Businesses in light rail work area will get aid

1. fls
Businesses in light rail
work areawil get aid
By Art Thomason way to soften the blow," but wondered if it
The Republic I azcentral.com would be enough to reimburse businesses
for the financial hardships.
Mesa is planning to provide finanliat Benelli said that she and other creators
aid and other assistance to businesses dis- ofthe program would evaluate the aid be-
rupted by construction that begins next fore returning to the council this fall with
year for the 3.1-mile extension of light a final draft. She said they proposed fund-
rail. ing it with utility revenue because 70 pet
City executives and staff are still cent of businesses along the light-rail
smoothing details, but about 175 busi- route are within the city's electric service
nesses along Main Street, from the Syca- area.
more Street station in west Mesa to Mesa Under the current plan, assistance
Drive, would be eligible for up to $2,500 in would cap at $2,500 annually per cus-
annual deductions from their utility bills, tomer during construction and would be
according to the concept unveiled Thurs- applied directly to the business' monthly
day during a City Council study session. bill for electricity.
The approximately $200 million light- Benelli said Main Street businesses be-
rail line will require about 40land acquisi- tween Sycamore and Alma School Road
tions to accommodate right of way, tracks, are not eligible for financial assistance
stations and other infrastructure. Most because they are outside the city utility
would be for only small slivers of land. area, but they qualify for other assistance
. Urban planners and some business such as accounting, financial reporting,
owners expect that the project, when marketing and sociai media, information
completed, will energize Main Street and technology, and human resources.
businesses by pouring hundreds of light- Smith and City Manager Chris Brady
rail commuters a week on the doorsteps of said the program doesn't appear to pose
shops, restaurants and service outlets. legal problems because the asiistance
The business-relief program, which would come from profits generated by the
has received verbal support from City city-owned electric utility
Council members, evolved after months taining enterprise
- a self-sus-
and would be based
-
of brainstorming sessions among city eco- on specific losses incurred by the busi
nomic development and electric utility nesses.
executives and Terry Benelli, executive Frank McRae, director of the city's En-
director of the Neighborhood Economic ergy Resources Department, said about
Development Corporation, to find a way $t0 million a year from the utility's $34
to help small businesses bridge setbacks million in gross revenue is transferred to
generated by light-rail construction over Mesa's general fund.
the nextfive years. NEDCO is anon-profit Brady said the program's final draft
that provides financing for smallbusiness would have to remain flexible to accom-
and community development projects. modate a variety of businesses in terms of
The program is part of a public-private their size, number of employees and
partnership that will be administered by losses incurred from construction.
NEDCO to qualifying businesses. Benelli said that she and the economic
NEDCO will also contract with consult- development office are marketing the
ants to provide technical assistance to af- program through visits to businesses and
fected businesses. social media such as Facebook.
The city's economic development of- "Social media seems to be everybody's
fice and Valley Metro, which oversees the hot button," she said.
regional transit system, will align the pro- "Every summer expenses for these
gram with other business assistance en- businesses go up and revenue declines,"
terprises. she said. "It's essential that the city mini-
Mayor Scott Smith called it "a creative mize that impact."
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