Well, good morning, everyone.

I'm uh Wendell Felder.

Uh I'm the Ward 7 Councilmember and the Chair of the Subcommittee on Local Business Development.

We're meeting at the John A.

Wilson Building on Room 500 and via Zoom.

The time is 1114, and the date is Monday, May 18th.

And we're going to call this an additional meeting on the subcommittee on local business development to order as we are as we are considering the report and recommendations on the fiscal year 2027 proposed budget and budget support act for the agencies under its purview.

But first, I want to acknowledge that we have a quorum consisting of council members Charles Allen, Anita Bonds, and Brooke Pinto.

The Department of Small and Local Business Development, the primary agency under this subcommittee purview, is in the district is the district's primary agency responsible for administering a city, a wide range of programs focused on small business growth, technical assistance, access to capital, procurement assistance, and neighborhood economic development.

The agency also plays an intricate role in supporting commercial corridor revitalization across the district with signature initiatives such as the main streets, the clean teams program, and the partnerships with business improvement districts.

Each of these initiatives serve as critical tools to help corridors activate public spaces, retain businesses, improve cleanliness and public safety, and create stronger neighborhood identities.

For many communities, these investments do more than support economic activity.

They hope stabilize neighborhoods, promote community engagement, and improve the overall quality of life for DC residents.

The goal of this subcommittee is to ensure DSLBD has the resources within this budget to move the agency forward.

Now the mayor's FY 2027 proposed budget for DSLBD includes 22,77,774 in operating funds and 750,000 in capital funds.

This represents a 2.2% reduction in the agency's operating budget between this year compared to last year, and a additional uh 250,000 increase in capital funds this year to upgrade DSLBD's district enterprise system to help businesses connect with contracting opportunities.

This budget includes 57 FTEs, the same number as last year's fiscal year.

The budget also shows that there will be additional staff to support the agency in legal services, information technology, and grant services.

The committee has no uh proposed changes to DSLBD's capital nor operating budget.

Uh it is also important to underscore that we have received transfers from the committee on executive administration and labor thanks to councilwoman Anita Bonds, who transferred $50,000 in one-time operating funds to create a new bin and roll main street to support the growth of an emerging corridor in Ward 7.

These funds are starting in the right direction.

However, between now and the finalization of the budget, I look forward to working with my council colleagues and friends in the budget office to fully fund this new main street.

Additionally, 25,000 and one-time operating funds from Councilwoman Pinto and the Committee on Judiciary and Public Safety was transferred into our subcommittee to enhance the work of the Upper 14th Street clean team.

Also, a transfer of $50,000 and reoccurring funds from the Committee on Human Services and Councilmember Matthew Fiuman to enhance the work of the Connecticut Avenue Clean Team, as well as $50,000 in one-time funds from the Committee on Facilities and Councilwoman Janice Law Shores to support the Tacoma Main Street.

We will also receive a $100,000 transfer in recurring funds from the business improvement district transfer agency to support the work of the Friendship Heights bid from the Committee on Human Services.

This report also considers the Budget Support Act for the fiscal year 2027.

We have recommended approval of two BSA amendments from the mayor's office.

The first is the Golden Triangle Business Improvement District Act of 2026.

This allows the bid authority to increase its tax rate by 3% annually, which is still subjected to ratification by its members, but a necessary measure for the bid's financial future.

Next, the Auto Knight Commercial Revitalization Support Amendment Act, which allows DSLBD along with other agencies to seek private partnership dollars to supplement its budget for Auto and Night, a wonderful arts event which happens across all eight wards of the district.

This subcommittee also proposes two uh budget subtitles.

The Navy R business improvement district redesignation changes the name of this bid from the Capital Riverfront bid to the Navy R bid.

And lastly, the final measure, the South West Business Improvement District allows them to receive necessary revenue from the forecoming changeover of six federal buildings into private ownership.

This subcommittee aims to both provide oversight and support DSLBD as it works to expand uh access to capital, support entrepreneurs, and invest in our commercial corridor.

