Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 19, 2015
Subject/Action
SUBJECT: BUSINESS INTERRUPTION FUND FOR UNPRECEDENTED DISRUPTION
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZING the expansion of the Pilot Business Interruption Fund to include funding for eligible small “mom and pop” businesses directly impacted by unprecedented full street closures with a duration greater than 6 continuous months such as the planned work at 2nd & Broadway segment of the Regional Connector transit rail project.
Issue
ISSUE
Metro’s Board issued Motion 57 that authorized the CEO to establish a pilot program for a special Business Interruption Fund (BIF) for “mom and pop businesses” located along the Crenshaw Line, the Little Tokyo area along the Regional Connector and Phase I of the Purple Line extension. This was based on the Board finding there is a clear nexus between construction activities and reduced business activity, especially the walk-in traffic that many of the retail businesses rely on.
An unprecedented full street closure of the 2nd & Broadway segment of the Regional Connector project is anticipated to extend more than 6 months in duration.
Discussion
DISCUSSION
The Regional Connector transit rail project is the only project that has a distinct area identified for eligibility to participate in the BIF; which is the Little Tokyo area. In an effort to maintain adherence to the Board motion and the pilot program framework yet continue to uphold Metro’s commitment to being a trusted community builder, partner and stakeholder, Metro staff is seeking authorization to extend the BIF to eligible “mom and pop” businesses directly impacted by anticipated 6 month full street closure at 2nd & Broadway for the Regional Connector project.
The 6 month full street closure at the 2nd & Broadway area would be the longest recorded closure for a Metro rail construction project; as outlined in “The History of Full Street Closures and LA County Metro” provided as Attachment B.
In consideration of the construction activities, it is projected that more than 100 small “mom and pop” businesses may be directly impacted. Therefore, recognizing the impact that full street closures have on small business communities, and based on early observations of impacts along the Crenshaw/LAX line and Phase I of the Purple Line extension, expansion of the BIF within the focused segment of 2nd & Broadway will provide small businesses access to financial assistance during the challenging construction period. Ensuring continued integrity of the pilot program, eligible businesses will be required to demonstrate direct impact and meet the program requirements of Metro’s BIF Administrative Guidelines.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this recommendation will not impact the safety of Metro's patrons or employees.
Financial_Impact
FINANCIAL IMPACT
Metro Board of Directors authorized staff to identify $10 million annually of eligible funds in support of the pilot program for approximately eight years. The anticipated program costs for expansion of the BIF to businesses directly impacted by the unprecedented full street closure at 2nd & Broadway of the Regional Connector rail project will be assumed within the existing funding authorization. However, a reassessment of the program funds may be required in the event the actual costs exceed the existing program funds authorization. The forecasted and actual cost will continue to be assessed throughout the term of the pilot program.
Impact to Budget
The proposed recommendation does not impact the current year budget.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Not authorize the expansion of the BIF program to include 2nd & Broadway of Regional Connector transit rail project for “mom and pop” businesses directly impacted by the extended full street closure. This alternative is not recommended due to the unprecedented duration of the full street closure.
Next_Steps
NEXT STEPS
Staff will continue to provide a quarterly BIF program report to the Metro’s Board of Directors.
Attachments
ATTACHMENTS
Attachment A - Board Motion 57
Attachment B - The History of Full Street Closures and LA County Metro
Prepared_by
Prepared by: Shalonda Baldwin, Deputy Executive Officer, Project Management
Vendor/Contract Management, (213) 922-4488
Ivan Page, Interim Executive Director, Vendor/Contract Management, (213) 922-6383
Quintin Sumabat, Deputy Executive Officer, Finance
Office of Management & Budget, (213) 922-2277
Reviewed_By
Reviewed by: Stephanie Wiggins, Deputy Chief Executive Officer, (213) 922-1023
