Centennial businesses strategize how to prove need for grant money, and how to spend it

BY JESSICA ROE -- GOVERNMENTAL REPORTER

Businesses in the City of Centennial are eager to be the first in line to apply for up to $32,500 in city allocated grant funding, part of the first $5-out-of-$10 million of Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act money the city received. Centennial is now turning the money around into the community to immediately help local businesses rebound from the losses they suffered during the COVID-19 pandemic.

“Our city relies on small businesses and we are doing everything we can for small businesses so they can adjust through this period and remain viable,” said Candace Moon, District 1 City Council Member.

The applications are expected to go live on the website any day now at CentennialCO.gov. They will be reviewed on a first-come, first-served basis.

“That money would definitely go towards a patio. We’ve already talked to the landlord and hired an architect, and the city’s already approved it,” said Jesse Rayford, owner of Jesse’s Smokin’ NOLA restaurant in the northeast corner of the S. University Blvd. & E. Dry Creek shopping center.

A patio expansion is an ideal use of the money, according to Neil Marciniak, Centennial’s Economic Development Director.

The grants will fall into three categories, and each business is allowed to apply for a grant in all three of the categories, which include the following:

(1) Personal protective equipment (PPE) and safety grants are up to $2500 each and provide for businesses to procure their own PPEs and accompanying safety training.

(2) Operations grants are budgeted up to $10,000 each and are for businesses impacted by closures to cover rent, utilities, payroll, inventory, etc.

(3) Temporary and Physical Improvement grants range up to $20,000 each and are to assist businesses with building and/ or site modifications to facilitate compliance with public health orders such as exterior expansions, interior renovations, etc.

Rayford received a PPP loan, but said it did not stretch far enough to cover rent and employees during curbside pickup, and at times, he’s been working without air conditioning to save money on the utility bills. Just this week, he has added a breakfast menu to increase revenue and traffic into his restaurant to keep him out of the red.

“It’s just been really slow, and it’s been tough, and grant funding would really, really help us out,” he said. His wife has her own fulltime job, but to help keep payroll down, when she is done with her work for the week, each Friday night, she then joins Jesse for the weekend to work at the restaurant.

Despite Rayford’s own pandemic challenges, on nearly half a dozen occasions, Rayford brought his authentic New Orleans cuisine to area hospitals on his own dime to feed first responders during the peak of the COVID-19 pandemic.

“Really, they are the backbone of this country, the doctors and nurses, so we were happy to get out there and help in the community,” said Rayford.

Across town at The Makery Cake Company, owner Desiree Kelly has found herself in financial turmoil. When The Villager arrived to interview her, Kelly’s staff let us know she had just left for a personal emergency. Kelly’s mother had just died suddenly in an accident on a Nebraska highway. She made the time, however, to speak to us by phone. Her business in the northwest quadrant of S. Holly St. and E. County Line Blvd. has been a fixture for the past 14 years, and she desperately needs this grant funding.

The COVID-19 pandemic has sent her business revenue down 85% since March. Gone are the days when $800 birthday cakes were selling, and even higher price wedding cakes, during what is traditionally the peak of the wedding season. The Makery has continued to fill cake orders, but keep in mind that until this past week, public health orders have not allowed for any gatherings larger than 10 people in one place. So, no single orders in three months have been for anything bigger than a single layer cake that feeds 10-12 people. The Paycheck Protection Loan (PPP) loan she received on behalf of the Small Business Administration (SBA) came in at the federal level, and it only stretched far enough to pay for two months of rent and expenses. Inconveniently, the vinyl on both her east and south facing exterior signs gave way and broke off her building. The Centennial grants are different, in that these are from the city, and require no repayment.

“If I got this grant money I would put in new flooring, get my signs fixed, pay this month’s rent (due 11 days ago), and I would start some new marketing efforts,” said Kelly.

Her biggest concern about the application process, however, is the “first-come, first-served” system, given she is highly preoccupied in the coming days with her mother’s funeral and her own grieving process. She is worried she may be predisposed the same moment or same hour the grant applications are available online.

Senior Financial Management Consultant Erik Clarke, who has audited the compliance of several dozen governments and non-profit grant programs, said he understands using the “first-come, first-served” disbursement process as a manner of speed.

“I think the two phased process is good, splitting the two five million amounts in half, and getting the first $5 million out into the community as soon as possible to stop the hemorrhaging,” said Clarke. “For the second phase, if I were designing it, it would be a lot more intentionally targeted, with as much auditing as much as humanly possible, to ensure it’s being spent as fairly and appropriately as possible, and so you have data to look back on.”

Examples of businesses that are likely to be eligible for this round of grants include restaurants and bars, breweries/wineries/ distilleries with tasting rooms; retailers such as clothing stores, and florists; personal services such as salons and spas; health services such as dentists, chiropractors and counselors; fitness centers such as gyms; and more.

The business has to have been licensed with the City of Centennial by October 1, 2019 or prior.

Ineligible businesses include those that operated fully throughout the pandemic; homebased businesses; non-profits; nationally owned entities; any kind of marijuana-related businesses; liquor stores; and, sexually oriented businesses.

Businesses that shut down, but then operatedsome type of curbside operations will likely qualify. Locally owned franchises of national chains may also qualify.

This gives John Baird hope, as he recently put $250k into opening a local OsteoStrong franchise less than a year ago in the southeast corner of the S. University Blvd. & E. Dry Creek shopping center.

“If it’s applicable to me, and it’s a grant, then who wouldn’t be interested,” said Baird, who has had to close down his business not long after opening it.

OsteoStrong is membershipbased Integrative Health and Wellness Center with a focus on Musculoskeletal Strength Conditioning focused on helping anyone from athletes to those struggling with severe bone density issues.

Baird estimates his losses from the pandemic at close to $70k at this point, and has several ideas on how the grant funding could help him get his business right-coursed, from PPE to rent and renovations.

Given Baird’s business has an element of gym-like equipment, the PPE component might be a good fit if his application is approved.

“We are all excited to see many of our Centennial small businesses starting to reopen. We know it has been a real struggle and thrilled to offer grants for PPE to help ensure our businesses are meeting state requirements and keeping their customers and employees safe,” said Christine Sweetland, District 2 City Council Member. While the City of Centennial has yet to announce how its next round of community CARES Act funding will be dispersed, financial expert Clarke suggests the city consider strongly rethink any physical requirements.

“I don’t know if I would put in a brick and mortar requirement in a 21st century grant program where the internet and digital innovation is such a big component of our everyday lives,” said Clarke. “There are simply so many businesses that do not have a front end consumer facing space yet provide full fledged businesses that operate and provide essential goods and services.”

City Manager Matt Sturgeon has provided city councilors assurances that his staff has been hard at work preparing for the grant program to go live on the city’s website, even reallocating staff into different roles to ensure that when applications begin coming in, they will be processed quickly and checks issued promptly.

When the grant application process is ready - which will be any day now - you will be able to find the application on CentennialCO.gov.