While I appreciate the executive office of the mayor's uh proposal proposing just a modest reduction to DSLBD in the tough budget year, here's the reality we need more.

The operating budget is less.

The agency has less staff to support critical work regarding CBE certifications and compliance.

Furthermore, I look forward to developing new ways on how to improve the Main Streets program in a way that is fair and equitable.

The 29 Main Streets are tremendous value across the district, and the subcommittee's ultimate goal is to use the Main Street program to serve as a catalyst to jumpstart commercial corridor areas and communities that have been historically overlooked and underserved.

However, if we continue to maintain the status quo with the number of main streets and how they are funded, the program has the ability to exacerbate disparities between wards.

This subcommittee will explore how DSLBD can shift to recreating a needs-based and equitable funding formula to support main streets across the district.

A similar conversation is needed about the clean teams as well.

I also plan to have uh more conversations with DSLBD about how we can support local businesses and CBEs, particularly with the redevelopment of the RFK's campus by expanding access to capital, strengthening technical assistance and connecting businesses to RFK contracts.

This will be critical.

This will be critical.

We need both to build RFK, but we also need to create more opportunities for small businesses here in the district while putting residents back to work.

Now, before I close, I want to take a moment to acknowledge that this subcommittee maintains oversight of the business improvement district transfer agency.

So as we think about a framework for the next administration and the agency under the subcommittee's purview, let's also think about how business improvement districts can play a more significant coordinating role in our community.

Specifically, how we engage with our young folks to ensure that they are gathering in a manner that's safe and productive.

The subcommittee recognize that we have a lot of work ahead of us.

I just wanted to provide a snapshot on what's happening under our purview.

Now, before I move the report, I wanted to acknowledge a few individuals to help us get to this point.

First, I want to thank the director of the Department of Small and Local Business Development, Rose Murray Sutz Adams, for her coordination throughout the year.

A huge thanks to the subcommittee's responsive and thoughtful budget and analysts Sam Hodges, as well as Ang Jen and the rest of the budget team.

Thank you.

I also want to thank uh Alexis Burr and the Office of the General Counsel and the staff of the Chief Financial Officer for all their hard work and let us personally not lease.

I want to thank my team, start with my chief of staff, Dr.

Delia Hassel, my deputy committee director, Eric, uh Coach Amaro, as well as my full team, for all of the work that they've gone into this committee.

I will now move and open the floor to discuss the report and recommendations of the subcommittee on local business development on the fiscal year 2027 legit local budget act and the fiscal year under my agency's purview.

And with that, I will start with Councilmember Allen.

Thank you, Mr.

Chairman.

Um, first off, congratulations to you and your staff.

You've had the subcommittee for all of a couple of months.

Uh so when you took over with this jurisdiction, um, I remember being in this position myself where uh in the middle of the cycle, we had all of a sudden had subcommittees as part of the committee of the whole and had to chair that.

So just to you and your team done a great job of trying to get up to speed as quickly as possible, go through the oversight and budget process.

So just a kudos overall to you jumping in and taking over that important role.

Um I appreciate the the work that you've put together here and thinking through strategically how we help invest in our small businesses, our commercial and local corridors, and uh I think there's a lot of really good investments here.

Um, one element that I did want to uh to move an amendment, which I think had been circulated in advance.

I brought hard copies for my colleagues just to make sure in case they wanted or needed that.

Uh, we circulated it over email as well.

But um in the mayor's proposed budget, uh she struck funding that supported the H Street Northeast Corridor.

So this amendment would restore through a one-time transfer from the Committee on Transportation and the Environment a grant that's been issued by the Department of Small and Business Development to create and market a minimum of three events based around arts, live music, and collaboration between businesses and similar activation purposes to help increase foot traffic along the H Street Northeast Corridor.

Um we put in here that it must take place before September 30th, 2027, so it hits that fiscal year and to focus on the H Street Corridor.

The goal, of course, being to increase foot traffic and support our businesses along that important commercial corridor, and so would ask if you would accept that as friendly.

