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4552 Economic Dev Emergency Ordinance COVID-19Emergency Ordinance 2020-4552 An emergency ordinance of the City of Sanford, Florida relating to the "National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak" and related matters; providing for economic development programs to address harms experienced by City businesses during the pandemic; providing for a City sourced emergency business assistance program, a City sourced emergency business assistance program, and a CDBG funding sourced program; providing for purposes of programs, eligibility criteria, funding limits, payment methodologies and other pertinent matters; providing for implementing administrative actions; providing for conflicts; providing for severability; providing for non -codification as well as the correction of scrivener's errors and providing for an effective date and period of effectiveness. Whereas, the City Commission of the City of Sanford hereby adopts the findings set forth in the attached emergency proclamations issued by the City Manager and the resolutions adopted by the City Commission, all of which relate to the National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak; and Whereas, the City Commission of the City of Sanford also hereby adopts the findings set forth in the executive orders issued by the President of the United States and the Governor of the State of Florida with regard to the National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak and the pandemic that is griping the world and causing death and illness in its path; and Whereas, the closure and the reduction of economic activity of City businesses has severely adversely affected the local economy; and Whereas, Section 166.021(8), Florida Statutes, provides as follows: "(8) (a) The Legislature finds and declares that this state faces increasing competition from other states and other countries for the location and retention of private enterprises within its borders. Furthermore, the Legislature finds that there is a need to enhance and expand economic activity in the municipalities of this state by attracting and retaining manufacturing development, business enterprise management, and other activities conducive to economic promotion, in order to provide a stronger, more balanced, and stable economy in the state, to enhance and preserve purchasing power and employment opportunities for the residents of this state, and to improve the welfare and competitive position of the state. The Legislature declares that it is necessary and in the public interest to facilitate the growth and creation of business enterprises in the municipalities of the state. (b) The governing body of a municipality may expend public funds to attract and retain business enterprises, and the use of public funds toward the achievement of such economic development goals constitutes a public purpose. The provisions of this chapter which confer powers and duties on the governing body of a municipality, including any powers not specifically prohibited by law which can be exercised by the governing body of a municipality, shall be liberally construed in order to effectively carry out the purposes of this subsection. (c) For the purposes of this subsection, it constitutes a public purpose to expend public funds for economic development activities, including, but not limited to, developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises for the expansion of businesses existing in the community or the attraction of new businesses to the community. (d) A contract between the governing body of a municipality or other entity engaged in economic development activities on behalf of the municipality and an economic development agency must require the agency or entity receiving municipal funds to submit a report to the governing body of the municipality detailing how the municipal funds are spent and detailing the results of the economic development agency's or entity's efforts on behalf of the municipality. By January 15, 2011, and annually thereafter, the municipality shall file a copy of the report with the Office of Economic and Demographic Research and post a copy of the report on the municipality's website. (e)1. By January 15, 2011, and annually thereafter, each municipality having annual revenues or expenditures greater than $250,000 shall report to the Office of Economic and Demographic Research the economic development incentives in excess of $25,000 given to any business during the municipality's previous fiscal year. The Office of Economic and Demographic Research shall compile the information from the municipalities into a report and provide the report to the President of the Senate, the Speaker of the House of Representatives, and the Department of Economic Opportunity. Economic development incentives include: a. Direct financial incentives of monetary assistance provided to a business from the municipality or through an organization authorized by the municipality. Such incentives include, but are not limited to, grants, MM loans, equity investments, loan insurance and guarantees, and training subsidies. b. Indirect incentives in the form of grants and loans provided to businesses and community organizations that provide support to businesses or promote business investment or development. c. Fee-based or tax -based incentives, including, but not limited to, credits, refunds, exemptions, and property tax abatement or assessment reductions. d. Below-market rate leases or deeds for real property. 