The Coronavirus pandemic is having a significant impact on businesses, residents, and local governments. The Village of Arlington Heights currently projects a net loss over $8.5 Million in our general fund in 2020 alone. This will be a significant challenge to provide continued quality service and infrastructure to the community. However, the Village recognizes the severe challenges facing small businesses and residents who have experienced significant loss of income due to the Coronavirus and the current economic conditions. As a result, several Coronavirus initiatives have been outlined and forwarded to the Village Board for preliminary input, and also discussed with the business community. The following is a summary of these Initiatives:
A. Business and Resident Coronavirus Relief Package:
Attached is a memorandum titled Proposed Initial Coronavirus Relief Package that outlines some business and resident assistance programs. These include the possibility of modifying the current Zero Interest Loan program to provide for an emergency Zero Interest Loan program with loans made available to small businesses in the community to be paid back over a two-year time period, starting in 2021. Other initiatives include providing a reduction in certain licenses and a deferral of certain fees.
Staff has heard from some businesses that while they appreciate the proposed Zero Interest Loan program, they felt that $5,000 was not substantial enough when several of the businesses referenced their losses in the $50,000 to $150,000 range. In light of this feedback Staff recommends increasing the maximum loan amount to $10,000 and provide fewer loans with an initial offering. Additional funds could be considered later if the program is popular.
Additionally, the restaurants have asked that their liquor license fees for 2020 be reduced by 50%. An increase in the reduction of liquor license fees can be considered by the Board now or once we get closer to the proposed September 30th due date.
Finally, there were also requests from restaurants with liquor licenses to not have to provide food service and staff their kitchen later in the evening. Staff would like to get feedback from the Board on the issue of eliminating the requirement for kitchen staff at restaurants at 9 pm.
With respect to resident assistance, the Village’s emergency assistance fund administered through the Villages Health and Human Services Department is receiving significant request for assistance. In addition, the Village will soon be discussing Community Development Block Grant-CV funds that have been allocated for emergency assistance, along with other items outlined in the memorandum.
B. Downtown Pedestrian Zone/Arlington Alfresco:
The Coronavirus pandemic is having significant impact on Downtown businesses and the Village has received communication from Downtown restaurants and other businesses with concerns over their ability to continue to survive at a reduce capacity without some measures or assistance from the community. It is anticipated that at some point businesses will be allowed to open, but at significantly reduced capacities with requirements for social distancing. The second attachment outlines several scenarios that Staff has considered, with the highest priority being proposed for a full street closure of Vail and Campbell Street and utilization of private parking areas for additional outdoor dining.
The proposed closure of Vail and Campbell Street would allow for restaurants to have outdoor dining within the public right-of-way with tables spaced a minimum 6 feet apart to allow for appropriate social distancing. Without such an approach, the restaurants may not be allowed to have outdoor dining on public sidewalks due to the narrowness of the Village’s Downtown sidewalks and difficulty to maintain 6 feet spacing. A street closure would also allow for other retailers and service uses within the zone to allow for social distancing for their customers waiting to enter the store and/or the possibility of outdoor displays and sales of their merchandise. While this concept still needs fine tuning, it is recommended that it continued to be explored to provide a Downtown street closure zone of Vail and Campbell Streets and the use of private parking areas in Downtown for additional outdoor dining. The urban island/closed parking lane concept discussed in the attached memorandum would be utilized only as a last resort and on a case-by-case basis.
C. Outdoor Dining in Private Parking Areas:
Other restaurants outside of the Downtown area have made some preliminary inquiries into the possibility of allowing outdoor dining within private parking areas. The third attachment contains an outline and application form for a proposal to allow such outdoor dining within parking areas. For this to succeed, at some locations, minimum parking requirements may not be able to be met. Staff is requesting authority from the Board to administratively waive such requirements in appropriate circumstances.
Village Staff has not only had one-on-one communication with various businesses but also recently held Zoom meetings with the Downtown restaurants and retailers within the proposed pedestrian alfresco zone. During the restaurant Zoom meeting, there were 29 participants from various restaurants. These meetings were highly productive in understanding the suffering that is ongoing by the small business community, but also to receive feedback from them regarding these proposals. The businesses were genuinely appreciative of the Village’s efforts to assist the business community during this pandemic and had questions and in some cases reservations regarding certain components of the proposal.
There are many details that need to be worked out, such as specifics regarding curbside pickup and other details with respect to rules and regulations of the space, deliveries, garbage collection and so forth. There were requests for the Village to provide the fencing.
The retail businesses expressed their gratitude as well, but also had concerns over pickup and drop-off at Metropolis. They also felt that helping the restaurants should not be at the expense of the retailers looking for short term parking to allow their customers easy access by appointment basis. The ability to have their customers wait in a social distance manner and the potential for outdoor sales and displays were important to some but not all. The businesses also identified and requested support from Arlington Heights residents both during this pandemic and upon gradual reopening, asking residents to support the local businesses and to be patient, as it is envisioned that business will not be back to normal for a substantial amount of time.
Recommendation
It is recommended that the Village Board approve the following with regard to relief for businesses during the Coronavirus Pandemic:
1. Authorize Staff to expand the current Zero Interest Loan program to provide emergency zero interest loans up to $10,000 in accordance with the terms outlined in the attached memo. Additionally, for 2020, reduce the annual liquor license fee for all classifications other than Class B and BB by 25%, with all liquor license fees due by September 30th. Additionally, for 2020, reduce the annual liquor license fee for all classifications other than Class B and BB by 25%, with all liquor license fees due by September 30th. Any business whose liquor license consists of a Class B or Class BB in addition to another liquor license classification (other than a Class T) will have the total amount of their liquor license fees reduced by 25%, including the Class B or Class BB fees.
2. Direct the Village Staff to implement a plan to permit Downtown Business District restaurants to utilize space in the streets as well as public sidewalk in front of their locations, as outlined in the attached memorandum, for the sole purpose of permitting increased capacity while the capacity inside their restaurants is limited in accordance with applicable Executive Orders. Use of the public space would encompass all aspects of their business for which each restaurant is licensed, including the serving of alcohol. This includes a closure to vehicular traffic on Vail and Campbell as designated in the attached memo as well as appropriate use of street parking spaces as needed to implement this concept.
3. Authorize the Village Manager to approve a waiver of minimum parking requirements to create outdoor dining areas for restaurants on private property for the sole purpose of permitting increased capacity while the capacity inside their restaurants is limited in accordance with applicable Executive Orders.