HomeMy WebLinkAbout7 Study Session Agenda Packet 04-06-20STUDY SESSION AGENDA
CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO
7500 W. 29th Ave. Municipal Building April 6, 2020 6:30 p.m. This meeting will be conducted as a VIRTUAL MEETING. No members of the Council or City staff will be physically present at the Municipal building for this meeting; the public may not attend in person. The public may participate in these ways:
1. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on April 6, 2020) 2. Virtually attend and participate in the meeting through a device or phone:
• Click here to join and provide public comment
• Or call +1-669-900-6833 with Access Code 120 837 760 3. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view
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sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are
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Citizen Comment on Agenda Items
1. Grammies Goodies Enhanced Sales Tax Incentive Program (ESTIP) request
2. Short-term rentals
3. Staff Report(s)
a.) Wheat Ridge Small Business Sustainability Program
4. Elected Officials’ Report(s)
a) Citizen engagement opportunities for official public hearings during the
Colorado Stay-at-Home Public Health Order
ADJOURNMENT
Memorandum
TO: Mayor and City Council
THROUGH: Patrick Goff, City Manager
FROM: Steve Art, Economic Development Manager
DATE: April 6, 2020
SUBJECT: Grammy’s Goodies Enhanced Sales Tax Incentive Program request
ITEM: The City of Wheat Ridge received a request from Jeff and Vickie Corder, owners of Grammy’s Goodies (Grammy’s), to enter into the Enhanced Sales Tax Incentive Program (ESTIP) program
for the rebate of sales tax increment associated with a proposed remodel and addition of an
enclosed patio to Grammy’s located at 4601 N. Harlan Street. The request is a rebate of 50% (1.5 cents) of the incremental city sales tax generated from Grammy’s for a period of 5-years or a not to exceed amount of $70,000.
PRIOR ACTION:
None
FINANCIAL IMPACT: The remodel and expansion of Grammy’s is estimated to generate $20,000 in incremental city
sales tax annually or $100,000 over a 5-year period. The ESTIP request is for the City to rebate
50% of the incremental sales tax annually for a period of 5-years or a not to exceed amount of $70,000.
BACKGROUND: Wheat Ridge Code of Laws Section 22-73, establishes the ESTIP as an economic development
tool. The goal of the ESTIP is to encourage the establishment and/or substantial expansion of retail sales tax generating businesses within the city, thereby stimulating the economy of and within the city, thereby providing employment for residents of the city and others, thereby further expanding the goods available for purchase and consumption by residents of the city, and
further increasing the sales taxes collected by the city. The ESTIP and increased sales tax
collections will enable the city to provide expanded and improved municipal services to and for the benefit of the residents of the city.
This tool allows the City Council to rebate a portion of sales tax increment generated by
Grammy’s. Enhanced sales tax is the amount of sales tax collected by the city over and above a
base amount, which is the amount received over the previous 12-months prior to the application to enter into the ESTIP.
Item No. 1
Grammy’s Goodies ESTIP
April 6, 2020
Page 2 Grammy’s has been operating for 17 years, the last 5 years in Wheat Ridge. Co-owner, Vicky Corder grew up in Wheat Ridge and graduated from Wheat Ridge High School. She and her
husband Jeff raised two children in Wheat Ridge and want to be a part of the community for as
long as they are able. Grammy’s was recently featured on the Food Network’s Diners, Drive-ins
and Dives. This feature has increased Grammy’s business dramatically. Based on this new business, Grammy’s needs additional space in the restaurant to accommodate the new business. This additional space includes customer seating capacity and kitchen space. Grammy’s also
needs an improved parking area and landscaping to accommodate the increase in business and
improve the aesthetics on its grounds surrounding the facility. Grammy’s location on Harlan St. measures 2000 sq. ft. that currently seats 24. Most of the square footage is devoted to kitchen and storage. Grammy’s plans to expand the seating area by
600 sq. ft. by enclosing the current patio area with a building with two large glass garage-type
doors and 3 large windows for a modern look. These plans and improvements will all be approved under the City’s Architectural and Site Design (ASDM). There will be a stone façade on the outside of the building along with flower boxes all the way around to please the eye. This will create a unique eating space as the doors can be rolled up, weather permitting, to create an
open-air eating space that will seat approximately 40 people and an enclosed eating space. This
addition will allow for more space in the main building to accommodate additional work area which will make it much more efficient to facilitate Grammy’s festival and catering business. The flower boxes around the sign will also be revamped from the current broken wood to a new brick retaining wall.
