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File Number: 21-482 <br />Among the next steps that staff will take to help businesses and property owners prepare for the <br />ending of the commercial eviction moratorium are: <br />- Notification - perform broad outreach to let businesses and property owners know about <br />the end date of the moratorium. <br />- Information - provide information on the details of the eviction moratorium, what the <br />procedures are to participate, what tenant’s rights are, etc. <br />- Assistance - connect businesses with no or low-cost assistance in working with their <br />landlords, including free legal resources, webinars, etc. <br />- Funding - inform businesses of available funding and programs to assist in rent <br />repayment, increasing customer base, marketing/online presence, and more. This <br />includes information on the California Small Business Grant program. <br />It is unclear exactly how many businesses are behind on rent in San Leandro. However, a <br />national small business survey done by Small Business Majority in early 2021 found that 25% of <br />respondents were 3 or more months behind on rent. Similar results were seen in the San Leandro <br />Small Business Survey, where 22% of respondents indicated that they were behind on rent. If this <br />rate were applied to all ‘brick-and-mortar’ businesses in San Leandro, over 1,000 businesses <br />could be behind on rent. <br />While technical and financial assistance is available, more is needed. With many small service <br />businesses required to be totally closed and not receiving income for over 8 months, and the high <br />costs to operate in the Bay Area, businesses’ needs greatly exceed available funding. While <br />many San Leandro businesses participated in available federal, state, and local grant and loan <br />programs, many have not successfully utilized the programs or found the funding to be only ‘a <br />drop in the bucket’ of their needs. This is seen in San Leandro’s Small Business Survey, where <br />23% of respondents had received no COVID-19 financial assistance and the top two areas that <br />businesses said it would be helpful to receive assistance with going forward were additional grant <br />funds (69%) and assistance applying for funds (44%). <br />Staff continues to evaluate businesses’ needs and available funding and in the coming month will <br />propose an allocation of San Leandro’s available federal and state funding, such as that from the <br />American Rescue Plan Act (ARPA), to assist businesses. This is expected to include small <br />business grants, technical assistance, and online marketing assistance, among other things. <br />Legal Analysis <br />The City Attorney drafted the urgency ordinance. This Ordinance is proposed and drafted <br />pursuant to the City’s general police powers, section 1-1-345(b) of the City of San Leandro <br />Municipal Code, and Article XI of the California Constitution. <br />Fiscal Impacts <br />There is no impact to the General Fund. The ordinance could be relied upon as an affirmative <br />defense in a court proceeding for an unlawful detainer action. Therefore, there is no staff work <br />associated with implementing the ordinance other than providing notifications to the community, <br />the cost of which will be absorbed by existing departmental budgets. <br />Page 4 City of San Leandro Printed on 9/2/2021 <br />503