For Brian McClimens, opening a new endeavor came with unexpected costs. But with the help of the College Park Retail Attraction & Expansion Fund, the co-owner of The Board and Brew avoided major monetary struggles as he started the business.
“There are a lot of unexpected costs that come up along the way,” McClimens said. “Without the fund, we would have been in some trouble.”
The Board and Brew, a coffee shop with more than 500 board games for patrons, and Laser Essential, a specialized cosmetic center with skin-treatment services, are the only two College Park businesses that have taken advantage of the fund since it was created in February 2013, said Michael Stiefvater, the city’s economic development coordinator.
New or expanding businesses can apply for matching grants of up to $25,000 to help cover their improvement costs and extensions of 1,000 square feet or more. They designed the fund to attract independent, locally owned businesses to vacant retail spaces in the city, according to city documents.
“For years, our residents have expressed a demand for higher-quality retail, so we conducted research on programs from around the country and found that tenant improvement programs were successful in similar cities at attracting businesses,” Stiefvater said.
Laser Essential owner and manager Keith Bouchelion said he applied for the fund to help his business get on its feet by offsetting startup and construction costs.
Bouchelion said he likes the idea of the city trying to foster a more diverse business scene rather than supporting national franchises.
“It allows you to attract new businesses here, along with new technology, concepts and demographics,” he said. “College Park is a multiethnical part of Prince George’s County, and I think the more diverse the businesses are, the stronger the area will be.”
However, not all businesses are eligible. Coffee shops, grocery stores, fine-dining restaurants, music venues and theaters may apply for the fund, while businesses such as liquor stores, dry cleaners, fast-food chains and banks are not eligible, according to city documents.
The types of businesses the city has deemed eligible are indicative of surveys taken by College Park residents, Stiefvater said.
Business owners must also demonstrate that they own their spaces or have leases for at least three more years; at least half of the business must be owned by someone in the Baltimore-Washington metropolitan area; and the business must have 20 locations or fewer, with no more than five outside the local area.
The fund can be used to repair, replace or upgrade drywall, lighting, paint, windows, doors and plumbing, among other things, according to city documents.
McClimens said he wonders why few businesses participate, as he doesn’t see a downside to the fund.
“There is not really any kind of negatives to it from our end,” he said. “It certainly helped us.”
Stiefvater said officials want to be sure that an eligible store or restaurant will succeed, and businesses are often disqualified because they can’t obtain additional funding or finalize their leases. He said other businesses have applied for the grant and opened shop in College Park, but they were rejected after city officials reviewed their business plans and finances.
“While we want to support businesses, we are also responsible to the taxpayers for not giving out grant funds to businesses that are less likely to succeed,” he said.
Stiefvater said city officials are currently reviewing a few other business applicants for the fund.
The fund helped The Board and Brew deal with a struggle local businesses often encounter: having the money to start or improve their enterprise.
“We realize that local businesses face many challenges, including finding capital to open their doors,” Stiefvater said. “They do not have the support of a national team behind them, so we want to provide assistance specifically to them.”
