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HomeMy WebLinkAbout04. Memo Public Health Crisis Responses 020221 To: Mayor and Town Council From: Town Manager’s Office, Economic Development and Finance Departments Date: February 2, 2021 Subject: Updates about Town of Vail Economic Recovery Responses to Public Health Crisis Winter Season 2020-2021 I. PURPOSE The purpose of the memo is to provide updates to a number of the town’s responses to the public health crisis as it relates to the winter season, 2020-21. Town staff continue to monitor public health orders and impacts on the business community and municipal services. There will be a number of additional topics presented at the next council meeting addressing the creation of an Entertainment District and common consumption areas. Topics presented next Tuesday will be presented in the following key areas: ▪ Eagle County Public Health Update (Five Star Business Certification Program) ▪ Community Relief Program Update ▪ New Business Grant Award Program (economic relief for Vail businesses) ▪ Winter Marketing Efforts during Public Health Crisis II. PUBLIC HEALTH CRISIS UPDATE Eagle County Public Health Update Eagle County’s Department of Public Health and Environment (ECPHE) has adopted Colorado’s statewide COVID-19 dial dashboard. The dial dashboard relies on three key metrics, including disease incidence rate, percentage of countywide COVID-19 tests that come back positive, and the number of hospitalizations for COVID-19, to generate a color-coded risk assessment. Each level further determines the activities and capacity limits based on the risk within each county. For more details, please access the Colorado website at: https://covid19.colorado.gov/data/covid- 19-dial-dashboard. The stats the week of January 24 are noted in the diagram. Town of Vail Page 2 In addition, there has been an update from Eagle County Public Health about implementation of the Five Star Business Certification Program, as follows: The Eagle County Covid-19 response team and our partners know the pandemic and restrictions to limit its spread have dramatically affected our business community. Many of you have expressed interest in Eagle County’s implementation of the 5 Star Business Certification program to allow for increased capacity and promote your business.Eagle County remains ineligible to participate in the program based on the State criteria. While we are currently operating in Orange Level because of our test positivity rate and hospitalizations, our 14-day cumulative incidence rate is currently at nearly 800 cases per 100,000 people. We will need to get this down to 350 cases per 100,000 to be eligible based on the State's requirements. This will allow certified businesses and organizations to operate at Yellow level capacities. Our team is preparing for when Eagle County will be eligible to participate in the program, so we can be ready for when we achieve that magic 350 incidence rate. You can take steps to be ready too! Review and implement the State’s 5 Star Policy Framework and business checklists. The Town of Vail also continues to work with Eagle County to prepare for the next population group for COVID-19 vaccination eligibility that will likely include essential Town staff (such as public transit and other critical employees) which is expected to open up in the next week or two. In addition, the State of Colorado continues to provide information about the vaccine , access this link: https://covid19.colorado.gov/press-release/state-launches-covid-19-vaccine- informational-campaign III. ECONOMIC RECOVERY PROGRAMS Community Relief Program Update In April, Vail Town Council allocated $500,000 in financial support to non -profit organizations to provide local financial relief associated with COVID -19 impacts in the areas of food, shelter and health for those who reside and/or work in Vail and their families. A total of $386,000 has been spent to-date. In the first round of funding, a total of $283,000 was awarded to 10 organizations by the Community Support Fund Committee. A second round of funding was approved in June, totaling $92,000: Swift Eagle Charitable Foundation ($25K) for additional rent relief efforts; The Family Learning Center ($30K) to help cover tuition for working parent s (54 families that live or work in Vail); United Way ($37K) for their Philanthropy Fund, which distributes funds to non- profit organizations in the Vail Valley. The United Way has a matching grant committed by an anonymous donor, so the total funding available to the community will be $74K. A third round of funding was approved in December which included $11K for the Eagle Valley Childcare Center’s tuition credit assistance program. This program helped to cover tuition costs during closures for 44 families who live and work in Vail. Relief efforts by category: Medical & Behavioral Health: $123 ,000 Food: $100,000 Residential Rent Relief: $85,000 Childcare: $41,000 General: $37,000 The 2021 budget includes $119,000 in relief funds available to the community as a carryover from the unused 2020 allocation. Given the fact that there are many within our community in need, staff is currently contacting existing non-profit partners to continue relief efforts in the categories mentioned above to ensure the allocated funds are distributed in the most effective manner. New Business Relief Program: TOV Grant Award Program The new business relief program is proposed for Vail businesses, and would award grant funds to assist those businesses experiencing the challenges caused by the public health crisis . The monies