The Migas Retention Fund

In the silver-lining department, the plight of Las Manitas and Escuelita del Alma has led to a new city program that could help not just the iconic Tex-Mex joint and Spanish-immersion child-care center but other small businesses forced by new development Downtown into expensive relocations and renovations.

City Council approved last Thursday a new Retail Retention and Enhancement Program for Congress Avenue – and expanded it to East Sixth Street. RRE Program funds will come from fees paid to the city by Downtown developers, in a nice bit of social justice. The 12-month pilot program, billed as an economic development initiative, makes low-interest loans of up to $250,000 available to help existing businesses – shops, galleries, restaurants, and so on – cover the costs of being displaced. The loans also are available to help new retail businesses locate on those streets. (Initially, the loans will be available to qualifying businesses on Congress between 11th and Town Lake and on East Sixth between Congress and I-35. The area could later be expanded.)

Locally owned, minority-owned, and women-owned businesses will receive preference for the need-based loans. Score three for three for Las Manitas and Escuelita! Funds can be used for street-front and interior improvements and for new business equipment. For complete program information, contact Sue Edwards at the city of Austin, 974-7820.

The program guidelines reminisce about the healthy Downtown Austin of the pre-mall 1960s, when numerous major department stores and more than 100 small retailers were Downtown, and reference decades of studies and reports calling for the revitalization of retail Downtown. But it took the outcry over Las Manitas and Escuelita to actually put money in the pot. Certainly the program syncs up well with the city's requirements for ground-floor retail space in all new buildings.

An interesting clause addresses "Special Circumstances." For existing businesses that remain within the zone (does that sound like Las Manitas, moving two doors down, or what?), the city may, at its discretion, choose to increase the loan amount to $750,000 – of which the outstanding loan balance may be forgiven after five years if the joint is still open and the payment record has been good. That figure corresponds nicely with construction-cost estimates for the renovations of the building at Congress and Third, also owned by Las Manitas owners Lidia and Cynthia Perez.

Perhaps to the outside world, the whole idea of City Council passing an ordinance with special treatment to help save the politicos' favorite taco joint makes Austin sound weird. But then, that would be the point.

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Fundraiser alert: An exceptional lineup of musical talent has volunteered to play at this Friday's A Concert of Voices to benefit Escuelita del Alma and Las Manitas. The 8pm concert at La Zona Rosa ($5 fajita-plate dinner at 6:30pm) features Alejandro Escovedo, James McMurtry, Jimmie Dale Gilmore, Ruben Ramos, Grupo Fantasma, Patty Griffin, and special guests. 612 W. Fourth. Tickets and info at www.savelasmanitas.org.