Item 4EM E M O R A N D U M
November 11, 2020
To: Shana Yelverton, City Manager
From: Daniel Cortez, Director of Economic Development & Tourism
Subject: Item 4E: Approve Resolution No. 20-051, authorizing the creation of
the Southlake Business Relief Grant Program under Texas Local
Government Code 380
Action
Requested: Approval of Resolution 20-051, approving the framework, criteria and
funding for the Southlake Business Relief Grant Program.
Background
Information: The COVID-19 pandemic has brought on an unprecedented economic
environment for Southlake and its businesses community. While most
businesses have adapted to the best of their ability the impacts of the
pandemic continue, the business community continues to respond and
adapt to changing consumer habits, loss of revenue and state and local
mandates.
The Southlake City Council, with input provided from the Economic
Recovery Task Force and the Community Enhancement and
Development Corporation, has adopted strategies to aid local
businesses in their recovery efforts such as outdoor retail sales,
expanded outdoor dining and expanded signage placements. To further
support Southlake’s local businesses, the City Council directed City staff
to develop a business relief grant program.
As such, staff has developed a grant program for local businesses that
assists in achieving the City’s economic recovery strategic goals of
growing the economy, improving local economic health, elevating the
Southlake brand and value proposition, collaborating for success and
supporting businesses.
Financial
Considerations: Funding for this program will come from the Economic Development
Investment Fund in an amount not to exceed one million dollars
($1,000,000). Related to this item for consideration is Item 4D, the
consideration of Ordinance No. 1235A, the revised Annual Budget for
Fiscal Year 2021 that will provide funding for the grant program.
Item 4E
Strategic Link: This item is specifically linked to the City’s Strategy Map through C4:
Attract & keep top-tier businesses to drive a dynamic & sustainable
economic environment and supports the CEDC Board’s strategy map
through CEDCF2 Ensure expenditure of CEDC and Economic
Development Investment Funds in accordance with established
economic development goals, policies and master plan
recommendations.
Board Review: On November 12, 2020, the Community Enhancement and Development
Corporation recommended approval (6-0) of the proposed Southlake
Business Relief Grant Program its framework, funding and eligibility
requirements.
Legal Review: This grant program is currently under legal review by the City Attorney.
Supporting
Documents: Resolution No. 20-051: City Southlake Business Relief Grant Program
Staff
Recommendation: Approval of Resolution No. 20-051: Southlake Business Relief Grant
Program
Staff Contacts: Daniel Cortez (817) 748 – 8039
RESOLUTION NO. 20-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, AUTHORIZING THE CREATION OF THE
SOUTHLAKE BUSINESS RELIEF GRANT PROGRAM UNDER TEXAS
LOCAL GOVERNMENT CODE 380; ESTABLISHING THE BUSINESS
ELIGIBILITY CRITERIA; PROVIDING A FUNDING SOURCE FOR THE
GRANT PROGRAM; ESTABLISHING THE GRANT AWARD TIERS;
AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Southlake, Texas, recognizes the hardship that the
COVID-19 virus has caused for Southlake local businesses; and
WHEREAS, pursuant to Texas Local Government Code Section 380.002(c) the Economic
Development Investment Fund may be used to provide economic support to businesses that have
experienced disruption due to COVID-19 related mandates in the amount of ONE MILLION DOLLARS
($1,000,000).
WHEREAS, the City Council of the City of Southlake has determined it to be in the best interests
of the community to authorize the creation of a business relief program to further aid in the recovery of
the local economy.
WHEREAS, the City Council of the City of Southlake has determined in the best interest for have
City staff to administer a program in compliance with the criteria set forth in this resolution.
WHEREAS, the City Council of the City of Southlake has determined that implementing such a
program will assist in achieving its economic recovery goals.
WHERAS, the City Council of the City of Southlake is committed to the recovery, growth and
stimulation of sustainable local businesses within the community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
Section 1. In response to the economic impacts of COVID-19 (coronavirus) to the local
business community, the Southlake City Council is authorizing a stimulus program
to assist businesses negatively affected by the pandemic through the Southlake
Business Relief Grant Program. The Southlake Business Relief Grant Program is
a local economic development grant program to help reduce the economic strain
on local businesses.
Section 2. The City Council of the City of Southlake, Texas hereby authorizes the creation of
the Southlake Business Relief Grant Program, subject to its management by the
City of Southlake, funding by the Economic Development Investment Fund in an
amount not to exceed $1,000,000.
