Downtown Outdoor Dining Forgivable Loan Program
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PROGRAM PURPOSE
The Downtown Outdoor Dining Program sets design standards for outdoor dining in the public sidewalk, establishes a furniture color palette, provides an Acceptable Furniture Options Table for outdoor dining, and establishes the Outdoor Dining Forgivable Loan Program in the Central City Overlay District– Downtown Core, a “one-time’ forgivable loan to assist downtown eateries to invest in quality outdoor furniture that complements and enhances Downtown revitalization improvements while maintaining clear sidewalk access for the general public and prioritizes converting temporary outdoor dining activities to permanent operations.
The Downtown Outdoor Dining Forgivable Loan Program offers financial assistance to eateries currently permitted to serve food and or beverages for on-premise consumption in the State of California, County of Monterey Health Department, and City of Salinas Central City Overlay District – Downtown Core, who are seeking to furnish approved sidewalk café areas and expand dinging operations on the public right-of-way. The Program provides one-time forgivable loans up to $10,000 per business for the purchase of outdoor furniture and fixtures for eateries. The City has established funding for this program through the Economic Development Element Implementation (CIP 9136). Forgivable loans will be available on a first come, first serve basis, with priority to current temporary Covid-19 Relief Temporary Sidewalk Café Encroachment Permit holders. Funds will be available until exhausted. Should there be any remaining Program funds after April 30, 2023, City Council may consider extension of the Program.
All Temporary Outdoor Dining Permits expire December 31, 2022. To continue sidewalk café operations, eatery owners must meet all applicable requirements under the Downtown Outdoor Dining Program. A new Sidewalk Café Encroachment Application must be submitted to continue outdoor dining operations on the public sidewalk. Applicants will be allowed to continue outdoor dining operations with a 90-day extension, provided a Sidewalk Café Encroachment Permit Application, which is deemed complete, is submitted prior to December 31, 2022.
APPLICANT ELIGIBILITY REQUIREMENTS
- Must be permitted to serve food and/or beverages by the State of California, County of Monterey Health Department, and City of Salinas.
- Must be located on the ground floor in the City of Salinas Central City Overlay District – Downtown Core.
- Applicant is a property owner or tenant currently operates food and or beverage on-premise consumption service.
- There are no active code enforcement violations against the property or business.
- Must hold a current City of Salinas Business License.
- To confirm status or apply, visit: https://www.cityofsalinas.org/our-city-services/finance/business-licenses.
- Must have current business registration documentation (as applicable):
- Articles of Incorporation/Organization & Statement of Information filed with CA Secretary of State. To confirm status or apply, please visit: https://bizfileonline.sos.ca.gov/.
- Fictitious Business Name statement filed with the County of Monterey. To confirm status or apply, please visit: https://www.co.monterey.ca.us/government/departments-a-h/assessor/clerk/fictitious-business-statements.
- All state and local codes and licensing requirements for the business have been met including approval and passing inspection of the Sidewalk Café Encroachment Permit.
For purposes of this forgivable loan, please refer to the map below and HERE to confirm that your business is located within the eligible area of the City of Salinas Central City Overlay District – Downtown Core.
TERMS AND CONDITIONS
- Forgivable loans are made available to eateries to assist in the purchase of furniture for outdoor dining that is to be used in the public sidewalk. Sidewalk Café Encroachment Permit cost and installation costs are not included.
- Loan recipients will select tables, chairs, fencing, outdoor heaters and or umbrellas from the Program’s Acceptable Furniture Options Table. Deviations or alternatives to said options table must be pre-approved in writing by the City. Loan recipient will be responsible for payments directly to the vendor using the forgivable loan amount. Any expenditure that exceeds the approved loan amount shall be the sole responsibility of the loan recipient. This includes any additional add-ons, taxes, and surcharges.
- Property and or eatery owner must complete and sign the Program Forgivable Loan Application and submit to the City along with completed Sidewalk Café Encroachment Permit Application and Operational Statement (in conformance with the Downtown Outdoor Dining Program Design Guidelines) for review and approval prior to installation of Sidewalk Café perimeter fencing, furniture, and or accessory furniture. City staff will notify applicant whether the Forgivable Loan Application has been preapproved within 10-15 business days.
- Sidewalk Café furniture purchased prior to approval of the forgivable loan application is not eligible under the Downtown Outdoor Dinging Forgivable Loan Program.
- Acceptance of the forgivable loan mandates the eatery to remain open, operational, and in working condition at the approved location for at least three (3) years. If the business does not remain open, operational and in the same location, the business will be responsible for repayment of the forgivable loan amount and will be subject to a 33.3% discount per year. In other words, a business that fails to remain open after year one, must repay 66.6% of the forgivable loan; after year 2, the business must repay 33.3% of the forgivable loan; after year 3, the business is no longer financially obligated to repay its debt. In all cases, the furniture remains the ownership of the business.
