Submitted By: Roberto Ellis
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Presentation By: Roberto Ellis
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Department: Growth Management
FORMAL TITLE:
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Proposed program framework for a Retail and Restaurant Attraction, Retention and Expansion Grant
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub, Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Staff is presenting the proposed Retail and Restaurant Attraction, Retention and Expansion Grant (Grant Program) framework for board review and feedback. This program was first implemented by the CRA in 2015 but was discontinued after multiple Downtown CRA grants were consolidated for efficiency.
The retail-focused grant is now being revised following the discussions and feedback at the City Council Work Session held on June 9, 2026.
• Downtown has faced increasing pressure from shifting market dynamics, vacancy turnover, and rising construction costs.
• This initiative is intended to provide additional tools that promote quality reinvestment, attract and retain retail businesses, and stabilize long-term occupancy within the Community Redevelopment Agency (CRA) Downtown subarea.
The Grant Program is aligned with both Vision 2050 and the Downtown CRA Plan and is intended to concentrate resources on strengthening retail and restaurant activity within the Downtown CRA. As part of this transition, the previous commercial grant program will be discontinued, with funding redirected to support this new strategic initiative.
FINDINGS AND CONCLUSIONS:
The Grant Program is designed to incentivize high-quality renovations, encourage the expansion of retail offerings, and assist restaurants seeking to invest or grow in the Downtown CRA:
• Grants will target retail expansions, new retail establishments, and restaurant improvements within the CRA.
• Eligible improvements include façade Improvements and interior Renovations. Projects with multiple eligible, priority work items are considered more comprehensive and will be prioritized for funding. Comprehensive façade restoration and interior renovations aligned with Ocala Form-Based Code.
• Funding will cover 75% of project costs, up to $150,000, a significant increase from the previous program.
• An initial program budget of $500,000 will be established. The CRA may replenish funds annually based on grant activity, demand, and performance.
• To ensure stability and maximize public benefit, the following conditions will apply:
o Property owners or tenants receiving funding must maintain active occupancy for a minimum of five years.
o Property Owners must agree to keep lease rates at or below the rates documented at the time of application.
o The City will place a forgivable lien on the property to ensure compliance with occupancy, lease rate, and improvement requirements. The lien will be automatically reduced by 20% each year and forgiven at the end of the five-year term, provided conditions are met.
FISCAL IMPACT:
The proposed Grant Program is expected to preserve and enhance the quality of building structures, supporting long-term increases in property values. Additionally, improved building conditions and aesthetics can help attract new businesses and strengthen the economic vitality of the Downtown CRA.
PROCUREMENT REVIEW:
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LEGAL REVIEW:
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ALTERNATIVE:
• Approve with Changes
• Table
• Deny