Prior to the feature on Diners, Drive-ins and Dives, Grammy’s employed 8 full-time employees. With the increased business from the show, Grammy’s has created four more full-time and 3 more part-time jobs. With the expansion Grammy’s plans to create even more new jobs. The upgrades will also bring construction jobs to the city.
The expansion and improvement costs are estimated to be approximately $150,000. The ESTIP funding will be utilized in the facilitation of the expansion. The remaining $80,000 of construction funding will be supplemented by private equity of the business owners, a family member loan, and a bank line of credit. Grammy’s has also been approved for a loan up to
$20,000 from the Wheat Ridge Business District. No other City or Urban Renewal funds will be
utilized for the expansion. The owners anticipate the expansion project to be completed by May 1st. RECOMMENDATIONS: Staff is seeking a consensus on moving forward with drafting an ESTIP Agreement for future
consideration at a regular City Council meeting for the following reasons: The Grammy’s remodel and expansion project will:
• Increase sales and use tax revenue;
• Maintain permanent employment in the City;
• Create construction-related jobs and the economic activity they bring to the surrounding neighborhood;
• Support a Wheat Ridge based small business; and
• Meet the goals of the City’s Comprehensive Plan.
Grammy’s Goodies ESTIP
April 6, 2020
Page 3 MEMO PREPARED/REVIEWED BY: Steve Art, Economic Development Manager
Patrick Goff - City Manager ATTACHMENTS: 1. Grammy’s request letter
2. Grammy’s building expansion illustration
3. Code of Laws ESTIP
ATTACHMENT 1
ATTACHMENT 2
• DIVISION 4. - ENHANCED SALES TAX INCENTIVE PROGRAM
• Sec. 22-73. - Program established.
There is hereby established within the city an enhanced sales tax incentive program.
(Ord. No. 1988-758, § 1(24-1), 5-23-88; Ord. No. 1272, § 1, 12-9-02)
• Sec. 22-74. - Purpose.
The purpose of the enhanced sales tax incentive program created by this division is to encourage the establishment and/or substantial expansion of retail sales tax generating businesses within the city, thereby stimulating the economy of and within the city, thereby providing employment for residents of the city and others, thereby further expanding the goods available for purchase and consumption by residents of the city,
and further increasing the sales taxes collected by the city, which increased sales tax collections will enable the city to provide expanded and improved municipal services to and for the benefit of the residents of the city, while at the same time providing public or public-related improvements at no cost, or at deferred cost, to the city and its taxpayers and residents.
(Ord. No. 1988-758, § 1(24-2), 5-23-88; Ord. No. 1272, § 1, 12-9-02)
• Sec. 22-75. - Definitions.
The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Enhanced sales tax shall mean the amount of sales tax collected by the city over and above a base amount negotiated by, and agreed upon by, the applicant and the city, and which amount is approved by the
city council, which base amount shall never be lower than the amount of sales taxes collected by the city at the property in question in the previous twelve (12) months plus a reasonable and agreed upon percentage of anticipated increase in sales taxes, or, in the case of a newly established business, an amount which represents the good faith determination by the applicant and the city as to the amount of sales taxes which could be generated from the new business without the participation by applicant in the ESTIP created under this division.
ESTIP means the enhanced sales tax incentive program created under this division.
Owner or proprietor shall mean the record owner or operator of an individual business, or, in the case of a shopping center, the owner of the real property upon which more than one (1) business is operated, provided that the owner (whether an individual, corporation, partnership or other entity) is the owner or less or of the individual businesses operated thereon.
(Ord. No. 1988-758, § 1(24-3), 5-23-88; Ord. No. 1272, § 1, 12-9-02)
• Sec. 22-76. - Participation.
Participation in ESTIP shall be based upon approval by the city council exercising its legislative discretion. Any owner or proprietor of a newly established or proposed retail sales tax generating business or
ATTACHMENT 3
location, or the owner or proprietor of an existing retail sales tax generating business or location which wishes to expand substantially, may apply to the city for inclusion within the ESTIP provided that the new or expanded business is reasonably likely, in the council's judgment, to generate enhanced sales taxes of at least ten thousand dollars ($10,000.00) in the first twelve (12) months following the effective date of an agreement.
(Ord. No. 1988-758, § 1(24-4), 5-23-88; Ord. No. 1990-854, § 1, 11-26-90; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
• Sec. 22-77. - Approval of agreement; use of funds generally.
Approval by the city council of an agreement implementing this ESTIP shall entitle the successful applicant to share in enhanced sales taxes derived from applicant's property or business in an amount which shall not in any event exceed the enhanced sales taxes; provided, however, the applicant may use such amounts only for public and/or public-related purposes such as those specified herein and which are expressly approved by the city council at the time of consideration of the application. The time period in which the enhanced sales taxes may be shared shall not commence until all public or public-related improvements are completed, and shall be limited by the city council, in its discretion, to a specified time, or until a specified amount is reached.
