Special Virtual Meeting of the Williamsburg Economic Development Authority

AGENDA City of Williamsburg Economic Development Authority Tuesday, October 13, 2020 Pursuant to City of Williamsburg Ordinance #20-16, due to the COVID-19 Pandemic emergency, this Special Meeting of the Williamsburg Economic Development Authority will be held electronically on Tuesday, October 13, 2020, at 11:00 a.m. Call in number is (312) 263-0281. Meeting ID is 149 453 3368. Meeting link is https://meetings.ringcentral.com/j/1494533368 Page I. CALL TO ORDER II. OPEN FORUM III. NEW BUSINESS A. Consideration of Tourism Industry COVID-19 Relief Grant Program 2-6 IV. ADJOURN Page 1 of 6  Economic Development Authority Agenda Item Summary Meeting Date: October 13, 2020 Staff Contact: Michele Mixner DeWitt Economic Development Director Agenda Item Wording: Consideration of Tourism Industry COVID-19 Relief Grant Program Background Information: Tourism businesses have been affected extensively by COVID-19 mitigation measures and travel declines. Hotel room occupancy dropped to an unprecedented 11% in June 2020, and the capacity of restaurants is limited by Governor’s Orders. City Council approved a grant program to provide some financial relief for these businesses and requested that the EDA implement the program per City Resolution #20-21 that establishes the City of Williamsburg Tourism Industry COVID-19 Grant Relief Program. The program establishes grant amounts and eligibility criteria for business qualification. The attached overview provides details of $5,000 grants for restaurants and grants between the amounts of $7,500 and $15,000 for lodging businesses depending on the number of lodging rooms. To encourage businesses to plan for COVID-19 survival, applications will require an explanation of COVID-19 resiliency for restaurants and a three- year business plan for lodging businesses. Additionally, the business must be current on all taxes/payments to the City. If a balance is due, it will be subtracted from the grant award. Applications must be filed by November 16, 2020, and all awards processed by December 31, 2020. Previous Relevant Action: October 8, 2020 - City Council approved Resolution #20-21 establishing the Tourism Industry COVID-19 Relief Grant and requesting that the EDA implement it. Staff Recommendation: Approval of the Tourism Industry COVID-19 Relief Grant Program as directed by City Council Resolution #20-21. Sample Motion: I move that the EDA implement the Tourism Industry COVID-19 Relief Grant Program as directed by City Council Resolution #20-21. Page 2 of 6  City Council Agenda Item Summary Prepared For Staff Contact City Council Michele Mixner DeWitt, Economic Development Director Agenda Item Wording Consideration and Adoption of Resolution #20-21 establishing the City of Williamsburg Tourism Industry COVID-19 Relief Grant Program Background Information Tourism businesses have been affected extensively by COVID-19 mitigation measures and travel declines. Hotel room occupancy dropped to an unprecedented 11% in July 2020, and the capacity of restaurants is limited by Governor’s Orders. The City Council asked staff to develop a grant program to provide some financial relief for these businesses. Resolution #20-21 establishes the City of Williamsburg Tourism Industry COVID-19 Grant Relief Program. The program establishes grant amounts and eligibility criteria for business qualification. The attached overview provides details of $5,000 grants for restaurants and grants between the amounts of $7,500 and $15,000 for lodging businesses depending on the number of lodging rooms. To encourage businesses to plan for COVID-19 survival, applications will require an explanation of COVID-19 resiliency for restaurants and a three- year business plan for lodging businesses. Additionally, the business must be current on all taxes/payments to the City. If a balance is due, it will be subtracted from the grant award. Applications must be filed by November 16, 2020, and all awards processed by December 31, 2020. Previous Relevant Action NA Staff Recommendation Approval of Resolution #20-21 as drafted. Attachments Res 20-21 COVID-19 Tourism Industry Grant Tourism Industry COVID-19 Relief Grant Program Flyer Page 3 of 6  RESOLUTION #20-21 A RESOLUTION ESTABLISHING THE CITY OF WILLIAMSBURG TOURISM INDUSTRY COVID-19 RELIEF GRANT PROGRAM WHEREAS, the Williamsburg City Council recognizes that tourism businesses have been affected negatively by COVID-19 mitigation measures and travel declines; and WHEREAS, hotel room occupancy dropped to an unprecedented 11% in July 2020, and the capacity of restaurants is limited by Governor’s Orders; and WHEREAS, restaurant sales have decreased due to interior capacity limitation by Governor’s Orders and fewer people dining out; and WHEREAS, the unprecedented decrease in overnight visitation has nearly eliminated revenue for lodging establishments; and WHEREAS, the City’s tourism industry businesses are essential to the recovery of