HomeMy WebLinkAbout2020-04-8628ORDINANCE NO. 2020-04-8628
AN ORDINANCE AUTHORIZING THE EXPENDITURE OF FUNDS IN THE
SMALL BUSINESS RELIEF FUND IN THE FORM OF GRANT AWARDS TO BUSINESSES
THAT MEET CERTAIN CRITERIA AND DECLARING AN EMERGENCY TO EXIST
WHEREAS, the President of the United States and the Governor of Kentucky have both
declared a State of Emergency in response to the novel coronavirus (COVID-19) pandemic; and
WHEREAS, the Mayor of the City of Paducah declared a State of Emergency on March
16, 2020 in responses to the COVID-19 virus pandemic; and
WHEREAS, the City of Paducah recognizes the local effects of the COVID-19 pandemic
including the implementation of state and federal recommendations for social distancing, closing
businesses and/or reducing operations, and self -quarantining; and
WHEREAS, the City of Paducah further recognizes the financial impact on local
businesses, its employees and the citizens resulting from both the state and federal
recommendations and the necessary actions implemented by Executive Orders by Governor
Beshear to reduce the spread of COVID-19 in the Commonwealth of Kentucky; and
WHEREAS, as a result of the COVID-19 pandemic, the City of Paducah anticipates a
shortfall of approximately 25 per cent in payroll taxes to be paid during the next Fiscal Year; and
WHEREAS, the City of Paducah desires to provide economic assistance to small
businesses that have been impacted by the COVID-19 pandemic by awarding grants of $2,000 to
businesses located within the city limits of the City of Paducah that were required to cease or
reduce operations by Governor Andy Beshear's Executive Order 2020-257; and
- WHEREAS, in doing so, the City of Paducah hopes to help bridge the gap for those small
businesses so that they can continue to operate once they are allowed to continue and/or increase
operations such that the City of Paducah and its citizens will benefit in the form of payroll taxes,
property taxes, lower unemployment rates, quality of life, and other benefits that will be derived
as a result of the continuation of business operations within the City; and
WHEREAS, in an effort to ensure the funds are being spent towards reaching the City of
Paducah's goals as set forth herein, the City will require those businesses awarded said grants to
provide proof that the funds were used towards qualifying expenses; and
WHEREAS, the City of Paducah intends to benefit the public at large by limiting the
amount of funds to be awarded to each business to $2,000 in an effort to assist as many businesses
as possible.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF
THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. Small Business Relief Fund Program Criteria. That the
following criteria are established relating to the expenditure of the Small Business Relief Fund:
a. To be eligible for a grant under the Small Business Relief Fund Program, a
business must:
(1) Be categorized as a non-essential business that was required to cease or reduce
operations as a result of the Executive Orders issued by the Governor;
(2) Exist within the city limits in a brick -and -mortar location;
(3) Be open and operating before January 1, 2020;
(4) Employ 25 or fewer people;
(5) Not be a franchise or franchise -affiliated; and
(6) Be current on its payroll and property taxes as of March 1, 2020.
b. If a business is awarded a grant, it must:
(1) Use the money towards rent, mortgage, payroll and/or utility bills; and
(2) Provide proof of eligible expenditures by September 1, 2020.
C. If a business fails to expend the grant funds on eligible expenses and provide
proof of such by September 1, 2020, the Mayor and/or City Manager are authorized to take any
action(s) necessary to recover all unspent and/or ineligible -spent funds.
SECTION 2. Authorization to Finance Director to issue grants. That the
Finance Director is hereby authorized to appropriate $150,000 of the $250,000 currently in the
COVID-19 Stimulus (MR0079) Project for the Small Business Relief Fund Program, upon
approval of applications submitted in the form of $2,000 grants to the first 75 awarded -
recipients. The Finance Director is hereby authorized to appropriate the remaining $100,000 as a
matching grant in the form of 1 -to -1 matching funds received through donations. Those grants
will also be in the form of $2,000 but the number of businesses awarded will be determined by
the amount of funds donated.
SECTION 3. Emergency Declared. Pursuant to KRS 83A.060, the City
Commission suspends the requirement of a second reading of this ordinance. As grounds
therefor, the City Commission does hereby declare an emergency to exist due to the need to
mitigate the local economic effects of the COVID-19 pandemic.
SECTION 4. Severability. The provisions of this Ordinance are declared to be
severable. If any section, phrase or provision shall for any reason be declared invalid, such
declaration shall not affect the validity of the remainder of this Ordinance.
SECTION 5. Effective Date. This ordinance shall become effective immediately
upon its adoption by affirmative vote of 2/3 or more of the legislative body.
Brandi Harless, ayor
ATTEST:
'EiAdsay Parish J ity Clerk
s
Introduced & Adopted by the Board of Commissioners April 14, 2020
Recorded by Lindsay Parish, Paducah City Clerk, April 14, 2020
Published by The Paducah Sun, April 17, 2020
ORD\Emergency — 2020 COVID-19 Grant Award
Ordinance Prepared Stacey Blankenship, KKHB