(Ord. No. 1988-758, § 1(24-5), 5-23-88; Ord. No. 2002-1240, § 1, 1-28-02; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
• Sec. 22-78. - Eligible uses.
The uses to which the shared enhanced sales taxes may be put by an applicant shall be strictly limited to those which are public or public-related in nature. For the purposes of this division, public or public-related purposes shall mean public improvements, including but not limited to streets, sidewalks, curbs, gutters, pedestrian malls, street lights, drainage facilities, landscaping, decorative structures, facades, statuaries, fountains, identification signs, traffic safety devices, bicycle paths, off-street parking facilities, benches, restrooms, information booths, public meeting facilities, and all necessary, incidental, and appurtenant structures and improvements, together with the relocation and improvement of existing utility lines, and any other improvements of a similar nature which are specifically approved by the city council upon the city council's finding that said improvements are public or public-related improvements, and that such improvements shall enhance the competitive position of the applicant within the Denver metropolitan area
marketplace.
(Ord. No. 1988-758, § 1(24-6), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
• Sec. 22-79. - Increments, sharing of funds.
The base figure for sales taxes shall be divided into twelve (12) monthly increments, which increments are subject to agreement between the parties, and approval by the city council, and which increments shall be reasonably related to the average monthly performance of the business or property in question, or similar businesses in the area (i.e. adjust for seasonal variations). If in any month the agreed upon figure is not meet by the applicant so as to create enhanced sales tax for that month, no funds shall be shared with the applicant for that month, and no increment shall be shared until that deficit, and any other cumulative deficit, has been met, so that at the end of any twelve-month cycle, no funds have been shared in excess of the agreed enhanced sales
taxes.
(Ord. No. 1988-758, § 1(24-7), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
• Sec. 22-80. - Revenues restricted.
It is an overriding consideration and determination of the city council that existing sources of city sales tax revenues shall not be used, impaired, or otherwise affected by this ESTIP. Therefore, it is hereby conclusively determined that only enhanced sales taxes generated by the properties described in an application shall be subject to division under this ESTIP. It shall be the affirmative duty of the sales tax division to collect and hold all such enhanced sales taxes in a separate account apart from the sales taxes generated by and collected from the other sales tax generating uses and businesses within the city and to provide an accounting system which accomplishes the overriding purpose of this section. The city council finds and declares that this
division would not be adopted or implemented but for the provisions of this section.
(Ord. No. 1988-758, § 1(24-8), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
• Sec. 22-81. - Criteria for approval of agreement.
Approval of an ESTIP agreement shall be given by the city council, at a public hearing, held as a portion of a regularly scheduled city council meeting, notice of which has been published in a newspaper of general circulation at least seven (7) days prior to the hearing. The council's determination of the amount of sales tax to be shared shall be based upon the identified need or value the business offers to the community in terms of sales tax generation, investment in the community or increased employment based upon the following criteria:
(1)
The amount of enhanced sales taxes which are reasonably to be anticipated to be derived by the city through the expanded or new retail sales tax generating business;
(2)
The public benefits which are provided by the applicant through public works, public improvements, additional employment for city residents, etc.;
(3)
The amount of expenditures which may be deferred by the city based upon public improvements to be completed by the applicant;
(4)
The conformance of the applicant's property or project with the comprehensive plan and zoning ordinances of the city;
(5)
The agreement required by section 22-82 having been reached.
(Ord. No. 1988-758, § 1(24-10), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
Editor's note— Ord. No. 1553, adopted Aug. 11, 2014, repealed the former § 22-81 and renumbered §§ 22-82—22-84 as §§ 22-81—22-83 as set out herein. The historical notation has been retained with the amended provisions for reference purposes. The former § 22-81 pertained to the capital improvement fund and derived from Ord. No. 1988-758, § 1(24-9), adopted May 23, 1988, and Ord. No. 1272, § 1, adopted Dec. 9, 2002.
• Sec. 22-82. - Agreement required.
