In just over a year, Killeen exhausts about $30 million in ARPA, grant funding for nonprofits, businesses

Through business grants, American Rescue Plan Act funding and Public Facility Corporation money, the city of Killeen has spent about $30 million since March 2021 on public services, nonprofit causes and youth sports.

Money for business

The most recent recipients are seven companies that received a combined $965,812 in what the city calls its ARPA Downtown Start-up Grant. The Herald requested on Sept. 2 the contracts City Manager Kent Cagle signed with the business owners on Aug. 31 but has neither received them nor given an explanation as to why it hasn’t received them within the 10 business days provided by the Texas Public Information Act.

Twice As Funny, a comedy lounge, received the most grant money ($306,000) of all recipients, The others are Aromas Cigar Lounge ($239,953); Space Create ($128,578); Khaniesiology ($95,000); Let’s Eat Texas ($89,000); Rincon de Panama ($87,500); and Braids and Brows by Chris ($19,781).

The Herald asked the city’s communications department to explain how the grant amounts were determined for each business but did not receive an answer.

“The Downtown Killeen Start-Up Grants have allowed local businesses and entrepreneurs to dream of what is possible in our downtown,” said Kate Kizito, the city’s new downtown revitalization director, in a news release distributed on Sept. 1. “I am excited to see established businesses like Rincon de Panama use these funds to renovate, and Let’s Eat Texas use the grant to reopen their dining room after COVID-19 shut it down. Still, I am most excited to see five new businesses renovate and reactivate currently vacant buildings downtown.”

According to documents, the city of Killeen through the American Rescue Plan Act is “making assistance available to entrepreneurs interested in starting or expanding businesses within the north Killeen and historic downtown area.” The program is intended to “build stronger communities and allow more access to economic opportunities in areas disproportionately impacted by the coronavirus pandemic.”

The Small Business Relief Program and the Downtown Start-Up Grant program have been allocated $1 million.

President Joe Biden signed ARPA into law in 2021 — a nearly $2.9 trillion economic stimulus bill that allocated $350 billion from the Coronavirus State and Local Fiscal Recovery Fund for state and local governments.

PFC money

The City Council on Sept. 13 awarded $10,000 apiece to 11 nonprofits through Killeen Public Facility Corporation funding — Killeen Trojan Youth Sports, Killeen Creators, KIDZ University, Heart of Texas Goodwill Industries, Let’s Take A Step Together, Killeen-Fort Hood Kappa Alpha Psi Education and Leadership Foundation, CTX Flames, 5 Pearlz of Hope Foundation, Greater Vision Community Church, Drive Nation Central Texas and Central Texas Youth Services Bureau.

The Killeen Public Facility Corporation, or PFC, is comprised of the members of the City Council as well as Cagle to oversee the creation of the $51 million Station42 apartment complex in north Killeen, near Business 190 and W.S. Young Drive. As a joint venture between PFC and NRP Group, the developer is not obligated to pay property taxes during its 75-year lease.

The PFC will own the 26.5-acre property where the apartment complex is built. NRP is the leaseholder and operations, maintenance and collection of monthly rent would be the responsibility of NRP.

It is the first such arrangement in the city’s history, with the PFC created solely to accommodate the mixed-income apartment community. And after the contract was closed, NRP Group paid the city $350,000 in closing fees and $85,000 to the city’s Parks and Recreation Department for improvements to Conder Park, adjacent to Station42.

Additionally, starting in the fourth year after the project’s completion, the agreement calls for the city to receive more than $100,000 per year via cash flow from carried-interest amounts.

Through a public-records request, the city provided PFC grant applications for the most recent 11 organizations to receive a chunk of the $350,000 that the city received from the closing costs.

As part of the application process, the nonprofits were required to explain how they will spend the money and who they will help. The following is their answers:

Drive Nation Central Texas

The year-round travel basketball club serves athletes in third-grade to those 17 and under so they can “develop and display their basketball skills and talents in Central Texas.”

The funding is expected to help 100 athletes through the program.

CTX Flames

About 120 student-athletes ages 4-18 are expected to be served by the track club.

“The service that CTX Flames will provide with the use of the funds to our youth athletes will be the use of safe and proper facilities to train,” according to its application.

“CTX Flames spend $6,000 to $9,000 each quarter to use public school district facilities because Killeen does not have “open tracks or facilities.”

Killeen Trojans

This program teaches football, volleyball and cheer to different age groups in multiple divisions, up to 17 years old.

“Our objectives are to teach the kids the games of football (and) volleyball and make the games safer; to develop proficiency in those sports and cheerleading with its related activities,” according to its application.

Killeen Trojans also teaches “concepts of teamwork, sportsmanship, loyalty, honesty and pride.”

The grant will used to “improve our programs ... while reducing their requirements to meet other fundraising goals.” It is expected to help about 215 student athletes.

Killeen Creators

Partnering with Second Half Productions Branch Us Media Center, Killeen Creators provides “a sustainable youth media training and digital storytelling program for Killeen youth on a sliding-fee scale based on federal poverty guidelines.”

