CC 2020-04-14_11c Supplemental No. 1
MEMORANDUM
TO: CITY COUNCIL
FROM: MICHAEL STEVENS, ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: SUPPLEMENTAL INFORMATION
AGENDA ITEM 11.c. – APRIL 14 , 2020 CITY COUNCIL MEETING
CONSIDERATION OF A RESOLUTION AUTHORIZING WAIVER OF
LATE PAYMENT PENALTIES AND INTEREST FOR TRANSIENT
OCCUPANCY TAX (TOT)
DATE: APRIL 14, 2020
Attached is correspondence received today.
cc: City Manager
City Attorney
City Clerk
City Website – Agenda Center
April 14, 2020
To: Arroyo Grande City Council
From: Troi Hoffman
Western Inns Hotel Management
For the Best Western Casa Grande Inn
850 Oak Park Blvd
Arroyo Grande, CA 93420
Re: TOT Deferral
As most of you know, this COVID-19 Crisis has been devastating to the hotel industry in all of
California. At the beginning of March, the hotels in Arroyo Grande had to lay off more than 75%
of our employees. Our regular business travelers, who we see on a weekly basis, have been
furloughed or asked to stay at home, and our usual Spring Break traffic, which hotels rely on to
recoup winter downturn, has been completely diminished. During a regular year, we see a 65%
occupancy during the work week, today we are lucky to see 15%. Weekends, which are
commonly at 95%, currently do not materialize any travelers, due to the “mandatory stay at
home” order. These numbers will inevitably close our doors if we do not get some relief. One
hotel has already decided to close.
This letter is a request to delay the TOT payments for March, April and May without interest or
penalties, for the hotel industry in Arroyo Grande to August 31, 2020. We are hoping the City of
Arroyo Grande can follow the trend of most other California cities, and consider giving us a
chance to get our employees back to work, pay our general utilities, and recover from this crisis.
We are not asking for forgiveness of our TOT. We are asking for a delay in order to start our
business moving towards economic recovery.
The City Council has the ability to set the standard for a community in desperate need of
assistance. Please help your hoteliers and our family of employees get back to business as
quickly as possible.
Thank you for your consideration.
Troi Hoffman
Western Inns