(a)
Each agreement submitted to the city shall be subject to approval by the council solely on its own merits. The approved agreement shall be executed by the owner and the city, and shall, at a minimum, contain:
(1)
A list of those public or public-related improvements which justify applicant's approval, and the amount which shall be spent on such improvements;
(2)
The maximum amount of enhanced sales taxes to be shared, and the maximum time during which the agreement shall continue, it being expressly understood that any such agreement shall expire and be of no further force and effect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired);
(3)
A statement that the agreement is a personal agreement which is not transferable and which does
not run with the land;
(4)
That the agreement shall never constitute a debt or obligation of the city within any constitutional
or statutory provision;
(5)
The base amount which is agreed upon by month, and the fact that if, in any month as specified, sales taxes received from the property do not at least equal such amount, that there shall be no
sharing of funds for such month;
(6)
The base amount shall be agreed upon which shall consider the historic level of sales at the
property in question, or a similar property within the area in the event of a new business, and a reasonable allowance for increased sales due to the improvements and upgrades completed as a result of inclusion within this program;
(7)
A provision that any enhanced sales taxes subject to sharing shall be escrowed in the event there is a legal challenge to this enhanced sales tax incentive program or the approval of any application therefor;
(8)
An affirmative statement that the obligations, benefits, and/or provisions of this agreement may not be assigned in whole or in any part without the expressed authorization of the city council, and further that no third party shall be entitled to rely upon or enforce any provision hereof;
(9)
Any other provisions agreed upon by the parties and approved by the city council.
(b)
Approval shall be by motion adopted by a majority of the entire city council.
(Ord. No. 1988-758, § 1(24-11), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
Note— See the editor's note to § 22-81
• Sec. 22-83. - No joint venturer; liability.
The city council has enacted this ESTIP as a joint benefit to the public at large and to private owners for the purposes of providing the city with increased sales tax revenues generated upon and by properties improved as a result of this program; public improvements being completed by private owners through no debt
obligation being incurred on the part of the city, and allowing applicants an opportunity to improve properties
which generate sales activities, which improvements make those properties more competitive in the marketplace and further provide to the applicant additional contingent sources of revenues for upgrading such properties. Notwithstanding any provision hereof, by adopting this program and approving agreements under the same, the city shall never be a joint venturer in any private entity or activity which participates in this ESTIP and the city shall never be liable or responsible for any debt or obligation of any participant in ESTIP.
(Ord. No. 1988-758, § 1(24-12), 5-23-88; Ord. No. 1272, § 1, 12-9-02; Ord. No. 1553 , § 1, 8-11-14)
1
Memorandum
TO: Mayor and City Council
FROM: Kenneth Johnstone, Community Development Director
THROUGH: Patrick Goff, City Manager
DATE: April 6, 2020
SUBJECT: Short-Term Rentals – Term Sheet
PRIOR ACTIONS: City Council began discussions of short-term rentals (STRs) at a study session in March 2019.
That briefing included the following: 1) an overview of what STRs are; 2) a description of how current Code does and does not address them; 3) a summary of the results on the 2018 Citizen Survey, which had questions discussing how STRs might be regulated; and 4) an overview of how other cities are regulating this use. Council consensus at the March 2019 meeting directed
staff to prepare a survey for City Council to take that would gauge policy direction on various
regulatory approaches for STRs.
The survey was provided to City Council in the summer of 2019, and staff compiled the results in early September 2019. Those results were presented at a study session on October 21, 2019.
At that study session, City Council gave specific policy direction and made a consensus for staff
to begin drafting a short-term rental ordinance.
PURPOSE: This memo provides a summary of the provisions that could constitute an ordinance allowing
short-term rentals, with limitations. The ordinance will define terms related to STRs and
establish regulations where there currently are none. It will establish policies for the administration of the STR regulations and the review of applications. It will also revise existing definitions for related uses such as rooming/boarding and hotels to better differentiate between uses. The direction from City Council in October 2019 was to adopt a “be a good neighbor”
approach to the ordinance, and the following proposed regulations reflect that approach.
PROPOSED REGULATIONS: Provided below is a list of proposed regulations based on City Council’s October 2019 consensus as well as subsequent staff discussions, research, and contacts with third-party STR regulators.
The proposed framework includes input from the Planning Division, Building Division, Tax
Division, Police Department, and City Attorney.
Registration: Regulate and tax STRs through the City’s Tax Division in Admin Services
•Require a supplemental form in addition to the City’s standard Business License
application
Item No. 2
• Require STRs to pay City Lodger’s Tax
• Annual registration fee: approximately $150-200 with yearly renewals, but considerations that go into the final cost will include staff time and third-party subscription costs to assist in monitoring and enforcing the presence of STRs in the City.
