New London — Over the past two years, a portion of the city’s $26 million American Rescue Plan Act grants have gone into economic development and capital improvements.

The city’s Office of Development and Planning had an allocation of $2.4 million in the first year and $2 million in the second year to invest in historical structures and small businesses.

In the first year, funds went to multiple endeavors including a business program managed by the Women’s Business Development Council, commercial capital improvements and housing programs.

Funds for year two include $1 million for the community center, $250,000 for the city’s cultural arts district, $50,000 for trash management and $200,000 in grants to local businesses.

Those funds are now winding down.

The City Council on Monday approved nearly $300,000 in funding for two local businesses and downtown beautification efforts. That leaves the development and planning office with about $200,000 in “available funds,” although Felix Reyes, its director, said it is looking at potential applicants.

Among the approved grants Monday, Tox Brewing Company is to receive $50,000 in infrastructure improvements to move and expand from its current location at 635 Broad St. to 123 Bank St.

The new location on Bank Street is being developed by High Tide Capital as part of a three-building, mixed-use development called The Riverbank. Reyes said the brewing company will have 14,000 square feet on the first floor of 123 Bank St.

Councilor James Burke asked how much of the grant would be awarded to the tenant as opposed to the developer. Reyes said the money is paid directly to contractors doing the work, and the city pays 75% of the invoice.

At a minimum, Reyes said an applicant to the grant program pays for 25% of the project, and often more.

Mi Familia Restaurant, a Puerto Rican restaurant owned by the Santiago family, is receiving $28,000 to purchase refrigeration equipment for its location at 365 Broad St. Reyes said Mi Familia has made a substantial investment in expanding its business from Montauk Avenue to Broad Street, and the grant would aid in the restaurant’s expansion.

The City Council also approved $222,000 for downtown beautification projects that include landscaping, bike racks, lighting, public art, signage and tourism.

Reyes told the councilors he recognized that the amount is significant, but that this type of money can only be invested every 10 to 20 years to address deferred maintenance in the city’s public spaces downtown.

j.vazquez@theday.com