LA Moves To Expand 'Legacy Business' Safety Net To More Restaurants, Shops

LOS ANGELES, CA — The City Council took a step Tuesday to expand eligibility for its Legacy Business Program, with the goal of helping long- standing shops and restaurants stay in Los Angeles.

In a 13-0 vote, the council instructed the Office of Wage Standards and Community Investment Department to work with labor and business groups to come up with a plan to improve the program.

The goal is to expand eligibility to restaurants and other small businesses that have operated continuously in the city for at least 10 years, have a proven record of complying with local labor standards, and meet at least three of the four criteria used to define "legacy" businesses.

The council also called for an analysis to better understand why businesses in the program may close and recommendations for targeted interventions. Lastly, council members requested the Office of Wage Standards and Community Investment Department to create a plan for a Citywide Restaurant Protection Ordinance that would be aimed at supporting small and immigrant- owned businesses.

A motion by Councilman Curren Price established the Legacy Business Program in 2022. It defines a legacy business as one that has been in operation for 20 years or more within the same community, contributes significantly to the community's history or identity, sustains and cultivates distinctive cultural traditions and practices, provides vital goods and services in a language and manner that is culturally accessible to the community, and is not franchised or affiliated with a national corporate chain.

Business that apply and are designated as legacy can receive grants up to $20,000, assistance with negotiating long-term lease agreements with their landlords, and other resources. Each business is listed in a legacy business registry.

Now, council members Heather Hutt and Hugo Soto-Martinez are looking to enhance the program and have more businesses receive similar benefits, or to create a tiered model of the program.

Hutt and Soto-Martinez introduced a motion on Oct. 7 to make those changes. They say LA continues to grow as a tourist and entertainment destination, but small businesses and their workers still experience heightened financial insecurity due to the impacts of the coronavirus pandemic, gentrification and rising living costs.

"These structural barriers restrict economic mobility and make it difficult for small business owners to offer competitive wages or remain in operation," according to Hutt and Soto-Martinez's motion.

"Addressing these issues is essential not only for economic security of Los Angeles residents but also to prepare the city for major upcoming global events. With the influx of investment and tourism, the city of Los Angeles must ensure that its workers and small business owners, many of whom are immigrants and people of color, are supported, valued and protected," the motion said.

Staff are expected to return with a report and recommendations on the issue within 90 days.

By Jose Herrera, City News Service