Economic Vitality Committee Agenda and Packet 2020 12 18

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SUBJECT: BUSINESS PANDEMIC SUPPORT RECOMMENDATIONS DATE: DECEMBER 18, 2020 PAGE 8 OF 9 Other Considerations: As noted, staff continues to survey the surrounding area about the means of business support being enacted. While there is a benefit to each program type, the above narrative highlights what staff recommends can have the most impact to the Louisville business community at this time. Going forward, the City could always evaluate other means of support, which are outlined below. • Gift Card Program. For example, get a $25 gift card for each $25 gift card purchased, up to $100. There are providers that can be contracted for this service, though to avoid complications with POS systems, these are usually electronic only gifts. City of Boulder administered a similar program (Boulder Bucks) with $125,000 in funding and made it exclusive to retailers but excluded beer, wine, and liquor stores; medical or recreational marijuana stores; grocery stores; restaurants; and businesses that provide services not subject to sales tax. Staff has explored a more traditional gift card program, where customers could purchase a gift card to be used at a wide distribution of Louisville businesses. Because of participation, POS system changes, and administration, it was determined to be too complex for City undertaking. The Downtown Boulder Partnership has successfully run a gift card program for a number of years, but they are a business improvement district separate from the City. • Sustainable Takeout Subsidy. Prior to the Boulder County COVID supply program, City of Boulder provided recyclable and compostable takeout containers to local restaurants. Each restaurant was eligible for up to $1,000 worth of items on a first come, first serve basis. Again, a vendor was used to primarily administer this program to realize staff capacity and restaurants received the actual supplies, not funding to purchase the items. • Sales Tax or Utility Relief. The recent legislation will provide eligible restaurants potential sales tax relief between November 2020 and February 2021. Locally, Louisville has not taken any action on taxes or fees to -date. For sales and consumer use taxes, the City does offer a payment program —meaning there is a current option for a business that foresees the inability to pay what is supposed to be remitted. Administratively, sales tax relief is likely to be somewhat burdensome, because staff would probably require all businesses to file as usual, but some businesses would be exempt from remitting. Staff does not recommend considering utility relief. The utilities are enterprise funds, where rate setting is an important function to make sure that services can be provided and infrastructure can be maintained and replaced. By reducing the utility fee revenue, the City could be negatively impacting the enterprise funds and create future issues with service needs. RECOMMENDATION: Staff seeks EVC direction on the presented pandemic support recommendations. Staff proposes that the highest priorities should be a targeted grant program and liquor license fee relief. Agenda Packet P. 13