HomeMy WebLinkAbout2020-04-21; City Council; ; COVID-19 Response Recommendations from the Ad Hoc City Council Economic Revitalization SubcommitteeCA Review CKM
Meeting Date: April 21, 2020
To: Mayor and City Council
From: Scott Chadwick, Executive Manager
Staff Contact: David Graham, Chief Innovation Officer david.graham@carlsbadca.gov, 760-434-5992
Laura Rocha, Deputy City Manager
laura.rocha@carlsbadca.gov, 760-602-2415
Subject: COVID-19 Response Recommendations from the Ad Hoc City Council
Economic Revitalization Subcommittee
Recommended Action
Adopt a resolution authorizing the creation of the Economic Recovery and Revitalization
Initiative and directing staff to do the following:
1.On May 5, 2020, present a rent relief proposal to City Council for New Village Arts and
the Chapters Café at the City Library along with recommended guidelines for evaluating
economic relief requests from city lessees to ensure consistency and fairness in any
relief granted
2.Bring all city lessee requests for economic relief received during the pendency of the
local declaration of emergency, along with a staff recommendation, to the City Council
for consideration
3.Return to the City Council with recommendations for extending local land use permits in
conformance with state law
4.Work with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit
Carlsbad to develop a marketing strategy and funding recommendation to promote
Carlsbad tourism and businesses
5.Work with the City Council Legislative Subcommittee to evaluate in an open, noticed
meeting and return to the City Council with recommendations for legislative advocacy
that would:
a.Support legislation that helps businesses who have had business interruption
due to COVID-19 insurance claims denied
b.Support legislation to ensure small businesses are protected from an
extraordinary rise in health care premiums due to COVID-19
c.Support legislation that would automatically extend subdivision maps under the
Subdivision Map Act due to the economic impact of COVID-19 like action taken
by the State of California in the wake of the Great Recession
d.Support legislation that would remove impediments to the automatic extension
of local permits due to the economic impact of COVID-19
6.Continue the open source business community engagement that allows for all
businesses to provide input to the City Council on economic revitalization
April 21, 2020 Item #10 Page 1 of 10
7. On May 5, 2020, present recommended funding and funding sources for the Economic
Recovery and Revitalization Initiative
Executive Summary
On April 7, 2020, the City Council created the Ad Hoc City Council Economic Revitalization
Subcommittee. Mayor Hall and Councilmember Bhat-Patel were appointed to the
subcommittee. The goal of the subcommittee is to discuss and identify options for economic
revitalization due to the COVID-19 emergency for future consideration by the full City Council.
The subcommittee has held two meetings since its creation. During these meetings, discussion
included current economic uncertainty, business community outreach, the known impacts the
COVID-19 pandemic is having on the local businesses, and options to support the economy in
three phases: response, recovery and revitalization.
The consensus recommendations include:
City lessee relief
Extending land use permits
Creating a marketing strategy for the promotion of Carlsbad businesses and tourism
Legislative Subcommittee evaluation and recommendation to the City Council for
approval of legislative advocacy related to the economic impact of COVID-19
Ongoing business community outreach
Approval of these recommendations are the first wave of efforts to support economic
response, recovery and revitalization.
The subcommittee also considered a number of other options and has selected the following
for City Council input. They include:
City funded low- and no-cost loans
Waiver of the business license tax
A partnership to provide mediation and renegotiation support to landlords and tenants
Additionally, the subcommittee would like input on funding and funding sources for the city’s
economic revitalization efforts.
Approval of this item would create the Economic Recovery and Revitalization Initiative and
would provide direction for the consensus recommendations. To implement the City Council’s
direction, staff anticipates further review, including further legal review, will be conducted on
recommendations returning to the City Council for approval. Based upon City Council
discussion and input, the options that have not received consensus may receive further
evaluation and development by the subcommittee.
April 21, 2020 Item #10 Page 2 of 10
Discussion
Background
On March 24, 2020, the City Council approved a minute motion directing staff to return with an
agenda item to appoint members of the City Council to an Ad Hoc City Council Economic
Revitalization Subcommittee.
Economic uncertainty
Layoffs due to COVID-19 are creating an incredible spike in unemployment claims. Over 22
million jobless claims have been filed in the past four weeks.
As of April 16, the city has received 27 Worker Adjustment and Retraining Notification Act
letters notifying the city of 4,344 proposed layoffs. The areas hardest hit are hospitality,
tourism, and food and beverage. There are also layoffs identified in other sectors such as sports
design and innovation and manufacturing. These notification letters only represent a fraction of
the layoffs in the city since they are only required to be sent by companies of a certain size and
in certain conditions.