2. A municipality shall report its economic development incentives in the format specified by the Office of Economic and Demographic Research. 3. The Office of Economic and Demographic Research shall compile the economic development incentives provided by each municipality in a manner that shows the total of each class of economic development incentives provided by each municipality and all municipalities. (f) This subsection does not limit the home rule powers granted by the State Constitution to municipalities." Whereas, Section 187.201(16), Florida Statutes, (part of the State Comprehensive Plan) provides as follows: 31''_. "(16) URBAN AND DOWNTOWN REVITALIZATION.— (a) Goal.—In recognition of the importance of Florida's vital urban centers and of the need to develop and redevelop downtowns to the state's ability to use existing infrastructure and to accommodate growth in an orderly, efficient, and environmentally acceptable manner, Florida shall encourage the centralization of commercial, governmental, retail, residential, and cultural activities within downtown areas. (b) Policies. - 1. Provide incentives to encourage private sector investment in the preservation and enhancement of downtown areas. 2. Assist local governments in the planning, financing, and implementation of development efforts aimed at revitalizing distressed downtown areas. 3. Promote state programs and investments which encourage redevelopment of downtown areas. 4. Promote and encourage communities to engage in a redesign step to include public participation of members of the community in envisioning redevelopment goals and design of the community core before redevelopment. 5. Ensure that local governments have adequate flexibility to determine and address their urban priorities within the state urban policy. 6. Enhance the linkages between land use, water use, and transportation planning in state, regional, and local plans for current and future designated urban areas. 7. Develop concurrency requirements that do not compromise public health and safety for urban areas that promote redevelopment efforts. 8. Promote processes for the state, general purpose local governments, school boards, and local community colleges to coordinate and cooperate regarding educational facilities in urban areas, including planning functions, the development of joint facilities, and the reuse of existing buildings. 9. Encourage the development of mass transit systems for urban centers, including multimodal transportation feeder systems, as a priority of local, metropolitan, regional, and state transportation planning. 10. Locate appropriate public facilities within urban centers to demonstrate public commitment to the centers and to encourage private sector development. 11. Integrate state programs that have been developed to promote economic development and neighborhood revitalization through incentives to promote the development of designated urban infill areas. 12. Promote infill development and redevelopment as an important mechanism to revitalize and sustain urban centers." and Whereas, Section 187.201(21), Florida Statutes, (part of the State Comprehensive Plan) provides as follows: "(21) THE ECONOMY. -- (a) Goal. --Florida shall promote an economic climate which provides economic stability, maximizes job opportunities, and increases per capita income for its residents. (b) Policies. -- 1. Attract new job -producing industries, corporate headquarters, distribution and service centers, regional offices, and research and development facilities to provide quality employment for the residents of Florida. 2. Promote entrepreneurship and small and minority-owned business startup by providing technical and information resources, facilitating 4 1 4' ; and capital formation, and removing regulatory restraints which are unnecessary for the protection of consumers and society. 3. Maintain, as one of the state's primary economic assets, the environment, including clean air and water, beaches, forests, historic landmarks, and agricultural and natural resources. 4. Strengthen Florida's position in the world economy through attracting foreign investment and promoting international banking and trade. 5. Build on the state's attractiveness to make it a leader in the visual and performing arts and in all phases of film, television, and recording production. 6. Promote economic development for Florida residents through partnerships among education, business, industry, agriculture, and the arts. 7. Provide increased opportunities for training Florida's workforce to provide skilled employees for new and expanding business. 8. Promote economic self-sufficiency through training and educational programs which result in productive employment. 9. Promote cooperative employment arrangements between private employers and public sector employment efforts to provide productive, permanent employment opportunities for public assistance recipients through provisions of education opportunities, tax incentives, and employment training. 