A downtown business-improvement association will launch a new pilot program in October aimed at helping street vendors and other small food businesses start up more cheaply.

Under the program, businesses that open up at the Partake shared-use commercial kitchen in the East Village could get a refund on hundreds of dollars in fees they pay to the Downtown Long Beach Alliance.

The pilot program applies to new businesses that attempt to serve as pop-up restaurants by renting time at Partake to prepare their food.

It came about after some tenants “expressed frustration with the costs of opening up” at Partake, said Austin Metoyer, president of the DTLB Alliance, which is authorized by the city to collect a licensing fee on downtown businesses to help fund their operations.

Despite using the kitchen space for only a few hours a week, small food businesses are charged the same business license fee as brick-and-mortar restaurants.

This fiscal year, the DTLB Alliance received $548 from businesses opening at the Partake, Metoyer said. However, a new rate will be adopted next fiscal year, starting in October, meaning the exact reimbursement will be based on that new rate.

To qualify, a business must:

  • Be new and use the commercial kitchen space at least 10 hours a month
  • Submit a form attesting that they don’t operate a business full-time out of the shared-kitchen space
  • Provide proof of a city-issued business license and health permit
  • Provide a copy of the hourly rental agreement or operator verification
  • Provide proof of business improvement district assessment payment

The eligible businesses can opt for one of two options:

  • If they opt for the full refund in year one, they would receive no services from DTLB Alliance, like marketing or placement at events held by the business improvement district.
  • If the business opts to wait until year two in operation to receive the refund, it would receive those services during its first year in operation.

The pilot program was approved unanimously on Wednesday by the DTLB Alliance board of directors. It will run for one year with the option to renew for a second year. For the first year, a maximum of 15 businesses can receive the refund.

The Board of Directors also told DTLB Alliance staff to work with the city to explore creating a shared kitchen category within the business license framework.

“Right now there isn’t one, and that’s kind of why we’re having this problem,” Metoyer said.