The city’s Office of Innovation and Economic Development and its Emergency Operations
Center have been engaging with businesses since the beginning of the crisis. Businesses
deemed non-essential are closed and those that remain in operation have had to modify their
operations.
Businesses in the food and beverage, retail, and various other sectors have been hit hard. Staff
are currently working with over 70 businesses to answer questions and connect them with
resources. The most commonly asked questions are related to the public health orders, the
temporary commercial eviction moratorium and navigating federal relief programs.
April 21, 2020 Item #10 Page 3 of 10
Economic Revitalization Subcommittee
On April 7, 2020, the City Council approved the creation of the Ad Hoc City Council Economic
Revitalization Subcommittee. Mayor Matt Hall and Councilmember Priya Bhat-Patel were
appointed to the subcommittee.
The subcommittee met on April 9, 2020, and April 16, 2020. During these meetings, discussion
included current economic uncertainty, business community outreach, the known impacts the
COVID-19 pandemic is having on the local businesses and options to support the economy in
three phases: response, recovery and revitalization.
Guiding ideas
The subcommittee developed a set of ideas that guided the development and refinement of
their initial set of recommendations. They include:
Evaluate options considering the current economic uncertainty
Ensure the city can continue to provide core services
Define initiatives for COVID-19 response and those for ongoing economic revitalization
Consider industry sectors in program development
Support small business
The subcommittee also identified the importance of ongoing engagement with the business
community and worked with staff on an approach that allows all businesses to provide input
into economic revitalization efforts.
Economic Recovery and Revitalization Initiative
The result of the subcommittee work is an Economic Recovery and Revitalization Initiative that
includes the following initial steps:
April 21, 2020, City Council consideration of consensus recommendations and discussion
of outstanding options
May 5, 2020, City Council consideration of additional subcommittee recommendations
and evaluation of funding
This approach allows for near-term efforts, ongoing evaluation, and a well-developed course of
action to address the economic impact of COVID-19.
Consensus recommendations
There are five consensus recommendations for City Council consideration. They include a mix
of response, recovery and revitalization.
Among the recommendations are legislative advocacy items sought by the business
community. Under existing City Council directives, legislative advocacy items are to be
evaluated by the standing City Council Legislative Subcommittee at an open, noticed meeting
and referred to the City Council for subsequent decision making. Alternatively, the City Council
may address the legislative advocacy items directly.
April 21, 2020 Item #10 Page 4 of 10
The first recommendation is city lessee economic relief. New Village Arts and Chapters Café at
the City Library have requested rent relief. The subcommittee recommends staff present a
proposal for rent relief for these entities to City Council on May 5, 2020. The proposal would
include recommended guidelines for evaluating economic relief requests from city lessees to
ensure consistency and fairness in any relief granted. The subcommittee also recommends that
any future request from city lessees for economic relief during the pendency of the local
declaration of emergency be evaluated by city staff under approved guidelines and presented
to the City Council.
The second recommendation is the extension of local land use permits. Like the legislative
extension of subdivision maps by the State of California during the Great Recession, the
subcommittee recommends that city staff make a recommendation on the extension of local
land use permits. The recommendation should include the type of permits that should be
extended, the length of time for extension, and a streamlined process for extension. Various
state laws may make automatic extension difficult or unfeasible, so the subcommittee also
recommends advocating for state legislative action to remove these impediments and allow for
a reasonable extension of land use permits due to the economic impact of COVID-19.
The third recommendation is the development of a local business and tourism marketing
strategy in conjunction with the Carlsbad Chamber of Commerce, Carlsbad Village Association
and Visit Carlsbad. The COVID-19 pandemic has significantly impacted the hospitality, food and
beverage, retail and tourism industries. Resources that could have been used to promote
businesses are being used just to keep these businesses afloat. Developing a comprehensive
strategy now will allow for rapid execution as the public health orders lift.