10. Provide for nondiscriminatory employment opportunities. 11. Provide quality child day care for public assistance families and others who need it in order to work. 12. Encourage the development of a business climate that provides opportunities for the growth and expansion of existing state industries, particularly those industries which are compatible with Florida's environment. 13. Promote coordination among Florida's ports to increase their utilization. 14. Encourage the full utilization by businesses of the economic development enhancement programs implemented by the Legislature for the purpose of extensively involving private businesses in the development and expansion of permanent job opportunities, especially for the economically disadvantaged, through the utilization of enterprise zones, community development corporations, and other programs designed to enhance economic and employment opportunities." Whereas, the City Commission of the City of Sanford, Florida desires that the economy of the City of Sanford be one that is vibrant, creative, flexible, dynamic, and modern as well as an economy that attracts and retains high quality businesses and economic generators to the City of Sanford; and Whereas, the City Commission of the City of Sanford, Florida desires to protect the public health, safety and welfare of the citizens of the City and maintain a high quality of life for the citizens of the City; and Whereas, the City Commission of the City of Sanford hereby finds and determines that the provisions of this Ordinance provide for public benefits and serve public purposes; and Whereas, Section 166.041(3)(b), Florida Statutes, pertaining to the procedures for adoption of ordinances and resolutions by municipalities provides that: EM The governing (b) body of a municipality may, by a two-thirds vote, enact an emergency ordinance without complying with the requirements of paragraph (a) of this subsection. However, no emergency ordinance or resolution shall be enacted which establishes or amends the actual zoning map designation of a parcel or parcels of land or that changes the actual list of permitted, conditional, or prohibited uses within a zoning category. Emergency enactment procedures for land use plans adopted pursuant to part II of chapter 163 shall be pursuant to that part. Whereas, due to the impacts of COVID-19 pandemic related business closures, many of the small businesses in the City have experienced a 75% reduction in revenues which resulted in them being unable to retain staff, pay rent, utilities, supply personal protective equipment (PPE) to employees, or make the social distancing modifications required for a phased reopening and the City desires to focus grant programs that will result in reemployment of employees and addressing the aforementioned challenges; and Whereas, this Ordinance, although neither creating or amending land development regulations, is consistent with the goals, objectives and policies of the Comprehensive Plan of the City of Sanford and, further, does not amend the City's Community Redevelopment Plan which controls expenditures from the tax increment funds on deposit in the Community Redevelopment Trust Fund; and Whereas, the City Commission of the City of Sanford, as the governing body of the City, through the adoption of its Comprehensive Plan and other adopted documents, has established as a matter of policy that fostering the economy of the City not only brings about positive economic development, but, also, results in positive social and cultural impacts within the City and greatly enhances the quality of life of the City's citizens; and Whereas, it is essential to the City's efforts to address the adverse impacts of the COVID-19 pandemic upon the City and its businesses; and Whereas, the grants, as provided for in this Ordinance, and implemented in agreements with local businesses based upon the criteria as set forth in this Ordinance are structured in such a way the benefits to the City will exceed their value to the grant recipients; and Whereas, on March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (also known as the "CARES Act"), Public Law 116-136, became law and made available $5 billion in supplemental Community Development Block Grant (CDBG) funding for grantees to prevent, prepare for, and respond to coronavirus, to include funds to be utilized for assistance to businesses; and Whereas, the City of Sanford is a Community Development Block Grant Entitlement (CDBG) Jurisdiction receiving supplemental CDBG funding; and Whereas, as required by Section 166.041(3)(b), Florida Statutes, two-thirds of the City Commission have voted to enact this Ordinance as an emergency ordinance; and Whereas, this Ordinance is also enacted pursuant to the home rule powers of the City of Sanford as set forth at Article VIII, Section 2, of the Constitution of the State of Florida; Chapter 166, Florida Statutes; Chapter 252, Florida Statutes; and other applicable controlling law. Now, therefore, be it enacted by the People of the City of Sanford, Florida: Section 1. Legislative And Administrative Findings And Intent. (a). The City Commission of the City of Sanford hereby adopts and incorporates into this Ordinance the recitals (whereas clauses) set forth herein as the legislative and administrative findings and