Section 3. Individual grants will be awarded to Southlake businesses in an amount not to
exceed $10,000 based on a tiered approach consisting of the following:
a) Tier 1 - Business operations completely closed and were deemed as a non-
essential businesses per local/county/state executive orders during COVID-19
can receive up to 100% of eligible grant.
b) Tier 2 - Business operations partially closed and were deemed as an essential
business per local/county/state executive orders during COVID-19 can receive
up to 75% of eligible grant.
c) Tier 3 - Business operations that closed and were deemed as a non-essential
businesses per local/county/state executive orders during COVID-19 but had
the capacity for their business to continue operations through
telecommuting/online operation can receive up to 50% of the eligible grant.
If available eligible business applications exceed the funds available for
distribution, the City will prioritize funding grants for Tier 1 businesses first,
followed by Tier 2 and Tier 3 businesses.
The City also reserves the right to divide the grant award in equal amounts to
distribute to eligible businesses.
Section 4. Grant funds are available to businesses who meet the following criteria:
a) Business Types:
i. Corporation
ii. Individual
iii. Sole proprietorship
iv. Single-member limited liability company (LLC)
v. LLC treated as a partnership
vi. LLC – C corporation
vii. LLC – S corporation
viii. Partnership
b) 50 or fewer employees
c) Businesses physically located within the City of Southlake, with a Southlake
mailing address
d) Registered to do business in the State of Texas
e) Business must have been in operation since January 1, 2019
f) Eligible businesses must be able to demonstrate that the business was
profitable prior to the COVID-19 outbreak and that they have experienced a
loss of income due to COVID-19.
g) Business must affirmatively declare that they were not in arrears on rent prior
to February 29, 2020, and they must provide their landlord’s contact
information.
h) Business must be in good standing with the City of Southlake, Tarrant County
and other taxing entities. If a business has outstanding payments due to the
City, they may however, first apply grant funds to the amount owed first, with
any remaining distributed to the business.
i)Business owner applying for grant must own 51% or more of the business
j)Businesses that received assistance from SBA, CARES Act, PPP or other
grant programs are still eligible
Section 5. Grant funds will not be available for the following types of businesses:
a)Ineligible business types:
i.National/Regional chains
ii.Corporate/privately owned franchises
iii.Home-based businesses
iv.Permanently closed businesses
v.Non-Profits
vi.Sexually/Adult-Oriented Businesses
vii.Professional Services deemed essential by local/state government
viii.Lobbying organizations and political organizations subject to
Internal Revenue Code 527
ix.Gambling Concerns, including casinos, racing operations or other
activities whose purpose involves gambling
x.Concerns engaged in illegal activities under federal, state or local
laws
xi.A business that is otherwise prohibited by federal or Texas law
xii.A business that is ineligible or precluded to receive federal or State
of Texas funding due to federal laws (including but not limited to the
CARES Act) or Texas laws
xiii.Multi-level marketing concerns
xiv.Governmental/taxing agencies/departments
Section 6. Funds can be used to reimburse the costs of business interruption due to COVID-
19 as a result of required closures, voluntary closures to promote social distancing,
or decreased customer demand. Examples of these costs include:
•Working capital.
•Machinery and equipment.
•Payroll expenses.
•Heath care benefits.
•Contract labor.
•Supplier payments.
•Rent, lease or mortgage payment for business real property used for business
purposes. (Ex. A storefront or warehouse. Does not include personal
residence.)
• Rent, lease or purchase payment for business property (Ex. delivery vehicle,
food truck, kitchen equipment, technology, payment, and communications
systems/equipment.)
• Utility payments for business properties. (Not including personal residence.)
• Cost of critical business operations. (Ex. raw materials, marketing expenses,
etc.)
• Personal Protective Equipment (PPE), sanitation supplies and equipment.
Section 7. Businesses who receive grant funding will be required to document how the funds
are used and provide the necessary financial information such as bank statements
and other information as deemed necessary by the City of Southlake Chief
Financial Officer. This documentation will need to be provided to the City no later
than July 1, 2021.
Section 8. Any businesses wanting to receive grant funds from the Southlake Business Relief
Grant Program shall be required to provide identification and financial information
to the City of Southlake, within the timeline established as determined by the City,
for review and consideration that may include but is not limited to driver’s license,
bank statements, tax returns, Form 941 and Form W-9.
Section 9. Nothing in this resolution, the Southlake Business Relief Grant Program, or by the
City of Southlake shall be construed to suggest or imply that the City of Southlake
is under any obligation to provide any grant or grant fund amount to any applicant
irrespective of business eligibility and meeting all established criteria.
PASSED AND APPROVED on this ______ day of ___________________________, 2020
____________________________________
Mayor Laura Hill
ATTEST: APPROVED AS TO FORM:
_________________________________ ___________________________________
City Secretary City Attorney