Las Vegas approves Quick Start grant program for downtown businesses
The drive to bring more businesses to downtown Las Vegas is about to get another boost, this one from city taxpayers.
On Wednesday, the city's redevelopment agency, which is made up of City Council members, voted unanimously to approve a new grant program aimed at helping businesses cope with the cost of renovating old businesses.
The program, called Quick Start, sets aside $1 million that can be awarded in grants of up to $50,000 to offset the costs of renovation and code compliance. It's a matching program that will require businesses to put up $4 of their own money for every $1 in grant awards.
Economic and Urban Development Director Bill Arent said the cost of bringing old buildings up to code is prohibitive for many would-be entrepreneurs, especially when it comes to turning old commercial buildings into restaurants, bars and lounges.
"In order to open up a restaurant, there are a lot of things that have to happen inside a building," Arent said. "That comes with considerable expense."
Downtown Las Vegas, long considered a black hole for economic activity, has emerged as a hot spot for renovation and new business in recent years.
With the opening of The Smith Center for the Performing Arts, the Museum of Organized Crime and Law Enforcement and a new City Hall, Zappos CEO Tony Hsieh is leading the private investment of about $350 million in small businesses, tech startups and cultural projects.
The buzz of activity is creating demand for restaurants and nightlife, but the building stock is older, and buildings often require more renovations than many capital-challenged entrepreneurs can afford.
The Quick Start money is split between two areas, with $500,000 set aside for the city's original redevelopment area, which includes Fremont East, the Arts District and surrounding neighborhoods. The other $500,000 will be used in the city's new redevelopment area, which is west of Interstate 15, mostly along Sahara Avenue and Charleston and Decatur boulevards.
"The real driver of this program is helping businesses get in vacant storefronts," said Arent, who forecast the money could help 50 new businesses get started and result in 500 jobs.
The Quick Start program will be in addition to the city's visual improvement program, which offers grants of up to $50,000 for business owners to use for facade improvements.
Although the city's downtown improvement efforts have been mostly welcomed, at least one business owner told the council there are more productive ways to help businesses.
George Harris - owner of Mundo restaurant in the World Market Center and partner in Mingo, a restaurant under construction in the Arts District - said the city should find a way to reduce sewer fees or make the terms more flexible.
Harris said renovating an old space into a restaurant can cost tens of thousands of dollars in fees that must be paid upfront.
"It is just insane," he said.
Harris' point appeared to be well-received by council members, who directed city staff to look into ways to make fees more bearable.
"These startup costs are so challenging because of these hookup fees," Ward 6 Councilman Steve Ross said. "If that money is sucked up in connection fees, it is kind of defeating the purpose of getting these businesses up and running."
Contact Benjamin Spillman at 383-0285 or bspillman@
reviewjournal.com
