Austin is advancing two economic support incentives totaling nearly $140,000 to East and Southwest Austin legacy small businesses, with the first approved by City Council in March.
The setup
Austin Economic Development Place-Based Enhancement Program is aimed at providing affordability relief to longtime local businesses, nonprofits and creative entities. The program is one of several commercial incentives offered by the city, and is designed to offset economic pressures on businesses and groups providing a “high community impact” in Austin, according to the economic development department.
“Austin’s creative and community-serving organizations are essential to the strength and character of our local economy,” Anthony Segura, Austin Economic Development deputy director, said in a statement. “Programs like the Place-Based Enhancement Program help ensure that legacy institutions, from performing arts venues to childcare providers, can continue serving our community while contributing to Austin’s economic strength.”
The specifics
A five-year incentive for up to $107,803 with The Vortex, a nonprofit community theater with a bar and eateries, was advanced by city officials March 12. The 38-year-old creative space was labeled as a legacy local business by the city, and support was needed given to lost revenue caused in part by recent National Endowment for the Arts cuts.
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The economic agreement will help restore lost funding and stabilize the business, including the reestablishment of some staff positions, “better positioning The Vortex for long-term property acquisition,” city staff wrote. Council member Natasha Harper-Madison, who represents District 1 where the theater is located, said businesses supported by the city program are contributors to both Austin’s economy and creative identity.
“Communities that surround businesses make them strong, and vice versa,” she said. “I just really appreciate that we have the opportunity to talk about agreements that help small businesses stay in small communities.”
Austin expects up to $1.12 million in direct benefits from the incentive deal and the theater’s continued operation, including over $1 million in tourism-related spending from nonlocal patrons.
The economic development department is also advancing a place-based incentive with the Circle C Child Development Center in Southwest Austin. The neighborhood preschool is in line to receive nearly $31,000 over five years to help offset property costs for what the city noted as a narrow-margin business.
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