Title
[Contract] City Council COVID-19 Response: ARPA Framework and Funding Priorities: Approve Amended North Sacramento Economic Recovery Plan Framework for ARPA Funds
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FileID
File ID: 2026-00598
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Location
Location: District 2
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Recommendation
Recommendation: Adopt a Resolution: 1) amending the ARPA North Sacramento Economic Recovery Plan Framework; and 2) authorizing the City Manager or designee to negotiate and execute an ARPA Reinvestment grant agreement with S.A.V. & Sons, LLC for an amount not-to-exceed $30,000.
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Contact
Contact: Bryan DeBlonk, Chief of Staff, (916) 808-7002, bdeblonk@cityofsacramento.org, Office of Councilmember Roger Dickinson
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A
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Description/Analysis
IssueDetail
Issue Detail: On September 14, 2021, the City Council adopted the American Rescue Plan Act of 2021 Framework and Funding Priorities (ARPA Framework). The adopted framework included funding allocations in the following areas:
1. Small Business and Commercial Corridor Revitalization;
2. Homeless and Housing;
3. Youth, Workforce Training, and Gang Prevention;
4. Arts and the Creative Economy; and
5. Valuing City Employees and Addressing Organizational Needs.
On October 19, 2021, the City Council adopted Resolution No. 2021-0313, which authorized the City Manager or the City Manager’s designee to accept $112.2 million of ARPA funding, establish the ARPA Reinvestment Fund (Fund 1003), allocate $112.2 million of ARPA funds to provide government services, and budget the resulting available resources in the ARPA Reinvestment Fund to assist with recovery and reopening efforts.
Among the priorities identified in the ARPA Framework was a $5 million investment to support the economic recovery of the North Sacramento commercial corridor and mitigate the impacts of COVID19.
On August 9, 2022, the City Council adopted Resolution No. 2022-0256, which formally established the ARPA North Sacramento Economic Recovery Plan Framework. Original framework categories included:
1. North Sacramento Small Business Assistance Program;
2. North Sacramento Façade Improvement Program;
3. North Sacramento Marketing and Branding;
4. Food Insecurity, Nutrition, Mental Health, and Related Fund; and
5. North Sacramento Clean and Safe Program.
On September 12, 2023, the City Council adopted Resolution No. 2023-0292, which amended the framework by adding a “Transformative Reinvestment Grants” category and broadening the “Food Insecurity, Nutrition, Mental Health, and Related Fund” category to become the “North Sacramento Community Impact Fund” category.
On November 14, 2023, the City Council adopted Resolution No. 2023-0367, which amended the framework by reprogramming a $200,000 “North Sacramento Small Business Assistance Program” appropriation previously allocated to Sammy’s Restaurant and reinvesting $125,000 into Sacramento Iceland and the remaining $75,000 into the “Transformative Reinvestment Grants” category.
On June 25, 2024, the City Council adopted Resolution No. 2024-0224, which amended the framework again by:
1. Broadening the “North Sacramento Marketing and Branding” category to support a wider range of marketing activities;
2. Transferring $50,000 from the “North Sacramento Marketing and Branding” category to the “North Sacramento Clean and Safe Program” category to fund the Neighborhood Wellness Foundation to conduct homeless encampment outreach and cleanup activities along the North Sacramento Bike Trail;
3. Transferring $150,000 from the “Transformative Reinvestment Grants” category to the “North Sacramento Community Impact Fund” category to provide an additional $150,000 to Capital College & Career Academy to support education and workforce development programming;
4. Transferring $75,000 from the “Transformative Reinvestment Grants” category to the “North Sacramento Small Business” category to partially reinstate a previously Council-approved forgivable loan to Sammy’s Restaurant following the business’s reopening under new ownership in 2024; and
5. Authorizing the transfer of any unexpended funding from other framework categories to the “Transformative Reinvestment Grants” category to support future investments.
Since the framework’s adoption, the City has achieved significant progress, including the award of 40 façade grants, 15 nonprofit grants, 13 small business grants, and 4 loans. In anticipation of fully spending down the $5 million allocation, the District 2 Council Office recommends the following amendments, as reflected in Exhibit A of the attached resolution.
First, the District 2 Council Office proposes awarding a $30,000 grant to S.A.V. & Sons, LLC to expand the scope of an existing façade improvement project at a highly visible storefront located at Del Paso Boulevard and Fairfield Street. Given the property’s prominent location and current dilapidated condition, these exterior improvements are essential to uplifting the corridor’s visual character. The property owner is also contributing $60,000 in match funding.
Second, the District 2 Council Office proposes several cleanup edits, as shown in Exhibit A. These edits include updating category names, descriptions, and the “Planned Budget Allocation” amounts to reflect actual and planned expenditures.
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PolicyConsiderations
Policy Considerations: The proposed actions are consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
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EconomicImpacts
Economic Impacts: The proposed actions will strengthen economic recovery and stimulate sustained growth in North Sacramento by supporting small businesses, attracting private investment, improving commercial corridors, and creating opportunities for job retention and expansion within the community.
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EnvironmentalConsiderations
Environmental Considerations: The actions are not a project that is subject to CEQA because they constitute an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guidelines, §15378(b)(5)) and the minor alteration of existing private structures involving negligible or no expansion of existing or former use (CEQA Guidelines, §15301).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The District 2 Council Office recommends approval of the proposed framework amendments to facilitate full implementation of the North Sacramento Economic Recovery Plan and ensure the complete expenditure of the original $5 million allocation in support of economic revitalization efforts.
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FinancialConsiderations
Financial Considerations: There is sufficient funding available (ARPA Reinvestment Fund, Fund 1003) in the ARPA North Sacramento Project (I02612090) to complete the recommended actions.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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