Consider Programs to Assist Restaurants and Retailers Impacted by COVID-19

The purpose of this case is to identify potential tools to assist local businesses during the current COVID-19 Pandemic. Nothing in this case should be interpreted as the City formally considering any programs. This case is simply to identify tools the EDA and City Council may want to consider. Based on discussion, Staff will explore additional details on desired programs.

The City has established a Resource Webpage focused on the business community available online at  https://www.cityoframsey.com/752/COVID-19-Business-Resources. 

Please note that there are two levels of response that have been established during this time.

• Enhanced Social Distancing (Original Order)
• Stay at Home (Current Order)

On March 17, 2020, Governor Walz  issued Executive Order 20-04 that essentially created Enhanced Social Distancing. While this did not direct Minnesotans to stay home and establish essential vs. non-essential businesses, this closed restaurants to dine-in service amongst other social distancing provisions. Restaurants are able to continue delivery and pick up.

Subsequently, Governor Walz issued Executive Order 20-20 that established a Stay at Home Order until April 10 as well as an extended Social Distancing Order until May 4. These dates are subject to extension depending on the current COVID-19 forecasts.

To backstop the economic impacts of social distancing, stay at home orders and business closures, the State of Minnesota and Federal Government have established multiple programs aimed at assisting employers and employees impacted by the current pandemic. However, not all businesses are covered by these various programs or able to access these funds.  The restrictions of this order are in place until April 10, but it is very possible that it could be extended to April 30, 2020.

Businesses Impacted by Enhanced Social Distancing Orders (highlighted sections have local Ramsey Business impacts):

1. Restaurants, food courts, cafes, coffeehouses, and other places of public accommodation offering food or beverage for on-premises consumption, excluding institutional or in-house food cafeterias that serve residents, employees, and clients of businesses, child care facilities, hospitals, and long­term care facilities.
2. Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, clubs, and other places of public accommodation offering alcoholic beverages for on-premises consumption.
3. Hookah bars, cigar bars, and vaping lounges offering their products for on­premises consumption.
4. Theaters, cinemas, indoor and outdoor performance venues, and museums.
5. Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, and spas.
6. Amusement parks, arcades, bingo halls, bowling alleys, indoor climbing facilities, skating rinks, trampoline parks, and other similar recreational or entertainment facilities.
7. Country clubs, golf clubs, boating or yacht clubs, sports or athletic clubs, and dining clubs.

The current Stay at Home Order has had a much broader impact, especially pertaining to general retail. For more information on the Stay at Home Order, please visit mn.gov/stayathomemn. 

Restaurants, retail, sports and service have been impacted the most and longest.  The purpose of this case it to determine what, if any, action(s) the EDA or City of Ramsey can take to help Ramsey Businesses succeed during these difficult times. Providing helpful assistance to these hardest hit businesses identified above is the focus of this case. Staff is requesting that the EDA direct Staff on where to go with this discussion, and Staff will bring back a case at a future meeting mapping out how to get there. 

Notification is not required. 

What is happening now:

The State and Federal Governments have put out resources designed to assist businesses and workers.  The City has created a page on its website highlighting some of these programs and linking to all of them. Staff has been assisting Ramsey businesses and directing them to the resources they need.

Staff has been contacted by tenants of City owned property regarding the ability to defer or make partial rent payments for a period of time. This is also happening in the private sector and some businesses are offering deferrals or payment arrangements for a periods of time (60-120 days).

Area cities have relaxed signage requirements (duration) to allow for businesses to market new hours types, and levels of service to their customers. In addition, fees are being waived for the sign permits during this time. The City of Ramsey has already implemented this change. 

Other cities are have, or are considering the reduction/waiver of late fees, business license fees, liquor licenses, and other items that could temporarily help businesses get through this tough time. The City of Minneapolis has several good examples, as outlined in an attachment to this case. 

The State of Minnesota has temporarily allowed cities to relax their Revolving Loan Fund (RLF) policies to allow for use with retail businesses until June 30, 2020. Ramsey's RLF program is geared to industrial type businesses as the money was seed through Minnesota Investment Fund (MIF). At this time, Staff has concerns about using these dollars. Based on current inquiries to the City, Staff feels that there are other programs available. This fund currently has an available balance of $345,000. This program could be drawn down to a zero-balance in a short timeframe. Staff will continue to monitor and adjust recommendations. 

Staff has already developed a marketing piece highlighting Ramsey Restaurants and other food services businesses currently open for pick up or delivery and can be found on the City's website. This is a working document and additions could be made as more information is provided or consider businesses with food as a secondary use such as gas stations and grocery stores. 

Things to that the City could consider:

1. Continue waiver or reduction of Sign Permits Fees (currently being done)
2. Continue flexibility in Temporary Sign Regulations (currently being done)
3. Waiver or reduction of Business License Fees
4. Waiver, reduction or deferral of lease payments for City-Owned Property Management
5. Loans or grants to retailers or restaurants to assist with lease payments
6. $100-$500 grants to businesses to assist in advertising (internet, print, signage) 
7. Free advertising in next Ramsey Resident and/or restaurant-focused insert
8. Purchase of Gift Cards from Retailers and Restaurants for use at City Events or other City use. 
9. Revolving Loan Fund (RLF) Loans and/or Grants to retailers and restaurants for general use
10. Forgivable Loans, Low Interest Loans, 0% Interest Loans for general use

Staff has identified the following potential funding sources.

• EDA Fund
• Anoka County Housing and Redevelopment Authority (ACHRA)
• Ramsey Revolving Loan Fund (RLF)

Based on discussion.

Based on discussion.