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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