Reinvesting in Saginaw, Texas

Just over three years ago, the City of Saginaw’s Economic Development Staff developed an idea to “take care of what we have” by reinvesting in our existing business community. The redevelopment of mature sections of town can bring in the “new” while using and preserving unique characteristics of the city. After all, those same established businesses are what built this community. While new development is easier to accomplish, redevelopment is much more of an uphill mountain climb. However, it is definitely worth the hike. With this in mind, the Saginaw Building Improvement Grant Program was initiated.

Establishing a grant program that encourages local businesses to invest in themselves during the middle of a world-wide pandemic is not for the faint of heart. The COVID-19 Pandemic forced us to consider “swiveling” strategies and to seek more creative ways to achieve our goals. During this turbulent time, we heard so many stories of how businesses were faced with closing their doors, losing staff and revenues. Our approach was to effectually communicate to Saginaw businesses the benefits of various funding mechanisms to offset costs, and to achieve assistance for all by sharing costs (reinvesting) and seeking grants.

THE SAGINAW BUILDING IMPROVEMENT GRANT PROGRAM

The Saginaw Building Improvement Grant Program (BIG) is for any commercial business in Saginaw, Texas looking to enhance their business property visually, or in ways that increase the viability of the property for business use. This includes uses allowed in the zoning classifications: Community Commercial, Neighborhood Commercial, Office Professional, Light Industrial, Heavy Industrial, and within Planned Developments. The measurable goals of this grant program are to:

• Enhance the commercial viability and sustainability of commercial properties in the City;

• Improve the physical appearance of businesses and visibly enhance the City’s commercial corridors;

• Aid in the retention and expansion of existing businesses;

• Increase the taxable value of commercial properties in the City;

• Enhance commercial areas through the placement of Public Art;

• Increase the marketability and occupancy rate of commercial buildings hindered by an outdated appearance;

• Increase the safety of a commercial area and stimulate more public interaction; and

• Provide incentives in areas and to businesses most likely to stimulate similar enhancements by other private entities.

The BIG Program was established to provide matching grants to reimburse commercial property owners or business operators for “eligible enhancements” made to their properties. The ten (10) categories of enhancements that are eligible for consideration include Façade Enhancements, Interior Building Renovations, Landscaping, Lighting, Parking Areas and Driveways, Pedestrian Amenities, Signage, Code Compliance, Demolition and Public Art Installation. A matching grant for each category of property improvements is EITHER 50% of the total cost of the enhancement, OR $5,000 whichever is the lesser amount of the two. The grant award payments are provided only as reimbursements for improvements and not to fund 100% of the project.

The process is quite simple. Once the application has been received and vetted for completeness, the Economic Development Staff prepares an impact analysis for the improvement(s) to present to City Council. The City Council meets in closed and private Executive Session immediately following their next scheduled Regular Meeting to discuss the request and determine whether to approve a grant or not. If preliminarily approved, the Economic Development Department contacts the applicant to provide a response and to proceed with drafting a Chapter 380 Economic Development Agreement for both parties to sign if officially approved by the City Council at their next scheduled meeting.

At first, response from our business community was very skeptical and slow. However, once the first business received the grant, other local businesses saw the improvements made and the financial successes of their neighboring businesses who received the grants, and it encouraged them to reinvest in their own business. To date, twenty-seven (27) grants totaling over $116,000 have been awarded by the City of Saginaw with well over half a million dollars of improvements made by the Saginaw business owners. Not only was this a 463% return on the City of Saginaw’s investment, it also significantly helped the businesses property appearance and sales as well as changing the atmosphere in those sections of town.

BUILDING IMPROVEMENT GRANT "SUCCESS STORIES":

• "Guiso" (201 N. Saginaw Blvd.): This location was a vacant and abandoned building in our Central Business District for over 5 years. Because of the lack of a grease trap, it limited what businesses it could attract. The building/property owner was encouraged to apply for a Building Improvement Grant and was eventually awarded a $5,000 grant by the City Council to help pay for the installation and cost of a grease trap, thus opening the bright possibilities for the future.

o Total Cost of the Project: $30,350

o Reinvestment Grant Awarded: $5,000

o Total ROI: 605%. *NOTE: The return on investment (ROI) will actually be higher because the property owner now has a tenant who serves drive-thru Mexican food.

• "Julien & Lambert Professional Photography" (100 S. Hampshire, Suite 200): This was an abandoned cinderblock barn in Saginaw’s Central Business District for over 5 years bringing in $0 sales tax and very minimal property taxes. The building owner applied for a BIG Grant and was awarded $10,000 (2 separate grants) by the City Council to help with a renovation that included Enhanced Façade, Interior Renovations, Landscaping, Exterior Lighting and Signage, Code Compliance, HVAC installation and Insulation. This building now houses a nationwide commercial photography and marketing company who has become a pillar business of our community. This is a perfect REINVESTMENT example of what the BIG Grant can do!

o Total Cost of the Project(s): $53,154

o Reinvestment Grants Awarded: $10,000

o Total ROI: 531%. NOTE: The property value of this building has now increased by over 800% since January 2020.

• In both cases, what once was an abandoned building at a prime spot in our Central Business District is now a property with higher property values and a revenue and sales tax producing business.

The City of Saginaw has worked diligently with our local businesses building valued relationships and providing a program which resulted in “win-win” situations for both parties. Candidly, this grant program demonstrates the City of Saginaw’s commitment to local businesses. While the Saginaw Building Improvement Grant Program does not follow the Webster’s Dictionary definition of redevelopment, it is in fact “redevelopment” but in a more creative and subtle format. Over the past year, we have had an abundant number of municipal governments throughout the state of Texas contact us about this grant program and how they can reinvest in their business community. We are honored to oblige.