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Department of Community Development 6801 Delmar Boulevard University City, Missouri 63130 314-505-8500 Fax: 314-862-3168 MEMORANDUM TO: Chair and Members of the Economic Development Retail Sales Tax Board FROM: Andrea Riganti, Director, Department of Community Development DATE: August 13, 2015 SUBJECT: Proposed -Small Business Retail Retention Program/Request for Funds Request The City is requesting $50,000 fromEconomic Development Retail Sale Tax (EDRST) reserves to help fund a Small Business Retail Retention Programfor eligible businesses in The Loop. The Loop Special Business District(LSBD) has agreed to provide matching funds for the program. Please keep in mind that funds used forthe proposedprogram would not impactthe$898,000 in designated Olive Boulevard reserves. There is currently about $1.4million in EDRST reserves,which includes the designated Olive Boulevard reserves as well as surplus from years when actual revenues exceeded anticipated(budgeted)revenues. If the EDRSTB so approves, staff will seek City Council final recommendation. An application and other program details will be developed once all approvals have been granted. Request Background Trolley construction began at the end of March with the roundabout at City Hall. The City has heard from many retailers that revenueshave decreased by 20-60% since that time. (Data to support the sales decline has been provided by some businesses and is supported by general sales tax information.)A fewlong-term retailers recently closed or relocated due to poor sales, while many remaining entities are struggling. It is City and LSBD’s position that small independent retailers arecrucial to The Loop’s success as a diverse business districtand a regional destination. Therefore, atimely intervention strategy is needed to help with retail retention during and after construction. The Cityand LSBD are proposing to create a modest assistance program for retail shops, boutiques, and galleries, to be modeled after a successful effortadministered in St. Paul and Minneapolis during the construction of an 11 mile light rail line.Both entities would contribute $50,000 for a combined $100,000 in total assistance available to qualifying establishments.The LSBD portion has already been committed by their Board onAugust 11, 2015. If created, this retail retention programwill support other ongoing efforts. The City and LSBD willcontinue to collaborateon The Loop Is Open campaign, a $35,000 program using EDRST funds to market and promote The Loop, provide incentives, and to add additional events to draw people to The Loop. Businesses and property owners are assistingwith this effort through coupons, additional marketing, store events, and more.