The fourth recommendation is for the City Council Legislative Subcommittee to evaluate several
legislative advocacy items in an open, noticed meeting and return to the City Council with
recommendations on the items. The items include legislative advocacy that:
Helps businesses who have had business interruption due to COVID-19 insurance claims
denied
Help small businesses that are experiencing an exorbitant rise in health care premiums
due to COVID-19
Automatically extend subdivision maps under the Subdivision Map Act due to the
economic impact of COVID-19 similar to action taken by the State of California in the
wake of the Great Recession
Remove impediments to the automatic extension of local permits due to the economic
impact of COVID-19
The final recommendation focuses on ongoing engagement with the business community. The
subcommittee in working with staff has developed an engagement approach that allows all
businesses to participate in providing input to the City Council on economic revitalization. Using
bi-weekly interactive webinars hosted by the city, Carlsbad Chamber of Commerce, and
Carlsbad Village Association, and direct engagement with our industry clusters, economic
development staff are providing rapid input sourcing from the business community. Every
business in Carlsbad with a business license is receiving our joint communications. Webinars
April 21, 2020 Item #10 Page 5 of 10
with live-polling, Q&A and chats are being employed. The approach is to allow every business
an opportunity to participate in economic revitalization.
Options for City Council discussion
In addition to the consensus recommendations, the subcommittee would like to solicit
thoughts from the full City Council on several additional options.
The first option is the creation of a low- or no-cost loan program. This option is one that has
been raised by the business community. The subcommittee has discussed whether the city
should create such a program and some of the potential design features. Program
considerations that have been discussed to date include:
Loan amount cap
Business plan and operations requirements for loan award
Size of business based upon number of employees and gross revenue
Targeting certain industry clusters
Supporting the hardest hit local service and retail businesses
Focusing on local companies rather than franchisees or national chain stores
Loans to awardees of federal programs to extend support when that funding expires
Loans for revitalization efforts beyond response and recovery
The subcommittee would like to receive input from the full City Council on its interest in
creating a low- or no-cost loan program.
The second option is a waiver of the business license tax. The city receives between $4 million
to $5 million from its business license tax. Tax payments range from $34.00 to nearly $300,000.
A waiver of the tax would require a determination of public benefit and would apply to all
businesses when their license tax is due. Any waiver of the tax would need to be temporary
with a specific sunset date. The city has already provided an additional 60 days for businesses
to pay their business license tax. The subcommittee would like to receive input from the full
City Council on its interest in further exploring a waiver of the business license tax.
The third option is partnering with an organization to provide mediation and renegotiation aid
to landlords and tenants. Commercial eviction suspensions are currently in place, but when
they are lifted, tenants may have a significant bill to pay while the economy is still sluggish. The
subcommittee would like to receive input from the full City Council on its interest in partnering
with an organization to provide mediation and renegotiation aid to landlords and tenants in
Carlsbad.
Finally, the subcommittee has asked that staff provide for a City Council discussion of a
potential funding amount for this program and a proposed funding source. The final
recommendation on funding is to be presented to the City Council on May 5, 2020.
The subcommittee is also engaging with the business community and working with economic
development staff to source additional economic revitalization ideas from the business
community.
April 21, 2020 Item #10 Page 6 of 10
Conclusion
It is a time of economic uncertainty due to COVID-19. This is having a significant impact on local
businesses which, in turn, has an impact on city revenues. The subcommittee has taken a clear-
eyed approach to balancing the needs of businesses with providing for the ongoing services the
community requires. Taking an approach that includes response, recovery and revitalization will
have benefit for the community in the short-term and long-term.
Approval of this item would create the Economic Recovery and Revitalization Initiative, approve
an initial set actions and provide input to the subcommittee that will guide its continuing work.
Fiscal Analysis
There is no fiscal impact associated with this action at this time. Any recommendation with a
potential fiscal impact requires a future decision by the City Council.
Next Steps
City staff will return to the City Council with additional action items on May 5, 2020. The
subcommittee will continue convening and presenting recommendations to the City Council
until its work is completed.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code section 21065, this action does not constitute a “project”
within the meaning of the California Environmental Quality Act in that it has no potential to
cause either a direct physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment and, therefore, does not require environmental review.