Allowances and Logistics:
• Allow whole home and partial home (i.e. room rentals) in all residential and agricultural zone districts citywide including Planned Residential Developments (PRDs) o A STR host may operate up to one non-owner occupied dwelling unit STR (i.e.:
whole home rental), in addition to one owner-occupied or long-term renter occupied dwelling unit STR where they may rent rooms but still must live on site (i.e.: partial home rental) o STRs are allowed in legal dwelling units only (additional dwelling units would not be allowed or created by this ordinance)
o Long-term renters are permitted to operate a partial home STR with the written permission of the landlord/property owner
• For commercially-zoned properties (C-1, C-2, MU zones) STRs are: o Allowed, but limited in quantity in mixed-use buildings
o Allowed, but limited in quantity in condominium and apartment buildings
o Limited to no more than 4 units per building, regardless of ownership
If Council is supportive, staff recommends a higher cap with an upper limit based on percentage of total units for buildings over a certain amount of units (for example, 40+)
o Prohibited in industrial zone districts
• STRs must be located within permanent, legal dwelling units. For consistency with existing regulations, temporary structures and buildings without occupiable space are not eligible for STRs, including RVs, sheds, and tents.
• STRs may not be located in rent-stabilized/rent-controlled units, deed restricted affordable housing, income-restricted housing, or age-restricted housing. The applicant will be required to attest to compliance with this provision as part of the registration process.
Compliance and Enforcement:
• Provide a 120-day initial compliance deadline for registration after the effective date of ordinance.
• Fines will be assessed for operating without a license, and operators will be given 30 days
to register and pay fees/fines, which is similar to the existing fine model for Business Licenses ($5/day fine). o Fines may be assessed for failure to remit lodger’s tax (penalty and interest) o Fees double from original amount, then triple, etc. every 30 days
• Application must contain a 24-hour emergency contact information
o Emergency contact must be able to respond to property within one hour. If property owner/manager resides out of metro area, a local emergency contact must be provided in addition to owner/manager contact info. o Updated as needed but required to resubmit contact info at time of yearly renewal
to ensure everything is up-to-date.
• PD/Code Enforcement to issue official violations for noise, trash, illegal parking, crime,
property maintenance, etc. The same standards and thresholds that apply to properties without a STR would apply to properties with a STR.
• License can be revoked (or not renewed) if more than 3 official citations in a year or
failure to renew license within 30 days of deadline.
• Require a self-certification of life safety features in an affidavit with the business license application. This is required prior to initial approval of STR, re-certified at time of yearly renewal, and certifying the following: o Functioning smoke detector, carbon monoxide detector, and fire extinguisher
provided
o Adequate egress from STR as defined by the Building Code o Potential revocation of license if host misrepresents anything on self-certification (granted a hearing similar to the business license process)
• Allow a 30-day compliance deadline for any life safety issues that arise from a citation,
failure to self-certify, etc.
o Inspection required upon violation related to building life safety issues or a series of sustained complaints from tenants
The City will incur hard costs for inspections conducted by the City’s
contract building inspectors. Currently the City pays $95 per business
license building inspection; however, that fee may be higher if a STR inspection as a result of violations or complaints necessitates additional building inspector staff time. This would also increase the overall annual registration fee discussed in the Registration section.
Additional Requirements for STRs:
• Parking: If no on-street parking is available, one additional on-site space per STR must be provided if the property does not already meet the parking requirement for that zone district. The application will require the host to demonstrate or certify the availability of
parking.
• Posting Requirement: City’s license and owner/manager’s 24-hour phone number must be visibly posted in STR at entrance; online listing must include Wheat Ridge STR license number
• Policies to include in “host guidebook” and codify in Chapter 11 (see more info in
Implementation section): o 21+ age restriction for primary STR renter o May not list as a party house or “420 friendly”
o Dorm-style rentals prohibited (may not rent out single beds in a common room)
o Safety requirements
• Cap or buffer: o Staff does not recommend a buffer requirement between STRs or a cap on the
number of STRs based on block or Council District due the extensive resources
required to manage buffers and track STR locations, the issue of dealing with existing STRs and which would be allowed (i.e. how would a lottery be managed), and the changing nature of blocks/districts (Census, new construction) o The overall limiting factor on the number of STRs in Wheat Ridge is twofold:
The maximum of one whole house STR per host, plus one partial house
owner-occupied STR prevents people or corporations from owning
multiple residential properties to operate STRs
Market factors limit the overall saturation of STRs in Wheat Ridge versus other more tourist-oriented markets (Denver, Golden, and ski resort towns) o If Council wishes to pursue a cap or limit on STRs, staff recommends a cap based
on a percentage of the overall number of dwelling units in the City, possibly 1.5
to 3 percent of dwelling units. For a point of reference, there are approximately 15,000 residential dwelling units in the City and approximately 160 STRs. Other Code Changes:
• The proposed regulations will primarily be located in Chapter 11 of the Code (Licenses, Permits And Miscellaneous Business Regulations), with some modifications to the zoning code in Chapter 26 (updates to definitions and use charts)
• Define “short-term rental” in Section 26-123. Proposed definition:
Short-term rental. A dwelling unit or portion thereof used for lodging accommodations to transients for a period of less than thirty (30) consecutive days.