- Loan recipients are required to enter into an agreement with the City to maintain the Sidewalk Café in operation for an ongoing consistent basis of three years, subject to the Sidewalk Café Design Guidelines, Permitting, and Operational Requirements. The Forgivable Loan and Maintenance Agreement is transferable should there be a change of ownership or business. New owners would be required to assume the loan and maintenance agreements for the remaining term. The loan recipient shall be held responsible for Program requirements until evidence of new business ownership and a new fully executed Forgivable Loan and Maintenance Agreement is filed with the City.
- Forgivable loans will be financed on a reimbursement basis. Funds will be disbursed upon passing of final inspection for the approved Sidewalk Café Encroachment Permit, and submittal of receipt/proof of purchase for outdoor dining furniture as per the Approved Forgivable Loan Program Application for City to verify eligible expenses. All checks from the City of Salinas to the successful loan recipient will be made out to the applicant’s business entity. Completion of a W-9 form for the business entity is required. Business entity name must match in all required forms, licenses, and permits.
- Applicant must renew the Sidewalk Café Encroachment Permit on an annual basis. Permit renewal fee is $100, and applicant is responsible for said cost.
- Submission of an application is not a guarantee of funding. It is the responsibility of the applicant to read and understand all aspects of the Program, its policy and procedures. There is a 90-calendar day period for the loan recipient to install the City-approved Sidewalk Café furnishings and obtain passing of final City inspection following the date of approval of the Forgivable Loan Program Application. Unless there are extreme circumstances for not having an operational Sidewalk Café within said required period, the approved loan application will be dismissed.
- For details on all terms and conditions, click here for the sample Loan Agreement.
CONTACT US
For more information on the Downtown Outdoor Dining Forgivable Loan Program, contact:
Michael Gomez, Economic Development Analyst
65 West Alisal Street Suite 201, Salinas, CA 93901
831-758-7986
For questions regarding the Downtown Outdoor Dining Design Guidelines Program, contact
Small Business Assistance Hotline
831-758-7367
Salinas Downtown Outdoor Dining Forgivable Loan Program
Downtown Outdoor Dining Forgivable Loan Program
Instrucciones de traducción al español:
Para traducir esta página al español, haga clic en este enlace https://translate.google.com/?sl=auto&tl=es&op=websites
Haga clic en Sitios web y copie y pegue este enlace URL: https://ndc.smapply.io/prog/salinas_downtown_outdoor_dining_forgivable_loan_program
PROGRAM PURPOSE
The Downtown Outdoor Dining Program sets design standards for outdoor dining in the public sidewalk, establishes a furniture color palette, provides an Acceptable Furniture Options Table for outdoor dining, and establishes the Outdoor Dining Forgivable Loan Program in the Central City Overlay District– Downtown Core, a “one-time’ forgivable loan to assist downtown eateries to invest in quality outdoor furniture that complements and enhances Downtown revitalization improvements while maintaining clear sidewalk access for the general public and prioritizes converting temporary outdoor dining activities to permanent operations.
The Downtown Outdoor Dining Forgivable Loan Program offers financial assistance to eateries currently permitted to serve food and or beverages for on-premise consumption in the State of California, County of Monterey Health Department, and City of Salinas Central City Overlay District – Downtown Core, who are seeking to furnish approved sidewalk café areas and expand dinging operations on the public right-of-way. The Program provides one-time forgivable loans up to $10,000 per business for the purchase of outdoor furniture and fixtures for eateries. The City has established funding for this program through the Economic Development Element Implementation (CIP 9136). Forgivable loans will be available on a first come, first serve basis, with priority to current temporary Covid-19 Relief Temporary Sidewalk Café Encroachment Permit holders. Funds will be available until exhausted. Should there be any remaining Program funds after April 30, 2023, City Council may consider extension of the Program.
All Temporary Outdoor Dining Permits expire December 31, 2022. To continue sidewalk café operations, eatery owners must meet all applicable requirements under the Downtown Outdoor Dining Program. A new Sidewalk Café Encroachment Application must be submitted to continue outdoor dining operations on the public sidewalk. Applicants will be allowed to continue outdoor dining operations with a 90-day extension, provided a Sidewalk Café Encroachment Permit Application, which is deemed complete, is submitted prior to December 31, 2022.
APPLICANT ELIGIBILITY REQUIREMENTS
- Must be permitted to serve food and/or beverages by the State of California, County of Monterey Health Department, and City of Salinas.
- Must be located on the ground floor in the City of Salinas Central City Overlay District – Downtown Core.