Public Notification
The item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City Council resolution
April 21, 2020 Item #10 Page 7 of 10
RESOLUTION NO. 2020-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE ECONOMIC RESPONSE AND RECOVERY
INITIATIVE
Exhibit 1
WHEREAS, on February 14, 2020, the San Diego County Health Officer declared a Local Health
Emergency as a result of the spread of COVID-19; and
WHEREAS, on March 4, 2020, the State of California declared a State of Emergency as a result
of the spread of COVID-19; and
WHEREAS, the Health Officer of the County of San Diego has issued an order requiring people
to remain in their homes or place of residence, except for employees or customers traveling to and
from essential businesses or activities; and
WHEREAS, all businesses in the County of San Diego that do not meet the definition of essential
business are considered "non-essential businesses" and must remain closed for the duration of the
public health order; and
WHEREAS, the State of California has seen the greatest number of job losses due to COVID-19
with unemployment claims estimated at 2.8 million since March 14; and
WHEREAS, the City of Carlsbad approved a resolution creating an Ad Hoc City Council Economic
Revitalization Subcommittee on April 7, 2020; and
WHEREAS, the Ad Hoc City Council Economic Revitalization Subcommittee has convened two
meetings to discuss current economic uncertainty, business community outreach, the known impacts
of the COVID-19 pandemic is having on local businesses and options to support the economic
response, recovery and revitalization; and
WHEREAS, the Ad Hoc City Council Economic Revitalization Subcommittee presented five
consensus recommendations for economic revitalization and several other additional options for City
Council consideration.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That City Council authorizing the creation of the Economic Recovery and Revitalization
Initiative to include:
a. City lessee rent relief;
April 21, 2020 Item #10 Page 8 of 10
Exhibit 1
b. Extension of land use permits;
c. Creating a marketing strategy for the promotion of Carlsbad businesses and
tourism;
d. Ongoing business community engagement;
e. Evaluation and consideration of legislative advocacy related to the economic
impact of COVID-19; and
f. Identification of possible funding and funding sources for the Initiative.
3. That, on May 5, 2020, city staff shall present a rent relief proposal to the City Council
for New Village Arts and the Chapters Cafe at the City Library along with
recommended guidelines for evaluating economic relief requests from city lessees to
ensure consistency and fairness in any relief granted.
4. That any future request from city lessees for economic relief during the pendency of
the local declaration of emergency be evaluated by city staff under approved
guidelines and presented to the City Council.
5. That city staff develop a proposal for extending local land use permits and present the
proposal to the City Council.
6. That city staff work with the Carlsbad Chamber of Commerce, Carlsbad Village
Association and Visit Carlsbad to develop a marketing strategy and funding
recommendation to promote Carlsbad tourism and businesses.
7. That the City Council Legislative Subcommittee evaluate in an open, noticed meeting
and return to the City Council with recommendations for legislative advocacy that
would:
a. Support legislation that helps businesses who have had business interruption
due to COVID-19 insurance claims denied;
b. Support legislation to ensure small businesses are protected from an
extraordinary rise in health care premiums due to COVID-19;
c. Support legislation that would automatically extend subdivision maps under
the Subdivision Map Act due to the economic impact of COVID-19 like action
taken by the State of California in the wake of the Great Recession; and
April 21, 2020 Item #10 Page 9 of 10
Exhibit 1
d. Support legislation that would remove impediments to the automatic
extension of local permits due to the economic impact of COVID-19.
8. That city staff continue the open source business community engagement that allows
for all businesses to provide input to the City Council on economic revitalization.
9. That city staff present recommended funding and funding sources for the Economic
Recovery and Revitalization initiative to the City Council on May 5, 2020
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 21st day of April, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
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/y'--BARBARA ENGLESON, City Clerk
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April 21, 2020 Item #10 Page 10 of 10
Sheila Cobian
From:
Sent:
To:
Cc:
Subject:
Bret Schanzenbach < Bret@carlsbad.org >
Tuesday, April 21, 2020 10:58 AM
City Clerk; council@carlsbad.org; David Graham
Scott Chadwick
Agenda Item #10 -Comment
Please read this statement into the public record for Agenda Item #10:
Dear Mayor Hall & Council Members,
All Receive -Agenda Item# lb
For the Information of the:
Cl COUNCIL ----
Date !:://.4l-cA \/cc __
CM ___ CM ~ (3) _
I am Bret Schanzenbach, CEO of the Carlsbad Chamber of Commerce. I would like to express the Chamber's support for
the City Manager's recommendation to adopt the resolution from the Covid-19 Ad Hoc Economic Revitalization
Subcommittee. The Chamber supports all 7 points in the staff report. These are great first steps to assisting business that
both currently exist and also those that are in the permit process. We look forward to to continuing to discuss other
elements that will aid our Carlsbad businesses as the May 5 meeting approaches.
Thanks,
Bret Schanzenbach
President & CEO
Carlsbad Chamber of Commerce
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content
is safe.
