Finalize Implementation of COVID-19 Assistance Plan Phase 1

On April 14, 2020 the City Council Approved Resolution #20-077 authorizing the following types of assistance to businesses impacted by COVID-19 Pandemic:

• Reimbursement  of 2020 On Sale Liquor License Renewal Fee (City Fees Only)
• Reimbursement of  Advertising Fees for Ramsey Resident for Ramsey Businesses
• Waive Late Fees for Lease Payments on City owned properties (also a waiver of payment of 60 day Lease at 6701 Highway 10 NW)

Staff has been working on implementation of these programs and wanted to provide feedback on the potential cost and status of each program.  In addition, Staff is looking for recommendations relating to the reimbursement of Advertisement Fees for Ramsey businesses in the next edition of the Ramsey Resident. Staff is also looking for EDA recommendation of the funding source for these programs.

Notification is not required.

On Sale Liquor License Renewals
Staff has implemented the Waiver of On Sale Liquor License Renewals. Businesses that have received this assistance include: Willy McCoy's, Aurelio's Pizza, Acapulco, River's Bend Bar and Grille, JR's Outpost, The Links at Northfork, McDuff's, Kitchen Table and Superbowl. In this case, the fee is not being taken up front, but the Business License Account is being reimbursed internally. The one-time cost of this assistance program is $48,000.  Staff believes that replenishing this account that manages the licesning program will be important due to the fact that a service is still being provided. The recommended funding source for this program is the EDA's Professional Services Account with a line item budget of $43,000 for 2020. Staff would recommend supplementing this account, as needed, with EDA Fund Balance due to this unforeseen expense.

Ramsey Resident Advertising Reimbursement
City Staff has been working to develop a criteria for an advertising reimbursement program for the next edition of the Ramsey Resident.  The proposed criteria is attached to this case with some items that need to be clarified.  The hope is that the reimbursement of some advertising fees for businesses looking to emerge from the impacts of COVID-19 Pandemic is helpful and provides some much needed financial relief.  The goal of this program is to provide assistance to business impacted the longest by the COVID-19 Pandemic and various Executive Orders issued by Minnesota Governor Tim Walz. Stay at Home and Social Distancing Orders have impacted a number of retailers including bars, restaurants and places of public accommodation.  The level of reimbursement is also something staff has taken into consideration.  Most advertising sold in the Ramsey Resident is 1/8 to 1/4 page in size.  Below is a comparison and potential financial impact for ad size and number of qualifying ads:
 

			Number of Ads				Number of Ads
	1/4 page	15	20	25	1/8 page	15	20	25
One Time	$485	$7,275	$9,700	$12,125	$299	$4,485	$5,980	$7,475
3 Issues	$440	$6,600	$8,800	$11,000	$250	$3,750	$5,000	$6,250
6 Issues	$400	$6,000	$8,000	$10,000	$224	$3,360	$4,480	$5,600

With the intent to better spotlight Ramsey Retailers and Restaurants, Staff also anticipates that this will be a larger addition to the Ramsey Resident (20 pages) and this will add an additional cost to the publication of $2,000.  Staff is looking for recommendations as to the page size advertising reimbursement (1/8 vs. 1/4) and the attached criteria for the waiver program. Staff believes setting a limit to the number of advertisers to the publication would be prudent.  The estimated cost for this program has an approximate range of $7,000 to $15,000 depending on recommended ad size reimbursement.  The recommended funding source for this program is the EDA's Marketing and Promotions Account. The budgeted amount for this account is $30,000 for 2020. Staff would recommend supplementing this account, if necessary, with EDA Fund Balance due to this unforeseen expense.

Waiver of Late Fees (Leases)
To date most leases fo City-Owned Properties are current.  Payments have come in a little later but the City is receiving its revenue.  The City has received feedback from a business impacted by COVID-19 and they appreciate the waiver of late fees if it is needed.  In addition, the City entered into the a lease with Mille Lacs Motor Sports II (Power Lodge) on April 30, 2020 for a forgivable lease in the amount of $420.00.  This program has had no cost to this point and has been well received by businesses.

The proposed funding sources for these programs are the EDA's Marketing and Promotions and Professional Services Accounts. The Marketing and Promotions line item is proposed to fund the Ramsey Resident Advertising Program ($12,125).  The Professional Services line item is propose to fund the Liquor License Renewal Waiver Program ($48,000).   The proposed funding proposal will utilize the entire Professional Services 2020 budget line item.  Staff is recommending that the EDA Cash balance be used to offset some of these costs and future Professional Services and Marketing Costs. 

Summary
 

Initiative	Cost	Funding Source	Available Budget
Liquor License Renewal	$48,000	EDA Professional Services	$43,000
Ramsey Resident Ad Reimbursement	$12,125	EDA Marketing and Promotions	$30,000

* Note - any budget deficit is recommended to be funded by the EDA Fund Balance.

Staff recommends final approval of the Liquor License Fee Waiver Program and Ramsey Resident Reimbursement Program.

Staff is seeking broad policy direction on ad sizes and total budget for the Ramsey Resident program. Based on broad policy direction, Staff will finalize implementation administratively.

Motion to approve the Liquor License Fee Waiver Program and the Ramsey Resident Advertising Reimbursement Program at a not to exceed expense of $15,000 based on ___ sized standard ad.