The Goleta City Council on Tuesday awarded $120,000 to Old Town businesses that are struggling financially during ongoing construction.

The grants will go toward funding murals, advertising campaigns, shop and walk events, and building expansions. 

Councilman James Kyriaco said good things are just around the corner for Old Town that will make it easier for businesses and residents to thrive. 

“This program is in many ways a bridge of its own to that future — that future as a downtown, that future as a safer, more walkable place for everybody whether you’re driving a car, or riding a bike, or walking, or pushing a stroller,” Kyriaco said. “There’s a lot of good coming.”

The city first considered a grant program in October after many business owners complained that the Old Town Interim Restriping Project made traffic and parking unsafe, driving customers away. The city approved the program in January. 

Along with the restriping, Old Town businesses have been dealing with construction for the past year as the city undertakes Project Connect. The project will add two roundabouts to Hollister Avenue near Highway 217 and replace the bridge over San Jose Creek.

The city received 28 grant applications requesting a total of $530,407. It awarded grants to 22 applicants and funded $120,000 total. Many businesses partnered on their applications to do joint advertising and events.

Kellogg Square businesses received a $5,700 grant to team up and host a skate competition at Jonny D. Wallis Park.

Other businesses, such as Paperback Alley, Old Town Coffee, Oat Bakery, Santa Barbara Gift Baskets, and Blue Blossoms, are teaming up to host community events such as flower arranging classes and book exchanges.

Businesses had four weeks to submit applications, which were then reviewed by the Economic Development and Revitalization Committee on April 2. 

Councilwoman Luz Reyes-Martin said the amount of money requested led to some tough decisions but she looked for applications that would help inject more pride into Old Town. 

“It was so clear that each of the applicants really thought of some really creative ideas and also made really compelling arguments for things that are more brick and mortar or improvements that they clearly have been wanting to do for a long time and they know that it will help their business, so to be able to really evaluate that and recommend as much as we could was really a great privilege,” Reyes-Martin said. 

She added that they weren’t closing the door on future funding opportunities from the city.

The Edge Salon and Barber Shop received $4,500 to expand their business and build a new dance studio for the community. 

Many businesses will be using funds to get new signage and spruce up their storefronts. A number of businesses are partnering on advertising campaigns and will use funds to print flyers and send coupons and mailers.

Phebe Mansur, owner of CopyRight Printing at 5708 Hollister Ave., said she got a $7,500 grant and will be working with other businesses to do a quarterly mailing campaign that includes coupons to Old Town businesses. 

Mansur said she and other businesses have been financially struggling since the restriping and will wait to see if this program helps.

“It’s not going well. My business is down over 50%. I’m not sure how the city came up with their 8.7% decrease,” Mansur said. “A lot of businesses are borrowing money and taking loans. It’s very stressful.”

The city also will be offering coaching to grant recipients to help them with permitting and making sure changes follow the city’s design guidelines. The city is also partnering with Women’s Economic Ventures to provide free coaching to any businesses in need, according to Shannon Kirn, assistant to the city manager. 

The council voted 4-0 to approve the grant awards. Mayor Paula Perotte was absent from Tuesday’s meeting because of illness.