1
Sheila Cobian
From:
Sent:
To:
Cc:
Subject:
Attachments:
Christine Davis < chris@carlsbad-village.com >
Tuesday, April 21, 2020 4:02 PM
Council Internet Email; Matthew Hall; Keith Blackburn; Cori Schumacher; Priya Bhat-
Patel; City Clerk
Scott Chadwick; David Graham
Letters Regarding Agenda Item .10
CVA_SupportLetter.pdf; Carlsbad Village Association Mail -Fwd_ Council Letter.pdf;
Maureen Thomas.pdf; Zac Markham.pdf
We would like the four letters attached read into the public record regarding item number 10 -
COVID-19 RESPONSE RECOMMENDATIONS FROM THE AD HOC CITY COUNCIL ECONOMIC
REVITALIZATION SUBCOMMITTEE at tonight's city council meeting.
Thank you for allowing us to virtually participate in tonight's meeting.
CHRISTINE DAVIS I Executive Director
Carlsbad Village Association
p: 760.644.2121
Subscribe to our eN ewsletter
. Sent with M ixmax
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1
Zac Markham
April 21, 2020
Carlsbad City Hall
1200 Carlsbad Village Drive
Carlsbad, CA 92008
RE : Economic Recovery and Response Initiative
Dear Mayor Hall and Members of City Council,
3:00 PM (37
minutes ago)
All Recei ve " Agenda Item # J.D__
For th@ Information of the:
I 911 ~.q_ U}J Cl L . ,_.,,./'
Dahl ~--CA ~c __ ~
tM. ~-~{3)_~
As a small business owner in the Village, I want to thank the Ad Hoc committee for looking at
ways that the City of C.arlsbad can help provide bridge loans, microloans, or other assistance
during the COVID-1.9 pandemic.
I have applied for the EIDL early on but have not received any word on that I might be
approved. I am fortunate in that I have been able to continue to ship products nationwide and
deliver products locally, but even with that, my business for the month of April is still down by
60%. The businesses on either side of me are closed and have not been able to bring in any
income at all. I can only imagine their anxiety as this crisis continues.
Small, interest-free or low-interest loans to help keep rent and utilities paid would enable many
of these businesses to remain in business until the economy opens back up. But more
importantly, quick access to this funding is vital.
It is my hope that by adopting the resolution to approve the Economic Recovery and Response
Initiative that the City of Carlsbad, at the direction of its council, can help Carlsbad Village small
businesses stay viable. I am in favor of the initiative as in many respects, I feel this is our last
and best opportunity for financial assistance.
Sincer~ly,
Zac Markham
Humble Olive Oils
David Graham, Chief Innovation Officer
Laura Rocha, Deputy City Manager
April 21, 2020
COVID-19 Response
Recommendations from the Ad Hoc
City Council Economic Revitalization
Subcommittee
Recommendations
Adopt a resolution authorizing the creation of the Economic Recovery and Revitalization Initiative and directing the following:
1.On May 5, 2020 present a rent relief proposal to City Council for New Village Arts and the Chapters Café at the City Library along with recommended guidelines for evaluating economic relief requests from city lessees
2.Bring all city lessee requests for economic relief received during the local declaration of emergency to City Council
3.Return to City Council with recommendations for extending local land use permits in conformance with state law
4.Work with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit Carlsbad to develop a marketing strategy and funding recommendation to promote Carlsbad tourism and businesses
Recommendations
5.That the City Council Legislative Subcommittee to evaluate and return to
the City Council with recommendations for legislative advocacy that would:
a.Support legislation that helps businesses who have had business
interruption due to COVID-19 insurance claims denied
b.Support legislation to ensure small businesses are protected from an
extraordinary rise in healthcare premiums due to COVID-19
c.Support legislation that would automatically extend subdivision maps
under the Subdivision Map Act due to the economic impact of COVID-
19 like action taken by the Sate of California in the wake of the Great
Recession
d.Support legislation that would remove impediments to the automatic
extension of local permits due to the economic impact of COVID-19
Recommendations
6.Continue the open source business community engagement that
allows all businesses to provide input to the City Council on economic
revitalization
7.On May 5, 2020 present recommended funding and funding sources
for the Economic Recovery and Revitalization Initiative
Provide for full City Council input on additional options for economic
revitalization
History
April 7 Ad Hoc City Council Economic
Revitalization Subcommittee approved
April 9 First subcommittee meeting
April 10 Ready Carlsbad Business Alliance