• Add STRs to permitted primary and accessory uses for residential, agricultural, commercial, and mixed-use zone districts (Sec. 26-204 and 26-1111)
• Additional revisions:
o Revise “Hotel” definition (26-123) to remove the minimum number of rooms, currently 16. The reasons for this are to: greater distinguish hotels from STRs and Bed & Breakfasts, eliminate an arbitrary minimum number of rooms, and to
eliminate a void between lodging categories, opening the possibility for smaller boutique hotel uses in commercial/mixed-use areas.
o Refine rooming/boarding definition to be 30+ days, differentiating between STRs (which would require a license) and long-term rentals
Implementation:
• A staff group has been meeting to discuss the regulations, and staff have also met with a third party that assists cities in regulating STRs (including Denver). If Council’s direction is to proceed with an ordinance, this staff group will continue to meet to coordinate the logistics of implementation.
• This proposed ordinance assumes reliance on a third party for some aspects of regulation, and would require a budget supplemental. The intent of the STR application fee will be to offset the costs of administration, enforcement, and third party expenses.
• Staff will develop a “host guidebook” to explain the expectations and code requirements
to potential and current STR hosts. The guide may will include some policies and procedures which are more appropriately expressed in administrative guidelines than in code.
Next Steps:
The purpose of the April 6 study session is to seek Council input on these proposed provisions. Staff will first seek a consensus from council if short-term rentals should be allowed and if they should be regulated. If yes, staff will ask for consensus on the regulatory framework presented in this memo.
Memorandum
TO: Mayor and City Council
THROUGH: Patrick Goff, City Manager
FROM: Steve Art, Economic Development Manager
DATE: April 6, 2020
SUBJECT: Wheat Ridge Small Business Sustainability Program
ISSUE: The impact of COVID-19 on American businesses has increased dramatically over the last four weeks as state and local governments order mandatory shut-downs and ‘shelter in place’ orders,
further complicating operations for businesses already impacted by COVID-19. Staff has been
given the directive, via Resolution 19-2020, to develop a business recovery program to aid Wheat Ridge small businesses during this time.
PREVIOUS ACTION: At its March 30, 2020 meeting, City Council adopted Resolution 19-2020 amending the
fiscal year 2020 General Fund budget to approve an appropriation of $250,000 and authorized and directed the City Manager to implement a small business recovery program for eligible businesses within the City and to develop eligibility criteria and procedures for the program.
FINANCIAL IMPACT: A supplemental budget appropriation from General Fund undesignated reserves was approved for this $250,000 appropriation. Total General Fund reserves in 2020 are projected at $9,940,078 based on budgeted expenditures and projected revenues in 2020. Of this amount, $7,400,048, or
18.8% of General Fund expenditures, are considered unrestricted and $1,183,057 is restricted for
emergencies. The City’s General Fund Reserve Policy requires that City Council maintain a minimum 17% undesignated reserve balance.
Potential General Fund revenue losses in 2020 could range between 12% and 32% or $4.5
million and $12.0 million. We truly do not know how long this COVID-19 event will last as we
are in the early stages of understanding the potential impacts. Staff developed three scenarios to model the potential impacts on the City’s finances. Scenario A, the best case, would require that the City reduce General Fund expenditures in 2020 by approximately $4.5 million to maintain a 17% undesignated reserve balance. Scenario C, the worst case, would require that the City
reduce General Fund expenditures in 2020 by approximately $12.0 million to maintain a 17%
undesignated reserve balance.
To help mitigate these revenue losses, staff has identified approximately $5.4 million in potential budget cuts.
Item No. 3
Business Sustainability Program
April 6, 2020 Page 2
BACKGROUND: COVID-19 is a respiratory illness caused by a novel coronavirus, and like other respiratory illnesses, is transmitted through person-to-person contact or by contact with surfaces contaminated with the virus. Persons infected with COVID-19 may become symptomatic anywhere from two to fourteen days after exposure. Symptoms include fever, cough or shortness
of breath or difficulty breathing. Individuals with serious chronic health conditions and older adults are most at risk for becoming very ill with this disease. As of April 2, 2020, there are 3,342 positive cases of COVID-19 and 80 deaths in Colorado and 356 positive cases and 7 deaths in Jefferson County.
