TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: SEPTEMBER 8, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
COMMUNITY DEVELOPMENT BLOCK GRANT JOB CREATION AND BUSINESS INCENTIVE PROGRAM FOR COMMON THREAD CLAREMONT (FUNDING SOURCE: COMMUNITY DEVELOPMENT BLOCK GRANT FUND)
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SUMMARY
Common Thread Claremont (Applicant) has applied for $25,000 in funding through the City’s Community Development Block Grant (CDBG) Job Creation and Business Incentive Program to expand its current business and open a retail location for fabric and notions. The funding will be used for working capital and equipment purchases.
In exchange for the $25,000 forgivable loan, the Applicant must create and maintain one full-time equivalent (FTE) income-eligible job for persons with extremely low- to moderate- income for a period of two years.
RECOMMENDATION
Recommended Action
Staff recommends the City Council approve the funding request in the amount of $25,000 and authorize the City Manager to enter into a forgivable loan agreement with Common Thread Claremont.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Do not approve the request.
B. Approve the request with a different funding amount.
C. Request additional information from staff.
FINANCIAL REVIEW
The CDBG Job Creation and Business Incentive Program budget for 2026-27 is $50,000, and the proposed forgivable loan would reduce the balance to $25,000. This would allow the City to fund an additional $25,000 forgivable loan this fiscal year.
The cost to prepare this report and administer this program is estimated at $2,500 and is included in the operating budget of the Community Development Department.
ANALYSIS
The CDBG Program is a Federal Block Grant Program that began in 1974, which provides funding to cities and counties to carry out programs and projects designed to benefit low-income persons. As a member of an Urban County Agreement, Claremont receives its CDBG funding from the Los Angeles County Development Authority (LACDA). LACDA performs many of the administrative tasks required to comply with Federal Regulations of the CDBG program.
Application
The City received an application from Common Thread Claremont for CDBG Job Creation and Business Incentive funding. Based on the existing availability of CDBG funds, the number of jobs created, and the City's increase in sales tax base, $25,000 in assistance is recommended. The funds may be used for working capital, inventory, marketing, employee development, business expenses, and equipment purchases. If approved, Common Thread Claremont will expand its gross floor area by more than fifty percent.
Applicant
Common Thread Fabric & Supply Co. is an independent retail fabric-and-notions shop proposed as an extension of Common Thread Claremont, a sewing studio on Foothill Boulevard that is celebrating its tenth year of operation. The new retail location will occupy the adjacent building space at 228 West Foothill Boulevard, offering curated fabric, patterns, kits, and sewing and crafting supplies to makers in Claremont and neighboring cities.
The Applicant, Yvonne Cervantes Coleman, has more than 35 years of experience working professionally as a costume designer and costumer in the film and production industries. She founded the original sewing studio in 2016 and relaunched it as Common Thread Claremont in 2019, growing it into an established sewing education business with six instructors.
The Applicant’s financial background is sound and represents good business acumen as described below:
1. The Applicant has sufficient collateral to secure the funding and has provided personal guarantees from the owners.
2. The monthly project cash flow statements have been provided and indicate that the proposed retail store is viable within the established business plan.
3. A review of the submitted documentation disclosed no undesirable credit applications.
4. The Applicant meets the criteria in the Program Policy and will achieve several of its objectives.
Job Creation
In exchange for the $25,000, the Applicant is required to create one FTE income-eligible job during the first year of operation. The job must be filled by a person from an extremely low- to moderate-income household as established by the Los Angeles County CDBG income guidelines.
The income-eligible job must be maintained and reported to the City for two years. The creation of this job and the additional sales tax generated from the business will aid the City in its economic development efforts. To meet reporting requirements, the Applicant will submit a quarterly report to the City, which will document the jobs by employee name, job title, hours worked per week, and hourly pay rate for income-eligible employees.
Evaluation of Application
Staff conducted a thorough review of the applicant's eligibility for funding. The Applicant’s request meets the following goals outlined in Section X of the Program Policy, which are to:
1. Fulfill a need within the community.
2. Create income-eligible jobs for persons with extremely low-to moderate-income.
3. Generate increased sales tax for the community.
4. Create opportunities for recruiting new businesses to fill commercial vacancies.
5. Encourage additional foot traffic and social activity within the proposed business location.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Economic Sustainability Plan, and the 2026-28 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Senior Management Analyst
Attachment:
CDBG Job Creation and Business Incentive Grant Policy