The first cycle of the Downtown Investment Authority’s Retail Enhancement Grant program has brought eight new businesses to the urban core and helped five established businesses expand.
Beginning in 2014 with a $750,000 grant fund, nearly $668,000 has been awarded to date, creating about 150 jobs and more than $3 million in capital investment for improvements to Downtown retail space.
Twelve of the grants were to restaurants and nightclubs, including the largest grant — $102,000 — to the Bellwether restaurant under construction on Forsyth Street, the new-urban concept from the owners of Black Sheep and Orsay.
The other grant recipient was for the expansion of Daniel James Salon.
Aundra Wallace, CEO of the DIA, said the program has worked as it was designed, bringing more food and beverage options to the neighborhood.
“Downtown is transforming, but you’ve got to have the right kind of retail,” he said.
The grants are intended to decrease renovation costs incurred by modernizing space in older buildings and as an incentive to improve the interior and appearance of street-level storefronts.
Improvements must comply with Downtown design requirements and must be approved by the authority.
The maximum grant award is $20 per square foot leased or occupied by the recipient. The renovation budget must be at least $10,000, and the new business or expansion must create at least two new full-time jobs.
Another requirement is the recipient must remain in business at the location for at least five years. Grants are forgivable loans amortized over that period. If the business closes before the five-year requirement, the loan must be repaid on a pro-rata basis.
Stacey Goldberg and her husband, Craig, opened their Urban Grind Coffee Shop in the lobby at Bank of America Tower in 2000 and 15 years later, opened their second shop on West Bay Street with a $17,000 grant to help reduce the amount they financed for the expansion.
“We would have opened the second location without the grant, but it helped. We have a smaller loan that we can pay off faster,” she said.
In addition to doubling their locations, the Bay Street store has a catering kitchen, which has allowed the couple to add another revenue stream.
Goldberg said the catering business has become a more-than-once-a-day enterprise, and it’s a welcome addition to the walk-in trade.
“We’re jamming,” she said.
With about $82,000 left in the retail grant account, Wallace said he plans to present a proposal to the board of directors to seek replenishment when the authority’s 2017-18 proposed budget is sent to the administration.
“I’m going to discuss it with the board and see if there are ways we might improve the program. I’d like to try to recapitalize the fund,” he said.
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