By Moses Leos III.
Like many business owners, Greg Henry, owner of Willie’s Joint and Bar on Loop 4 in Buda, has spent a pretty penny getting his new venture off the ground.
Henry hoped $10,000 in matching-fund grant money for improvements from the Buda Economic Development Corporation’s (EDC) Buda Improvement Grants (BIG) would relieve some of his façade-related expenses, but that option may be gone by the wayside.
By a unanimous 7-0 vote last Wednesday, the EDC board of directors voted to terminate the grant program, opting to find a more targeted alternative. But with a little more than $43,000 left in the BIG budget, Buda business owners, particularly those who applied for funds recently, wonder why the program was terminated.
On Jan. 26, the board placed a moratorium on BIG applications, saying the program had run its course.
Greg Henry, owner of WIllie’s Bar and Bar-B-Que in Buda, maneuvers a door during renovation of his soon-to-be-opened business on Loop 4. WIth the Buda Improvement Grant now on hiatus, Henry and other business owners wonder what Buda plans to do with the $43,000 remaining in the project. (Photo by Moses Leos III) |
Ann Miller, Executive Director for the Buda EDC, says the original goal of the BIG was lost in translation.
“The program has transitioned over the years,” she said.
The biggest issue appears to be some grant money spent on projects involving business interiors, not the exteriors as originally conceptualized.
Started in 2003, the BIG addresses “safety issues and improves the aesthetics of the downtown district” in commercial properties. According to Miller, downtown is defined as Main Street two blocks east and west of the intersection at FM 967.
The competitive grant is awarded on a first-come, first-served basis. Property and business owners can apply for the grant; business owners must get approval from property owners before applying.
The EDC awards $5,000 for beautification improvements, with a $10,000 maximum.
Prior to 2013, commercial property and business owners received grant funds up front.
Today, the BIG is a reimbursable grant, where recipients must spend funds first before Buda gives back. Technically, they are not grants but rather reimbursable funds.
Since 2003, the EDC has dispersed $187,884.91 to Buda businesses; in turn, Buda received back $43,380.
“It’s been quite an investment of tax dollars for downtown,” Sandra Tenorio, EDC board member said at the meeting.
According to Miller, the board discussed amending the BIG program, doing away with it altogether, or finding another means of support.
She maintained a lack of money was not a reason. In 2013-14, the EDC allocated $60,000 to the BIG program. They awarded $16,645.52.
“We’re having to look at the program as a whole,” Miller said. “It is for promoting business growth. We are not funding maintenance.”
Many on the EDC board took that argument on Wednesday, including former Buda councilman Ron Fletcher, who suggested the EDC “start fresh” rather than revamp the BIG.
However, some business owners claim abuse pushed the grant’s termination. Henry said some business and property owners used the money for upgrades other than beautification.
BIG applicant Lillie-Ann Alcala, owner of Helen’s Casa Alde, overheard such issues in years past.
“I was told there was abuse before,” Alcala said. “That’s not the business owner’s fault. (The EDC) should have had [more] control.”
Miller said she “wouldn’t call it abuse.” Instead, she felt “guidelines were followed” toward investment in the downtown district.
But many business owners ask, why now? And why terminate the project with $43,000 left to disperse?
Miller said there was a push to use the BIG for code enforcement and safety issues. She says those issues have been “resolved.”
Instead, she said the board aims to focus on a new program that targets specific improvements. Ultimately, she says the goal is to focus opportunities for (Buda) citizens.
“We have to make sure it’s for new business development that’s associated with property ownership,” Miller said.
But Alcala, Henry and John Sanford, part owner of Carrington House, feel the city should deplete the allocated funds.
Henry and Sanford were upset the EDC didn’t honor their applications before their decision was made.
Miller said both applicants applied after the moratorium was in place. She also said it would be an “injustice” if they acted upon either application.
Henry believes EDC should have done something regardless.
“I’d like to see them honor any applications that were submitted – even if it’s 100 or five – to deplete what’s left in that grant program,” Henry said.
Buda business owners are now left in limbo, awaiting the EDC’s next move.
Miller said the popular plan is to create a program slightly modified from the BIG and the existing $43,000 would roll into that program. She also said the new program would emphasize façade improvements.
Henry hopes a decision can be reached.
“If they don’t figure something else, I’ll have to go back to drawing board and figure out how to pay for some things,” Henry said. “Nothing is guaranteed, but we were counting on that money.”
