Palm Springs asks business to refund incentive grant

Between August 2013 and November 2014, the city of Palm Springs gave $32,000 to Mama Ola’s Soul Food on San Rafael in Palm Springs.

The owner, Reginald Hall, had applied for the city’s economic incentive programs, but the restaurant is currently closed.

“This restaurant was open when they did receive the money, they closed not too long afterwards,” said Palm Springs City Manager David Ready.

When News Channel 3 tried to visit Mama Ola’s Soul Food, employees from the next door barber shop said the restaurant hasn’t been open for many years.

The California Secretary of State website lists Mama Ola’s business license as suspended, and the restaurant’s phone number is disconnected.

We were unable to get a hold owner Reginald Hall, but city officials say they’ve been in talks with him.

“The hope is he is going to open up and he indicates that he will, but again that’s yet to be seen,” Ready said.

The purpose of the incentive grant reimbursements is to spur business in specific areas of Palm Springs and generate tax revenue.

When News Channel 3 asked why tax payer dollars were released without proof the business was up and running, Ready said city staff misunderstood some of the documents Mama Ola’s submitted. Those documents were supposed to include proof the work was complete and contractors were paid.

As a result, the city sent a letter (see video) asking for the grant funds to returned. The letter is dated June 9, 2015.

“Staff mistakenly looked at some of this documentation and that’s been corrected and that’s not going to happen again,” Ready said. “But in the meantime we have asked for the money back or it has to be documented that he paid the contractor.”

Mama Ola’s Soul Food has to provide that documentation by Tuesday, June 16. If it remains closed, the city says the business must re-pay the grant.