The Centers for Disease Control and Prevention (CDC) in the United States Department of Health and Human Services (HHS) has recommended community mitigation strategies such as social distancing measures in order to protect the public’s health. One area of concern for possible transmission of disease is when large numbers of people gather. The CDC has issued guidance concerning the factors to consider when determining whether to hold an event or
gathering, and the White House has recommended limiting mass gatherings to no more than (10) persons. The CDC defines a mass gathering as “a planned or spontaneous event with a large number of people in attendance that could strain the planning and response resources of the community hosting the event, such as a concert, festival, conference, or sporting event.”
Additional community mitigation strategies implemented at the local level include, but are not limited to, the following:
• On March 16, 2020, the Colorado Department of Public Health and Environment issued
Public Health Order 20-22 which closed bars, restaurants, theaters, gymnasiums and casinos through April 30, 2020.
• On March 22, 2020, Governor Polis issued an Executive Order D2020-013 ordering non-
critical workplaces to reduce their in-person workforce by 50% and to implement tele-
work capabilities to the greatest extent possible.
• On March 25, 2020, Jefferson County Public Health issued Public Health Order 20-002
requiring all individuals in Jefferson County to stay at home except for certain essential
activities and work to provide essential business and government services or perform essential public infrastructure construction, including housing, as further defined in the public health order. (Rescinded on March 26; adopted state stay in place order below)
• On March 25, 2020, Governor Polis issued Executive Order D2020-17 ordering
Coloradans to stay in place due to the presence of coronavirus disease 2019 (COVID-19) in the state. The Order was effective 6:00 a.m. on March 26th and expires at 11:59 p.m. on April 11th, unless extended.
BUSINESS SUSTAINABILITY PROGRAM DETAILS At Council’s direction staff has developed eligibility criteria and procedures for a business recovery program for immediate implementation. The program will be administered in the City Manager’s Office of Economic Development and will provide up to $250,000 in grants to Wheat Ridge businesses impacted by COVID-19. Applications will be reviewed and approved under the
Business Sustainability Program
April 6, 2020 Page 3
guidance of a committee comprised of staff, elected officials and business community members. Disbursement of funds will be facilitated through the City’s Finance Division.
Following are guidelines and procedures for the Wheat Ridge COVID-19 Business Stabilization Program: Eligibility
• For-profit, independently owned businesses with a storefront in Wheat Ridge, franchises not eligible
• Up to 25 full-time equivalent employees
• Current City of Wheat Ridge Business License and in operation as of January 1, 2020
• Have a demonstrated hardship due to COVID-19, such as a loss in revenue
• Funds shall be used for operational needs such as business lease/mortgage payments, payroll, materials, supplies and services
• One-time grant per business
• Be in good standing with the City of Wheat Ridge as of February 1, 2020 (e.g., no City
liens or judgments, etc.)
• Preference given to businesses who have sought assistance through other federal or state programs Approval Process
• Applications will be reviewed by a City Manager appointed committee which will consist of elected officials, staff, members of the Wheat Ridge Business Association, Wheat Ridge Business District, Localworks, Wheat Ridge Chamber of Commerce, and/or other specified community stakeholders.
• Funding decision will be made within 10 days of receiving a completed
application. Funding anticipated to be released within 1 week of approval.
Application Submittal
• Applications and documentation will be required and submitted upon approval of the
Wheat Ridge COVID-19 Business Stabilization Program
• Applications must be complete and submitted to the City’s Economic Development Division by electronic mail only via a web portal.
• The following required documentation must be submitted with the completed grant
application: 1. Current City of Wheat Ridge Business License 2. W-9 MEMO PREPARED/REVIEWED BY: Steve Art, Economic Development Manager Patrick Goff, City Manager ATTACHMENTS: 1. Draft Grant Application
2. Resolution 19-2020
The following information must be submitted with the City of Wheat Ridge Business Stabilization Program
grant application to ensure and verify all the necessary information is included, select all boxes that apply to
your business.
ALL APPLICATIONS MUST INCLUDE THE FOLLOWING ITEMS AT TIME OF SUBMITTAL:
Wheat Ridge Stabilization Program Application Current
City of Wheat Ridge Business License
W-9
If selected, the grant applicant may be required to provide additional documentation.
Type of Business:
Restaurant
Retail
Service with a storefront
Verification of Eligibility:
1 to 25 full-time equivalent employees
For-profit, independently owned local business
Physical establishment within the City of Wheat Ridge
Business in operation as of January 1, 2020
Have a verifiable hardship directly due to COVID-19
Funds to be used for operational needs such as lease/mortgage payments, payroll, materials, supplies
and services
Business is in good standing with the City of Wheat Ridge as of February 1st, 2020 (e.g., no liens or
judgments, etc.)