April 15 Joint webinar + live polling
April 15 Second subcommittee meeting
April 20 Third subcommittee meeting
April 21 City Council consideration of subcommittee consensus
recommendations and additional options
Economic Uncertainty
•Closures of all non-essential businesses
•WARN notices over 4,200 in layoffs
•Food, beverage, and hospitality hardest hit
•Sports + Innovation, manufacturing
U .. S. posts record layoffs
~ n iU a II jobless c I a i mis soar on co ronavi nJ s c I osures '-; Week of .. ·
[,'.~J'v1arch 22~ 28 ~6:6,5 imHllion -
-----------------------------1 6~0001000
------------------------------5~0001000
'70' • I '75 '80 '85 '90 ~95
Week of
Morch 15-21
3 .. 34 minion
·10 '15 '20 0
Source: Labor 1Dcpartmc,,1t
........ · · ......... 8000
6867 6615
5245
... .. 4000
212 201 204 215 220 217 211 282 -Jam 26 Feb 9 Feb 23 Mar 8 Nlar 22 Apr 5
Economic Uncertainty •Nationally 22 million jobless claims in four weeks
•San Diego County March unemployment rate of 4.1%
•February unemployment rate was 3.2%
Business Community Outreach•Engagement & collaboration started early
•Joint communications with Chamber and CVA
•Joint webinar + live polling with Chamber & CVA
Total
Respondents
54
Survey Respondent Company Size
Overl00
employees
4%
Less than 5
employees __
55%
25-50 employees
4% 50-100 employees
4%
Size of BusinessesNon-residential business license holders
•$1m or less in gross revenue 3,034
•$3m or less in gross revenue 3,600
•10 employees or less 3,154
•25 employees or less 3,651
Small Business Administration
Emergency Injury Disaster Loan program (EIDL)
Applied or will apply to EIDL?
Federal Paycheck
Protection
Program (PPP)
Applied or will apply to PPP?
Business Community Outreach•One-on-one business consultation –70+ companies
•City Life in Action website
•City website business outreach page
•Social Media
•Launched GIS curbside, take-out and delivery map
Existing Revitalization Resources
Financial
•PPP –1% Forgivable loan for payroll, rent, mortgage
interest and utilities up to 2.5x monthly payroll
•EIDL –3.75% Low-cost loan up to $10m
•Senate passed additional $310b for PPP
•CA IBank -$50m to businesses that may not qualify for
federal loans
•CA Ibank –Disaster Relief Loan Guarantee Program up
to $50,000 loans
Guiding Ideas
•Evaluate options considering the current economic uncertainty
•Ensure the city can continue to provide core services
•Define initiatives for COVID-19 response and those for
ongoing economic recovery
•Consider industry sectors in program development
•Support small and very small businesses
•Focus on local rather than franchisees or chain stores
•Economic response, recovery and revitalization
Economic Revitalization Options
Sources
•Subcommittee members
•Business organizations like Chamber and CVA
•Business community
•Staff
•Research on efforts around California
Economic Revitalization Options
Subcommittee discussion
•Consensus recommendations
•Council discussion on additional items
Economic Revitalization Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No-cost or low-cost loans
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Chamber of Commerce and Village Association support
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Chamber of Commerce and Village Association support
City Lessee Relief
City Lessee Analysis
•Nine lessees
•Approximately $55,000 in total monthly rent
•Two lessees have requested relief
City Lessee Relief
New Village Arts Lease Payment Relief
•Lessee request
–Suspend rental payments until re-opening
•Impact: $500 monthly reduction in revenue
•Benefit: Lessee will not pay rent in the near-term
•Staff analysis
–Support rent deferral
–Pay back rent deferral amount through 2021
•Action: Return to City Council on May 5th for action
City Lessee Relief
Chapters Café at the City Library Lease Payment Relief
•Lessee request
–Suspend rental payments until re-opening
•Impact: $1,230.75 monthly reduction in revenue
•Benefit: Lessee will not pay rent in the near-term
•Staff analysis
–Support rent deferral
–Extend lease term for the same period of time as deferral
•Action: Return to City Council on May 5th for action
City Lessee Relief
Future COVID-19 City Lessee Requests
•Recommend guidelines for evaluating economic relief
requests from city lessees to ensure consistency and
fairness
•Evaluate and present to City Council all city lessee requests
for economic relief during the local declaration of
emergency
Action: Return to City Council on May 5th with guidelines
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Local Land Use Permit Extension
Local Land Use Permit Extensions
•Provide economic relief with a streamlined approach to permit
extensions
•Type of permit
•Length of extension
Impact: Reduced permit processing revenue. Staff time and cost.
