To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to enter into the Twenty-Eighth Commercial Area Revitalization Effort Program Cooperation Agreement between the City of Richmond, Virginia, and the Economic Development Authority of the City of Richmond for the purpose of providing for the operation of the Commercial Area Revitalization Effort (“CARE”) Program.

This ordinance authorizes the Chief Administrative Officer to enter into the Twenty-Eighth Commercial Area Revitalization Effort Program Cooperation Agreement between the City of Richmond and the Economic Development Authority (EDA). The CARE Program, established in 1992, aims to revitalize commercial corridors through loans and rebates. The agreement outlines the terms for the EDA to administer the program, which has expanded to twelve areas. In FY25, $312,987 in CARE funds were awarded to 22 applicants, leveraging $4.2 million in private investment. The FY26 budget includes $300,000 for the program. The agreement also includes new language to support beautification and activation efforts. The CARE program offers:

• CARE Loans: Up to $50,000 per project or $100,000 per applicant for property improvements, with a 4.0% interest rate and a 60-180 month amortization period.
• Commercial Leasehold Improvement Loans: Up to $10,000 for tenants to improve interior/exterior property, with a 4.0% interest rate and a 24-60 month amortization period.
• CARE Rebates: Up to 50% of eligible expenses, capped at $25,000 per building or $50,000 over 36 months, for exterior/interior improvements.
• CARE Area Support Grants: For events, festivals, and street-level vibrancy improvements, with grants up to $25,000 (potentially $50,000 with matching funds) for eligible entities.

This agreement continues funding and operational framework for the CARE program, which provides loans and rebates to businesses for property improvements in designated commercial areas. This can lead to enhanced storefronts, increased economic activity, and job creation within these corridors.

high