_ , •... Y ~ (o(~.~. :-A)cJ ~ ... ~-~ ~ ·• .. ·--,~,. ..... -·· ;:::; ~ "''•· ' .•· .. ~ ~ '-;q ............ ..\.'"~
~,,,,,,11 I.. I FO~\,,,,"~
111111111111111111''
May 5, 2020 Item #8 Page 8 of 8