Benefit: Businesses will have a longer time to operate before
spending money and time on permit processing
Action: Develop a proposal and return to City Council in
approximately 45 days
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Economic Recovery Marketing
Joint Marketing and Promotion Strategy
•Visit Carlsbad is pivoting to drive market rather than group sales
•Resources for individual business marketing and promotion are
shifting to core operational needs
•Develop a marketing strategy and funding recommendation with
the Chamber, CVA and Visit Carlsbad
Impact: Staff time and cost to develop approach and funding amount
Benefit: Joint marketing opportunities, improved resource
deployment and rapid implementation of fully developed strategy
Action: Develop an approach and funding recommendation for City
Council consideration within 30 days
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
City Legislative Advocacy Ideas
Refer to the City Council Legislative Subcommittee
•Support legislation that helps businesses who have had business
interruption due to COVID-19 insurance claims denied
•Support legislation to ensure small businesses are protected from
an extraordinary rise in healthcare premiums due to COVID-19
•Support legislation that would remove impediments to the
automatic extension of local permits due to the economic impact
of COVID-19
•Support legislation that would automatically extend subdivision
maps under the Subdivision Map Act due to the economic impact
of COVID-19
Consensus Recommendations
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four ideas to City Council Legislative Subcommittee
•Open business community engagement
Business Engagement
Open Source Business Community Engagement
•Regular webinar jointly hosted by the city, Chamber and CVA
–Joint updates
–Live polling
–Q&A and chat functions
•Industry cluster convenings co-hosted by Chamber and CVA
•Provide rapid sourcing of information for City Council on
economic revitalization ideas and the overall initiative
•Use additional digital and traditional outreach tools
Action: On going engagement
Economic Revitalization Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Funding
Funding Source and Amount
•$5,000,000
•Economic uncertainty set aside –$11.1m would remain
•General Fund reserves
–Reserve target is 40%
–Reserves are currently at 47%
–Reserves exceed policy target by $10m
•Action: Return to City Council on May 5th with allocation item
Economic Revitalization Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Options
Business License Fee Waiver
•Waive business license fees
–Up to 100% temporary fee waiver
–Relief would occur when license is due
–Professional services
–Gross receipts
–Currently fee payments are deferred 60 days
•Impact: Up to $4m-$5m per 12 month period
•Benefit: All businesses would not pay the fee but the relative
benefit would vary
Economic Revitalization Options
Business License Fee Waiver
•Staff analysis
–Relief would be across the board for all businesses
–Relief would occur over 12 month rolling period
–Immediacy of relief would be inconsistent
–Relief amount would depend on how the individual
license fee is calculated
–Fee payments range from $34 to nearly $300,000
–Median business license fee is $154.000
Economic Revitalization Options
Business License Fee Waiver
•Staff analysis
–This approach would not allow for targeting relief based
upon business size, type or industry
–Significant cost
–Low benefit to small and very small businesses
Economic Recovery Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Options
Mediation & Negotiation Services
•Partner with an organization on a program to help landlords
and tenants negotiate on impacts due to COVID-19
particularly those related to the eviction moratorium
•Not staffed by city staff or attorneys
•Impact: Staff time and low cost
•Benefit: Low or no cost resource to proactively address
tenant and landlord issues
Action: Return to City Council within 30 days with program
details and cost
Economic Recovery Options
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Options
No-cost or Low-cost
•County of San Diego approved $5m program
administered by San Diego Foundation
•San Diego is using CDBG and repurposed revolving loan
funds for grants and loans totaling $6.1m
•San Marcos is using $3m emergency reserves for 0%
$10,000 loans and low-cost up to $50,000
•Poway City Council directed staff to develop a bridge
loan program
Economic Revitalization Options
No-cost or Low-cost
•Coronado allocated $2m for $20,000 loans
•Oceanside proposes loans not to exceed $20,000 tiered
from 0% interest to 3.25%
Economic Revitalization Options
No-cost or Low-cost
•Varied criteria for eligibility
–Business size
–Gross receipts
–Exclusions
Economic Revitalization Options
Low-cost or No-cost Loans
•Varied loan terms
–Forgivable
–Competitive interest rates
–Minimum and maximum loan size
•Varied administration
–City administered
–Third party administered
Economic Revitalization Options
Low-cost or No-cost Loans
•Subcommittee considered several types of programs
–Federal PPP & EIDL matching loan
–Operational stability loans
–Economic recovery and revitalization loan
–Revolving loan fund
Economic Revitalization Options
Low-cost or No-cost Loans