are to help relieve the resulting financial impacts due to public health orders and restrictions in capacity. The Town continues to evaluate how it can assist businesses to stay open so that Vail will remain competitive as an international premier mountain resort community . The proposal is to redirect monies from economic recovery efforts primarily used for commercial rental relief to a more general purpose and benefiting the businesses directly. Total funding for the program is $500K and is already included in the 2021 budget. The grant award would offer a range of monies from $5K up to $15K. The application process will require both quantitative and qualitative information, such as financial and revenue reports as well narrative explanations about the impacts of the health crisis on their business. The selection committee will include the same as that of the commercial rental relief program (reps from finance, economic development and Town Manager’s Office). The program would be rolled out by taking applications February 15 through March 31. A scoring matrix will be used that will tally points based on financial health and operational impacts and assist in determining the funds awarded. The proposal was drafted to be complementary and additive to the Eagle County Bridge Funding Program . VEAC members were given the opportunity to hear about both the county program and the town’s proposal and provided feedback. The program details follow: Town Grant Award Program (GAP) Objectives: Helping to keep Vail Open for Business ▪ Assist Vail businesses with financial support so that they may continue to keep their doors open during the months ahead as the public health crisis is projected to be impactful in 2021. ▪ Provide funding directly and quickly to local Vail businesses to help cover essential operational expenses in order to keep them open for guests and residents. Program Eligibility: ▪ Business must provide current and valid Town of Vail Business and Sales Tax License. ▪ Business must have a physical location and storefront with in the Town of Vail’s commercially zoned area from which business operations are conducted. ▪ Business must not be a publicly traded corporation, not be owned by, controlled by, or a subsidiary of a publicly traded corporation. ▪ Business must not have more than 50 FTEs. Town of Vail Page 4 ▪ Business must not be in violation of Eagle County and State of Colorado and Executive Public Health Orders (including face covering mandates and capacity restrictions). Program Criteria: ▪ Financial Health of Business (financial reports) ▪ Operational Impacts as a result of public health orders (narratives) Winter Marketing Efforts during Public Health Crisis In order to provide support for economic recovery for Vail lodges and businesses, staff recommends a new Town of Vail marketing campaign this spring that would offer a “mid-week lodging special”, packaged with gift cards to local businesses as a value -add booking incentive. With occupancy lagging by double digits through the ski season, we recommend a booking incentive program to stimulate demand out of the front range during the mid-week and drive guests into local businesses through a gift card promotion. As summarized in the January 15 Destimetrics Daily Occupancy Report Production Notes and included in the graph below: As we pass the holiday season, the next 3 winter months remain down double -digit figures in comparison to last year, leaving quite the challenge for hoteliers and property managers to fill in said gaps. There are -14,299 (-15,376 last report) less bookings than last year at this time. The program would be proposed to be funded by the town (General Fund) and facilitated by the VCBA, while partnering with participating lodges and businesses. Town of Vail Page 5 Digital marketing would be deployed in the front range with a message of “Work from Vail” that would drive to a DiscoverVail.com landing page. Visitors would have the oppo rtunity to book the special lodging offer both through DiscoverVail.com and through the lodge websites that offer the special. Guests would have to book a stay during mid -week from Sunday through Wednesday, and the stay would qualify them for gift cards as follows: • 1 night - $25 (1 card) • 2 night - $75 (3 cards) • 3 night - $200 (8 cards) The program would be restricted to new reservations made from February 5 – April 11, 2021 and would offer 1,000 gift cards until they run out. GOALS AND ROI MODEL FOR MID-WEEK LODGING INCENTIVE PROGRAM 1. To address lagging occupancy by stimulating demand for mid-week lodging reservations for the rest of the ski season. 2. To incentivize guest purchases in Vail restaurants and retail businesses. 3. To strengthen partnership with lodges, businesses and DiscoverVail.com. Budget: $25,000: 1,000 $25 gift cards $45,000: Digital Marketing (including fees , four weeks in front range) $5,000: Professional Fees (VCBA administrative costs) $75,000: Total Marketing Campaign Expense Estimated Return on $75,000 Investment: $525,000 room revenue = 1,000 guest rooms at Average Daily Rate $525 $21,000 room sales tax revenue $7,350 room lodging tax revenue $25,000 additional revenue from gift cards $2,500 unused gift card breakage (estimate) IV. ACTION REQUESTED OF TOWN COUNCIL Staff requests that Town Council consider approving the 1) Grant Award Program (business relief funding already included in 2021 budget), and 2) Work from Vail mid-week lodging incentive program with funding from the General Fund up to $7 5,000 (which would be included in the first supplemental budget ordinance in March).