by Emily Canning-Dean
Reporter
Bedford -- The city is trying to find new ways to attract businesses to the downtown district.
One approach city officials are taking is to offer assistance to businesses in an area that can become expensive -- paying the rent.
At a work session Oct. 15, Economic Development Director Rebecca Corrigan proposed to Council some ideas to form a rent subsidy program. No official action was taken.
"The city would funnel funds through the Community Development Corporation," Corrigan said. "This would be non-tax revenue."
The CDC is an organization that helps to promote economic development within the city.
Corrigan said new businesses in the downtown area would be eligible. She proposed that they could receive up to a 30 percent refund of monthly rent for up to two years. The refund would be no more than $450 per month.
"One of the biggest financial strains on a business can be overhead," said Corrigan.
Ward 5 Councilor Greg Pozar said he was concerned about the longevity of these businesses.
"Would there be a way to recover funds if the business leaves?" Pozar asked.
Corrigan said the city could add wording in the grant application explaining what would happen to the reimbursement if the business left too soon.
"We also could demand that businesses receiving the reimbursement have a business plan and we would only reimburse rent that has already been paid," she said. "We also could require that the business create a minimum of five jobs."
Ward 2 Councilor Stan Koci said he was concerned that existing businesses would feel slighted.
"I would like to see us do something to reward longevity such as a tax abatement if a business has been there for more than five years," Koci said.
Council members said they would consider the information further.
Editor's note: This news was first posted on Oct. 23 at www.BedfordTimesRegister.com.
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