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Niwot LID debates small business relief

On Tuesday, May 5, the Niwot LID advisory committee gathered via videoconference for its first monthly meeting since March. Unsurprisingly, the coronavirus pandemic and its ongoing economic impact on Niwot drove the discussion.

Summer Events

Noting a paucity of funding requests on the board's official May agenda, chair Laura Skaggs opened the meeting by asking LID members Bruce Warren and Eric Bergeson (presidents of the Niwot Cultural Arts Association and Niwot Business Association, respectively), to update the committee on the town's annual slate of summer concerts, parades, and art walks.

First up was Warren, who reported that the NCAA's premier event, the Rock & Rails weekly concert series, is in a "holding pattern." Now in its 15th year, the 2020 series was originally scheduled to kick off in Niwot's Whistle Stop Park on June 4 and run for 13 weeks through August 27. Typically, the NCAA requests and is granted $10,000 to help offset costs related to promoting Rock & Rails.

"It appears that we won't be able to have concerts in June-July would seem to be the earliest possible date," Warren said. "But it could be August, or it could be that we don't have a concert series....We thought it was appropriate to postpone consideration of our funding request, because if the concert series is shortened, it will probably reduce our funding request accordingly."

The NCAA has also postponed its monthly First Friday Art Walks until further notice, as well as an upcoming Family Art Walk. Warren left open the possibility that funding requests for these events could be considered in future months, depending on the prevailing public health orders, but said these would likely be substantially smaller than expected.

"We're anticipating, as I'm sure you all are, that revenues from the one-percent sales tax are going to decline sharply, starting with March...and probably for the foreseeable future. We want to be respectful of the other funding requests, and take those into consideration when we know more about what we're going to do."

Bergeson reported that the NBA, which co-manages Rock & Rails with the NCAA, is also planning to scale back its upcoming activities in light of the potential revenue concerns Warren mentioned, as well as the uncertainty regarding the pandemic. But two projects still in the works for the summer are planting flowers for Cottonwood Square and 2nd Avenue businesses, and a coat of paint for the caboose, though a more extensive makeover was originally proposed.

"We're taking an "assume the worst" view from a budget standpoint," he said. "We want to be optimistic, of course, but from a funding standpoint, we want to just assume that things are going to get pushed out for quite a while."

Another event still on the docket, at least for now, is the town's annual 4th of July celebration. Appearing for the Niwot Community Association with the only funding request for the month, Kathy Koehler asked for $1,970 to go towards advertising and other promotional materials for the day-long event, which typically kicks off with a pancake breakfast at Niwot Market, followed by a patriotic parade down 2nd Avenue.

Koehler acknowledged that the festivities will likely be postponed until a later date, but said the NCA still wants to have all of the funding, permitting, and planning paperwork filed on time. However, they don't plan to incur any expenses until the date for the event is firm. The request was approved unanimously.

Treasurer's Report

LID Treasurer Bruce Rabeler was unable to attend the May meeting, so county liaison Mark Ruzzin delivered his monthly report. As of April 30, the board has approved $91,909.61 in funding requests, leaving $57,403.39 in its 2020 budget of $149,313. On the revenue side, collections continued to surge in January, after breaking the monthly record in December 2019. The district earned $18,802 in the first month of 2020, up more than 50% from the same period the year before ($12,492). In February, LID revenues were a more moderate $14,307, up 9% from 2019, but down from 2018 ($16,218).

"You're still ahead year to date after two months," Ruzzin said. "Obviously, it's going to be in March when you start to feel the effects of the pandemic."

But it could be several months before the extent of those effects are known, as the State of Colorado extended its monthly sales tax filing deadlines in light of the mandatory business closures during March and April. According to Ruzzin, it is likely to be late summer before spring revenue reports are available, and subsequent reports are also likely to be delayed. "Unfortunately, it's going to handicap planning a little bit, but there's obviously not anything we can do about that."

Small Business Emergency Relief

Ruzzin then introduced Boulder County policy analyst Summer Laws to discuss the launch of a $200,000 emergency fund to provide grants to small businesses located in the unincorporated parts of the county, including Niwot. The fund was approved by the Commissioners on May 5, and opened to applications on May 8. County businesses with fewer than 50 employees are eligible to apply, and could receive up to $7,500 in "gap funding" to help support operations in the short term. Laws said preference will be given to those companies "most critical" in their communities. (See page 3 for more information about this fund).

Laws noted similar initiatives in other Boulder County communities, such as Nederland, and offered to assist the LID board if it were to recommend launching a Niwot-based small business relief program, an idea first proffered by Skaggs.

"I sent Mark [Ruzzin] an email a while ago, saying is this a time we take a look at some of our LID funds and see if we can feed some back to the community that has provided these funds now that they are in need," Skaggs said. "It's been a wonderful fund to have, and we have used it very effectively and creatively in town, but right now, the businesses themselves are hurting, and our funds are small, but is there at least something we can do as a gesture to show that we understand, and we're in this together."

Skaggs opened the floor to suggestions for such a program, and board members chimed in with several, including free consulting and marketing services for local businesses, especially those who need assistance with applying for emergency grants or loans. Direct cash grants were also a popular suggestion, and probably the most efficient way to get help to those businesses most in need, according to Bergeson.

"It would certainly be a very powerful way to prop things up in Niwot," he said. "This isn't about sustainability, so much, it's about getting through a certain period. My biggest concern right now is that there are a number of businesses who just might not make it through this two or three-month period, and we need to pull them out."

Discussion ensued over the many logistical hurdles that administering such grants would entail, such as how to identify such businesses and how to fairly distribute the funds. There is also a question about the legality of such a program.

"We are trying to get clarity from the attorneys about whether or not you can actually use LID funds and do a grant program with direct payments to businesses," Ruzzin said. "Some of this is caught up in state statutes, and what sales tax-funded Local Improvement Districts are permitted to spend their money on."

The group considered more details for another hour, but eventually decided to discuss and resolve the issue of a Niwot-based relief fund at the next monthly meeting, when more data is available.

New Business

Ruzzin announced an upcoming county transportation study that will help inform the upcoming bus rapid transit (BRT) program connecting Longmont and Boulder along State Highway 119 (the "Diagonal").

"The study is going to take a look at enhancing the 'first and final mile' connections to transit on the Diagonal Highway," he said.

The county is seeking a Niwot resident to participate in the study. For more information, contact Ruzzin at [email protected].

Old Business

Warren provided a brief update on the proposal to build a public parking lot in Niwot. Several residents along Murray Street have requested a sidewalk on the east side of the facility, which the NBA has agreed to add to its plans if there is support from the community. The group is also working with new owners of the Excel Electric building to improve access to downtown, and has applied for grant funding to build an electric vehicle charging station.

The LID will meet next on Tuesday, June 2 at 7 p.m.

 

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