With the grant money, Killeen Creators will offer classes in film, audio, graphics and “music creations ... to 4-8 students who could not normally afford these classes.”

The program is expected to help at least 12 students ages 10 to 21 each semester.

5 Pearlz of Hope Foundation

About 75 girls ages 4 to 18 will be helped by this program that “provides a positive outlet for the youth” through higher education and promoting “individual and community development.” The organization “provides scholarships and career readiness workshops” and conducts community education programs and service programs.

According to its application, the grant will be used to “support the youth engagement program objectives” that “enhances the educational and social emotional well-being of the participants.

Greater Vision Community Church

The church operates Open-Gym, a program of athletic and interpersonal activities for children and youth ages 6-17 that involves free play and discussion on rules, sportsmanship and fair play.”

A gym, stage, volleyball court and softball, football and soccer fields are on more than 21 acres the church uses for the program expected to serve 45 to 50 participants.

Let’s Take A Step Together

Created to “connect at-risk children, foster kids, and aging-out youth to community resources they may need during their time of adversity and along their journey to childhood,” funding from the grant will be used to provide access to transportation “to help ensure youth within the program have access to Hop bus tokens” as well as to cover Lyft and Uber fees and driver’s ed courses, according to its application,

The grant is expected to help about 200 youth over 12 months.

Central Texas Youth Services Bureau

This organization provides services to “homeless youth ages 16-21. We project to serve 10 youth and their children through four apartments, two shelter beds and one 2-bedroom house ... in Killeen. Youth enrolled in the transitional housing programs may stay for 18 months but the average length of stay is 10 months with the provision of after-care services.”

Grant funding, according to the application, will be used “to supplement three transitional housing programs operated by Central Texas Youth Services: Transitional Living Program, Maternity Group Home Program and Transitional Living Program II. These programs are offered in Waco, Temple and Killeen.”

Central Texas Youth Services Bureau helps more than 200 people ages 16 to 25 each year in Killeen, according to the application.

Heart of Texas Goodwill Industries

Through the Accelerate Program, Heart of Texas Goodwill Industries “provides upskilling and workforce readiness to youth and adults. Goodwill will (use) the (grant) funds to provide scholarships for participants seeking credentials and certifications for youth in Killeen ,,, that will aid the participants in finding employment within in-demand occupations.”

Funding will help five to 10 people ages 16 to 24.

KIDZ University

This organization, according to its application, develops “successful future leaders, innovative thinkers, healthy individuals and motivated (participants) through strong partnerships, innovative programs and various opportunities.”

About 100 low-income and at-risk participants in the organization’s before- and after-school and summer programs will be served by the grant.

Killeen-Fort Hood Kappa Alpha Psi Education Foundation

Created in 1922 as a national service program of Kappa Alpha Psi Fraternity, the organization provides “awareness, education and exposure to professionals (and) career options” and offers “social guidance” for boys in 5th to 12th grades.

Mentoring, academic guidance, tutoring, resume assistance and college prep and military training will be offered to 250 participants through the grant, according to the application.

Other PFC grant recipients

City Council members in August also awarded $10,000 each to CASA of Bell and Coryell counties, Central Texas Gray Wolves Youth Sports Association, AYADD Outreach Center, Church of Deliverance, Educated Angels, Garden of Hope of Central Texas, Hope Restoration Center, Killeen Cove Chief Youth Sports Association and Songhai Bamboo Roots Association.

The Herald asked the city to provide applications from those recipients on Friday but has not received them. In all, 20 organizations have received a combined $200,000 of PFC money.

“There is $150,000 remaining of the allocation,” city spokeswoman Janell Ford said.

ARPA funding for nonprofits

The Herald reported in August that six nonprofit organizations have received $150,000 in ARPA funding. They are Dazona Life and Learning Center, Unity Visitation Center, Greater Killeen Free Clinic, Operation Phantom Support, Variety, the Children’s Charity of Texas and The Academy for Exceptional Learners.

“There is $90,000 remaining of the allocation,” Ford said. “A second round of this grant period is currently open for submissions and will close November 24, 2022.”

To receive the funding, applicants’ services must be “directed at low to moderate income residents, residents disproportionately impacted or located in a qualified census tract.”

The rest of the money

The vast majority of the nearly $30 million the city received in ARPA funds went to capital improvement projects, including the Emergency Operations Center ($11.9 million), public-safety premium pay ($4.4 million), hotel occupancy tax fund ($2.13 million), Boys & Girls Clubs of Central Texas ($750,000), downtown events ($200,000), mental-health program ($500,000), police range and training facility ($250,000), Hill Country Community Action ($200,000) and Conder Park ($2 million).

Other capital improvements include Long Branch Pool ($590,000), Long Branch Park ($500,000), Stewart Park ($600,000), Phyllis Park ($300,000), gap sidewalks ($750,000), backup generators ($500,000), Hill Country Transit District ($1.1 million) and Rainy Day Fund ($1 million).