Loading...
HomeMy WebLinkAbout111825-07.1 ADMINISTRATIVE STAFF REPORT 7.1 TO: Mayor and Town Council November 18, 2025 SUBJECT: Resolution No. 75-2025, approving an update to the Business Promotion Fund Grant Policy BACKGROUND In October 1993, the Town Council adopted a resolution approving a Policy on the Use of Business Promotion/Economic Development Funds. The policy set general guidelines for the appropriation of grant funding, approval and purpose. The annual operating budget includes an allocation of funds divided between the Business Promotion Grant Program (Program) and an annual holiday marketing campaign. Funds allocated to the Program have historically been 40-60% of the “up to $50,000 per year” appropriation specified in the existing policy, with the balance funding the holiday campaign. As noted in the policy, “funds shall be utilized for purposes which are deemed to be most advantageous to a broad range of Danville's business community; and are anticipated to yield direct and immediate results.” Funds cannot be utilized for purposes which “promote or support specific individual businesses.” Program funds support events hosted by a handful of organizers, including the Discover Danville Association (dissolved c. 2016), Danville Area Chamber of Commerce, Lions Club, Eugene O’Neil Foundation, and Museum of the San Ramon Valley. The program more recently funded events representing smaller business-led collaborations reflecting the evolving business landscape. After more than 30 years in use, minor updates are needed to the Program policy to continue to support local businesses in more flexible, scalable ways. DISCUSSION Business Promotion Grants are awarded based on established criteria and procedures, evaluated based on the opportunity for business collaboration, engagement of consumers, promotional opportunities, and alignment with the Town’s goals. The procedure has evolved in recent years, and the proposed policy changes reflected in Attachment A would be accompanied by additional procedural changes to more effectively support local economic development. The changes are based on proposed and desired events that do not meet existing policy or procedure criteria, as well as feedback from businesses. Based on surveys and one-on-one meetings, few owners are interested in organizing larger collaborative events. They have shown interest in collaborating with neighboring businesses for smaller promotional events, Update to the Business 2 November 18, 2025 Promotion Fund Grant Policy especially Downtown. Owners also expressed the need for direct funding to promote their business, which would not be permitted under existing policy (Attachment B). Allowing small grant amounts to be utilized for proportionate events and individual business promotion would serve the intended grant purpose of directly benefitting the business community. This change would necessitate an update to the policy, to allow for scalable approval of grants commensurate with their impact to Town resources and amount requested. An updated policy is included with the proposed resolution (Attachment B). The policy update would also remove the specific appropriation limit of $50,000. Grant requests are considered on a first-come, first-served basis and paid through reimbursement, to ensure public funds are used as intended and allowing unspent funds to be awarded to other applicants. Policy and procedural adjustments would allow for smaller, more flexible grant amounts to support local businesses, responding to feedback from business owners. The procedure would further allow flexibility within the funding amounts to align the grant with the expected community benefit. For example, in FY 2024-25 the Business Promotion Grant Fund Budget was $25,000, and the Town accepted grant requests over the year totaling $35,050 (based on a history of actual expenses being 30-40% less than requested amounts). After the events happened and receipts were submitted and verified, $20,383.50 was paid in actual reimbursed expenditures, leaving a balance of $4,616.50. Under the proposed policy and procedural changes, this residual amount could be used for 20 or more individual marketing grants. Procedural adjustments would also allow businesses not eligible to receive grant funds independently to still be eligible to organize events. For example, a local real estate firm or out-of-town event management company organizing an event that draws foot traffic Downtown could receive reimbursement for their event marketing expenses. However, only businesses listed as Eligible on the Business Grant Eligibility List (Attachment C) may be counted toward the total number of Participating Businesses for grant award purposes. This table outlines Program procedural changes made possible through policy updates: Maximum Funding Proposal Review Resource Impact Current Proposed Marketing for Individual Businesses N/A $200 Director Low Events with 2-4 Participating Businesses $1,500 $800-1,000 Director Low Events with 5-10 Participating Businesses $2,500 $1,500-2,500 Director Medium Events with 10+ Participating Businesses $3,500 $2,500-3,500 Council High • Event Trolley $1,000 $1,000 These options are only available as part of a 10+ business event. • Town Facility Rental $500 $500 • Event Catering $250 $500 Shopping Center Event $1,000 $500 Director Low Update to the Business 3 November 18, 2025 Promotion Fund Grant Policy Under the revised procedure, the actual amount awarded would be based on the projected number of attendees and overall event production cost in addition to the existing criteria. Both the award amount and the level of approval correlate to the impact on Town resources. Review of events with 10 or more participating businesses would be brought forward for Council consideration annually, in February. Adjustments to procedure, if needed, would also be included with the annual event review, as needed. The proposed modifications are intended to encourage more smaller events that will bring both residents and new customers into Town. Smaller, more intimate events tend to attract attendees who are already engaged with one or more businesses and are more manageable for a business owner to host. Overall, the proposed modifications aim to support a wider variety and greater number of events throughout the year. