Dear Alameda Business Leaders,
On behalf of the City, I want to express our concerns about the impacts that COVID-19 has had on our residents and businesses. The last month has been incredibly difficult. The thriving community that is built around our popular business districts was a big part of my decision to relocate to Alameda. There is nothing I want more than for 100 percent of our businesses to fully recover from this very difficult time. Our City Council and City staff are deeply committed to this same goal. Alameda stands united to recover and restore.
This is my first email directly to the business community during this event, but I plan to send updates weekly. In today’s email, I will talk about the package of business relief coming to the City Council on Tuesday, April 21, State assistance to businesses, and our next steps as we move from being reactive to proactive in helping businesses through this unprecedented moment.
Package of Business Relief Proposals
We have heard from a lot of local businesses about the financial pressures they are facing. Staff is bringing a proposal to the City Council that would create a $600,000 grant/loan program for our most vulnerable small businesses and restaurants. In addition, the City Council will provide direction on the minimum wage increase that goes into effect July 1, 2020.
Another item aims to provide assistance to local businesses by doing three things. First, we’d like to establish temporary zoning rules for businesses providing essential goods to Alameda residents. For example, allowing restaurants to sell to-go alcoholic beverages and allowing food-related businesses to stay open until 2am. Second, we are proposing that payment of business license taxes be deferred for 60 days from July 1 to September 1, 2020. Third, for hoteliers, we are proposing deferred remittance of March – May transient occupancy taxes for 60 days.
As you may know, the City Council approved a moratorium on commercial and residential evictions and foreclosures for the non-payment of rent/mortgages due to significant loss of income/revenue from the COVID-19 pandemic at its last meeting. This Tuesday, we are proposing adding rent relief for commercial tenants in City of Alameda-owned properties. We had previously provided the option to defer rent payments for 60-days (April and May). This new proposal builds on this to provide a Commercial Tenant Rent Relief Program for tenants in City-owned properties through additional rent deferral and/or rent abatement.
State Assistance to Businesses
Yesterday, Governor Newsom announced the Pandemic Unemployment Assistance Program that will begin taking applications on April 28, 2020, with payments arriving within 24 to 48 hours. The new program will provide benefits for business owners, independent contractors, gig workers, and others impacted by COVID-19 who are not eligible for typical Unemployment Insurance benefits. We are updating our website almost daily at www.alamedaca.gov/alerts with resources for businesses and workers, including information about this program, and will continue to do so.
Next Steps
As we see the burdens placed on the business community during this time, we also are feeling budget pressures on the City due to the COVID-19 crisis and foresee experiencing those pressures into 2021.
The Governor stated this week that this is not a permanent state. We will see a loosening of the stay at home restrictions and an expansion of what is deemed essential business activities. That loosening will continue as long as we continue to slow the spread of COVID-19. But even when our businesses and restaurants reopen, we anticipate they will look different than what we are used to. Every business, including the City of Alameda, will have to design new ways to do our business to keep everyone safe. We are starting to work on that recovery plan now, and have an incredible team led by Debbie Potter, Lois Butler, Eric Fonstein, and Amanda Gehrke, that will help you every step of the way. You can reach them anytime at econdev@alamedaca.gov or 510-747-6890.
Your future is Alameda’s future. We are grateful for all that you are doing, and look forward to working with you on the road to recovery.
Eric Levitt
City Manager
PS:
Tuesday, April 21, Alameda City staff and members of the Alameda City Council will join the weekly Tuesdays @ 2 Town Hall organized by the business community. More information about this regular meeting is posted on our website here.
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