The City of Milpitas informed the Milpitas Chamber of Commerce in October that it would be unable to provide the Chamber with $200,000 in American Rescue Plan Act (ARPA) funding. The move came at a time when the Chamber was dealing with internal divisions on its board of directors.<\/p>\n
In the midst of the COVID-19 pandemic, Milpitas received $16,736,815 in ARPA funding in 2021. The Milpitas City Council proposed using the funds for 25 programs in the areas of community services, economic vitality, infrastructure, public safety, and technology.<\/p>\n
In the interest of economic vitality, $200,000 in such funds were initially approved for the Milpitas Chamber of Commerce.<\/p>\n
However, in August, Council reversed course, instructing staff to halt the funding process. They required specific deliverables from the Chamber, such as 12-month financial reports, a work plan for the Art & Wine Festival in 2023, and an overall explanation of how the funds would be used. Said the letter, \u201cThe Chamber has submitted multiple, incomplete ARPA grant applications and staff has had to follow up to request additional details on financial position, key performance metrics and deliverables, some of which are still pending.\u201d<\/p>\n
The Chamber had provided financial information on September 15 that showed a net loss of 28% in fiscal year 2021-22; the City then characterized the Chamber’s financial health as unsound. The Chamber blamed its losses on the pandemic while vowing to reduce its staff to one person and work to increase membership and thus revenue.<\/p>\n
The Chamber also mentioned general plans for future events and workshops but provided no work plans, timelines, or funding information. The Chamber did highlight a job fair held in April 2022, which had approximately 20 businesses participate and 143 job seekers in attendance.<\/p>\n
In an email exchange with The Milpitas Beat, new Chamber President Inderjit Mundra wrote, \u201cWe are in discussions with the City to release the first $100k tranche as reimbursement of the extensive funds the Chamber has already expended. These discussions included a deep review of our projects, financials, and pertinent information. Board Leadership, Council, and City Hall staff have been deeply involved and we look forward to the release of that initial $100k tranche.\u201d<\/p>\n
Asked about the discussions referred to by Mundra, City of Milpitas Economic Development Director Alex Andrade told The Beat, \u201cThe documents provided by the Chamber were unable to demonstrate sound financial health nor were they able to provide detailed workplans with key milestones and resources. The City has not received any additional information from the Chamber since the October 19 Info Memo.\u201d<\/p>\n
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