Workshops helping city gear up business expansion, place-based incentive programs

Ahead of a planned rollout in May, the city is hoping a series of workshops this month will generate interest in its updated business expansion and upcoming place-based enhancement incentive programs. The programs, which were recently approved by City Council, are designed to assist small businesses and creative-sector tenants facing rising real estate pressures.

Three more workshops are scheduled – two in-person and one virtual – to explain eligibility requirements and application procedures tied to the economic development initiatives. These include the recently updated Business Expansion Program and the forthcoming Place-Based Enhancement Program. The workshops are aimed at helping businesses and property owners better understand how to participate in the programs and access available resources.

The update to the Business Expansion Program, which was first instituted in 2018, was intended to better support small and midsize businesses by streamlining the application process, broadening eligibility criteria and incorporating tips and bonuses into the living wage calculation.

The Place-Based Enhancement Program will open for applications in mid-May. It is focused on supporting projects that contribute to community and cultural vitality, particularly those in areas identified as equity priority zones. Officials are especially targeting commercial corridors such as South Congress and the Red River Cultural District, where real estate development could displace existing cultural or community-serving businesses.

Haileigh Meyers, who helps administer the programs through the Economic Development Department, said after the first two workshops the main feedback regarding business expansion has come from business owners trying to determine their eligibility for incentives tied to hiring and other expansion. Increasing participation in the program was a major goal of Council members and other proponents since only one business had successfully taken part in the first six years.

“Previously, the program was probably more easily accessible to our large corporations. Now we are seeing small businesses that are just trying to figure out how to take advantage of this program,” she said, adding that making tips and other forms of compensation eligible could allow for more businesses to take part. “We’re hoping that including more of a total picture of somebody’s take-home pay is going to help companies as they are looking to apply for one of these incentives.”

Donald Jackson, business process consultant in EDD’s Global Business Expansion Division, said the city has been receiving early online input from potential creative spaces and other eligible entities that could trigger city incentives for developments that provide them space.

“We’ve talked to a lot of projects that are well-established creative sector businesses, theaters especially, as well as art spaces and galleries that are looking to potentially relocate or expand or are facing the kind of real estate pressures we’ve been sort of trying to work on,” he said. “We’ve also talked to several developers who are interested in doing some substantial projects that have affordable space for creative sector businesses and organizations in different parts of town and different types of developments.”

The creation of incentives tied to spaces promoting cultural and creative uses has been a priority for both the Music and Arts commissions in recent years, with the two bodies forming a joint working group on land use.

Music Commissioner Anne-Charlotte Patterson said the incentives could help the city address longstanding interest from many developers who wanted to find a way to bring cultural and creative businesses into their projects.

“In so many mixed-use developments you just see a lot of vacancy, and then at the same time you have a lot of arts and music businesses that really struggle to afford market-rate rent. This is something we had been talking about: How could you partner with developers to provide possibly subsidized rent and still have it work out mathematically?” she said.

In addition to adding to the aesthetics of new projects, Patterson said developers see the likelihood that tenants such as a music venue or dance studio are less likely to relocate, bringing more stability to their revenue forecasts.

“It’s a win in both ways for the property owner because creative tenants, if they have some affordable space they will stay there for as long as they can and be a very stable, long-term tenant as opposed to some businesses that kinda come and go.”

Photo made available through a Creative Commons license.

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