Tenant Improvement Grants

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What is the Tenant Improvement Program?

The Tenant Improvement Grant Program is a City of Sandy matching grant program for restaurants and other food service businesses that was passed by the City Council in 2016.  This program awards grant funding for 50% of eligible project costs (up to $30,000) for qualified projects.  Tenant Improvement projects are subject to review and approval by the Urban Renewal Agency.

In July 2020, the City Council approved the expansion of the Tenant Improvement Program to include childcare businesses (preschools and day care centers) in addition to restaurants.  The purpose of this change was to encourage the establishment of additional childcare businesses in Sandy to help address the shortage of businesses in this industry in Oregon generally and in Clackamas County specifically.

What does the program hope to accomplish?

The TI Program was enacted by City Council for the following stated purposes:

  1. To encourage new restaurants in Sandy by helping to address the cost of a new commercial kitchen acting as a barrier to entry into this market.
  2. To encourage private investment in existing downtown food service businesses and commercial properties.
  3. To address the stated Council goals of “encouraging the location of a brewpub/restaurant” and “encouraging the development of other dining opportunities to complement the offerings of existing businesses” by offering an incentive to investment in this industry.
  4. To encourage the establishment of more childcare businesses in Sandy.

The intended results of the program for restaurants are to increase the number of commercial kitchens (and by extension, dining options) in Sandy to serve our rapidly growing community and tourism sector and to help retain and improve current local dining options.  The intended results of the program for childcare businesses is to promote the establishment of additional day care centers and preschools to help address the scarcity of these businesses in our community.

What does the program cover?

For existing restaurants, the following expenses are eligible for project matching funds:

  • Any ADA or seismic improvements
  • Adding a public restroom
  • New interior walls
  • New plumbing and plumbing fixtures
  • New flooring
  • Interior lighting
  • Ceiling fans/air conditioning units for dining area
  • New interior paint or finishing effects (includes tile, reclaimed wood, etc -  wallpaper is excluded)
  • Permanent fixtures (adding a bar, counter space, sinks, etc.)
  • NEW! SandyNet Fiber installation costs
  • Grease interceptors
  • Commercial hoods
  • Commercial kitchen fire suppression systems
  • Other improvements as approved by the Program Manager (this may include changes that have the capacity to increase business – does not include normal wear and tear “maintenance” expenses)

For new restaurants, the following expenses are eligible for project matching funds:

  • Any ADA or seismic improvements
  • Adding a public restroom
  • Grease interceptors
  • Commercial hoods
  • Commercial kitchen fire suppression systems
  • NEW! SandyNet Fiber installation costs
  • Other improvements as approved by the Program Manager (this may include changes that have the capacity to increase business – does not include normal wear and tear “maintenance” expenses)

NEW! For childcare businesses, the following expenses are eligible for project matching funds:

  • Any ADA or seismic improvements
  • Adding a public restroom
  • New interior walls
  • New plumbing and plumbing fixtures
  • New flooring
  • Interior lighting
  • SandyNet Fiber installation costs
  • Outdoor play area expenses fencing and permanently installed play equipment)
  • Other improvements as approved by the Program Manager (this may include changes that have the capacity to increase business – does not include normal wear and tear “maintenance” expenses)

Where can I get more information?

First, review the official program guidelines using the link below to make sure that both your business and your project qualify for program funding. 

If you have any questions about the program that haven't been answered here, please feel free to call the Development Services Department at (503) 489-2160 for additional assistance.

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