Uh, and it was circulated at 11 10 a.m.

this morning via email, but also had the hard copies here.

Thank you.

Uh, is there a second?

I'll second it.

Thank you.

It has been moved and properly seconded.

Any further discussion?

Hearing none, we accept your friendly amendment.

Thank you very much.

Any further discussion?

Oh, Councilwoman Bonds.

Yes, thank you very, very much.

Um, with a great deal of pride, I uh say that I I love your report.

Um, as my colleague has indicated, you know, you hit the ground running, but then you had a little economic development background.

So, you know, we kind of know that you're using your chops well.

Thank you very much for um this report, and I I find it to be pretty comprehensive for where we are in the growth or the I'll say flattening of our economy at this point.

And I see uh plans before us that can help us grow anew.

And so I just wanted to show appreciation for for that.

And of course, congratulations to your team.

And particularly to your new members.

Thank you very much for for your hard work.

I was very proud to uh join with you in moving forward the idea that we need to focus on the bidding road uh corridor because that's where we're going to have um our new stadium complex.

And so I'm looking forward to seeing how we grow that, and I certainly appreciate uh councilmember Allen's amendment because it's the right thing to do.

They're all very connected when you drive bidding road, you move into H Street Northeast, and we just really have to pay attention to our neighborhoods and the growth and development opportunities that they offer.

So thank you very much.

And I'm planning on voting for your package today.

Thank you.

Thank you, Councilwoman Bonds.

Uh Councilwoman Pinto.

Great.

Well, thank you so much, Chairman Felder and to your team for all of the hard work that went into this budget.

Um, and I know this has been a very tough budget season for everybody, but I really appreciate the committee's work, especially on the DSLBD budget.

Um, and congratulations for your first committee's uh first markup.

Um I wanna also thank you for maintaining the important funding that was allocated in the mayor's budget for the clean teams, which play such an important role in supporting all of our corridors, our businesses, our residents, and the environment.

And I appreciate you accepting uh a transfer from the committee on judiciary and public safety for the extension of the mid-city clean team for additional services along the 14th Street corridor, a corridor um enjoyed by everybody across the city.

I also want to commend the subcommittee for encouraging important recommendations for our bids and main streets to enhance youth programming.

Uh, appreciate your effort and partnership on that front across our government.

We are committed to providing additional opportunities for young people, especially our teenagers and partnering with bids and main streets can play an important role in this work.

So appreciate that.

Um I do have a question for you around the funding of our main streets.

Um, I know that Main Streets funding is a shared priority for us.

Um, is this an across the board cut that the budget has for every main street, or is the cut located somewhere else?

Uh thank you so much uh councilwoman Pinto for that question.

I will say that the main street uh funding in this proposed budget have stayed consistent.

Uh now there was some removal of uh one-time funds from last year.

Uh that's not reflected in this year, but for the most part, the main street levels have stayed consistent in this budget.

Because the last last year's enhancements were just as a one-time.

Yes.

There's no one-time in this year's budget, or you can look at it as last year's budget reflected an increase in some main street funding because of one-time funds, but this year uh that wasn't the case.

Okay, but for the main streets that are just dealing with their budgets, is it that all of them came down to what the proposal was last year, or that came from just a few of the main streets?

Could you repeat the second portion of your question?

I'm sorry.

I'm just I I can't tell where all the funding came from.

If it's a consistent across the board, all of the main streets came down, or if there are a few main streets that lost their one time enhancement.

Got you.

So they have been consistent across the board this year, with the exception of the ones who lost their one-time funding.

That was reflected in last year's project.

Okay.

Okay.

No, thank you.

I appreciate that.

Hopefully, we can work together with the full body on um making sure that our main streets have the funding they need, especially with your uh committee's good ideas around ensuring they could be partners in and supporting our young people.

Any further discussions?

Uh hearing none, at this time, I move the report and recommendations of the subcommittee on local business development on the proposed budget for fiscal year 2027 and the Budget Support Act for the agencies under its purview with the lead of staff to make technical conforming and editorial changes.

All those in favor, please confirm by saying I.