- Applicant is a property owner or tenant currently operates food and or beverage on-premise consumption service.
- There are no active code enforcement violations against the property or business.
- Must hold a current City of Salinas Business License.
- To confirm status or apply, visit: https://www.cityofsalinas.org/our-city-services/finance/business-licenses.
- Must have current business registration documentation (as applicable):
- Articles of Incorporation/Organization & Statement of Information filed with CA Secretary of State. To confirm status or apply, please visit: https://bizfileonline.sos.ca.gov/.
- Fictitious Business Name statement filed with the County of Monterey. To confirm status or apply, please visit: https://www.co.monterey.ca.us/government/departments-a-h/assessor/clerk/fictitious-business-statements.
- All state and local codes and licensing requirements for the business have been met including approval and passing inspection of the Sidewalk Café Encroachment Permit.
For purposes of this forgivable loan, please refer to the map below and HERE to confirm that your business is located within the eligible area of the City of Salinas Central City Overlay District – Downtown Core.
TERMS AND CONDITIONS
- Forgivable loans are made available to eateries to assist in the purchase of furniture for outdoor dining that is to be used in the public sidewalk. Sidewalk Café Encroachment Permit cost and installation costs are not included.
- Loan recipients will select tables, chairs, fencing, outdoor heaters and or umbrellas from the Program’s Acceptable Furniture Options Table. Deviations or alternatives to said options table must be pre-approved in writing by the City. Loan recipient will be responsible for payments directly to the vendor using the forgivable loan amount. Any expenditure that exceeds the approved loan amount shall be the sole responsibility of the loan recipient. This includes any additional add-ons, taxes, and surcharges.
- Property and or eatery owner must complete and sign the Program Forgivable Loan Application and submit to the City along with completed Sidewalk Café Encroachment Permit Application and Operational Statement (in conformance with the Downtown Outdoor Dining Program Design Guidelines) for review and approval prior to installation of Sidewalk Café perimeter fencing, furniture, and or accessory furniture. City staff will notify applicant whether the Forgivable Loan Application has been preapproved within 10-15 business days.
- Sidewalk Café furniture purchased prior to approval of the forgivable loan application is not eligible under the Downtown Outdoor Dinging Forgivable Loan Program.
- Acceptance of the forgivable loan mandates the eatery to remain open, operational, and in working condition at the approved location for at least three (3) years. If the business does not remain open, operational and in the same location, the business will be responsible for repayment of the forgivable loan amount and will be subject to a 33.3% discount per year. In other words, a business that fails to remain open after year one, must repay 66.6% of the forgivable loan; after year 2, the business must repay 33.3% of the forgivable loan; after year 3, the business is no longer financially obligated to repay its debt. In all cases, the furniture remains the ownership of the business.
- Loan recipients are required to enter into an agreement with the City to maintain the Sidewalk Café in operation for an ongoing consistent basis of three years, subject to the Sidewalk Café Design Guidelines, Permitting, and Operational Requirements. The Forgivable Loan and Maintenance Agreement is transferable should there be a change of ownership or business. New owners would be required to assume the loan and maintenance agreements for the remaining term. The loan recipient shall be held responsible for Program requirements until evidence of new business ownership and a new fully executed Forgivable Loan and Maintenance Agreement is filed with the City.
- Forgivable loans will be financed on a reimbursement basis. Funds will be disbursed upon passing of final inspection for the approved Sidewalk Café Encroachment Permit, and submittal of receipt/proof of purchase for outdoor dining furniture as per the Approved Forgivable Loan Program Application for City to verify eligible expenses. All checks from the City of Salinas to the successful loan recipient will be made out to the applicant’s business entity. Completion of a W-9 form for the business entity is required. Business entity name must match in all required forms, licenses, and permits.
- Applicant must renew the Sidewalk Café Encroachment Permit on an annual basis. Permit renewal fee is $100, and applicant is responsible for said cost.
- Submission of an application is not a guarantee of funding. It is the responsibility of the applicant to read and understand all aspects of the Program, its policy and procedures. There is a 90-calendar day period for the loan recipient to install the City-approved Sidewalk Café furnishings and obtain passing of final City inspection following the date of approval of the Forgivable Loan Program Application. Unless there are extreme circumstances for not having an operational Sidewalk Café within said required period, the approved loan application will be dismissed.
- For details on all terms and conditions, click here for the sample Loan Agreement.
CONTACT US
For more information on the Downtown Outdoor Dining Forgivable Loan Program, contact:
Michael Gomez, Economic Development Analyst
65 West Alisal Street Suite 201, Salinas, CA 93901
831-758-7986
For questions regarding the Downtown Outdoor Dining Design Guidelines Program, contact
Small Business Assistance Hotline
831-758-7367