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CARES
Prescott Releasing CARES Funding to Aid Recovery
The Prescott City Council has released a portion of the nearly $5.1 million in reimbursements from the federal Coronavirus Aid, Relief and Economic Security (CARES) Act to support business tourism and technology incubation in downtown and North Prescott.
The CARES allocation reimburses the city for COVID-related public safety expenditures during the last fiscal year.
The council unanimously approved four motions to allocate the funds: 1) Approve $60,000 for business tourism and attraction advertising/marketing campaign; 2) Allow staff to seek professional planning proposals for Prescott North and Granite Creek Area; 3) Approve of staff applying for Granite Creek Corridor grant funding up to $438,785.75 for Phase 1; and 4) Approve the allocation of $92,500 for startup and establishment costs for the Center for the Future.
City Manager Michael Lamar described economic development and marketing scenarios that would showcase intertwined assets such as the reinvigorated Granite Creek Corridor, the new Hilton Garden Inn, other hotel properties, the Sam Hill Convention Center, the Center for the Future business incubator, and the new Prescott Regional Airport terminal and associated improvements.
He noted that the Center for the Future had been pulling together resources to further kickstart the center’s business planning and occupancy.
Jon Haass, Ph.D., professor of cyber intelligence and security at Embry-Riddle Aeronautical University (ERAU) and director of the Center for the Future, and Jim Robb, city economic development consultant, shared their successes in expanding alliances with the Arizona Commerce Authority (ACA), lining up a board, locating tenants and finalizing convention center opportunities. Haass shared their plan to acquire interim space for prospective tenants while the incubator is under development.
“People are finding us,” Haass said of “catalyzing the future” by collaborating with the region, state and nation “to complement Prescott North through conservative but leveraged investment, which will make a difference for the future.”
The center is one of many projects which had been considered, including raises for city employees and relief grants to small businesses.
Raises totaling $588,000 had been budgeted but were put on hold until the council was informed of better-than-expected overall growth in sales tax collection, which came in June.
City Finance Director Mark Woodfill reported that taxable activity totaled $1.8 billion for the last fiscal year. Woodfill also explained that overall sales tax revenues are up 11% from last June, bringing the year-to-date increase to nearly 8%. Only one month showed a decline, he said, with April down 2%. The hard-hit hotels and restaurants were down 21% and 13% respectively from last June, compared to 77% and 51% from April.
“We’re not out of the woods on COVID, but I think it’s safe to say the trends you’re seeing are a lot more positive than imagined,” Lamar said. “That actually talks to the strength of our sales tax economy here that we’re still a destination. We have a socio-economic demographic that has some disposable income and is still spending it. And those are positives for a community that is trying to come out of this.”
Meanwhile, to help downtown business, the Prescott Chamber of Commerce Foundation has launched a “Save Our Bars” campaign to raise $200,000 for $10,000 grants to bars in jeopardy. Donations can be made at prescott.org or 928-445-2000. QCBN
By Sue Marceau, QCBN
Sinema Urges Treasury and Federal Reserve to Adjust Main Street Loan Programs
Arizona senior Senator Kyrsten Sinema called on Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell to quickly make adjustments to the Main Street New Loan Facility and Main Street Expanded Loan Facility so Arizona small and mid-size businesses can get needed economic relief during the coronavirus pandemic.
“Arizona businesses need economic relief now. I am thankful for the steps the Federal Reserve has taken to stabilize our economy during the ongoing public health and economic crisis, and strengthening the Main Street Loan Facilities is the next step to protect paychecks and good Arizona jobs,” said Sinema.
“Arizona’s job creators deeply appreciate Senator Sinema’s commitment to getting our economy back on track. Her recommendations to Treasury Secretary Mnuchin and Federal Reserve Chairman Powell to improve the Mainstreet Lending Facility are critically important to increase the program’s flexibility and its utility for small- and medium-sized businesses, allowing them to reopen at a speed that makes the most sense from a health and business perspective. Senator Sinema’s recommendations could save hundreds of thousands of Arizona jobs, and millions nationwide. The stakes are high as jobless claims hit record levels. The Arizona Chamber of Commerce & Industry thanks Senator Sinema for her dogged work to influence policy that positions Arizona enterprises of all sizes for a strong recovery,” Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.
Under the CARES Act, Congress gave the Treasury Department authority to provide up to $454 billion in loans to Federal Reserve lending programs and facilities. On April 9, the Federal Reserve announced it would establish eleven funding facilities to provide stability and liquidity to the financial system, including the Main Street New Loan Facility and Main Street Expanded Loan Facility (the Facilities). The Facilities aim to support small and mid-sized businesses that were in good financial standing before the crisis; however, the programs’ terms make lending burdensome, making relief difficult to access for Arizona businesses with the greatest need.
Sinema’s letter specifically calls for Treasury and the Federal Reserve to:
Further expand loan eligibility and include non-profits that are serving Arizonans and aiding in COVID-19 response;
Provide greater flexibility on loan terms;
Ensure that the Facilities are user-friendly and accessible to small community banks and credit unions.
Sinema holds weekly calls with the Arizona Chamber of Commerce and Arizona small businesses on which she answers questions about coronavirus relief and helps employers with the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications. In the recent Congressionally-approved coronavirus package, Sinema helped secure $310 billion for the PPP loans, $60 billion for smaller, disadvantaged businesses, $60 billion for EIDL and grants, $75 billion for health care providers, and $25 billion for testing, including $11 billion directly to states. Sinema also helped secure a number of priorities in the sweeping coronavirus-response CARES Act law, including a $150 billion relief fund for state, local, and Tribal governments, $55 billion more in investments in hospitals and health care workers, and an increase in unemployment benefits. Sinema also recently wrote an op-ed outlining Arizona needs she is working to include in the next coronavirus-response legislation.
Sinema has also added a resources page to her website, www.sinema.senate.gov/corona, for Arizonans looking for the latest information on coronavirus.