Council approves downtown improvement grants -- with questions

Yahoo

27-03-2025

The Bakersfield City Council approved two improvement grants Wednesday, even as some members questioned how the program is administered.
There was only one regular action item on the council's agenda, but council members pulled seven items off the consent calendar, leading to lengthy debates. Items pulled from the consent agenda included applications for homeless housing grants, water and sewer rate increases and economic opportunity area grants.
The council approved two EOA grants Wednesday, one to the Arts Council of Kern for $116,500 and another to Moo Creamery for $83,513.
The grants are meant to help businesses open or expand in areas where city officials would like to see more development.
The grant to the Arts Council of Kern will pay for the installation of a fire sprinkler system, fire alarm, water connection fees and permits and other related work. Meanwhile, Moo Creamery was awarded a grant to cover the costs associated with the purchase of equipment, materials and furnishings.
Moo Creamery's grant was initially on the consent agenda but was pulled by Ward 2 Councilman Andrae Gonzales, who wanted to highlight the project.
"Downtown Bakersfield continues to get better and better and better because of private investment from local business owners and property owners," Gonzales said. "I'm super excited that the city will be able to support this project in a very modest way with a grant agreement."
But the cancellation of a third EOA grant raised questions for some council members.
Ward 5 Councilman Larry Koman asked city staff to explain a cancellation of an EOA grant to the Bakersfield Sound Co., which was previously located at the 18th Street location where the Arts Council of Kern is currently housed.
Last February, the council approved $49,000 for the Bakersfield Sound Co., but the company has since relocated to Rosedale Highway, outside the area eligible for EOA grants.
According to the city, the terms of the grant require a business to remain in its location with the EOA for at least a year, and Bakersfield Sound Co. received $40,000 in rental reimbursement for December 2023 through September 2024.
Koman asked if there was a way for the city to recoup the money allocated to Bakersfield Sound. City Attorney Virginia Gennaro said that would require legal action for breach of contract.
"I think we should make an effort to collect the money that we have paid out. I think that we owe that to the other businesses," Koman said. "It seems awfully shortsighted that you come into a business and take a spot and you can't do this through a 12-month period of time."
Gonzales defended the program, saying the EOAs target parts of the city with high costs many small businesses can't afford and the grants are needed to incentivize development. Most of the grantees, Gonzales said, have fulfilled the terms of their contracts.
"I would argue that most of our applicants, when they get reimbursed, they actually fulfill their contract agreement," Gonzales said. "They actually did what they said they were gonna do."
Ward 6 Councilman Zack Bashirtash said he supports helping small businesses but wanted to be a good steward of public money.
"I get that, I support that 100%, but this is $40,000 of taxpayer money that is gone," Bashirtash said. "It's not an allowance. It's not your piggy bank or mine. It's the taxpayer money."
Ward 1 Councilman Eric Arias asked Gennaro if the city had a legal obligation to try to recoup the grant funds.
"I'd like to look at it and I'd like to reflect a little bit more," Gennaro said. "I think, frankly, that's why you have these discussions in the closed session with regard to potential initiation of litigation and not necessarily on the dais for the first time. So I appreciate the question. It's a valid one, and I need to get you an answer, all of you an answer. If we're gonna do that, I'd like to do it in the closed session."
Koman also asked staff to explain the city's application with Community Action Partnership of Kern for $35 million to redevelop the former Ramkabir Motel at 901 Union Ave., which the city hopes to develop into supportive housing.
The council also approved an application with CAPK to the state's Homekey+ housing program for $35 million. If awarded, the city plans to use the money to renovate the Ramkabir to create 30 housing units with a community kitchen, multipurpose room, two office spaces, guard office, storage, conference room and laundry facilities.
The application included money for both renovation of the motel and support services, said Jennifer Byers, the city's economic and community development director.
If the city is not awarded a Homekey+ grant, staff will look for other funding opportunities such as the anticipated Encampment Resolution Fund. According to city documents, all potentially eligible grant programs include points for projects that have completed the predevelopment plan. The City Council also approved $500,000 of state homelessness funding to CAPK for a predevelopment plan.
In other business, at the council's 3:30 p.m. meeting, members gave city departments the authorization to automate their citation process using the same system already used by the Bakersfield Police Department for parking tickets.
The authorization will allow multiple city departments to contract with Irvine-based Data Ticket to issue administrative and parking citations for minor violations of the municipal code and other regulations.
Cost proposals for the program will be presented at a future meeting.
Also, $1 million in American Rescue Plan Act money was approved for a financial assistance program for homelessness prevention and diversion services to the Open Door Network. The program includes services such as assistance in rental fees, security deposits, short and long-term rental assistance and flexible dollars for crisis intervention.
The city also plans to use $4.5 million from a settlement with the Buena Vista Water and Rosedale-Rio Bravo Water Storage District last year for road improvement projects north of Panama Lane and west of Allen Road in Ward 5.
All of the above actions were approved 5-0, with councilmembers Ken Weir and Manpreet Kaur absent.