intent of the City Commission. (b). The City of Sanford has complied with all requirements and procedures of Florida law in processing and advertising this Ordinance. Section 2. City Sourced Program; Reemployment Program. (a). An economic grant program is hereby created to address the re- employment of employees whose employment was lost as a result of the COVID-19 pandemic. (b). There shall be no capital investment minimum required by a business and job creation/re-employment shall be the primary criteria considered in awarding a grant with particular emphasis on the re-employment of employees who lost their jobs due to impacts arising from the COVID-19 pandemic. Eligible businesses must be reopening during the Phase 1 period identified in the executive orders of the Governor, must be compliant with all City codes and not in a state of violation, must have all required licenses and permits, must be current with the payment of all State and local taxes, must be located within the City Limits of the City, must reemploy three or more employees that were laid off or furloughed during a COVID-19 related closure (full time equivalent calculations are allowed), must not be a business that has received Paycheck Protection Program funding as a result of the Federal CARES Act or other assistance for the same costs, and the business must be a non-essential business mandated to close or modify operations during the stay at home orders issued by as Federal, State or local government. (c). Grant amounts may be paid on an up -front payment basis. Payments for retroactive activities may be paid if the City determines that such payments are reasonably related to the fulfillment of the grant program objectives. (d). The maximum amount per grantee shall be $15,000 payable in advance with no matching funding required. Section 3. City Sourced Program; Emergency Business Assistance Program. (a). An economic grant program is hereby created to address the sustainability of City businesses that have been adversely impacted as a result of the COVID-19 pandemic. (b). This grant program is not intended to minimize business losses and is 911,r strictly a sustainability program meant for recently incurred or future costs associated with phased re -opening. Grant amounts may be paid on an up -front payment basis with a period 90 days from the date of grant approval to expend the grant proceeds. Payments for retroactive activities may be paid if the City determines that such payments are reasonably related to the fulfillment of the grant program objectives. (c). Eligible businesses must be reopening during the Phase 1 period identified in the executive orders of the Governor, must be compliant with all City codes and not in a state of violation, must have all required licenses and permits, must be current with the payment of all State and local taxes, must be located within the City Limits of the City, must reemploy three or more employees that were laid off or furloughed during a COVID-19 related closure (full time equivalent calculations are allowed), must not be a business that has received Paycheck Protection Program funding as a result of the Federal CARES Act or other assistance for the same costs, and the business must be a non-essential business mandated to close or modify operations during the stay at home orders issued by as Federal, State or local government. (d). The eligible grant funds are only based upon business costs that have been recently incurred and reasonable future business expenses which are directly associated with a phased reopening of the business. (e). Eligible costs include, modifications of the business to enhance social distancing, rent, utilities, PPE for employees and customers, safety, delivery services (if not provided at no cost from other sources), web and online sales consulting, and similar services as may be identified based upon criteria approved from time to time by 101_t , 4,_ _ _ _ _. the City Manager, or designee. (f). The maximum grant amount shall be $15,000 payable in advance with no matching funding required. Section 4. CDBG Sourced Program. (a). A Community Development Block Grant (CDBG) Special Economic Development Assistance Grant program is hereby created to address the sustainability of CDBG eligible City businesses that have been adversely impacted as a result of the COVID-19 pandemic. The purposes of this program are to provide assistance to support new businesses or business expansion; to create jobs and to manufacture medical supplies necessary to respond to infectious diseases; to avoid job loss caused by business closures related to social distancing by providing short-term working capital assistance to small businesses; to enable retention of jobs held by low-income and moderate -income persons; to provide technical assistance, grants, loans, and other financial assistance in order to establish, stabilize, and expand m icroe nterp rises that provide medical, food delivery, cleaning, and other services to support home health and quarantine conditions. (b). The CDBG grant program shall, to the extent permitted by controlling law, allow for debt incurred by businesses necessary to remain in business during COVID- 19 pandemic, and each business receiving the grant shall be required to employ no less than 50% of