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT No new fiscal impact. This program will utilize funds allocated in the annual Operating Budget for the Business Promotion Program. RECOMMENDATION Adopt Resolution No. 75-2025, approving an update to the Business Promotion Fund Grant Policy. Prepared by: Jenn Starnes Communications & Economic Development Manager Reviewed by: Tai J. Williams Town Manager Attachments: A – Resolution No. 75-2025 Exhibit 1 – Business Promotion Fund Grant Policy Draft B – Resolution No. 140-93 C – Business Grant Eligibility List ATTACHMENT A RESOLUTION NO. 75-2025 APPROVING AN UPDATE TO THE BUSINESS PROMOTION FUND GRANT POLICY WHEREAS, the Town receives requests from businesses, organizations and community groups to support various business-focused activities and events; and WHEREAS, supporting business activities and events allows the Town to efficiently provide community events to its residents; and WHEREAS, business-focused activities and events promote residents and non-residents to patronize local businesses; and WHEREAS, the Town Council wishes to formalize the process for how these requests shall be proposed, evaluated and approved to ensure consistent and fair consideration; and WHEREAS, the Business Promotion Grant Fund Policy, hereto attached as Exhibit 1, that describes how proposed requests for support shall be reviewed; now, therefore, be it RESOLVED, that the Danville Town Council approves the attached policy, and will follow the processes outlined therein. APPROVED by the Danville Town Council at a regular meeting on November 18, 2025, by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK Docusign Envelope ID: 52B9B236-481D-4712-A170-214EA4F9F0CA EXHIBIT 1 TO RESOLUTION NO. 75-2025 BUSINESS PROMOTION FUND GRANT POLICY (DRAFT) 1. PURPOSE The Town of Danville recognizes the importance of supporting local businesses through creative, collaborative, and community-focused events and initiatives. The Business Promotion Grant Program is designed to encourage economic vitality, foster business collaboration, and engage the public in meaningful ways that benefit Danville’s business community. This policy applies to events held annually or seasonally, and not to long-term or ongoing uses for which rentals of Town facilities are more appropriate. This policy does not supersede existing adopted Town policies or agreements that establish distinct facility use relationships and support arrangements for specific programs and/or entities, but this policy may be used to guide evaluation of new requests for business related events. 2. ELIGIBILITY Applications for Business Promotion Grants may be submitted by: • Danville-based businesses with a current Town of Danville business license. • Business organizations or associations operating within Danville. • Shopping centers located in Danville. • Event organizers collaborating with two or more Danville businesses. All proposals must demonstrate alignment with the Town’s economic development goals and the intent to promote local business activity. To be considered for funding, proposed events or programs must: • Be open to the public and promote patronage of Danville businesses. • Include experiential components that engage consumers. • Include a marketing or promotional component (print, digital, or multimedia). Events or programs must not: • Be private or exclusive in nature. • Primarily serve as a fundraiser without providing significant business-related impact and community benefit. • Solely or primarily benefit a non-Danville business. • Conflict with Town mission, vision, goals, ordinances, or policies. Docusign Envelope ID: 52B9B236-481D-4712-A170-214EA4F9F0CA EXHIBIT 1 TO RESOLUTION NO. 75-2025 3. PROPOSALS Organizations or businesses seeking Business Promotion Grants are invited to submit their proposed promotional activities to the Town of Danville for review and approval. Application process is outlined in the Business Promotion Grant Procedures published at danville.ca.gov and available in print form by request. All applications will be reviewed by Town staff to determine: • Whether the proposed promotional activities meet the criteria for grant funding. • The appropriate grant amount based on eligibility and available funds. Applications are processed on a first-come, first-served basis. A valid and current Danville business license is required for eligibility and must be held by all participating businesses. 4. FUNDING The Town Council will consider an annual Business Promotion Grant Fund appropriation for the purpose of Town-wide economic development. Town Council consideration of such an appropriation shall occur at the time of adoption of the annual Operating Budget and shall be based upon the Town's annual ability to fund the program through proceeds of the Town’s Business License Fee. Grant funds will be paid through expense reimbursements to eligible applicants for qualified, approved proposals after the qualifying event has occurred and after evidence of payment is provided to the Town and verified. All funds appropriated by the Town Council for this program shall be reserved in a separate fund to be expended for program purposes only. Funds may accrue beyond the fiscal year in which they are appropriated. Docusign Envelope ID: 52B9B236-481D-4712-A170-214EA4F9F0CA ATTACHMENT B ATTACHMENT B ATTACHMENT C