Receive a report and hold a discussion regarding the Downtown Reinvestment Grant Policy.

The City Council is reviewing the Downtown Reinvestment Grant Policy to enhance its competitiveness and better support local businesses. Established in 2007, the program has awarded over $1.15 million in grants, with funding sourced from the Downtown TIF Fund since 2018.

Currently, the program offers a 50% matching grant with a maximum award of $50,000 per property per application for eligible projects within the Downtown TIRZ #1. These projects include facade rehabilitation, interior/code improvements (like fire suppression, which is exempt from the cap), utility upgrades, and impact fee reimbursement. However, the program faces a projected ($60,000) deficit for FY25/26 due to high demand.

Feedback from businesses points to financial barriers, reimbursement timing, and the significant cost of fire suppression systems. A comparison with peer cities shows Denton's program has a stricter grant cap and a narrower scope for eligible exterior improvements compared to some, like Garland. Staff is seeking direction to revise the policy, focusing on the historic preservation incentive structure, scoring criteria, project categories, and aligning the grant structure with the current budget.