its employees from the low -moderate income community which is generally defined under CDBG programs to mean that a person is considered to be of low income only if he or she is a member of a household whose income would qualify as "very low income" under the Section 8 Housing Assistance Payments program. Generally, these Section 8 limits are based on 50% of area median while CDBG moderate income relies on Section 8 "lower income" limits, which are generally tied to 80% of area median. (c). All grants shall be on a reimbursement basis in accordance with policies and procedures adopted by the City and no payments for retroactive activities may be mem Section 5. Implementing Administrative Actions. (a). The City Manager, or designee, is hereby authorized to take any and all necessary actions to implement the provisions of this Ordinance as are consistent with funding obligations and the limitations of the use of particular funds and, without limiting the preceding authorization, to approve agreements that are in a form which protects the interests of the City and the use of the public funds involved in the grant programs to include, but not be limited to, provisions that relate to the potential recapture of City funds (claw back) should the funds not be utilized as set forth in the agreement as implementing this Ordinance. (b). Without limiting the generality of the foregoing, the City Manager, or designee, may take any and all actions that are necessary to protect the interests of the City with regard to directions received from Federal, State and County governments and shall ensure compliance with the funds received from any agency of government. Section 6. Savings; Effect Of Ordinance. The prior actions of the City of Sanford in terms of the matters addressed herein, the emergency management and the responses to the National emergency concerning the novel coronavirus disease (COVID-19) outbreak, the global pandemic, and any and 12 I ' 1 , ,, all matters relating or pertaining thereto, are hereby ratified and affirmed. Section 7. Codification; Scrivener's Errors. (a). The provisions of this Ordinance shall not be codified. (b). Typographical errors and other matters of a similar nature that do not affect the intent of this Ordinance, as determined by the City Clerk and City Attorney, may be corrected with the endorsement of the City Manager, or designee, without the need for a public hearing. Section 8. Conflicts. All ordinances or parts thereof in conflict with this Ordinance are hereby repealed to the extent of such conflict. Section 9. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or application hereof, is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion or application shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 10. Effective Date; Period Of Effectiveness. (a). This Ordinance shall take effect immediately upon enactment. (b). This Ordinance shall be in effect for 6 months, or until the City Manager files a statement with the City Commission, stating that National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak and global pandemic has terminated, unless the City Commission rescinds this Ordinance earlier. 13 Passed and adopted by two thirds vote this 18th day of May, 2020. Attest: City Commission f the City of Sanford, Florida , Traci Houchin, MMC, F RC M,i�" Jeff Triplett City Clerks For use and reliance of the Sanfor City Commission only. Approved as to form and legality. William L. Colbert, City Attorney 1.4 111 t _1_ SXY OF WS_ RMXJ NFORD FLORIDA Item No.��'� CITY COMMISSION MEMORANDUM 20.080 MAY 18, 2020 AGENDA TO: Honorable Mayor and Members of the City Commission PREPARED BY: Sonia Fonseca, MBA, FRA -RA, SCRA Executive ' ector, Economic Development Project Manager SUBMITTED BY: Norton N. Bonaparte, Jr., City Maria SUBJECT: Emergency Ordinance No. 2020-45 ; Gra rograms To Address Economic Injuries To City Businesses STRATEGIC PRIORITIES: ❑ Unify Downtown & the Waterfront ® Promote the City's Distinct Culture ❑ Update Regulatory Framework ® Redevelop and Revitalize Disadvantaged Communities SYNOPSIS: The City Commission is requested to enact Emergency Ordinance No. 2020-4552, relating to or economic sustainability programs to address harms experienced by City businesses during the COVID-19 pandemic. FFISCALISTAFFING STATEMENT: City finds are not appropriated at this time. The proposed Emergency Ordinance provides for two programs that the City Manager and City Finance Director will evaluate and determine the appropriate funding sources, including reserves, if necessary, from which to draw the funds. The third program identified in the Emergency Ordinance is a program that will use Community Development Block Grant (CDBG) funding, as available and needed to fund the program. The Coronavirus Aid, Relief and Economic Security Act (CARES Act), Public Law 116-136, made available $5 billion in supplemental CDBG funding for grantees to prevent, prepare for, and respond to coronavirus, including funds to be utilized for assistance to businesses. Inasmuch as the City is a CDBG entitlement jurisdiction, and will receive supplemental CDBG funding. Staff is requesting City Commission approval to invest the remaining 2019-2020 Economic Development Promotional Activities funds, currently estimated to be $145,000, to implement the first two programs. If the City Commission approves, Economic Development is also requesting a contribution from reserves in the amount of $250,000, or any amount acceptable to the City Commission, in order to assist an estimated 300 businesses that may not qualify for the CDBG funding. The goal and intent of staff is to expend the CDBG funds first (as they are time sensitive) followed by Economic Development funding. Due to the current economic impact caused by the COVID-19 pandemic, a $1,100,000 deficit for the current fiscal year is projected. This deficit was predicated on not using the promotional activity funds mentioned above. Thus, if this agenda item is approved, the budget deficit will increase by the amount awarded to this program. BACKGROUND: It is without question that the coronavirus outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people. The virus is also having a growing impact on the global economy. Main Street America is a network of more than 1,600 neighborhoods and communities, rural and urban, who share both a commitment to place and to building stronger communities through preservation -based economic development and is a program of the nonprofit National Main Street Center, Inc., a subsidiary of the National Trust for Historic Preservation. Recently, Main Street America conducted an online survey to assess the impact of the COVID-19 on the approximately 300,000 small businesses across the National network. Specifically, this survey was designed to help us understand small businesses' ability to withstand what may be several months of suppressed revenue and what kinds of support programs initiated by local governments will have the most impact. The findings were sobering and concluded the following: (1). Millions of small businesses will be at great risk of closing permanently if the crisis continues for several months. Of the Nation's approximately 30 million small businesses, nearly 7.5 million small businesses may be at risk of closing permanently over the coming five months, and 3.5 million are at risk of closure in the next two months. (2). COVID-19 has had a devastating impact on small businesses' revenue, and millions of Americans employed by our Nation's smallest businesses are at risk of unemployment as a result. Approximately 35.7 million Americans employed by small businesses are at risk of unemployment as result of the COVID-19 crisis. The survey found, not surprisingly, that business owners primarily need financial assistance and to deal with business expenses in order to sustain economic viability. It is well known that the businesses within the City have suffered during this time of crisis and are asking the City to assist them in their efforts to survive. Their survival will, of course, assist the City in moving toward re - attaining the positive economic growth that has occurred over the past several years. The proposed Emergency Ordinance is aimed at assisting City businesses to overcome the current challenges and retain viability during the current COVID-19 emergency circumstances and regain their vibrancy in, and substantially and positively contribute to, a City economy that was in a state of vibrancy before hit with the impacts of the crisis. The three programs that are proposed in the Emergency Ordinance are summarized as follows: (1). City Sourced Program; Reemployment Program. This economic grant program addresses the re-employment of employees whose employment was lost as a result of the COVID-19 pandemic. The criteria for this grant program shall be the same as the supplemental economic or tourism development program established in Ordinance Number 4526, including that a grantee need not be an eligible business under the State of Florida's Qualified Target Industries programs and the grants are focused on tourism/entertainment businesses of the City. No minimum capital investment required by a business and job creation/re-employment shall be the primary criteria considered in awarding a grant. Eligible businesses must be reopening during the Phase 1 period identified in the executive orders of the Governor, must be compliant with all City codes and not in a state of violation, must have all required licenses and permits, must be current with the payment of all State and local taxes, must be located within the City Limits of the City, must reemploy 3 or more employees that were laid off or furloughed during a COVID-19 related closures (full time equivalent calculations are allowed), must not be a business that has received Paycheck Protection Program funding as a result of the Federal CARES Act or other assistance for the same costs, and the business must be a non-essential business mandated to close or modify operations during the stay at home orders issued by as Federal, State or local government. Grant amounts may be paid on an up -front payment basis. Payments for retroactive activities may be paid if the City determines that such payments are reasonably related to the fulfillment of the grant program objectives. The maximum amount per grantee shall be $15,000 payable in advance with no matching funding required. (2). City Sourced Program; Emergency Business Assistance Program. This economic grant program addresses the sustainability of City businesses