the City of Williamsburg from the COVID-19 disaster; and WHEREAS, the City Council desires to support tourism industry businesses to the extent reasonably possible and legally permissible in order to enable such businesses to overcome and recover from these negative impacts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Williamsburg that it authorizes and directs the Williamsburg Economic Development Authority (EDA) to create a grant program for such purpose, with the following terms and requirements, and further authorizes the City Manager to make available necessary funding for said grant program, which grants shall then be distributed pursuant to the attached Tourism Industry COVID-19 Relief Grant Program requirements. Adopted October 8, 2020 _______________________________ Douglas G. Pons, Mayor ______________________________ Sandi L. Filicko, Clerk of Council Page 2 of 4 Page 4 of 6  TOURISM INDUSTRY COVID-19 RELIEF GRANT PROGRAM REQUIREMENTS The program shall be known as the City of Williamsburg Tourism Industry COVID-19 Relief Grant Program. Purpose The purpose of this program is to assist the City’s lodging and restaurant businesses which have been adversely impacted by the COVID-19 pandemic. Use of Funds The EDA shall create a grant program that provides a monetary grant to each of the City’s qualifying businesses. For each qualifying restaurant, the grant shall equal FIVE THOUSAND AND 00/100 DOLLARS ($5,000.00). For each qualifying lodging establishment, the grant amount shall depend on the number of lodging rooms available for use at the establishment. Lodging establishments with one to fifty rooms shall receive SEVEN THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($7,500.00). Lodging establishments with fifty-one to seventy-five rooms shall receive TEN THOUSAND AND 00/100 DOLLARS ($10,000.00). Lodging establishments with seventy-six to one hundred rooms shall receive TWELVE THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($12,500.00). Lodging establishments with one hundred one or more rooms shall receive FIFTEEN THOUSAND AND 00/100 DOLLARS ($15,000.00). Qualifying Business 1. Timeshares are not eligible. 2. Both Restaurant and Lodging Businesses must meet the following general criteria to qualify: A. Must be physically located in the City; B. Must have a 2020 City of Williamsburg Business License; C. Must have been open for business as of March 1, 2020; D. Must be open for business when grant is received; and E. Must be current on all taxes/payments to the City. If balance is due, a business may choose to satisfy the balance with the grant award. 2. Additional Requirement for Restaurant Businesses Narrative description of the COVID-19 resiliency efforts the restaurant is using to continue operations during COVID-19 3. Additional Requirement for Lodging Establishments Submittal of a three-year business plan including a proforma to illustrate how the business plans to continue operation in the future Grant Administration • The EDA will administer the program. • Businesses must apply by November 16, 2020. • All awards shall be approved by close of business on December 1, 2020 • Total grants funds available for award are limited to $1,012,500 to the extent authorized by this resolution. • The program requirements shall be interpreted liberally in favor of business qualification. Page 3 of 4 Page 5 of 6  LODGING GRANTS COVID-19 GRANT AMOUNTS # of Rooms 1-50 Amount of Grant $7,500 RELIEF 51-75 $10,000 76-100 $12,500 101+ $15,000 Total Cost $512,500 FOR ELIGIBILITY & REQUIREMENTS • Valid 2020 Business License TOURISM • • Submittal of a three-year business plan including pro-forma Open for business as of March 1, 2020 INDUSTRY • • Open for business when grant is received Current on all taxes/payments to the City. If balance is due, it will be subtracted from the grant award. BACKGROUND • Timeshares do not qualify. Tourism businesses have been affected extensively by COVID-19 mitigation measures and travel declines. Hotel room occupancy RESTAURANT GRANTS dropped to an unprecedented 11% in July 2020, and the capacity of restaurants is limited GRANT AMOUNT by Governor’s Orders. Each grant will be $5,000. $500,000 of funds are available as COVID-19 relief for restaurants. LODGING RATIONALE ELIGIBILITY & REQUIREMENTS The unprecedented decrease in • Valid 2020 Business License overnight visitation has nearly • Explanation of COVID-19 resiliency efforts eliminated revenue for lodging • Primary function is serving meals and establishments. A COVID-19 Relief beverages Grant offers some cash flow to • Open for business as of March 1, 2020 this injured industry. • Open for business when grant is received • Current on all taxes/payments to the City. If balance is due, it will be subtracted from the RESTAURANT RATIONALE grant award. With interior capacity limited by Governor’s Orders and fewer people dining out, restaurant sales have decreased. A COVID- 19 Relief Grant offers some cash flow to this injured industry. Page 6 of 6