Certification:
I CERTIFY that all statements in this application are true and complete. I agree and understand that
any misstatements or omissions of material facts herein is grounds for immediate payback in full of any
funds loaned through this program, and that the City of Wheat Ridge may use any means necessary
to collect on this debt.
Wheat Ridge Small
Business Stabilization Program Application
Draft 04.01.2020
ATTACHMENT 1
Contact Information
Primary Contact Name
Primary Contact Email
Primary Contact Phone Number
Business Information
Legal Business Name
Business Address
City State
Zip Code
Primary Business Owner Name
Primary Business Address
City State
Zip Code
Please list the names and share of ownership of all other business owners:
Full Name of Owner Ownership Share
Type of Business Entity Primary Business Activity
Corporation (LLC, C-corp, S-corp) Retail
Partnership (LLP, joint venture) Restaurant
Individual/Sole Proprietorship Service
Franchise
Other
Please describe your business. Enter up to 50 words. Include what the business produces and how it generates revenue.
Wheat Ridge Small Business
Stabilization Program Application
Draft 04.01.2020
Normal Business Hours Days of the week Hours of operation
Number of Full-Time Employees: Number of Part-Time Employees:
How many years has this establishment been in business?
Impact COVID-19
Please describe the business hardship that has resulted from COVID-19. Enter up to 150 words. Please address impacts on revenues,
number of employees, modified business hours, etc. (verification may be required).
When did the hardship begin? Day: Month: Year:
What do you envision the impacts might be over the course of the next 30 days?
Financial Information
Federal Tax ID (EIN) Business License Number
Total 2019 Business Revenue $ Weekly Payroll $
Amount of Monthly Rent or Mortgage $
Does the business or owner have any outstanding liens or judgments? Yes No
Is the business or business owner currently the subject of any litigation? Yes No
Grant Information
Requested Grant Amount Up To:
Supplemental Information Please attach the following required documentation. 1. Current City of Wheat Ridge Business License 2. W-9
If selected to receive a loan, applicant may be required to provide additional documentation including most recent tax returns,
941s, etc.
Disclosure Information
The City of Wheat Ridge understands and supports the public’s right to access public records. Information submitted through this application is a public record and is subject to disclosure under the Colorado Public Records Act (CORA). In addition, the City of Wheat Ridge may be required to disclose information by subpoena, civil-investigative demand, or court-ordered or court-authorized discovery.
** By submitting this application, applicant certifies that all information is true and correct. Applicant acknowledges that they may be required to provide additional documentation including most recent tax returns, 941s, credit report, lease agreement, etc.
I agree that any information submitted through this application may be subject to disclosure under the Colorado Public Records
Act or through another legal process
Signature: Date:
Submit
Applications may only be submitted electronically according to instructions at ci.wheatridge.co.us/BusinessHelp.
Call (720) 454-9040 with questions.Draft 04.01.2020
CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 19
Series of 2020
TITLE: A RESOLUTION AMENDING THE FISCAL YEAR 2020 GENERAL FUND BUDGET TO REFLECT THE APPROVAL OF A SUPPLEMENTAL BUDGET APPROPRIATION IN THE
AMOUNT OF $250,000 FOR THE PURPOSE OF PROVIDING A BUSINESS RECOVERY PROGRAM AND DIRECTING THE CITY MANAGER TO IMPLEMENT SAID PROGRAM
WHEREAS, the Wheat Ridge Charter requires that amendments to the budget be effected by the City Council adopting a resolution; and
WHEREAS, Wheat Ridge City Council acknowledges the hardship imposed by the
COVID-19 emergency; and
WHEREAS, the Council recognizes the importance and significance of small businesses to the health and vitality of Wheat Ridge; and
WHEREAS, the Council finds that assistance is necessary to support businesses
during this time; and WHEREAS, the Council wishes to establish and fund a business recovery program for eligible businesses within the City; and
WHEREAS, insufficient appropriations in the 2020 Budget exist to cover this program. NOW, THEREFORE, BE IT RESOLVED by the Wheat Ridge City Council, that:
Section 1. A transfer of $250,000 is hereby approved from the General Fund undesignated reserves to account 01-105-700-719 and the 2020 revenues are amended accordingly.
Section 2. The City Manager is authorized and directed to implement a small
business recovery program for eligible businesses within the City, and to develop eligibility criteria and procedures for the same. DONE AND RESOLVED this 30th day of March, 2020.
Bud Starker, Mayor ATTEST:
Steve Kirkpatrick, City Clerk
ATTACHMENT 2