Economic Development
Economic Development Incentives
G-TOWN IDEAL
PROGRAM PURPOSE
IDEAL, which stands for Investment in Downtown Economic Assistance and Livability, is an economic incentive program of the City of Gastonia precisely targeted to offer short-term, start-up financial assistance to new restaurants, retailers, and entertainment venues within a narrowly identified core of the City’s traditional urban downtown.
PROGRAM FEATURES
- The program offers direct incentive grants, in the form of partial reimbursement of lease and/or up-fit expenditures, associated with the opening of new restaurants and retailers, meeting the eligibility and location requirements further detailed herein.
- Funding for the program comes from the Municipal Service District (MSD) property tax levy and is limited in any given fiscal year to the total program expenditures allocated and approved by actions of the City Council, and contained within the MSD budget for said program, within said fiscal year. Funding awards are merit-based and provided on a first-come first-served basis subject to funding limitations.
- Potentially eligible recipients of program assistance must apply for funding assistance and receive formal approval by action of the Gastonia City Council, in advance of their business opening in order to eligibly receive reimbursement under the terms of the program. This is because the incentives are designed as “but-for” incentives, meaning that, “but for the incentive’s certainty of being granted, as evidenced by advance approval by City Council action, the business could not otherwise justify the total economic risks associated with opening in the designated MSD location.” This assessment of economic risk and justification is to be evaluated within the application process and review as performed by City staff on behalf of the City Council.
ELIGIBILITY AND LOCATION
To be eligible to apply for funding assistance under the IDEAL program, the following criteria must be demonstrated:
- Business must be owned and operated as a “for profit” enterprise, open and accessible to the general public on a non-discriminatory basis.
- Business must be contained within a building, buildings, or portion(s) thereof within the established Municipal Service District (MSD) of the City of Gastonia.
- Business must be new to the MSD. Businesses simply relocating within the MSD or from another pre-existing City location to the MSD are not eligible unless they: 1.) represent an improvement, increased investment in, or expansion of said business; 2.) are an additional location in a chain of said business(es); 3.) are moving to the MSD so that
their previous location can, in turn, house another business new to the City of Gastonia; or (4) are unable to continue in their present location due to circumstances not within the control of the business, including but not limited to a 10 percent or more increase in rent.
- Business must be either a category I, II, III, or IV use as described:
- I. RETAIL TRADE: Engaged in the sale of new merchandise offered at retail to the general public. This shall include the sale of antiques, quality crafts, and fine arts, but shall exclude the sale of second-hand or thrift-type merchandise, or merchandise offered at wholesale to select customers or customer groups. Preferred: specialty and gift; home décor and accessories; wine and gourmet foods; books and assorted media; jewelry and accessories; men’s, ladies’, and children’s clothing; shoes; floral products; art supplies; toys, hobbies, and collectibles; arts; antiques; and electronics.
- II. RESTAURANT: Engaged in the sale of prepared food and beverages primarily for on-site consumption. Preferred: full-service ethnic and specialty restaurants; cafés; brew-pub; and destination-type quality dining.
- III. THEATER: Engaged primarily in the presentation, for a fee, of on-site performance of live or recorded vocal and instrumental music; theater; dance; comedy; or combinations. To include motion picture theaters; performing arts centers; dinner theaters; and comedy clubs, but excluding adult entertainment. Preferred: dinner theater, and comedy clubs.
- IV. PUBS, BARS, LOUNGES: Engaged in the presentation of sports and entertainment programming, live or via video display; along with the sale for on-site or take-out consumption of limited-menu prepared food, but where the majority of gross revenues are derived from the sale of food and beverages consumed on-site. To include sports bars, pubs, wine bars, cigar clubs, and limited-menu brew pubs. Preferred: wine bars, pubs, and up-scale lounges.
INCENTIVES
1.) UP-FIT GRANT:
Businesses deemed eligible per the guidelines herein, following formal application and City Council approval, shall receive:
- A one-time incentive grant up to:
$3.00 per square foot of total dedicated space occupied by category I or IV business use.
$5.00 per square foot of total dedicated space occupied by category II or III business use.
- Payment of up-fit grant assistance funds shall be remitted from the City to approved grant recipients (who shall be the business owner) within 30 days following the submittal and approval of both contractor lien waivers and paid invoices evidencing actual up-fit expenses totaling not less than two times (200%) the total grant award. In other words, grant must cover no more than 50% of total business up-fit expenses.
Example: Retail up-fit at $3.00/sq. ft. x 2,000 sq. ft. = $6,000.00 award. (If up-fit expenses total at least $12,000.00).
2.) RENT SUBSIDY
Businesses deemed eligible per the guidelines herein, following application and City Council approval, shall receive:
- A monthly cash payment, not-to-exceed 12 consecutive months, which cumulatively totals up to:
$3.00 per square foot of total dedicated space occupied by category I or IV business use(s).
$5.00 per square foot of total dedicated space occupied by category II or III business use(s).
- Payment of rent subsidy funds shall be remitted from the City to the approved grant recipient (who shall be the business owner) within 30 days following the submittal of paid invoices evidencing actual rent paid for that month. Rent paid invoices or receipts should be submitted to the City for reimbursement in a timely manner; the City will not make rent subsidy reimbursement payments more than two years after City Council approves the application. Rent subsidy payment shall not exceed fifty percent (50%) of total rent paid for any given month.
- All amounts due and payable to the City of Gastonia, including but not limited to utilities and property taxes, must be kept current before any reimbursements are paid to the grant recipient.
APPLICATION AND SELECTION CRITERIA
- The selection process will include a thorough review of the application and accompanying support data and at least one interview with the applicant by a designated City staff committee. Applicants must submit the following to be considered for any of the assistance incentives described herein:
1. A fully completed standard application form as attached.
2. A letter of intent to lease or purchase or a signed lease/purchase contract contingent on receipt of incentives.
3. A complete business plan.
4. Marketing plan for the business.
5. Cost-estimates for up-fit and/or equipping the occupied space.
6. Detailed personal, financial, and business history and experience should be available for review and possible submittal during the application process.
7. Applicable financial statements and/or a pro-forma of business operations should be available for review and possible submittal during the application process.
- Award selection is competitive. Greater consideration will be given to business concepts deemed “preferred,” as well as to those committing greater levels of total private investment and/or creating more jobs.
- A maximum total grant award under all programs shall not exceed $30,000.00 total for any category II or III business use; and $16,800.00 for any category I or IV business use.
- The Gastonia City Council shall have final authority and discretion over the award of any or all grants, subsidies, rebates, or incentives under the G-Town IDEAL Program, and may or may not continue, alter, or discontinue funding for any or all of the programs at any given time or for any extended budget year or award cycle.
Click here for the IDEAL Application
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