•Loan design options
–0% interest loans, pegged to portfolio rate <2%
–Deferred first payment
–Loans of between 12-24 months
–Maximum loan amount of $25,000 or $50,000
–Cap on size 25 or 50 employees or less
–Cap on gross revenues $3m or $5m or less
Economic Revitalization Options
Low-cost or No-cost Loans
•Loan design options
–Award to PPP and EIDL recipients
–Award to those who do not receive PPP, EIDL or
SBA
–No franchisees or chains
Economic Revitalization Options
Low-cost or No-cost Loans
•Loan design options
–Response: Operations like rent, payroll, and
mortgage interest
–Recovery: Capital and working capital
–Revitalization: Revolving loans, microloans,
startups, capital and soft costs
Economic Revitalization Options
Low-cost or No-cost Loans
•Loan design options
–Response: Operations like rent, payroll, and
mortgage interest
–Recovery: Capital and working capital
–Revitalization: Revolving loans, microloans,
startups, capital and soft costs
Economic Revitalization Options
$2.5m fund
•Average loan of $10,000 would result in approximately 250 loans
•Average loan of $25,000 would result in approximately 100 loans
•Average loan of $50,000 would result in approximately 50 loans
$5m fund
•Average loan of $10,000 would result in approximately 500 loans
•Average loan of $25,000 would result in approximately 200 loans
•Average loan of $50,000 would result in approximately 100 loans
City Council Discussion
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Consensus Recommendations
Does the City Council wish to provide input on any of the
following?
1. City lessee relief
2. Local land use permit extensions
3. Joint marketing strategy
4. Four ideas referred to City Council Legislative Subcommittee
5. Open business community engagement
City Council Discussion
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license waiver
•Mediation and negotiation services
•No cost or low cost loans
Economic Revitalization Funding
Does the City Council wish to provide input on the
amount of funding for the Economic Recovery and
Revitalization Initiative?
Does the City Council wish to provide input on the
preferred source of funding?
Business License Fee Waiver
Does the City Council wish to provide input on the
concept of a business license fee waiver?
Mediation and Negotiation Services
Does the City Council wish to provide input on the
concept of a engaging with a partner organization to
provide mediation and negotiation services to Carlsbad
landlords and tenants?
No cost or Low cost Loan
Does the City Council wish to provide input on the
concept of a business loan program?
Are there criteria or design characteristics that the City
Council support?
City Council Discussion
Consensus Recommendations
•City lessee relief
•Local land use permit extensions
•Joint marketing strategy
•Refer four items to City Council Legislative Subcommittee
•Open business community engagement
Additional Options for City Council Discussion
•Economic revitalization funding
•Business license fee waiver
•Mediation and negotiation services
•No cost or low cost loans
Recommendations
Adopt a resolution authorizing the creation of the Economic Recovery and Revitalization Initiative and directing the following:
1.On May 5, 2020 present a rent relief proposal to City Council for New Village Arts and the Chapters Café at the City Library along with recommended guidelines for evaluating economic relief requests from city lessees
2.Bring all city lessee requests for economic relief received during the local declaration of emergency to City Council
3.Return to City Council with recommendations for extending local land use permits in conformance with state law
4.Work with the Carlsbad Chamber of Commerce, Carlsbad Village Association and Visit Carlsbad to develop a marketing strategy and funding recommendation to promote Carlsbad tourism and businesses
Recommendations
5.That the City Council Legislative Subcommittee to evaluate and return to
the City Council with recommendations for legislative advocacy that would:
a.Support legislation that helps businesses who have had business
interruption due to COVID-19 insurance claims denied
b.Support legislation to ensure small businesses are protected from an
extraordinary rise in healthcare premiums due to COVID-19
c.Support legislation that would automatically extend subdivision maps
under the Subdivision Map Act due to the economic impact of COVID-
19 like action taken by the Sate of California in the wake of the Great
Recession
d.Support legislation that would remove impediments to the automatic
extension of local permits due to the economic impact of COVID-19
Recommendations
6.Continue the open source business community engagement that
allows all businesses to provide input to the City Council on economic
revitalization
7.On May 5, 2020 present recommended funding and funding sources
for the Economic Recovery and Revitalization Initiative. $5m funding
allocation from the economic uncertainty fund
Additional options
•Return within 30 days to City Council with mediation and negotiation
partner, program and proposed funding.
•Return to City Council on May 5 with options for a no and low cost loan
program with a focus on small and very small businesses including 15
employees or less
Thank You