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Arts, housing, small business: How Sacramento mayor wants to spend $112 million in federal aid

Sacramento Bee - 8/19/2021

Aug. 19—Sacramento Mayor Darrell Steinberg Thursday unveiled how he wants the city to spend $112 million coming to Sacramento from the federal American Rescue Plan.

Steinberg wants to spend the money on most of the same main categories the city spent the $89 million from the Coronavirus Aid, Relief and Economic Security (CARES) Act — small business support, homeless and housing initiatives, youth, workforce training, gang violence prevention and the arts.

"This overall approach will once again make Sacramento a shining example of what community investment should look like," Steinberg wrote in a letter to the City Council Thursday. "We will grow our economy faster, we will get members of our community off the streets and into housing more rapidly, and we will again invest boldly in ALL of our communities and neighborhoods."

With the CARES funding last year, the council went along with the mayor's wishes, for the most part, though now there are three new members. The council will have a discussion on the topic at its meeting Tuesday and provide direction. The list will eventually require council approval.

The city has so far received $56 million in ARP funding, with the second $56 million set to arrive this spring, the letter said.

Here's how the mayor proposes the city spend the money:

Small business and commercial corridor revitalization: $30 million

Sacramento business priorities recommendations: $8.2 million

1. Improve rapid response clean up and sanitation services, remove boarded up windows and address the impacts of homelessness

2. Activate spaces with special events for employees' return to downtown

3. Enhanced city resources for business success, such as forgivable loans

4. Placemaking, such as maintaining and expanding the outdoor Al Fresco dining program

5. Increased access to all businesses both on and off the central city grid, including technical assistance

North Sacramento economic recovery plan: $5 million

Funding for Del Paso Boulevard, which the letter calls "our city's most underserved neighborhood corridor." More funding could come in the future.

— Downtown core and Old Sacramento revitalization: $5 million

"Unfortunately, the pandemic forced us to put on hold our catalytic $40 million waterfront plan that was slated to be funded by the transient occupancy tax (TOT)," the letter reads. "We must use ARP funding now to revive our downtown and start to realize the potential on our waterfront."

— Sacramento Inclusive Economic Development Collaborative: $3.5 million

The Sac EIDC includes six chambers, nine business improvement districts and Hacker Lab. The group deployed $3.7 million in CARES funding to serve 1,500 businesses with technical assistance, business consulting and other resources. This money would continue those services.

— Continued vaccine outreach and education: $1 million

To continue outreach and education efforts to city employees, local businesses, and at-risk communities.

— Council-led strategic initiatives: $7.3 million

Funding for business groups, neighborhood corridors, nonprofit groups, public works projects, or other initiatives chosen by the eight council members.

City homeless and housing commitment: $41 million

— Funding to implement the Comprehensive Siting Plan, which the council approved last week. The plan includes 20 new sites for homeless shelters, tiny homes and sanctioned tent encampments.

Youth, workforce training and gang prevention programs: $11 million

— Workforce training programs: $2.75 million

This would combine with $9.75 million spent in CARES funding. That money provided grant funds to 29 workforce programs serving 2,100 residents. The mayor wants to double that, using ARP and new state funding.

— Youth, gang prevention and social services: $8.25 million.

1. About $2.5 million for after-school and youth enrichment programs, including youth pop-up activity nights, the #SacYouthWorks program and youth mental health services.

2. About $250,000 to narrow the digital divide, including providing devices and high-speed connections.

3. About $1 million to expand child care services.

4. About $1.5 million to supplement and enhance gang prevention and intervention efforts by partnering with local organizations.

5. About $1 million to support the new "food justice task force," to make sure all communities have sufficient access to healthy food.

6. About $1 million to develop a "Sacramento job center" to support the recruitment, training and hiring of local residents at the UC Davis Aggie Square development and other businesses.

7. About $750,000 to expand the Sacramento Family Independence Initiative. Managed by United Way, this is the community pilot program for Universal Basic Income.

8. About $250,000 for the Center for Workers' Rights to continue the Coronavirus Job Protection Helpline

Arts and the creative economy: $10 million

1. About $2.5 million for grants for creative businesses, cultural institutions and creative nonprofits. About $3 million in grants for professional development for creative workers and individual artists.

2. About $500,000 for small and grassroots organizations and individual artists to rent or perform in arts and cultural spaces. About $2 million to build a public-private partnership strategy to support facilities development and access. This could include real estate capacity building, loans and financial support.

3. About $1.5 million for grants for youth programming and projects that include cohort support and mentorship for program providers.

4. About $500,000 for support to implement the cultural tourism strategy and marketing infrastructure for the arts.

Valuing our city employees and addressing organizational needs: $20 million

"The City Manager and his team will determine the best approach and expenditure plan for these necessary investments in our city," the letter reads.

Steinberg proposes allocating an additional $5 million from the Housing Trust Fund for this purpose.

"The Housing Trust Fund must be replenished and be our top priority at the FY 21/22 Midyear Budget in February 2022," the letter reads.

The meeting will take place at 2 p.m. Tuesday. It will be livestreamed on the city's website.

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