CC 2020-04-14_11c Supplemental No. 2MEMORANDUM
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 additional correspondence received today.
cc: City Manager
City Attorney
City Clerk
City Website – Agenda Center
SRK HOTELS, INC.
611 EL CAMINO REAL
ARROYO GRANDE, CA 93420
April 14, 2020
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Dear City Council Members and Jim Bergman,
I operate the Agrarian Hotel and Aloha Inn. Prior to the COVID-19 pandemic, which has had a
devastating effect on my hotels, my associates, my family and my community, we employed 20
citizens and taxpayers who you have a duty and responsibility to represent and to ensure their
best interests are protected – to include their employment opportunities.
My hotels have always supported this community as a driver of revenue, employment and local
business activity. Additionally, regarding taxes, I have always paid them as a responsible
businessperson. I recognize the need to support our local commerce, infrastructure and my
fellow citizens.
Noting the terrible impact COVID-19 has had on the hospitality industry and my hotels, I am
respectfully requesting that you waive the remittance of Transient Occupancy Tax and grant
those funds to my hotel for the period of six months. Waiving this tax will help ensure the long-
term health and sustainability of the area’s diverse lodging community. It will allow our hotels
to maintain operations, even if at a reduce capacity, that will enable us to employ associates.
Their employment is a benefit to the community in that it reduces the number of those seeking
unemployment benefits – allowing others to take advantage of a system already stressed by the
ever-increasing number of unemployed who are in desperate need of financial assistance. Just as
importantly, doing the right thing and waiving this tax during the crisis will allow our associates
to continue to work while holding their heads high with dignity and honor as we continue to fight
this terrible scourge together.
A person’s self-worth and dignity are worthy of your attention and action.
My hotels wants to do its part in supporting the fight against this terrible virus by continuing to
do business in the community. But your hoteliers need your help.
My request is simple, please waive the remittance of Transient Occupancy and grant those funds
to my hotels for the period of six months. It is the right thing to do for the greater good of our
community and those who need your help – your citizens who want to work and support our
community.
As a hotelier who wants to be a part of our business community for years to come, I am available
if you have any questions at the following telephone number and email address:
Telephone: (805) 265-5541
Email Address: mike@agrarianhotel.com
Thank you for considering this humble request. It is the right thing to do for the greater good.
Sincerely,
Mike Panchal