TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic &
Community Development Director
DATE: September 23, 2024
RE:
Title
Letter of Support $180,000 and Grant Match Commitment - The Tulsa Initiative, Inc. Grant Application to the U.S. Economic Development Administration
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
GOAL VI: The City of Fayetteville will continue to have a collaborative citizen and business engagement base.
Executive Summary:
City Council is asked to approve a letter of support and grant match funding for The Tulsa Initiative, Inc. in the amount of $180k ($90k per year for two years) to support their competitive grant application to the U.S. Economic Development Administration (EDA). Funds would be made available through unappropriated interest earnings from the American Rescue Plan Act (ARPA) funds. Interest earnings are not Federal funds and are treated as general revenue per the U.S. Treasury’s guidance on ARPA. City Council is asked to authorize the Mayor to sign the letter. Once a grant award is received, a subsequent budget action will be presented to City Council to appropriate the required grant match.
Background:
The EDA has been engaging with the Tulsa Initiative, Inc. about a potential application to EDA to spur entrepreneurship and job creation/business expansion in Fayetteville, with a specific emphasis on serving Black, Indigenous, People of Color (BIPOC) community. EDA grants are competitive, and the agency receives more applications than can be funded. One of the factors for eligibility and competitiveness is the availability of Matching Share funds. EDA requires 50% match in most cases, and this match posture is the most competitive posture.
Any funds allocated to an EDA project must be accompanied by a letter from the applicant documenting their compliance with regulations. The proposed project is envisioned to include both cash from the City and in-kind from the Tulsa Initiative. EDA would require a matching share letter from Tulsa, backed up with documentation from the city, that stipulates that the cash match is coming from the city and that the funds are in cash and available, committed, and unencumbered. The Tulsa Initiative would also be providing a letter certifying that the in-kind funds are available, committed and unencumbered in accordance with the documentation in the proposed budget.
Issues/Analysis:
The City has funded the Tulsa Initiative, Inc. with $100k of General Fund monies for a two-year period. During that time the Tulsa Initiative, Inc. has hosted two cohorts of young college students who developed business plans and went on to compete at the national level in small business pitch competitions. They have engaged with over 700 students and young adults through summits on entrepreneurism to directly impact the matriculation rates of young BIPOC men at universities and have received additional funding sources and partnerships through the private sector.
Budget Impact:
Funds for the required grant match will be made available from interest earnings from ARPA funds, and will not have an impact on current appropriations. Interest earnings are not Federal funds and are treated as general revenue per the U.S. Treasury’s guidance on ARPA. Once the grant is approved, a subsequent budget action will be presented to City Council to appropriate the required grant match.
Options:
1. Authorize the Mayor to sign the attached letter of support and commitment to matching funds for the Tulsa Initiative’s competitive EDA grant application.
2. Do not authorize the Mayor to sign the attached letter of support and commitment to matching funds for the Tulsa Initiative’s competitive EDA grant application, and provide additional guidance to staff.
Recommended Action:
Staff recommends that Council move to authorize the Mayor to sign the attached letter of support and commitment to matching funds for the Tulsa Initiative’s competitive EDA grant application.
Attachments:
Draft Letter of Support