that have been adversely impacted as a result of the COVID-19 pandemic and is not intended to minimize business losses, but is strictly a sustainability program meant for recently incurred or future costs associated with phased re -opening. Grant amounts may be paid on an up -front payment basis with a period 90 days from the date of grant approval to expend the grant proceeds. Payments for retroactive activities may be paid if the City determines that such payments are reasonably related to the fulfillment of the grant program objectives. Eligible businesses must be reopening during the Phase 1 period identified in the executive orders of the Governor, must be compliant with all City codes and not in a state of violation, must have all required licenses and permits, must be current with the payment of all State and local taxes, must be located within the City Limits of the City, must reemploy 3 or more employees that were laid off or furloughed during a COVID-19 related closure (full time equivalent calculations are allowed), must not be a business that has received Paycheck Protection Program funding as a result of the Federal CARES Act or other assistance for the same costs, and the business must be a non-essential business mandated to close or modify operations during the stay at home orders issued by as Federal, State or local government. The eligible grant funds are only based upon business costs that have been recently incurred and reasonable future business expenses which are directly associated with a phased reopening of the business. Eligible costs include, modifications of the business to enhance social distancing, rent, utilities, personal protective equipment for employees and customers, safety, delivery services (if not provided at no cost from other sources), web and online sales consulting, and similar services as may be identified based upon criteria approved from time to time by the City Manager, or designee. The maximum grant amount shall be $15,000 payable in advance with no matching funding required. (3). Community Development Block Grant (CDBG) Sourced Program. This economic grant program addresses the sustainability of CDBG eligible City businesses that have been adversely impacted as a result of the COVID-19 pandemic. The purposes of this program are to provide assistance to support new businesses or business expansion; to create jobs and to manufacture medical supplies necessary to respond to infectious diseases; to avoid job loss caused by business closures related to social distancing by providing short-term working capital assistance to small businesses; to enable retention of jobs held by low- income and moderate -income persons; to provide technical assistance, grants, loans, and other financial assistance in order to establish, stabilize, and expand microenterprises that provide medical, food delivery, cleaning, and other services to support home health and quarantine conditions. The program shall, to the extent permitted by controlling law, allow for debt incurred by businesses necessary to remain in business during COVID-19 pandemic. Each business receiving the grant shall be required to employ no less than 50% of its employees from the low - moderate income community which is generally defined under CDBG programs to mean that a person is considered to be of low income only if he or she is a member of a household whose income would qualify as "very low income" under the Section 8 Housing Assistance Payments program. Generally, these Section 8 limits are based on 50% of area median while CDBG moderate income relies on Section 8 "lower income" limits, which are generally tied to 80% of area median. All grants shall be on a reimbursement basis in accordance with policies and procedures adopted by the City and no payments for retroactive activities may be paid. The Emergency Ordinance provides for broad implementing power vested in the City Manager to implement the provisions of the Emergency Ordinance consistent with funding obligations and the limitations of law or the use of particular funds. Also, specific authority is vested in the City Manager, or designee, to approve agreements that are in a form which protects the interests of the City and the use of the public funds involved in the grant programs such as provisions of agreements which provide for the potential recapture of City funds (claw back) should the funds not be utilized appropriately. LEGAL REVIEW: The City Attorney's office has assisted in this matter and has no legal objection to the proposed action. It is noted that Section 166.041(3)(b), Florida Statutes, requires that two-thirds of the City Commission vote in the affirmative in order to enact this Ordinance as an emergency ordinance. That, of course, means that 4 members of the City Commission must vote in favor of this Ordinance if the full City Commission is present. No second reading of the Emergency Ordinance is required. RECOMMENDATION: City staff recommends that the City Commission adopt Emergency Ordinance No. 2020-4552 creating and providing for the implementation of, two general fund economic assistance programs and the CDBG program through the CARES grant. SUGGESTED MOTION: "I move to enact Emergency Ordinance No. 2020-4552." Attachment: Emergency Ordinance No. 2020-4552.